What is a GST Registration Certificate?

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What is GST registration certificate and why do you need it?

GST is a simple Goods and service tax. As before, there were many taxes collected by the government before service tax, VAT tax, excise duty etc.

So, to make it simple for business owner, governement and the consumer governemnt has introduced the GST tax system.

Any user can visibly sees how much tax he is giving.

Business owner sometimes has to give double tax before. Now, if Business men buys a 1 lakh rupees of product gives 18 percent of GST i.e. 18,000 Rs. Now, the business men sells it higher values and collect higher tax on that high value.

Now, lets suppose, the product got sold via 1.5 to 2 lakh rupees So, average tax collected by the consumer is 27,000 or 36,000 rs. So, Then business owner gives the extra GST he gets to governement. like substract 18,000 from final tax of consumer. This extra GST tax is given to the government.

This way, the Business owner gets protected from double tax either by buying and selling the product. They also get protected from different tax system of each state. So, this makes business men easier to do business.

Some objectives of the GST

  1. One nation one tax system – Replacing the old method of multiple taxes and introduced one tax system across India
  2. To end the tax on tax system – Sometimes business owner get double tax because they buy from somewhere and sell other area, this causes him to pay double tax. GST eliminate this.
  3. It simplify the tax system

What are the things that mentioned in the GST Certificate?

The GST certificate is a digital document that proves that you have legal permission to do business in that place.

An GST certificate is consist of,

  1. GSTIN number – it is a 15 digit code called as identification number.
  2. Your business name and details
  3. Your tax area, state
  4. Your place of business
  5. Validity of your certificate

What business are required to get GST certificate?

The businessess (Goods or product seller) that has turnover of 20 lakh are required (40 lakh) in some cases are required GST certificate.

The service provider business required GST number if there turnover gets more than 10 lakh rupees (20 lakh in some cases).

If one want to sell on online platform, they required GST number without any limit of turnover.

Documnets required for GST certificate

  1. Certificate of business and registration
  2. Business owner photo and sign
  3. Proof of business place via property tax, electricity bill or rent agreement
  4. If there is additional place of business then that place proof.
  5. Any supporting document
  6. Bank account prof
  7. Other documents are adhar, pan card etc.

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