GST Registration in India and Advantages & Disadvantages


GST stands for Goods and Service Tax. It is an Indirect Tax. Here we are going to discuss How To Register Under GST? And Advantages & Disadvantages of GST.

Required documents to get GST registration

  1. PAN card of the applicant
  2. ID proof like passport, PAN, voter ID, Aadhar card, or driving license.
  3. Address proof like ration card, Aadhar card, voter ID, driving license or passport.
  4. Address proof of the business premise like rental agreement or electricity bill.
  5. Current Bank Account statement with Name, Address, and a few Transactions.
  6. Class 2 digital signature.
  7. Business Registration Document.

How to get GST New Registration?

  1. Go to https://reg.gst.gov.in/registration/.
  2. Enter the required details and click “PROCEED”. GST-1
  3. A new page will open. There you have to enter Mobile OTP and Email OTP which was sent to your mobile no and Email ID. then click “PROCEED”.                                                                                                                                                                                                  Gst-2
  4. A small box will appear on the top with the question “Do you want chrome update your password for this site?”. Click “Update Password”.
  5. You will be sent a TRN (Temporary Reference Number). Click “PROCEED”.  Gst-3
  6. Now you can see a new screen.there you have to enter the TRN (Temporary Reference Number). Fill the required details and click “PROCEED”. Gst-4
  7. A new page will open. There you have to enter the  Mobile/Email OTP which was updated. Then Click “PROCEED”. Gst-5
  8. A small box will appear on the top with the question “Do you want chrome update your password for this site?”. Click “Update Password”.
  9. A new page will open. You have click on the box which is under Action. Gst-6
  10. A new screen will appear with 10 boxes such as a) Business Details, b)Promoters/Partners, c) Authorized Signatory, d) Authorize Representative, e) Principal place of business, f) Goods and Services, g) Bank Accounts, h) State-specific information, i) Verification. Gst-7
  11. Enter the details for all boxes and click Verification. At last click “SUBMIT WITH DSC”.
  12. A new page will open like this Gst-8
  13. After that, you will be sent an acknowledgement to you.

Advantages of GST

  1. GST is a Transparent and Simplified Tax system to all the people.
  2. It has built the corruption free tax administration in the entire country.
  3. This tax system replaced the multiple cascading systems into one system. Now there is only one Tax Rate on all goods and services.
  4. It has increased the more employment opportunities.
  5. It reduces the number of Indirect Taxes.
  6. If your turnover crosses 20 lakhs (10 lakhs North Eastern and the Hill States) with any business, you have to register under GST. But before GST,  you had to register under VAT when your turnover crossed 5 lakhs, you had to pay Service Tax when your turn over crossed 10 lakhs and you had to pay Excise Tax when your turnover crossed 1.5 crores.
  7. This tax system decreased the burden of State and Central Governments.
  8. We can have GST Registration online. It is very simple and easy procedure. And GST filing returns also made on online. So there is no need no wait in front of the Tax Office. It saves the time and money of the people.
  9. It enhances the Revenue Collection of the country.
  10. There is a common procedure for GST Registration, Return Filing, Refund of Taxes and Duty Payment.
  11. GST improves investments and exports.
  12. It has improved the economic growth.

Disadvantages of GST

Though GST has many advantages, it also has many advantages.

  1. Before GST, Service Tax was 15% in India. But now GST is about 18%-28% for all services. So nowadays all the services are very costly.
  2. Retail products had only 4% Tax Rate on them. With GST it will become high. After GST was introduced, Clothes and Garments have become more expensive.
  3. The entire process of GST from Registration to Filing Returns is made online. So small traders who are in undeveloped areas may not have the computer and internet facility.
  4. GST has three types of taxes. All the people who are doing any business should maintain this system. But it is not easy for small businessman.  
  5. School fees have increased because of GST.
  6. The sellers are required to register with Central Government. It increases the compliance cost.
  7. If you are doing business in different states, you have to register for GST in each state. It increases the compliance cost.  
  8. Many manufacturers who are in Textile Field, Pharmaceutical field and FMCG industries enjoy Tax Holidays and state benefit schemes. But still, there is no notification about these benefits.
  9. Present GST rate very high comparing with all Indirect Taxes like VAT, Service Tax, Excise Tax, etc.
  10. Online shopping has become costly because of GST. Before GST, the tax for online shopping was 14.5% per transaction. Now it is raised up to 18%. So the people who are doing business through online will be affected by this GST Tax system.
  11. It has increased the charge of movie tickets, mobile & telephone and food items.
  12. Before GST Tax was paid monthly once, quarterly once, and yearly once. But under GST, Large Business Industries should pay tax three times per month and other small Business industries should pay tax quarterly once. It is a big drawback of GST.
  13. Under GST, there is many different percentage (like 0%, 5%, 12%, 18%,and 28%) for goods and services. It makes confusion among the people. To avoid this confusion many countries have a particular percentage on all goods and services. For example, in Singapore, GST is only 7% on all goods and services.
  14. Earlier, people who are doing business in small level can fill their Tax application by themselves and they paid tax also by themselves. So they didn’t want to hear the advice of the auditors and experts. But GST is new and the technology is new to them. So they have to hear the advice of auditor and the experts. So they have to spend more time and money.

Conclusion

GST made a great impact in India. But Manufacturer, Sellers/Traders, Dealers, Importer, Agents, and Service providers are not going to be affected by GST. Because they collect everything from the common people and give it to the Government. So every people should know about GST to enjoy their tax benefits

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