The GST Council announced on 10th January 2019 that the exemption limit to pay goods and services tax was raised to Rs. 40 Lakh for businesses. Companies will have to opt for GST registration only if their turnover crosses Rs. 40 Lakh mark.
Previously, this threshold was Rs. 20 Lakh; Rs. 10 Lakh for Himachal Pradesh and North East states.
Just 6 days later, Jharkhand implemented this new amendment on 16th January 2019. Chief Minister Raghubar Das forwarded the required directives to the Commercial Taxes secretary to bring the changes into effect.
According to estimates, around 80,000 small businesses will benefit from this decision. They will be exempted from GST.
Such businesses can thus enjoy more revenue and freedom to operate. They can also opt for business loans to expand. NBFCs like Bajaj Finserv provide up to Rs. 30 Lakh to such businesses within 24 hours. Applicants also have to furnish only a few documents.
What is GST?
Goods & Services Tax (GST) is aimed at bringing all the different taxes like excise duty, VAT, service tax, etc. under the umbrella of one tax.
It further aims to help such businesses grow over time. Once an enterprise does grow into the Goods & Services Tax bracket, it will have to register to GST.
Registration Process for Businesses
Businesses in Jharkhand or anywhere acorss India with a turnover above Rs. 40 Lakh have to register for GST mandatorily. The procedure of registration to GST in India is straightforward and requires only a few minutes.
Applicants have to visit the official website and follow the steps mentioned below:
- Fill out the GST REG-01 using their PAN, mobile number, email ID, etc.
- Verify their PAN.
- An OTP will be shot to verify the mobile number and email ID.
After the above step, businesses will receive an application reference number (ARN) in their phone and email.
- Enter ARN.
- Provide the necessary documents.
- Fill GST REG-03 if they have to furnish additional documents.
Business will receive a certificate of GST registration after successful completion of all the above steps.
Tracking Status of Registration
Companies can track their status of registration in the following steps:
- Visit the official website of GST.
- Select “Registration” under the “Services” tab.
- Select “Track Application Status” under “Registration”.
- Enter ARN.
- Click “Search”.
Applicants will get to see their application status. The same will also be sent to their phone and email.
Documents required for GST Registration
Businesses have to provide the following documents to register –
- Identity proof – Aadhaar, Voter ID, Driving License, Passport, etc.
- Address proof – Latest utility bill, municipal khata, latest property tax, rent agreement/lease deed (for rented property), relevant certificates or documents in case the business is located in an SEZ.
- Proof of business – Registration certificate, Shops and Establishments Act certificate, partnership deed, Articles of Association (AOA), Memorandum of Association (MOA), board resolution certificate, etc.
- Bank passbook or cancelled cheque.
Businesses Which are not Exempt
The GST Composition Scheme enables companies with a turnover of less than Rs. 1.5 Crore to get rid of the compliance provisions of this taxation system.
Thus, businesses that are not exempt can enjoy the simplified tax on a turnover with the composition scheme.
Currently, goods manufacturers and traders pay a GST rate of 1% (CGST + SGST). Restaurants that don’t serve alcoholic beverages have to pay 5% (CGST + SGST).
As per the 31st GST Council meeting, goods and services suppliers can also opt for the composition scheme. They can avail this scheme if the value of their supplies does not exceed Rs. 5 Lakh or 10% of their previous year’s state turnover, whichever is higher.
Hence, businesses in Jharkhand that are not exempt can still enjoy the numerous GST benefits. This new taxation system aims to reform the Indian economy with streamlined collections, transparent structure and a just imposition of duties.