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GST is the replacement of all the indirect taxes which are levied on goods and services around the nation. It is a comprehensive tax structure on manufacture, consumption of goods and services, and sale throughout India to replace the existing taxes levied by the central and the state government. The main aim of GST is to centralise the taxation for businesses which is to relieve them from the burden of compliances and better managing the cash and finances. In this reform, taxation got consolidated instead of the plethora of taxes such as central excise, service tax, central surcharge &Cess, Entry tax, purchase tax, entertainment tax, luxury tax and few other indirect taxes. This streamlined process became easier and effective in the system of taxation. GST is the one which is payable at the final point of consumption on the price of goods and services which can be termed as a transaction value. This value or price while buying the goods or services would include a commission, packing cost, and all other expenses incurred for the sales. GST is absolutely helps for the economic growth of the country. Before the implementation of GST, if, for example entrepreneurs who have interest on businesses in six states need to deal with the six different tax authorities along with the six different tax rates in VAT paid by them. But, while filing in GST, they need to execute only two types of registration, one is for State-GST (SGST) and another one is for centre (CGST). With this important note, all the states in India will be having the same tax rate which brings down the logistics cost for many more businesses. This is a point where the Indian start-ups can stand to gain considerably through the implementation of GST.

GST Registration in Coimbatore

Benefits of GST:

Easier to do business:

GST brings uniformity in process and centralized registration that makes starting a business and expanding in different states which is much simpler. Start-ups lack the resources in order to hire the team for handling tax compliance or tax experts; GST’s ultimate objective is to simplify the tax regime by reducing the multiplicity of taxes. This is not only useful for compliance down but also makes the taxation very transparent with the digital processing. The very own Do It Yourself (DIY) model enables the business personalities to complete the registration, tax payments, tax return submission, claim the refunds through online, updating all the details online which saves the money for all sorts of business enterprises irrespective of sectors.

Higher exemptions to new businesses:

GST introduced the composition scheme which empowers that the small businesses with the turnover between (20-50 lakhs) need to pay lower taxes. This brings the respite from tax burdens to newly established businesses. In the existing system, a business with a turnover of 5 lakhs was to get VAT registration. According to GST, the threshold limit for registration has been increased to 20 lakhs; this probably reduces the burden for the start-up people and for their businesses.

Reduction in logistics cost:

GST ensures that the interstate movement becomes cheaper by eliminating the border taxes and resolving the issues related to check posts. This is inevitable in terms of cost associated with the stocks, as there will be a smooth movement of goods. It reduces the logistics costs of companies which produces non-bulk goods.

Financial inclusion:

GST enables the financial inclusion in the economy in near future. The start-up community migrated towards more digitized. According to the CRISIL analysis report, GST is playing an intricate role for boost up the country’s GDP and reduces the fiscal deficit. It benefits both for the government and the tax payers.

Without any speculations and the initial problems, GST appears to be a radical reform which ensures the streamlined economy with the reduced costs.

Tax slab rates

5%, 12%, 18%, 28% taxes to be subsumed under GST are central sales tax, service tax, excise duty, taxes on lottery, VAT, entry tax and entertainment tax.

Tax rate -0%:

Milk, salt, Jaggery, fresh vegetables, tender coconut water, eggs, natural honey, printed books, fresh meat, bangles, cereal grains, newspapers, handlooms, stamps, judicial papers, bone grist, drawing or colouring books, kajal etc. are exempted from GST rates. Services such as hotels and lodges where the tariff rate is below 1000 are exempted from GST.

Tax rate – 5%:-

Coal, tea, spectacles, cashew nuts, domestic LPG, edible vegetable oils, footwear less than 500, coir mats, kerosene, matting & floor covering, raisin etc. attracts a GST of 5%. Transport services such as railways, airways and small restaurants are attracted a GST rate of 5% since because the main input of this services are petroleum.

Tax rate- 12%:-

Mobiles, butter, ghee, umbrella, preparation of fruits, vegetables, nuts or other parts of plants including jam, jelly etc. Services such as Non-AC hotels, business class air tickets, state-run lotteries, fertilizers fall under 12% tax slab.

Tax rate-18%:-

Computers, ice creams, printers, pasta, CCTV, corn flakes, aluminium foils, foot wears costs more than 500, pastries, flavoured refined sugar, cakes, preserved vegetables, soups, sauce, ice creams, mineral waters, and steel products etc. comes under the tax rate of 18%.

Services such as IT services, AC hotels which serve liquor, branded garments, financial services and telecom services etc. attract a GST of 18%.

Tax rate-28%:-

Chewing gum, pan masala, waffles and wafers, paint, deodorants, shaving creams, hair shampoo, water heater, sun screen, automobiles, motorcycles, vacuum cleaner, aircraft for personal use, weighing machine, ATM etc. comes under the category of 28%. In service sectors hotels with room tariff above 7500, racing, betting, cinema attracts a GST tax slab of 28%.

Documents required for GST registration:

Private Limited Company/Public Limited Company/One Person Company:

Required documents from the company
  • Incorporation certificate of the company.
  • MOA/AOA.
  • Copy of board resolution.
  • PAN card of the company.
  • Declaration to comply with the provisions.
  • Bank statement copy.
Documents related to directors
PAN and ID card proof of the directors
Documents related to registered office
  • NOC from the owner or the landlord.
  • Rental agreement in case if the premise is a rented one or else the ownership certificate needs to be produced if it is owned.
  • Any utility bills copy.

Limited Liability Partnership (LLP):

Documents of the LLP
  • PAN card proof of the LLP.
  • Partnership deed (LLP).
  • Copy of the bank statement.
  • Registration certificate of the LLP.
  • Copy of the board resolution.
  • Declaration to comply with the provisions.
Documents of the designated partners
ID card and PAN card proof of the designated partners
Registered office documents
  • Rental agreement if the premise is a rented one or if it is owned one, can produce the ownership certificate.
  • Copy of any utility bill such as electricity bills/water bills/telephone bills.
  • No objection certificate from the owner.

Partnership firms:

Documents of the partnership firm
  • Partnership deed.
  • PAN card of the partnership.
  • Copy of the bank statement.
  • Declaration to comply with the provisions.
Documents related to partners
PAN card and ID card proof of the partners.
Documents related to the registered office
  • Rental Agreement if it is applicable.
  • NOC
  • Copy of the utility bills such as telephone/landline bill/electricity bill/water bill.

Sole proprietorship/individual

Documents of the individual
  • ID and PAN card proof of the individual.
  • Declaration to comply with the provisions.
  • Copy of bank statement or a cancelled cheque
Documents of the registered office
  • No objection certificate from the owner.
  • Rental agreement if in a case, it is rented or else you need to produce the ownership document if you owned a premise.
  • Copy of utility bills such as electricity bills/water bills/ telephone bills.