The simplification of taxes through GST has created a lot of complicated questions in the minds of general taxpayers and trade analysts alike. The GST portal has an FAQ section to answer all such issues. There are some in-depth answers to complex queries on the GST Council website as well. But often, there is widespread confusion that’s prevalent about simple questions because the most common questions go unanswered by any authority portal. Queries like “IGST full form.” Or “How to perform GST number search by name” need immediate answers because it is related to finding quick solutions — given Below — a compilation of the most common questions that people are asking all over the internet about GST.
Most common questions.
What is GST?
GST is the short form for Goods and Services Tax. GST came into being to create transparency in the tax system. It is a multi-level tax system where GST is imposed on every level of supply or manufacturing process. The GST is applied only to the value addition on every stage of the supply chain. The tax is levied, not on the total value of the product. The taxes that are levied on every level of the supply chain is meant to be refunded. The supplier on different levels other than the end-user as it is also a destination-based tax system. Under GST, the final consumer pays the actual tax.
What is meant by GST returns?
GST returns are the tax return forms that are required to be filed by taxpayers and different companies to the Income Tax department of India. Every individual or company registered under GST is required to furnish details about the sales or purchases of services and goods along with the tax paid and collected. Companies in every country, such as Singapore, need to file GST yearly and make sure they are compliant to the local laws.
How to register under GST?
You can register through the GST portal. There are two parts to this registration process. Under Part A, you will be required to give accurate details about yourself. Under Part B, you will be required to submit scanned copies of your documents such as ID proof, Address proof, Proof of business location, etc. To register, open the GST portal and navigate to the “New Register” option under “Services.” It will take you to a few pages where you will have to enter your required details and verify authenticity through OTP that will be sent to your active Email ID and Mobile Number. After verification, you will get a Temporary Reference Number “TRN” which you will need to enter in the space provided. An OTP will be sent again to your Email ID and Mobile number. Then it will take you to a page where you will get the option to upload your scanned documents. Once you are through that, you will get an ARN (Application Reference Number). It is an acknowledgment number provided to those who have successfully submitted their documents. Once the authorities verify and your identity is approved, You will get a 15 digit GST number.
What is the GST number?
GST number or GST Identification Number (GSTIN) is a 15 digit unique number. Every individual or business under the GST Act is assigned a number. It is basically to create identification. It is used by tax authorities to maintain records of the particular company or individual.
What is the format of GSTIN?
The first two digits in GSTIN represent the state code. The next ten figures are the alpha-numeric PAN card numbers. The following number is given based on the number of registrations within a single state. The fourteenth number is, by default, a “Z.” The 15th and the last digit is the check code. It could be a letter or a number.
Some Frequently asked queries.
What is the GST audit?
Its the process of examining documents, records, and returns. The purpose of a review is to verify whether the declared turnover, paid taxes, claimed a refund, and input tax credit availed is correct.
How to pay taxes through the GST portal?
Its a straightforward and intuitive process to make payments through the GST portal. Log in to the GST portal. On the home page, click “Services” then “Payments” and then “Create Challan.” Enter the amount and select the preferred payment method. Once the payment is through, a success message will be displayed.
What are the GST rate slabs?
GST is segregated into 5 tax slabs categories 0%,5%,12%,18% and 28%.
- 0% – Goods that are essential for an ordinary citizen falls under 0% category.
- 5% – products such as Insulin, Natural Cork, Marble rubble. Etc.
- 12% – Goods such as diagnostic kits, skimmers, spearmint oil. Etc.
- 18% – Aluminium foil, baby carriages, bamboo furniture, etc.
- 28% – All luxury items such as luxury cars, tobacco, etc.
The decision to add a 0.25% tax rate on semi-precious stones was made at the recent GST council.
What is the GST council?
The GST council is a committee of 33 members headed by Union Minister assisted by the finances ministers of all states. It regulates, modifies, procures, and reconciles laws based on the context of goods and service tax. The main aim of the GST council is to create a transparent, robust, smart, and user-friendly tax structure.
The confusion is not just about the different issues but also about the frequent changes the Act goes through every now and then. As GST is a very complicated tax system, a lot of adjustments and changes are needed from time to time to accommodate the vast base of taxpayers and their unique situations. For example, A person who is not familiar with IGST might look up IGST full form and gain knowledge about it at fingertips but someone who wants to take a specific action on the GST portal might remain confused. Like if someone wants to know how to perform GST number search by name on the GST portal, then there could be a bit of research that a person will need until they find a solution. The GST council has been aware of issues like these and other issues, and because of that, a batch of trained individuals was appointed to teach accountants and taxpayers about the nitty-gritty of the complex GST tax system.