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GST

Complete Guide on How to File GST Return Online in India

GST stands for Goods and Services Tax. It is an indirect tax. It came into effect on July 1st, 2017, for all registered firms in India. If your firm is registered under the GST Act, you must file your returns online. The amount of filing may vary based on whether it is a monthly, quarterly, or annual activity. The Indian Government decides that. The approved return must be filed in several steps. Also, you must correctly provide the required documents, or your application will be rejected. Before you start completing GST returns, you should know what it is, how many various kinds of GST returns exist when they are due, and so on. [B-01] What is a GST Return? A GST return document or form holds data about your income and costs. It is filed with the tax authorities by every person who has a GSTIN. Tax authorities primarily use such returns to decide net tax bills. A registered trader needs to file returns that broadly include: Sales Purchase Input Tax Credit: GST paid on assets Output GST: on sales If you do not want to file taxes on your own for any reason, you can contact market consultants and specialists. Why is a GST Return Obliged? All registered dealers must file GST returns. Under the GST regime, even passive firms must file the GST return. Every GST Return form is created to ensure that all events among buyers and sellers are made known. GST returns are needed by law for all businesses, large and small. These returns are filed to pay taxes. They also provide information to the government about the firm’s bills. It is also vital to keep the GST status updated. Who Can File a GST Return? If you fall into the below-given areas, you can file returns in India: All firms that have a GST registration are subject to taxation under the Goods and Services Act 2017. These firms need to file these returns as per the nature of their tasks Every firm with a yearly revenue of more than ₹40 lakh Firms in the hilly and North-Eastern states with an income of more than ₹20 lakh An entity must submit a NIL return to the agency if there have been no transactions for a specific time A company must submit a monthly return if its annual revenue exceeds ₹1.5 crore A person subject to the GST regime must submit annual and 3-month returns Documents Needed to File a GST Return To avoid getting filed for a GST return denied, you must provide the given documents to the legal authorities: Type of Invoice Person GSTIN Place of Supply GST Rate Invoice Number Taxable Value Invoices List (B2B Services and B2C Services) The amount of SGST, CGST, IGST, and GST Cess applies HSN-wise summary details Combined intra-state & inter-state sales Summary of required documents Debit and credit notes How to File a GST Return Online? Every seller must file a GST return with the Goods and Services Tax department each year. As per the recent GST regime, tax returns are filed online and digitally. You can file returns online using the GSTN (Goods and Service Tax Network) app. It will fill out all your information directly on each GSTR form. Given below are the steps to file a GST Return online: Step 1: Go to the GST Portal To file Goods and Services Tax returns online, go to the GST official website. The website is www.gst.gov.in. Then, log in with your username and password. Step 2: Issue of GSTIN Second, you will be given a 15-digit id number. It centres on the state code and PAN number. Step 3: Send Invoices Send invoices to the GST portal or whatever app you use. Each invoice will be given an invoice reference number. Step 4: Select the Return Filing Time Tap on the ‘Return Dashboard’. Select the return filing time and fiscal year. Step 5: Get Ready to File the GST Return Online Select the returns to file. Then, click ‘Prepare Online.’ Check to see if your docs are up to date and even to the point. Check them all. Be set to file the returns online. Step 6: Fill in the Correct Amount Fill in the correct amount and any late fees, if any. Step 7: Save all the Details When you have done all the above steps, click the ‘Save’ button. You will see a success message on your screen as a result of doing so. Step 8: Send the Data After saving all the details, click the ‘Submit’ button. Step 9: Get Rid of Your Debts Go to the ‘Payment of tax’ block. Then, check your balance to see your credit and cash balance. It is vital to be aware of such data before paying taxes. To clear the debts, specify how much credit you want to use from your credit balance. Then, select ‘Offset liability’ to begin the payment. When the proof screen appears, click ‘OK.’ Step 10: Submit the Return to Legal Authority Finally, check the box next to the declaration. Then, from the selection list, select an authorised signatory. Later, select ‘File form with DSC’. Then, select the ‘Proceed’ option. Pay your GST in the next step. Fines for Late Filing GST Returns If you don’t file the GST Tax returns on time, you will be charged a late fee as an interest. It will result in fines of ₹100 per day for each SGST and CGST. So, you will have to pay ₹100 for the late fee. Even though there is a ₹5,000 limit on late fees. For IGST, there is no late fee. Also, an 18% annual interest rate will be applied to the tax rate for that time. Interest is charged from the day after the return is filed until the date of payment. [B-02] Conclusion Filing GST returns has become easier to access now. People can file many returns online. The method may be greatly eased after knowing which GST return forms you must file and how to do a GST check. To avoid delays, you should file GST returns right away! Visit the Piramal Finance website to learn more about filing a GST return online. This online platform is what you need to learn everything about relevant developments in the world of finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on their website!
08-11-2023
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Cards

Step By Step Guide on How to Close a Credit Card Account

Possessing a credit card has become a necessity instead of a luxury in modern times. They offer you the option of making a purchase and paying later. Moreover, you also earn reward points and cashback on various transactions. As a result, having multiple credit cards has become quite common. Many credit card users like to have multiple cards to maximize the benefits of their purchases, online and offline. If you also have several credit cards but have not been using them for over a year, closing unused credit card accounts is ideal. You need to know which credit card account you must close and how. Read on to know all about closing a credit card. [B-01] Closing a Credit Card: Important Points Do you have a credit card or multiple credit cards you do not use? Are you thinking of closing your credit card(s)? Then there are some points you must consider before moving ahead: – Choose the credit cards with maximum annual fees and interest charges Compare the benefits of closing the credit card or opting for a balance transfer Do not close a credit card with a long credit history, as this can affect your credit score Follow the procedure stated by the credit card issuer properly as the procedure for ‘how to close SBI credit card’ would differ from ‘how to close RBL credit card’ Closing a Credit Card: Steps to Follow Are you looking for steps to close a credit card? Here are some common steps you must follow to close a credit card: – Settle The Dues Your credit card issuer needs you to clear all the dues before closing the account. So, make sure you pay all the dues against your credit card before applying for closure. If you cannot clear all the dues, transfer them to the credit card, and you will continue to use them. Moreover, ensure you use all your reward points before closing a credit card, as reward points will be forfeited on closing a credit card account. After completing this step, you need to contact the customer care team for credit card closure. Contact the Customer Care You must contact the customer care team to close the credit card. You can get in touch with them through a phone call, email, mobile app, or through post. You should use the phone call option as it will deliver quicker results. During the call, the customer care team will ask you the reason behind this step. You are at liberty to state the reason you want, and they might also offer you some benefits for not closing the card. If you still decide to close the credit card, they will ask you to pay any outstanding amount first. Thereafter, they will process the request and share a reference number with you. Note down this reference number carefully. During this process, keep your credit card details handy for verification purposes. The customer care team will also tell you the expected time frame for this process. Get a confirmation To avoid any issues later on, insist on a confirmation message or email. You will most likely receive an SMS on your registered number with the reference number for the account closure request. But it is advisable to ask for confirmation by email. You can write an email to the customer care team from your official mail id. Include all details related to the call for cancellation and your reference number. You shall receive a reply from the credit card issuer in a few days detailing the status update for the account closing request. Take a printout of this mail for reference and save it as ‘important’ in your correspondence. The credit card issuer will contact you if there are some issues. You must provide clarification or submit the documents immediately. This is important to speed up the procedure for closing the credit card account quickly. Ask for an NOC After you have paid the dues and applied to close the credit card account, ask the bank for an NOC or NDC. The credit card issuer will issue a ‘No Objection Certificate’ or a ‘No Dues Certificate’. Check this document carefully and ensure every detail is included correctly. This certificate is essential in case of any issues in the future. You must store this document very carefully. It is advisable to take a printout and put it in a file. Also, save the PDF on your phone or computer for ready reference in the future. Check your credit report After a few months, make sure that you check your credit report for this credit card account closure. You must check if the credit card issuer has updated the credit card status as closed. You need to ensure that it is mentioned in the credit report that the credit card has been closed on your request and no dues are outstanding. If not, it will seem that the bank has closed the credit card, and it will reflect poorly on your credit history. If there are any issues, use the NOC or NDC to correct the error as soon as possible. As soon as the credit card is closed, it will likely impact your credit score positively. [B-02] Closing a credit card properly is extremely important for your credit score. Any discrepancy at your end can severely affect your credit rating in the future. Hence, do not go for any shortcuts to complete this process. Follow the specified process completely to avoid any hassles in the future. In case of any doubt, consult a financial expert like Piramal Finance and get easy and customised personal loan solutions.
08-11-2023
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GST

 All You Need to Know About GST Along With Its Types

It has been half a decade now since GST was formally introduced. Initially, it created quite an uproar in the Indian economy. Everyone was clueless about it. But that was because it broke an age-old tradition. There were numerous state taxes earlier because of varying state legislation. The simple meaning of GST was to introduce one single indirect tax for the whole nation. This was an alien concept for the country. Now the nation is thriving on the One Country – One Tax model. It is a globally accepted model that already exists in 160 countries around the world. Businesses now appreciate the simplicity that it brought to the economy. [B-01] What is the meaning of GST? GST stands for Goods and Service Tax. Its official introduction was on 1st July 2017. GST is primarily an indirect tax. Just like excise duty. This means that the government doesn’t levy it directly. The business owner who makes a sale of goods or services does. It brings together 17 taxes at various levels under one umbrella. GST brings India at par with the global economy with unified tax standards. Inside the country, too, the tax standards are uniform. As of now, India has five slabs for GST collection. They are 0%, 5%, 12%, 18%, and 28%. Some goods, like alcohol, petroleum, etc., are exempt from GST. Salient Features of GST Multi-Staged: GST is levied at every stage of the supply chain. Right from the procurement of raw materials to retail sales. Destination Based: The place of final consumption levies the tax. Suppose the goods were manufactured in Bihar. They were finally sold in the state of West Bengal. The tax revenue will go to the state of West Bengal. This structure makes the nature of GST destination based. The benefits of GST The initial reaction wasn’t positive, because people were unable to understand the dynamics of this new form of tax. But all critics now heap praise on this major tax reform. There is no doubt that GST simplifies the tax structure. Let us look at the benefits that GST has to offer. It cuts down on the tax cascading effect. This brings down the net cost of goods. Thanks to the Digital India Campaign, you can register for GST with ease. The online process of tax filing is much simpler. So, there is ease of compliance as well. Revenue collection also becomes more efficient. It improves the efficiency of the supply chain w.r.t logistics. This leads to an increase in demand for Indian products in the global market. Even unorganized sectors can be regulated. The introduction of GST was a monumental event. Handling several indirect taxes was cumbersome. Hence, it had a massive positive impact on the Indian economy. Who needs to register for GST? The GST Act, 2017 mentions the businesses that fall under its purview. The following businesses have to register for GST: Any business with an annual income of not less than ₹40 lacs (for goods) Any business with an annual income of not less than ₹20 lacs (for services) For the North Eastern States, the slab is not less than ₹10 lacs. Any business registered under the previous VAT regime. Types of GST In India, there are 3 types of GST. These are: CGST: Central Goods and Service Tax SGST: State Goods and Service Tax IGST: Integrated Goods and Service Tax The difference is the levying authority and the place of sale. So let us begin with each type of GST. Central Goods and Service Tax: This tax is levied on the intrastate movement of goods. This means that the transaction is taking place within the same state. Its value is half of the total GST collected on movement within the state. For instance, goods produced in Haryana are sold within the state. The seller will collect both CGST and SGST. The CGST will be paid to the central government. SGST, on the other hand, will be paid to the state government. For example, the total GST on medicines within the state is 5%. Then the central government will collect 2.5% CGST from the seller. Central excise duty is the best example of such a tax. State Goods and Service Tax: This tax is also levied on the intrastate movement of goods. The state government where the transaction took place collects the tax. SGST clubs together previous taxes like purchase tax, VAT, etc. In the above example, the total GST on medicines was 5%. So, the Haryana government will also collect a 2.5% SGST on the transaction. For the Union Territories, Union Territory GST (UTGST) replaces SGST. However, there is a difference between SGST and UTGST. Unlike SGST, the central government is responsible for collecting UTGST. Integrated Goods and Service Tax: This type of GST is levied on the interstate movement of goods. This means that the transaction is taking place between two states. IGST is also levied on the import/export of goods. As per the IGST Act of 2017, the central government collects IGST. For example, a seller in Rajasthan sells goods to a buyer in Goa. On this transaction, IGST will be collected. Initially, the central government will collect the tax. It will later allocate half of the tax to the Goan government. This is because GST is a destination-based tax. Hence, the consumer state, i.e., Goa, will get half of the tax revenue. Who is liable to pay the different types of GST? All businesses are registered with a valid GST Identification Number (GSTIN). E-commerce operators are registered with a valid GSTIN. Individuals registered under GST with the liability to deduct tax at source (TDS). [B-02] Conclusion GST is a transparent and corruption-free taxation system. It removed the confusion of the previous tax structure. Thanks to GST, Indian businesses can freely trade with foreign markets. The types and amounts of GST applicable are explained above.The Indian Government’s GST portal makes it easy to register and pay GST. Register your new eligible business now to take benefits of GST. To know more about GST, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. Check out the website to read blogs with useful information about money and to learn more about personal loans, credit cards, and managing money.
08-11-2023
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GST

What Is Form 16 All About?

The employer issues a document of TDS to its worker. The certificate states that the tax has been deducted by the employer, on behalf of the employee. This document is known as Form 16. Every worker needs to understand what Form16 means. They should include Form 16 in their income tax return. The form is given yearly. The employer should issue it before 15th June every year. Form 16 should be mandatorily issued to taxpayers. Form 16 is divided into two parts – Part A and Part B. If a worker loses the form, their employer can issue a duplicate one. [B-01] Parts of Form 16 Form 16 is divided into two parts, Part A and B. Part A of Form 16 This form contains the quarterly tax deduction details of salary, in each financial year. The following are the contents of Form 16A: Employer name and address Employees name and address Employer’s TAN & PAN Employee’s PAN TDS made Part B of Form 16 Part B of Form 16 has the details of the employee’s salary. It also includes the address and the name of the employee and employer. Part B components are: Salary breakup Mention exempted allowances (Section 10) Income Tax deduction Relief as per Section 89 Where to Get Form 16 In Case of More than One Employer If you have worked with more than one employer, then ask each employer to give you Form 16 for the tenure you spend in their office. If in case, the employer delays your Form 16 or refuses to issue you one, then a penalty of Rs. 100 per day will be levied on them. It will continue till they issue your Form 16. Importance of Form16 After knowing about Form16 and its meaning, let’s see why it is important. It serves as proof that the government has received the tax. The employer deducts this from the employee’s source salary. The form helps in the process of filing for an ITR. Form 16 is required, when an employee applies for a loan. It helps in verifying the credentials. Process of Filing Tax Return Through Form16 As you must know that employers provide Form 16. If you have left the organization then get in touch with your HR to get Form 16. It carries important information required to file tax returns. It is suggested to take the CA’s help to file your tax returns. You can also refer to online portals where you can upload your Form 16 and all the important details required to file your tax returns. Eligibility of Form16 As per the Income Tax Act of 1961, employers should give Form 16 to employees getting salaries and taxable income. Any individual earning more than Rs. 2,50,000 annually should get Form 16. You can ask your employer to share the same with you. Benefits of Form16 An employee can enjoy benefits with their Form16, such as: It is your salary proof and the proof of tax paid on your behalf While filing income tax it is needed to give the exact income account Form 16 also helps in visa processing Using Form 16 you can verify the correctness of the tax paid It helps in applying for loans because it is your income proof How to Download Form16? Form 16 can’t be downloaded online by an employee, the employer has to share it with them. Employers can download it by following these steps: Go to the tdscpc.gov.in/app/login.xhtml Use your employer ID and password to log in Now find the ‘Download’ button Search Form 16 A Add the employee’s PAN, address and name Then fill in your details Download the form and share it with the employees Information Form16 Requires While Filing an IT Return After receiving Form 16 from the employer, check that all the details are correct. Verify the following components: Correct personal information and PAN details The TDS deducted should be the same as the TDS mentioned Check the employer’s details and TAN and PAN details Verify Part B of Form 16 to ensure that all components and break-ups are correct Form 16A: Is It the Same as Form 16? Form 16A is issued on income other than salary. Whereas Form 16 is limited to salary income. Employees who have TDS cut from their bank’s interest on fixed deposits, insurance commission, or rental income, among other sources, will be issued Form16A. TDS is also deducted from other sources of income if they meet the criteria for the deduction. Form 16 is issued by the employees. You can ask for Form 16A from the client or the bank, keeping the purpose in mind. The employee must know the Form 16 meaning and the amount of salary deducted to make the process easier. Is Form 16 Required if the Income is not Taxable Though it is not required to ask for Form 16 if your income is not taxable, you should still ask your employer to share it with you, as it is your proof of income and you may require it at any time. [B-02] Conclusion Form 16 is introduced in favour of employees. It will let them know the benefit of tax deductions. Those who receive an income through a pension and is taxable, then they should ask their bank to give them Form 16. If by any chance you have lost your Form 16, you can get the duplicate one issued by your employer. The employee needs to know the importance and what Form 16 means. Hope this article has helped you in understanding the meaning of Form 16 and other important details. To know more about other finance and tax-related aspects, do visit the official website of Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on their website!
08-11-2023
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GST

How are Form 16 and Form 16A different?

Filing taxes is easy. But that happens when you know which form is required. For many people, their salary is their sole source of income. Salaried employees also file tax returns, and TDS is deducted from their salaries. However, some people have other sources of income, such as investments, savings, etc. Although both categories of people will file taxes, the forms issued to them will be different. This article will help you understand the differences between Form 16 and Form 16a. [B-01] Understanding Form 16 and Form 16a How are Form 16 and Form 16a similar? Form 16 and Form 16a can be used to calculate the amount of tax to be paid. Both of them can be verified online on the Income Tax Department portal. Do Form 16 and Form 16a differ from each other? Yes. The two forms have different functions, components, eligibility criteria, issuers, and frequencies. What is Form 16? Form 16 is a certificate issued to the employees of a company. It is proof that TDS was deducted from their salaries. Form 16 is given out by the employer and has all of the information about the employee’s income and TDS. Form 16 is divided into two parts: Part A and Part B. Information about the TDS and the employee’s PAN and TAN details are included in Part A. Part B contains the details of the employee’s salary structure. This is done by the employer. The components of Part A are as follows: Employer details that include TAN, PAN, name, and address Employee details that include PAN Information about TDS is verified by the employer The components of Part B are as follows: A detailed breakup of the employee’s salary. List of exempted allowances as mentioned under Section 10. Who is eligible for Form 16? The Finance Ministry of India laid down regulations specifying the eligibility for Form 16. The rule says that all people’s incomes falling under taxable brackets become eligible for Form 16. But there are times when TDS is not deducted. If an employee’s annual salary is less than Rs 2.5 lakh, no deductions are made. In these situations, the employer is not required to give the worker a Form 16. Only salaried people don’t qualify as “professionals.” Freelancers, businesspeople, interns, and remote workers are professionals too. Do they also get Form 16? Or is there another certificate for them? There is another proof of funds known as Form 16a. Important: There is no connection between Form 16a and Part A of Form 16. What is Form 16a? Form 16a is a certificate issued quarterly. It is primarily used to give information about the TDS deducted from sources of income other than salary. These include rent, commission, etc. The components of Form 16a are also found in Form 26AS. Unlike Form 16, Form 16a is issued by the deductor. The form reflects the earnings and income tax deduction for the particular financial year. One can also download the form from the Income Tax Department website. When is Form 16a applicable? Form 16a is given when TDS is deducted from other sources of income. For instance, a person wins a certain amount of money in a lottery. The prize money is eligible for taxation. If the amount is more than Rs. 10,000, then a TDS of 30% will be charged. Therefore, the person receives the prize money after a deduction of 30%. The deducted amount is shown in Form 16a. Understanding the difference between Form 16 and Form 16a SpecificationsForm 16Form 16aDescriptionWhen TDS is taken out of an employee’s pay, the employer gives the worker a certificate.It is a certificate given by the person doing the tax withholding when tax is taken out of income other than a salary.EligibilityPeople with salaries and regular sources of income.Self-employed individuals and other professionals.IssuerEmployerDeductors such as banks, etc.Issued toSalaried employeesNon-Salaried employeesHow frequently is it issued?AnnuallyQuarterly Constituents/ componentsName, address, and PAN of the employee; TAN, PAN, and name of the employerEmployee’s PAN and TANTax detailsAmount of TDS paid. In accordance with which law?Section 203 of the Income Tax Act takes into account the TDS on chargeable or salaried income.Section 203 of the Income Tax Act takes into account the TDS of non-salaried sources of income. Relationship with Form 26ASOnly the TDS amount and related details of Form 16 are mentioned in Form 26AS.All information mentioned in Form 16a is present in Form 26AS. What are the recent changes in Form 16a? The Central Board of Direct Taxes (CBDT) listed a few changes to the form. All information related to salary is much more detailed. Things to remember Form 16 will be issued to employees whose annual salary exceeds 2.5 lakh rupees.If they decide to change jobs, they are eligible to get a Form 16 from their employers. When financial institutions deduct TDS, they will issue Form 16a. Form 16 and Form 16a can be verified online through a portal. These forms can help one calculate income tax return amounts and get refunds. These forms also act as proof of income. Check for discrepancies and errors. [B-02] Conclusion Filing taxes when one has access to the appropriate resources is always a good idea. Many forms are issued for various purposes. Form 16 and Form 16a make the calculation of taxes easier for individuals. People who earn a regular income receive Form 16 from their employers when TDS is deducted from their salaries. People with other sources of income get Form 16a issued by financial institutions. Both forms have certain similarities and differences. People must check all the information mentioned on the form. The issuing party should correct all errors. If you have more doubts about Form 16 and Form 16a, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on their website!
08-11-2023
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GST

Complete Guide on GST Registration Online Process

Many people find it hard to complete the online GST registration process. Knowing the proper method might make the process much easier. If you want to apply for GST, read this post to find the answers to all your GST registration questions. [B-01] What is GST? GST is an indirect charge that has taken the place of many taxes in India, including excise duty, services tax, and VAT. The Parliament enacted the GST Act on March 29, 2017. It became effective on July 1, 2017. What is Online GST Registration? GST registration is the process by which a payer registers for the Goods and Services Tax (GST). After completing the registration process, you will get the Goods and Services Tax Identification Number (GSTIN). The Central Government hands over a 15-digit GSTIN number. It helps determine if a firm is required to pay GST. If a company’s revenue exceeds Rs. 40 lakhs, it must register as a basic taxable entity.Anyone applying for GST can do so via the online GST site. For registration, you must submit a form and provide the required papers. It is necessary to complete the GST registration online process. If you do not, you may be fined. Who is Eligible for GST Registration Online? People and firms must apply for GST if they meet the criteria given below: People who used tax services before the enactment of the GST law. Taxation of Non-Residents and Temporary Residents People that pay taxes through the reverse charge system. Every e-commerce individual. Firms with an annual amount of more than Rs. 40 lakhs. The firm should have a revenue of more than Rs. 10 lakhs in Himachal Pradesh, Uttarakhand, Jammu and Kashmir, and the North-Eastern states. Supplier agents and input service providers. People that provide access to databases and information online. They give data to people living in India who are not registered taxable persons from outside India. Facts About GST Registration Online Let’s go through some of the most crucial aspects of GST registration online: The GST registration online process is free of charge. A 10% penalty, or Rs. 10,000, will be charged if a firm fails to register online. In the case of tax theft, the penalty will be 100% of the amount owed. A firm with annual revenue of Rs. 40 lakhs or more requires GST registration. If you make a supply in more than one state, you must register for GST. Online GST Registration Process Step 1: Create the GST Application Form To begin with, go to the official GST portal. Select Services, Registration, and New Registration from the Services menu. On the registration page, you will need to enter your PAN number, email address, and mobile number. The person must choose the option “I am a taxpaying citizen”. After filling out the form, click the “Proceed” button. Following that, they will receive two distinct OTPs on their registered phone and email address for verification. The OTP is only valid for 10 minutes. Enter the received OTP and click “Continue.” Step 2: Filling Out the GST Application Form Online Now, on the top right, click the action button to fill out the GST application form. Enter the firm’s details. Under “Trade” put the name of the firm and its type (private limited or partnership). After finishing the registration, click “Save” and go to the next step. Enter your basic personal and identity details. Add the designation to the identifying information under the title. After filling in all the information, the person must submit their photo, which has to be in jpeg format and no larger than 100 KB. The form has many sections, which are listed below: Authorized Signatory If the person is the firm’s sole owner, select the primary authorized signatory and continue. If the person is not the firm’s sole owner, they must enter the information for the firm’s sole owner. Principal Place of Firm The person must enter the location of their firm here. The individual must also include the type of firm they represent in this section.The person must also include the type of firm they represent. Add the firm’s style and provide proof of the firm’s location. Click on “Save” to continue. Additional Firm Locations If the person has multiple outlets, they can add those or click continue to proceed. Products & Services The person must say whether they are trading goods or services here if they sell physical items, including the HSN code. Specific State Information It is totally up to the person to provide this information. Continue by clicking the save button. Step 3: Final Check This is the last step of the GST form. Once the person fills out the form, they may submit it with Electronic Verification Code (EVC) or Digital Signature Certificate (DVC). DVC accepts digital signatures. If the person chooses EVC, they will get the same OTP on their mobile number and email address. When finished, you will receive your Application Reference Number (ARN). The person can use this to track the status of their application (Services > Registration > Track Application). GST Registration Through Aadhaar Authentication New firms can get GST registration with the help of Aadhaar cards. The process is simple and quick. The new process came into effect on 21st August 2020. When registering for GST, the person will be given the option of using Aadhaar authentication. Below is the method for opting for Aadhaar authentication: Choose ‘YES.’ The authentication link would be emailed or texted to the registered email address and mobile number. Select the authentication link. Enter the Aadhaar number and click ‘Validate.’ You will receive an OTP at the given phone number and email address after the date is verified. To finish the process, enter the OTP. Within three working days, the person will receive their new GST registration. [B-02] Conclusion GSTN is a number that appears on all invoices sent to the tax credit input system. It helps people get an input tax credit, register their firms, and improve their firm standing. People can obtain the certificate of registration from the official website once they have applied. If you need more guidance and assistance with filing for GST registration online, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on their website!
08-11-2023
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GST

What are the Documents Required for GST Registration in India?

What is the Goods and Services Tax (GST)? In India, GST stands for Goods and Services Tax. It is an indirect tax applied to transactions related to goods and services. This form of taxation is only applicable to items and services meant for domestic use. It is a multi-level tax system that has replaced several indirect taxes. Examples include value-added tax, service tax, luxury tax, octroi, and excise duty. This system of taxation came into effect on July 1st, 2017. Since then, it has undergone lots of revisions and changes to reach its final form. The GST is not uniform. It changes according to the nature of the goods and services. In the case of luxury items, the rate of GST is higher. Whereas, it is minimum when it comes to basic household items and necessities. [B-01] What are the types of GST? Currently, four types of GST are applicable in India. They are – SGST or State Goods and Services Tax. At the state level, GST replaces taxes on sales, luxury, betting or gambling, entertainment, and purchases. The SGST tax applies to intrastate goods and services. The revenue from these transactions goes to the state governments. For instance, if the GST on a particular item or service is 18%, 9% goes to the state in the form of SGST. And the rest, 9%, goes to the center in the form of CGST. CGST or Central Goods and Services Tax. At the center, GST replaces central excise duty, additional excise duty, service tax, and more. The CGST applies to a transaction within the state. The central government of India collects the revenue generated from such transactions. The government implements the CGST along with the SGST in the states. For example, if a businessman is selling goods or services to a customer within the state, the GST levy is 20%. Out of the 20%, the SCGST and CGST are split equally. IGST or Integrated Goods and Services Tax. This system of taxation applies to interstate transactions or transactions between two states. The body responsible for the collection of IGST is the central government. The revenue that the central government collects, is split between the states involved. UTGST or Union Territory Goods and Services Tax. In union territories such as the Andaman and Nicobar Islands, Chandigarh, Lakshwadeep, etc., the UTGST replaces the SGST. Hence, in the case of transactions of goods and services within the Union territories, the government of the UT collects the GST. Here too, the GST tax comprises both UTGST and CGST. When does an individual need to register for GST in India? There are several occasions where GST registration is mandatory. Some of the instances are given below. Any business house whose annual turnover exceeds twenty lakhs. (There are exceptions, in certain states, the limit is Rs. 40 lakh.) A casually taxable person who takes part in the buying and selling of goods temporarily, and has no fixed place of business. A non-resident taxable person who supplies goods and services to a state within India. Similar to a casually taxable person, they do not have a fixed place of business in India. E-commerce operators who engage in transactions of goods and services over a digital platform. Persons involved in the supply of goods and services through these e-commerce operators. An individual/business involved in interstate transactions, and so on. There are GST Registration Documents approved by the government of India. If an individual or a business wishes to register, it is mandatory that they have those documents in their possession. What are the Documents Required for GST Registration? The following is a list of GST Registration Documents that are required for different types of businesses, firms, and individuals – For a sole proprietor, the GST Registration Documents are an Aadhar card, a PAN card, address proof, bank account details, and photographs of the owner. For a partnership, the Documents Required For GST Registration are a photograph, a PAN card, and address proof of all partners and authorized signatories. In addition to that, a copy of the partnership deed, and address proof of the place of business are also necessary. For a public or private company (based in India or abroad), GST Registration Documents are a certificate of incorporation issued by the Ministry of Corporate Affairs, a PAN card of the company, a PAN and Aadhar card of the authorised signatory, proof of appointment of the authorised signatory, a PAN card and address proof of all directors, the address of the place of the business, and bank account details. For people who are only occasionally taxed, the GST Registration Documents needed are proof of address, the necessary documents for a bank account in India, proof of the business’s formation, a photo, and proof that an authorized signatory based in India has been named. For non-resident taxable persons based outside India but carrying out businesses within the country. The Documents Required For GST Registration are – a scanned copy of the passport and visa of the individual, document proof of a bank account in India, address proof, and a photo and proof of appointment of a signatory based in India. [B-02] Conclusion Hence, any individual who is carrying out business in India or outside has to comply with the GST taxation laws. GST brings uniformity to India’s taxation system. It has also reduced taxation on certain goods, such as cars, mobile phones, and other gadgets. If you need more guidance on the documents required for GST registration, visit Piramal Finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on their website!
08-11-2023
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GST

What Are the Eligibility Criteria for the Composition Scheme Under GST?

The Goods and Service Tax has many benefits. Earlier, you paid taxes in the form of VAT, excise tax, and service tax. With these taxes, you paid twice the usual taxes. The big companies in India comply with the processes. With the composition scheme of GST, small businesses can avoid going through a set of GST processes. Now you can pay the tax in small amounts as per the revenue of your business. The composition scheme under GST lowers regulatory costs for small taxpayers. The GST Composition Scheme applies to businesses of small and medium sizes in India. This scheme allows you, with an annual turnover of less than Rs 1 crore, to submit GST at a set turnover rate. Let’s check who can apply for the composition scheme under GST. [B-01] Eligibility of Composition Scheme Under GST You are eligible for the scheme if your revenue is less than Rs 1 crore in one financial year. The limit for Himachal Pradesh and North-Eastern states is Rs 75 lakh. But if your turnover goes above this limit on any given day, you become ineligible. So, you must register under the regular scheme. Before applying for the composition scheme under GST, this is what you should keep in mind: You must have GST Registration You cannot claim an input tax credit. You cannot take advantage of this scheme if you are a service provider. It is available only to you if you are selling products. Yet, service providers for restaurants are exempted. You should not do any interstate distribution of commodities. That means, companies with intrastate supplies of goods are eligible. You cannot register if you are selling items via an e-commerce provider. You have many business lines under the same PAN (such as textiles, electrical accessories, groceries, etc.). In that case, you should register all these companies under the scheme or opt out of the scheme. You must have the phrase “composition taxable person” on each invoice you issue. For transactions governed by the reverse charge mechanism, you must pay tax at standard rates. Who Is Not Eligible for the Composition Scheme Under GST? Here is a list of people not eligible for the composition scheme under GST: Supplier engaged in the provision of services (excluding restaurants) Ice cream, pan masala, and tobacco manufacturers A casually taxable individual A non-resident taxable individual Businesses that sell products using an e-commerce site The Benefits of the Composition Scheme The benefits of opting for the composition scheme under GST are: You enjoy more liquidity since you need to pay less GST to the government. You have fewer duties (keeping records, filing taxes, and issuing invoices). Also, this gives you ample time to focus on core company operations. Your tax burden decreases. This is helpful for startups and smaller companies facing cash flow issues. If you have a revenue of less than Rs 1 crore, you may not have the funds to pay taxes. Hence, with the composition scheme under GST, we can say that the government is helping startups. In the composition scheme, a quarterly report under GSTR-4 would be uploaded by: 18th July 18th October 18th January 18th April Limitations of Composition Scheme Under GST 1. Limits on business activities: You may have to limit your scope to do business. You cannot carry out any interstate transactions. This includes importing and exporting goods and services. 2. Can’t claim input tax credits: If you are a B2B seller, you cannot get credit for input tax paid. 3. No collection of tax: You cannot charge taxes to customers. The rate of the GST composition scheme is less. 4. Penalty in case of issues found later: There are penalties for any issues found. For example: If the tax authorities find that you were ineligible for registration, you will be penalized. Registration was granted by mistake. Key Features of the GST Composition Scheme Bill of supply, not a tax invoice The tax authorities will demand that registered payers under the GST composition scheme share the bill of supply. Hence, you may issue a bill of supply rather than an invoice. Penalty If you do not qualify for the composition scheme under GST, you may have to pay a penalty. It may be similar to the amount of tax owed in addition to your tax burden. Hence, be aware while using this scheme and paying taxes. If you provide the wrong details to the composition scheme under GST, there is a penalty. Voluntary Registrations To avail yourself of the scheme’s benefits, you must register yourself. If your yearly income turnover exceeds Rs. 75 lakh, you must switch to the regular scheme. You should register if you are currently part of the VAT composition. GST on Taxable Supplies Before, you had to pay composition GST on exempted items. As of January 1, 2018, only taxable goods would be subject to GST. Applicable GST Rates The GST rates are applicable to composition manufacturers different from non-composition dealers. Refer to the table below for more details: Business TypeCGSTSGST TotalManufacturers and traders (goods)0.5%0.5%1%Restaurants not serving alcohol2.5%2.5%5%Other service providers3.0%3.0%6% Return Filing of the Composition Scheme Under GST If you are registered under the scheme, you must file a return in an authorized format. It must be within 18 days of the end of each quarter. The government has released the GST CMP 08 form for quarterly payments under this scheme. [B-02] Conclusion The composition scheme under GST benefits small suppliers, intra-state local providers, and restaurants. It removes the need for them to follow many compliance requirements. If you want more details about GST, head to Piramal Finance, an online platform dedicated to all things finance, taxes, and investment. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on Piramal Finance’s website!
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Guide on How to Apply for GST Online

Individuals and businesses who supply goods or services in India must apply for GST. Registration under GST becomes compulsory when the total value of the supply of such goods and services exceeds INR 20 lakh. If an entity operates in a special category state, this limit is INR 10 lakh. The tax filing process has become very simple today. Because the Ministry of Finance has simplified the registration process for GST. You must apply online for GST with GSTN (Goods and Services Tax Network). After registering, you will receive a unique GSTIN. It is an identification number that the Central Government allots. It is a 15-digit number and is issued state-wise. Applying for GST has its benefits. You get a legal identity as a supplier. And you can also avail of the input tax credit. [B-01] Documents Required for GST Registration When registering for GST, you will need the following documents: Your PAN Card Certification of an incorporation or partnership deed PAN cards, voter ID cards, and Aadhar cards of promoters or partners Address proof of place of business. It includes electricity bills, legal ownership documents, property tax receipts, etc. Bank account statements Passport-size photograph of the applicant Photograph of an authorized signatory Letter of authorization as proof of appointment Proof of the details of a bank account. It includes the first page of the passbook, bank statement, and cancelled cheque. You can check the status of your registration. Simply enter the ARN on the GST portal. Process to Apply for GST Online You can easily apply for GST online. Either visit the government portal or GST Seva Kendra for this. If you want to register for GST online, follow these simple steps. Start by visiting the GST portal at https://www.gst.gov.in/. Then, under the services tab, click on ‘registration’. You will be able to see an option for ‘new registration’. Next, you will see a drop-down menu that reads ‘I am a.’ Here, select ‘Taxpayer.’ Next, you can fill out a GST REG -1 form for new registration. Here, you can enter your vital details. It includes the business’s legal name, email, contact number, PAN card, and more. You will receive a one-time password. It authenticates the transaction for verification of your information. It will be sent to your mobile number and email ID. From here, you can click on ‘Proceed’. Once verification is complete, you will obtain a TRN (Temporary Reference Number). Make sure that you note down this number. You can move to Part B of the process to apply for GST online. You will now move to Part B of the process to apply for GST. To begin with, log in with your TRN. You will also be prompted to enter a Captcha code. You will have to complete the OTP verification process. An OTP will be sent to your registered mobile number and email ID. After doing so, you will be redirected to a GST registration page. You will be required to enter your valid business information at this step. It includes the name of the company, PAN, state, date of commencing business and more. If you have an existing registration, mention it at this point. Next, you must submit the details of at least 10 promoters or partners. You can also submit details of the proprietor. For this, you can furnish personal information, a designation, a PAN, an Aadhar, and more. At the next step, you will have to submit the details of the person you authorized to file GST returns. Enter details such as the place of business, address, contact details, nature of the business, and more. Next, add details of additional places of business. Also, you can enter details about the goods and services that you supply. You may also be asked for company bank details. Based on the type of business you are registering, upload the requisite documents. Press on ‘Save’ and continue. Once you apply, you will need to sign the form digitally. After filling in all the details, press the ‘Submit’ button. This will save all your current progress. Once you apply, you will receive an ARN (Application Reference Number). You will receive it via SMS and email. So this is how you can apply for GST. Now, let us check the eligibility criteria to apply for GST online. Eligibility Criteria for GST Registration If you are headed to apply GST, then check the eligibility criteria: Only those service providers who provide a service worth more than INR 20 lakh in a year need to obtain GST registration. This limit is INR 10 lakh in states in the special category. Also, any business that sells goods on its own for more than INR 40 lakh must sign up for GST. A business should apply for GST online if they supply goods outside their state. If you are supplying goods or services through an online platform, then you must apply for GST. You must register regardless of your turnover. If you provide goods or services seasonally through a temporary shop, you must apply for GST. Irrespective of your turnover, you must meet the requirement. You may also obtain GST registration voluntarily. You may also surrender the registration in such a case. [B-02] Conclusion So, these are a few simple steps to apply for GST registration online. Every business must comply with the statutory requirements of law and tax. If you want more details about GST registration and the applicability of the tax to your business, head to Piramal Finance. Here, you can get informative advice on how best to obtain GST registration. It is an excellent destination to get clarity about all things related to finance, taxes, and investment. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on Piramal Finance’s website!
08-11-2023
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