{"id":1994,"date":"2020-01-10T13:32:42","date_gmt":"2020-01-10T13:32:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1994"},"modified":"2021-04-14T11:42:22","modified_gmt":"2021-04-14T06:12:22","slug":"impact-of-gst-registration-on-indian-economy","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/impact-of-gst-registration-on-indian-economy\/","title":{"rendered":"Pragmatic Impact of GST Rate on Indian Economy"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Progressive growth is a sign of a developing Nation, a country like India has marked up its position in the world by growing its economy. This growth is observed more after the implementation of the new act for the taxation in 2017 named as\u00a0<strong><em>GST (Goods and Services Tax) Act\u00a0(Applicable from 1<sup>st<\/sup>\u00a0July 2017)<\/em><\/strong>. The components of GST are\u00a0<strong><em>CGST<\/em><\/strong>\u00a0(Central Goods and Services Tax),\u00a0<strong><em>SGST<\/em><\/strong>\u00a0(State Goods and Services Tax), and\u00a0<strong><em>IGST<\/em><\/strong>\u00a0(Integrated Goods and Services Tax). Here in this blog, we briefly discussed the impact of GST Rate,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/corpbiz.io\/gst-registration\" target=\"_blank\"><strong>Online GST registration procedures<\/strong><\/a><strong>\u00a0<\/strong>and penalty.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-registration-on-indian-economy\/#Impact_of_the_GST_in_the_Indian_economy\" >Impact of the GST in the Indian economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-registration-on-indian-economy\/#Effect_of_GST_on_the_Indian_economy\" >Effect of\nGST on the Indian economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-registration-on-indian-economy\/#The_procedure_of_the_GST_registration\" >The procedure of the GST registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-registration-on-indian-economy\/#Who_all_requires_GST_registration\" >Who all requires GST registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-registration-on-indian-economy\/#Penalty_Regarding_GST_Registration\" >Penalty Regarding GST Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-registration-on-indian-economy\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_the_GST_in_the_Indian_economy\"><\/span>Impact of the GST in the Indian economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST\n(Goods and Services TAX) act in its implementation in which 20 states are\nindependently showing more than a 14 % increase in their revenues. The number\nof assessees covered by the GST was around 65 Lakhs. The assessee base in the\nlast two years has increased by 84 % that leads to higher revenue collections.<\/p>\n\n\n\n<p>The complete\nscenario has been changed after GST as on today now, there is only&nbsp;<strong><em>one\ntax<\/em><\/strong>&nbsp;prevailing all over the nation and removed all 17 different\nlaws. The pre-GST rate of taxation as a standard rate for the&nbsp;<strong><em>(VAT)\nvalue-added tax<\/em><\/strong><em>&nbsp;was 14.5 %<\/em>,&nbsp;<em>excise at 12.5 %&nbsp;<\/em>and\nadded with the&nbsp;<em>central sales tax<\/em>&nbsp;and the cascading effect of\ntax on tax, the total tax payable by the consumer was 31 %. The present GST has\nlisted various commodities and items in the category of 18 %, 12 % and even 5\n%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Effect_of_GST_on_the_Indian_economy\"><\/span>Effect of\nGST on the Indian economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The implementation of GST has radically affected the Indian economy in the ways given below:<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Simplification\nof the tax structure:<\/h3>\n\n\n\n<p>GST has made the taxation system\nof the country easy as\nGST acts as a single tax\numbrella and calculates taxes at the several stages of the supply chain. Because of GST both the manufacturers and customers get a comprehensible idea of\nthe tax amount and its basis on which they are\ncharged. In\naddition, hassles of management\nby the tax\nauthority\u2019s and officials can be avoided.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fostering\nproduction:<\/h3>\n\n\n\n<p>According to the Indian retail industry, the total tax constituent 30% of the product cost but due to the GST impact the taxes have\ngone down. So, now the\nend consumer pays\nlesser taxes. The reduced tax\nburden has improved\nthe production and development\nof the retail and other\nsuch industries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">SME\nsupport:<\/h3>\n\n\n\n<p>The Small and\nmedium enterprises can now register under the Composition Scheme introduced by\nGST. Through this scheme, they pay taxes in accordance with their annual turnover.\nTherefore, the businesses\nwith an annual\nturnover of Rs. 1.5 crores will\nonly have to pay 1% GST. Furthermore, other enterprises with turnover of Rs. 50 lakh are obligated to pay 6% as\nGST.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Enhanced\npan India operations:<\/h3>\n\n\n\n<p>A single\ntaxation system has reduced\nthe problem whereby earlier the manufacturers had to keep buffer stock\nto make up for the damages\nbut now the companies can avoid taxation roadblocks like check posts and toll plazas. So, these overhead costs\nof warehousing and storing\nhindered their profit.\nNow this has\nresulted in the expansion\nof their pan India operations and they can easily transport their goods across India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;Increase in exports:<\/h3>\n\n\n\n<p>GST has reduced the cost of\nproduction in the local markets and also reduced the customs duty on exporting goods because of these factors it has\nimproved the export rate\nin the country. The\ntaxpayers have increased in number and the tax revenues have also increased extensively with the introduction\nof GST as it has removed the cascading effect of\nmultiple taxes. Therefore, the tax burden has reduced for both the customers companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_procedure_of_the_GST_registration\"><\/span>The procedure of the GST registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Chapter VI<\/em><\/strong>&nbsp;of the\nGoods and Services Tax Act 2017 says about the registration.<\/p>\n\n\n\n<p><strong><em>Section 25<\/em><\/strong>&nbsp;of the\nGST Act tells about the registration can be made within&nbsp;<strong><em>30 days<\/em><\/strong>&nbsp;in\nany state or union territory for which the person is liable for the GST\nregistration whereas the non-resident taxable person and a casual taxable\nperson can apply for GST registration&nbsp;<strong><em>five days<\/em><\/strong>&nbsp;before\nthe commencement of the business. Other important points under this section are<\/p>\n\n\n\n<ul><li>A person is granted with the single GST registration either in any state or union territory.<\/li><li>For the multiple businesses in different states, the same person has to opt for separate GST registration for every business subject to the conditions mentioned.<\/li><li>A person requires more than one GST registration in one state of union territory can be considered as the distinct persons for the purpose of this act.\u00a0<\/li><li>A person gets the GST registration for the establishment but establishes in another state requires a separate GST registration for such establishment and considered as a distinct identity.<\/li><li>A person other than liable for GST registration under Section 22 and Section 24 can also separately apply for the GST registration under this act.<\/li><li>A person seeking for GST registration must have the\u00a0<strong><em>PAN (Permanent      Account Number)<\/em><\/strong>\u00a0which is issued under Income Tax Act 1961.<\/li><li>A person who is non-resident\u00a0<strong><em>can submit other documents<\/em><\/strong>\u00a0in      support for the GST registration.<\/li><li>If the person fails to obtain the GST registration, then the properly      authorized officer proceed the registration as the manner prescribed by the act.<\/li><\/ul>\n\n\n\n<p>After the GST\nregistration process, the&nbsp;<strong><em>(UNI) Unique Identify number<\/em><\/strong>&nbsp;shall\nbe granted to the person\/applicant and also a&nbsp;<strong><em>certificate of\nregistration<\/em><\/strong>&nbsp;can be issued afterwards from such dates as prescribed\nby the act. If the applicant\/person fails to communicate the authority in a\nprescribed period of time, then UNI (Unique Identify Number) can be cancelled\nby the authority.<\/p>\n\n\n\n<p><strong><em>Section 26<\/em><\/strong>&nbsp;states\nthat the&nbsp;<strong><em>(UNI) Unique Identify number<\/em><\/strong>&nbsp;or grant of\nregistration under SGST (State Goods and Service Tax Act) or under (Union\nTerritory Goods and Services Tax Act) would be considered as the grant of the\nGST registration under this GST act 2017.<\/p>\n\n\n\n<p><strong><em>Section 27<\/em><\/strong>&nbsp;states\nthat grant of&nbsp;<strong><em>certificate of registration<\/em><\/strong>&nbsp;to casual\ntaxable or non-resident taxable person would be&nbsp;<strong><em>valid up to 90 days<\/em><\/strong>&nbsp;from\ndate of issuance of the certificate of registration. The person has\nregistration can submit the advance deposit of tax equals to the amount of the\nestimated tax. The amount will be credited to electronic cash ledger in favour\nof such a person.<\/p>\n\n\n\n<p><strong><em>Section 28<\/em><\/strong>&nbsp;states\nthat if any changes are required to be made by the person\/ applicant in the\nregistration after the issuance of the Unique Identity Number can inform the\nproper officer in authority for the&nbsp;<strong><em>rectifications in the GST\nregistration<\/em><\/strong>. The officer then further can approve or reject the\namendments as he deems fit, but this can be only done after the\nperson\/applicant is being heard. &nbsp;&nbsp;<\/p>\n\n\n\n<p><strong><em>Section 29<\/em><\/strong>&nbsp;states\nthat&nbsp;<strong><em>cancellation of the GST registration<\/em><\/strong>&nbsp;by the proper\nofficer in case of death of the person where the business is discontinued\neither because of death of the owner or have obtained any another legal entity\nor business dispose of.<\/p>\n\n\n\n<ul><li>It can also be done if there is a certain change in the constitution of the business.<\/li><li>It can be done in case of taxable person no longer liable for the GST      registration under this act. \u00a0\u00a0<\/li><li>It can be done if the registered person contravened with the provisions of the act.<\/li><li>It can be done if the registered person has not furnished tax returns from three consecutive periods.<\/li><li>It can be done if the registered person has not commenced any business within six months after the date of the GST registration.<\/li><li>It can be done if the GST registration is obtained by willful misstatement, by fraud or by suppression of the facts.<\/li><\/ul>\n\n\n\n<p><strong><em>Section 30<\/em><\/strong>&nbsp;states\nthat the&nbsp;<strong><em>revocation of the cancellation<\/em><\/strong>&nbsp;of the GST\nregistration can be made within 30 days from the date of cancellation orders\nhave been passed. The proper officer can either revoke or reject the\napplication after hearing the person who wants revocation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_all_requires_GST_registration\"><\/span>Who all requires GST registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Section 22 and Section 24<\/em><\/strong>&nbsp;of the GST Act 2017 tells about\nthe people who fall under the category for the GST registration, and Section 23\nof the GST act tells the people not fall under GST registration process are as\nfollows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Section 22<\/h3>\n\n\n\n<ul><li>The supplier is liable to be registered under the GST act if turnover exceeds Rs 20 Lakhs in a financial year.<\/li><li>In the case of the special state category, the supplier registration under      the GST act would be if turnover exceeds Rs 10 Lakhs in a financial      year.\u00a0<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Section 24<\/h3>\n\n\n\n<ul><li>A person who has inter-state supplies.<\/li><li>A person is making taxable supplies.<\/li><li>A person who pays tax under reverse charge<\/li><li>A person who pay taxes for supplies through electronic commerce operator<\/li><li>A non-resident person who has made taxable supplies. \u00a0<\/li><li>A person is liable for deduction under section 51 of the GST Act.<\/li><li>A person as an agent made taxable supplies on behalf of the other taxable persons.<\/li><li>A person who is Input Service Distributor<\/li><li>A person who is an Electronic commerce operator<\/li><li>A person who supplies goods and services both<\/li><li>A person supplies online information or have retrieval services or provide database access in India or outside India<\/li><li>Any other person notified by the government after the recommendation of the council<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Section 23&nbsp;(People&nbsp;not&nbsp;liable for the GST registration)<\/h3>\n\n\n\n<ul><li>The person\/supplier who has exempted from tax under this act or under the Integrated Goods and Services tax act (IGST) is not liable for registration.<\/li><li>The agriculturist, who does not have to supply out of cultivation of the land.\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalty_Regarding_GST_Registration\"><\/span>Penalty Regarding GST Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Chapter XIV<\/em><\/strong>&nbsp;of the\nGoods and Services Tax Act 2017 says about the search, inspection, seizure and\narrest after GST registration.<\/p>\n\n\n\n<p><strong><em>Section 67<\/em><\/strong>\u00a0states that if any person evaded tax liability, escape payment of the tax, or claimed the input <em><strong>tax<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Tax\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> credit in excess or has kept in accounts in such a manner that reflects the evasion of tax under this act shall liable for the penalty.<\/p>\n\n\n\n<p><strong><em>Section 69<\/em><\/strong>&nbsp;states\nthat if any person has committed any offence mentioned in Section 132 of the\nact are liable for the arrest by the central tax officer in charge.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST\nregistration is mandatory after the enforcement of the act of 2017. If the\nperson wants to carry its business needs the compulsory registration. The\nprocedures, importance and penalty are mentions above. The Corpbiz has the team\nof lawyers who deals in the procedure of the GST registration as well as also\ndeals if the person has any problems or penalty imposed in case of the GST. The\nteams have trained experts and respectively are ready to help and solve the\nissue regarding GST registration process and queries.<\/p>\n\n\n\n<p><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-on-tourism-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\">Impact of GST on Tourism Industry<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Progressive growth is a sign of a developing Nation, a country like India has marked up its position in the world by growing its economy. This growth is observed more after the implementation of the new act for the taxation in 2017 named as\u00a0GST (Goods and Services Tax) Act\u00a0(Applicable from 1st\u00a0July 2017). The components of [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":1995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,152],"tags":[17],"acf":{"service_id":"334"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":15068,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1994"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1994"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1994\/revisions"}],"predecessor-version":[{"id":28930,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1994\/revisions\/28930"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1995"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}