An overview of GST registration

GST stands for Goods and Service Tax. GST Council is formed under section 279A of the constitution of India. The law was brought in 01 July 2017 by removing all the other Indirect Taxes such as VAT, Sales Tax and Entertainment Tax in the country. GST applies to all form of products and services which are produced and manufactured in India.

Component of GST

CGST (Central Goods and Service Tax) – Amount of tax charged on interstate supply of different types of services or products. This is usually charged by Central Government. Revenue is shared by equally between State Government and Central Government.

SGST (State Goods and Service Tax) – This amount of tax is charged on Intrastate supply of goods and services. State government charges this Tax.

IGST (Integrated Goods and service tax) – This amount of tax is charged on Intrastate supply of goods and services. State government and Central Government shared the revenue of this Tax.

GST rates for goods

  • Zero rates- Items like jute, fresh meat, butter, fruits and vegetables etc.
  • GST 5% Rate- Items like cream, pizza, bread, medicines, packed food items etc.
  • GST 12% Rate- Items like butter, cheese, ghee, mobile phones, frozen meat, ayurvedic medicines etc.
  • GST 18% Rate- Items like Biscuit, James, notebooks, steel products, Iron products, camera, IT services etc.
  • GST 28% Rate- Automobiles items, aircraft , vacuum cleaner , ATM, Hair shampoo, paints etc.

Requirement of GST Registration

  • Businessmen whose Turnover is taxable and is more than 20 Lakh per annum in case of Supply of Services and 40 Lakhs in case of Supply of Goods.
  • Businessmen who are making interstate supply of goods and services.
  • E-Commerce aggregator.


Benefits of GST Registration

  • Low tax rates on services will be a big boost for growth sector’s, although the biggest impact on the economy would come from removing exemptions on manufacturing.
  • It reduces the amount of resources needed to transport goods, as well as the size of storage locations needed for them.
  • States and centers will no longer be able to give tax exemptions. Fewer items will fit the bill for tax-free status.
  • Our revenues will increase – now the State and Central government are jointly regulating tax exempt goods. The number of products that are tax exempt will be reduced, which should lead to higher revenue for businesses in general.


Documents required for Registration

  • Pan Card of sole person or of the company.
  • Address proof
  • Digital Signature
  • Cancelled cheque / Bank account statement
  • Proof of Business Registration