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Posted 09-Apr-18 17:02 PM

How do I know the Central Jurisdiction for my #GST registration?

Where should I search for Commissionerate, Division and Range for my business during GST registration?

You should browse to https://cbec-gst.gov.in/know-your-jurisdiction.html . Then, on the left hand side menu, select the name of your state from the drop down.

Then expand the relevant zone from the Zone sub-menu. Next scroll to your district name and click on the expand option (plus + sign). You shall see a list of divisions. Click on the division name (and not the plus sign). All ranges in the division shall be listed on the right. Keep clicking on division names till you find a range within that division with your address, area mentioned under it. Ufortunately, browsing through the data is the only option presently. Once you find your area, you have found the right range, division and zone information! 

 

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Posted 09-Apr-18 16:43 PM

What is Trade Name when going for #GST registration?

At the second step of the GST registration process, I am asked for a Trade Name at https://reg.gst.gov.in/registration/ What does Trade Name mean here?

Trade name is the name of our company/legal entity, in case you're not a sole propreitor. In case you're registering as a sole propreitor, please use the name of your establishment as Trade name

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Posted 25-Aug-17 22:53 PM

How does GST prevent tax evasion? #GST

Why is it expected to increase the tax base in the country? Can business still not evade paying service tax like they did in the previous tax regimes?

GST is expected to widen the tax base by incentivizing downstream businesses to purchase from vendors who have already paid the GST and claim input credits for the same. Vendors who do not pay the GST will not be able to pass on the credits their clients and will thus have to provide bigger discounts to keep the business. Eventually, paying GST will become easier and cheaper than not paying it. 

Imagine that you make some component "FNL" which, in turn, requires another component "INP" which costs INR 800 and falls in the 18% GST slab .Also, lets assume "FNL" sells for INR 1000 and you are in the 18% GST slab. So you will have to pay 18% * 1000= INR 180 as GST to the government against the sale of each "FNL" component.

Now if you have purchased the input component "INP" from a GST paying vendor,  you will get INR 800 * 18% = INR 144 as GST credits and you shall only have to pay INR (1000 - 800) * 18% = INR 36 as the additional GST. So essentially, you would pay the vendor INR 800 + INR 144 (GST)= INR 944 for the component and you would be able to sell the component for INR 1000 + INR 180= INR 1180. You net profit would be INR 1180 - INR 944 - INR 36 (GST paid to government) = INR 200. 

However, if you purchase the input component "INP", for INR 800, from a non GST registered vendor or a vendor who is under the GST composition scheme, then for the "INP" component, you will not be provided any input credits. In fact, under the "reverse charge" mechanism of the GST, you will have to pay the GST for the "INP" component. So, you will have to pay INR 800 * 18%= INR 144 as reverse GST because you purchased from an unregistered or composition vendor. Again you will sell the "FNL"  component for INR 1180 and you will get INR 144 as input credits. In this case, your profit would be 1180 - 800 (cost of component) - 144 (reverse charge GST) - 36 (additional GST for the value added in the last step) = 200 .

So, you won't benefit from purchasing from an unregistered vendor. Also, it will be additional hassle for you in terms of paying "reverse charges"  etc. Additionally, the unregistered vendor is captured in the system, when you pay the reverse charges on his/her behalf. This leads to greater compliance.

This is my understanding of how this works. The experts on this portal might elaborate further.

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