A product goes through several stages along the supply chain, including purchasing raw materials, manufacturing, selling to the wholesaler, selling to the retailer, and finally selling to the consumer. These 3 stages will all be subject to GST. For example, if a product is produced in West Bengal but consumed in Uttar Pradesh, the entire revenue will go there. The composition scheme allows taxpayers with a turnover of less than Rs.1.5 Crore to avoid cumbersome GST formalities and pay GST at a fixed rate.

There will be three tax components under GST, namely, a central component (CGST) and a state component (SGST), which both will levy GST on all transactions within a state. When a transaction occurs between states, the Integrated Goods and Services Tax (IGST) will be levied by the center.

With input tax credits, you can reduce the tax you have already paid on inputs and pay the remaining amount when you pay your taxes. Taxes are paid on the purchase of a product from a registered seller, and you also pay taxes when you sell the product. By using input credit, you can reduce the taxes paid at the time of purchase by the amount of tax on sales (output tax), and pay the remaining tax liability.

GST registration is required for any business or corporation that purchases and sells goods or services. GST registration is mandatory for companies with an annual turnover of more than Rs.20 lakhs (for the supply of services) or Rs.40 lakhs (for the supply of goods). Businesses making interstate outward supplies of goods can get GST registration online. Likewise, businesses making taxable supplies on behalf of other taxable persons, such as agents and brokers, are subject to the same tax. Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are less than Rs.20 lakhs.

· Basic necessities are tax-exempt, i.e., they are not taxed.
· Life-saving drugs, household necessities, and other items are taxed at 5%.
· The tax rate on processed food and computers is 12%.
· Taxes on hair oil, toothpaste, soaps, capital goods, industrial intermediaries, and services are 18%.
· The tax rate on luxury items is 28%.

The GST Return is a form that contains details of income that must be filed with the tax authorities according to law. GST law requires taxpayers to file two monthly returns and one annual return. Online filing is required for all returns. Revisions to returns are not permitted. Current month invoices must include all unreported invoices from the previous tax period. GST returns require registered dealers to include: Purchases, Sales, Output, GST (On Sales), and Input tax credit (GST paid on Purchases).

Each GST taxpayer is assigned a unique identification number. GSTN numbers can be verified on the GST portal by people with GST numbers.

GSTN is a non-profit, non-governmental, private limited company operating under section 8 (non-profit). GSTN is a one-stop shop for all indirect tax needs. The Indirect Taxation platform for GST is maintained by GSTN to help you prepare, file, rectify and pay indirect tax liabilities.

The list of Papers & forms required for various businesses are as follows:

Proprietorship

• PAN Card and address proof of proprietor
• PAN Card of LLP
• LLP Agreement
• Partners’ names and address proof

Private Limited Company

• COI
• PAN Card of Company
• Articles of Association, AOA
• Memorandum of Association, MOA
• Resolution signed by board members
• Identity and address proof of directors
• Digital Signature

Proof of Address for Directors

• Aadhar Card
• Ration Card
• Telephone or Electricity Bill
• Bank Account Statement

Identity Proof

• PAN card or Aadhar card