GST is a single tax right from the manufacturer or service provider to the consumer. (GST) Goods and Services Tax is a unified, multi-stage and consumption-based tax charged on manufacture, trade, and consumption of goods and services. It replaces all the existing national and state tax systems like VAT, Service Tax, Entertainment Tax, Excise Duty, to name a few It eliminates the flowing effect of tax-on-tax which is
dominating at present.

GST is applicable to those who are into manufacturing, trade, e-commerce, or services. There are GST consultants available in the market who can assist you better.

Goods and services should be taxed based on the value addition at each stage and not based on the gross value of the goods or services billed at each stage.

Further, tax should be eventually borne at the point of consumption rather than at the point of production, though the tax department must be able to track value addition at each step and collect tax proportionate to the value added at each stage.

Advantages of GST

For Manufacturers and Traders

• Easy compliance
• Uniformity in tax rates and structure
• Removal of cascading or compounding effect of tax
• Enhance the competitiveness.
• Move towards development of a common national market

For Central and State government

• Simple and easy administration
• Improved compliance and revenue collections
• Better revenue effectiveness

For Consumers

• Payment of the single and transparent tax
• Reduction of burden of the taxpayers

What changes does GST bring in?

The Goods and Services Tax or GST brought a major change in the taxation visuals in India. Earlier, different taxes were paid separately to the state and the center. However, GSTin subsumed all taxes into one, and now there is the practical application of ‘One nation, one tax.’ Some of the changes that GST brought in are as follows:

• No multiple taxes to be paid
• Replacement of indirect taxes like excise duty and sales tax into one
• Clear distinction of taxes on luxuries and necessities
• Introduction of simplified ways to fill Income Tax Returns and taxes, for instance through GST online portal or website
• Boost for Real estate and MSME sector
• Ease for transportation of goods, as no separate taxes
• Tax administration under both State and Central governments
• Transparency in the taxation process

FAQs

What is Goods and Services Tax Identification Number (GSTIN)?

Goods and Services Tax Identification Number (GSTIN) digits state-wise PAN-based number – which can be used to classify businesses registered under GST regime. For more details, do visit www.Chopade and associates Group .com website. The website clarifies all your queries related to GST & GSTIN.

Is PAN mandatory for GST application / registration?

Yes, PAN is mandatory for GST application / registration.

What is GST compliance rating?

Goods & Services Tax compliance rating is a numerical rating which includes the taxpayer’s name along with his/her GST identification number (GSTIN). It is majorly given to businesses depending on their level of compliance with GST rules.

How to enroll for Goods & Services Tax?

You can enroll for GST via the common portal of Goods & Services Tax. Chopade and associates Group  can help you with the right enrollment process. For more details visit www.Chopade and associates Group .com website.

Can you have multiple registrations?

Yes, one can have multiple registrations. Chopade and associates Group  representative can guide you in detail. You have to obtain a separate registration for each business vertical in each state. For more details visit www.Chopade and associates Group .com website.