Goods and Service Tax (GST) was brought for a revolutionary change. It is also the biggest tax system of India overhauled from Independence. Indirect taxes are numerous such as sales tax of states, excise, service tax, etc. It was all replaced by GST with a regime of singular central tax that is uniformly applied on all services and products. Since it is still a pretty new concept, you need to know about it in detail so that you can make informed decisions. This blog will help you understand the basic information related to GST.
What Does the GST Mean?
GST is a type of tax that you as customers are compelled to pay when you buy any services or goods (such as clothes, food, transportation, daily necessary items, and so on). GST is a concept based on indirect tax. It is levied on the manufacturer or seller of goods and also the services provider. Usually, the sellers add the expenses of tax in the costs which means that the cost you pay already has the GST value included.
Different Kinds of GST:
You might be unaware of the fact that GST has been divided into different categories. According to those categories you need to complete your GST registration. The different kinds of GST are:
- CGST (Central GST) – Whenever you pay GST on every transaction it is being divided into two equal sections. CGST is one of the parts of those two.
- UGST (State GST) – When you make a transaction within the UT or union territory without using a legislature then the section of GST that is received by UT is known as UGST.
- SGST (State GST) – The section of share of state GST when transactions are done within the state then it is known as SGST.
- IGST or Integrated GST – When a transaction made by you is between two foreign territories and UTs/states then Integrated GST is levied with no bifurcation on the rate of applicable GST.
How to do GST Registration?
GST registration is mandatory in the case of the individual business. Using below mentioned steps you can complete your online registration:
- Got to https://www.gst.gov.in/.
- Press ‘Register Now’.
- Choose ‘New Registration’. Fill in all the details and click ‘Proceed’.
- Enter OTP which you received on your registered mobile number or email ID
- Make note of Temporary Reference Number (TRN).
- Revisit the portal and press on ‘Register’.
- Enter the captcha and TRN details.
- You’ll get an OTP on your registered email ID or mobile number. Enter the OTP and press ‘Proceed’.
- Your application status will be on the following page.
- After your registration is completed you’ll get the ARN (Application Reference Number).
You need to follow and know the detailed guidelines and benefits of GST to make a sound decision. It doesn’t matter whether you are a taxpayer or a business owner, in most cases, you have to pay the tax and deal with GST. Having proper knowledge regarding it will ensure you are not misguided. At Finserv MARKETS you can receive every update regarding GST. If you’re looking for financing for your business, you can also avail of a Business Loan at Finserv MARKETS that comes at flexible repayment and attractive interest rates.