GST Identification Number

GST Identification Number

What is GSTIN?

To operate under GST, manufacturers, service providers and traders will need a GST Identification Number (GSTIN) - which will be a 15 digit PAN based number.

The GSTIN structure will be as follows :

A not for profit organisation called Goods and Service Tax Network (GSTN) has been assigned the responsibility to set up the Information Technology of the Goods and Service Tax (GST).

GSTN is working in collaboration with the State Governments to collect information on existing taxpayers and issue them Tax Identification Number (TIN).

How to obtain GSTIN?

To obtain GSTIN, all the existing taxpayers registered under any of the following Acts, will have to enrol themselves on GST Common Portal - www.gst.gov.in.

• Central Excise
• Service Tax
• State Sales Tax or VAT or Central Sales Tax (CST)
• Entry Tax
• Luxury Tax
• Entertainment Tax

These traders will be provided a Provisional ID and a Provisional Password to access GST portal and start with the registration process. Once they complete the registration process, they will be allotted the GSTIN. Registration process for existing taxpayers will start from 1st November, 2016.

List of items to be costly from July 1 under Goods and Services Tax regime.

GST implemented: List of items to be costly from July 1 under Goods and Services Tax regime

The GST has been primarily categorised into four tax slab rates- 5%, 12%, 18% and 28%. Gold, rough diamond has been taxed under a separate slab of 3 per cent.

 

New Delhi, July 1: Starting July 1, India has braced the single biggest tax reform- the Goods and Services Tax (GST). The nation witnessed launch of the biggest tax reform since its Independence during a midnight session at the Central Hall of Parliament at 12 AM on July 1. The most anticipated indirect tax regime was rolled out in presence of top dignitaries including Prime Minister Narendra Modi, President Pranab Mukherjee, the Council of Ministers of Modi Cabinet, BJP President Amit Shah, Lok Sabha Speaker Sumitra Mahajan, Vice President Hamid Ansari.

GST is the first of its kind system in India when both Centre and State shall be putting consolidated efforts in the same direction. The newly introduced GST is a landmark achievement which is bound to take the nation towards exponential growth. GST shall play a key role in helping us build the India of our dreams. The much anticipated mega event was awaited by 1.25 billion citizens of the country and is believed to be the disruptive change that will give a fillip to the Indian economy.

Here are products that will now become expensive after implementation of GST on July 1, 2017

The GST rates will bring in tax parity across the country and will lead to a regime of ‘one nation, one tax’. The GST has been primarily categorised into four tax slab rates- 5%, 12%, 18% and 28%. Gold, rough diamond has been taxed under a separate slab of 3 per cent.

1. Mobile phone bill: After the GST rollout, an individual’s mobile bill is likely to get more expensive as a three per cent increase in the rate of tax under GST on telecommunication services is envisaged. One will have to shell out more post-July 1.
2. Banking Services: Banking and financial services have been placed in the 18 percent rate slab under GST, as compared to 15 per cent service tax earlier. This means that the current rate stands increased by three percent. ATM withdrawals, cheque book issuance, demand drafts and cash deposits will get costlier from July 1 with the implementation of GST.
3. Credit card bills to get costlier: Individuals will have to shell out more for credit cards bills after the goods and services (GST) rollout as financial services would attract a higher tax of 18% as against 15% as of now.
4. Personal care product: A wide range of personal care items including deodorants, shaving creams, after shave lotions, hair shampoo, dye and sunscreen are in the highest tax slab as well. Articles of leather, saddlery, and harness, travel goods, handbags and similar containers; articles of animal gut will become expensive under GST.
5. Insurance premium to get costlier: After the goods and services (GST) rollout, the rate for insurance services has been kept at the standard rate of eighteen per cent including health insurance policies, which is a three percent hike against the existing regime.
6. Cigarettes: Under GST, cigarettes have been put in the highest tax slab of 28 per cent. All tobacco-based products have been put under the highest slab of 28% of the marked price, with 12% additional cess called sin tax. For example, if the marked price on a cigarette packet of 10 sticks is Rs 40, the retail market price would be Rs 56 (Rs 11.20 as tax and Rs 4.80 as ‘sin tax’).
7. Home appliances to get costlier: Under the GST regime, home durables like water heater, dishwasher, weighing machine, washing machine, Air-conditioners, vacuum cleaner, shavers and hair clippers have been clubbed together in the highest 28% slab.
8. Sanitary napkins: Sanitary napkins, much to the displeasure of many people will not be cheaper with the rolling out of the Goods and Services Tax (GST), a report claimed. As this historic tax reform is all set to be launched at midnight, the country wanted sanitary napkins to become tax-free. As per reports, sanitary napkins are taxed at 12 percent under the GST.
9. Hotel stays: If you are planning a vacation, you will have to think twice before spending as your vacations are likely to cost more after GST. Under the new tax regime, hotel room tariffs between 1,000 and 2,500 INR bracket will attract a twelve per cent levy while hotels with room rents above 7,500 INR will attract a 28 % GST rate.

The GST Council has developed such systems wherein the underprivileged get all the promised facilities. The people connected with GST have gone beyond politics and unanimously contributed to ensure the welfare of the poor class. All states are slated to gain immensely as they shall now get equal opportunities of development.

The old India was economically fragmented, the ‘New India’ is believed to create One Tax, One Market and for One Nation under GST. India will be a nation where the Centre and the States will work together cooperatively and harmoniously towards the common goal of shared prosperity. The implementation of GST is an important achievement for the whole country as it will awake to limitless possibilities to expand the nation’s economic horizons across the globe.

 

 

Guide to India GST rates in 2017

The GST Council, the apex decision-making body for the new tax, has fixed the tax framework under the Goods and Services Tax (GST) which is to be rolled out this July 1. Tax rates have been finalised for 1,211 items with a majority of items being kept under the 18 per cent slab.

Here’s a complete list of GST rate card.

Nil rate (0%): 

No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom etc.

5%:

Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 percent.

12%:

Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, and cellphones will be under 12 per cent tax slab.

18%:

Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.

28%:

Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, and yachts will attract 28 per cent tax – the highest under GST system.

Rs 500 and Rs 1,000 currency notes banned.

Rs 500 and Rs 1,000 currency notes banned,    new Rs 2,000 note to be out on 10 November

In what could be termed as an unprecedented move, Prime Minister Narendra Modi on Tuesday added a lethal edge to India's fight against black money by announcing that the currencies in the denominations of Rs 500 and Rs 1,000 will be invalid when the clock strikes 12 midnight of 8 November.

Prime Minister Narendra Modi. PTI

The move was announced in a sudden address at 8 pm that was televised across all news channels when the frenzy was otherwise with the US presidential polls.
The demonetisation of Rs 1,000 and Rs 500 notes is a major assault on black money hoarders, fake currency, and corruption.
In his 40-minute address, first in Hindi and later in English, the Prime Minister said the notes of Rs 500 and Rs 1,000 "will not be legal tender from midnight tonight" and these will be "just worthless piece of paper."

However, he said that all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid.
He also announced that new notes of Rs 2000 and Rs 500 will be introduced.
ATM withdrawals will be restricted to Rs 2,000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.
Banks will remain closed on Thursday and ATMs will also not function tomorrow and day after, Modi said.
He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time.
He also expressed confidence that political parties, workers, social organisations and the media will go further
than the government in making it a success.
The prime minister said that black money and corruption have not only been affecting the Indian economy but has also helped finance terror activities been helping finance terrorist activities, and the new rule will help bring down both.
Modi, however, clarified that the citizens will be able to deposit old notes of Rs 500 and Rs 1,000 at post offices and banks of their choice.
"The public will have 50 days time between 10 November and 30 December to deposit old notes of Rs 500 and Rs 1,000 after showing a proof of identity," he said. The accepted POI documents include Pan Card, Aadhaar Card, Voters ID Card, Driver's License and Passport.
The exchange of old notes, however, will be limited to Rs 2,000 between 10 and 24 November, and it will be increased up to Rs 4,000 between 25 November to 30 December.
However, government hospitals, pharmacies in government hospitals, airline ticket counters, bus ticket counters, railway ticket counters and petrol pumps will accept old notes for the next 72 hours, ie, till midnight 11 November.
Besides depositing money in bank accounts, the Rs 500 and Rs 1,000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of va id government identity cards like PAN, Aadhaar and Election Card from 10 to 24 November with a daily limit of Rs 4000.
Those unable to deposit Rs 1,000 and Rs 500 notes till December 30 this year can do so in designated RBI offices till 31 March next year after filling a declaration form along with proof and reasons, the Prime Minister said.
Rs 500 and Rs 1,000 notes will be valid for transactions related to booking of air tickets, railway bookings,
government bus ticket counters and hospitals till the midnight of 11 and 12 November.

"Banks will be closed tomorrow. It will cause some hardship to you....Let us ignore these hardships... In
country's history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life," Modi said.
The government has also implemented a daily limit of Rs 2,000 on ATM withdrawals, which will be increased to Rs 4,000 at a later stage.
The Prime Minister emphasised that there is no restriction on any kind of non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
In his address, PM Modi shared the insight into how the magnitude of cash in circulation is linked to inflation and how the inflation situation is worsened due to the cash deployed through corrupt means. The Prime Minister added that it adversely affects the poor and the neo-middle class people. He cited the example of the problems being faced by the honest citizens while buying houses.
The very first decision of the Modi-led NDA government was the formation of a SIT on black money.
A law was passed in 2015 on disclosure of foreign bank accounts. In August 2016, strict rules were put in place to curtail benami transactions. During the same period a scheme to declare black money was introduced.
PM Modi in course of his address said that over the past two and a half years, more than Rs 1.25 lakh crore of black money has been brought into the open.
Prime Minister Narendra Modi has time and again raised the issue of black money at the global forum, including at important multilateral summits and in bilateral meetings with leaders.
While focussing on the greener spots on the Indian economy, the Prime Minister said that the efforts of the government have put India as an emerging country to grab a bright spot in the global economy.
Soon after the address by PM Modi, in another press conference the Department of Economic Affairs, secretadry Hasmukh Adhia said, "New notes of Rs 500 and Rs 2,000 with greater security features and design will be circulated from 10 November."
"Rs 500 notes circulation up 76% from 2011 to 2016 and Rs 1,000 notes by 109 percent as against 40 percent rise in all currency notes," he said.