GST: Introduction

The Introduction of GST [Read for origins of GST] in India has brought comprehensive changes to the taxation system and how taxes are levied on value addition in the country. In order to pay taxes via GST, the taxpayer has to register GST, and file corresponding GST returns. Compliance with the new rules and regulations can prove to be challenging and even more so if you are not aware of all the details. Here, we aim to list down all the GST rules you need to abide by in order to maintain GST compliance.

GST: Basics

Let’s  start with some Basics of this taxation system :

GST (Goods and Services Tax ) is basically a tax which is levied on businesses for value addition on the delivery of goods and service to other businesses/ customers. In order to pay taxes levied via the GST regime on businesses, a taxpayer has to perform GST Registration and file GST returns which lists down the details of sales and purchases of business and the taxes paid. Taxpayers can pay the GST via the GST Portal also known as the GSTN (Goods and Services Tax Network) or it cna also be done by visting a GST Facilitation Centre

A GST registered business will have a unique identifier called the GSTIN which they can confirm using GST Verification.

Documents for Registration

  • PAN Card of owner/ directors/ partners.
  • Bill of Electricity/ Telephone, Rent Agreement or Letter of Consent (NOC).
  • MOA/ AOA or Partnership Deed
  • Letter of Authorisation for signatory.
  • Bank statement/ Cancelled Cheque.
  • Aadhaar Card of owners/ directors/ partners.
GST Registration

What is GSTIN?

GSTIN stands for GST Identification Number. It is a 15-digit number provided by the GSTN. Let’s look at the format of the GST number you need to verify GST number.

GSTIN Format

GSTIN for GST verification

GSTIN Format

  • The first 2 digits of the 15 digit GSTIN will represent the state code.
  • The next 10 digits will be the PAN Number of person or firm engaged in Business.
  • As proposed the State Code as defined under the Indian Census 2011 would be adopted In the GSTIN. As per the terms of the Indian Census 2011, every State has a unique two digit code. For eg. 07 for Delhi
  • The 13th would represent the number of registrations an entity has within a state under the same PAN. It will be an alpha-numeric number (first 1-9 and then A-Z) on the basis of a number of registrations a legal entity (having the same PAN) in the same state.

GST RULES

Let’s list down the GST Rules and what they mean for the compliance with the regulations under the Goods and Services.

Composition Rules

Composition Scheme under GST

Valuation Rules

GST Payment

ITC (Input Tax Credit) Rules

Input Tax Credit under GST

Revised Invoice Rules

Revised Payment Rules

Revised Registration Rules

Revised Returns Rules

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