GST
What does GST mean?
GST is a destination-oriented levy, meaning that the tax should be collected by the state where goods or services are used, not where they are produced.
What are CGST, SGST, and IGST?
CGST and SGST are imposed on intra-state transactions of goods and services, occurring within a state. CGST is directed to the central government, while SGST is allocated to the respective state. IGST is levied on inter-state transactions of goods and services, including imports. The revenue from IGST is also directed to the central government.
Required Documentation:
- Business PAN card
- Proof of establishment, such as partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), incorporation certificate.
- Evidence of business location like lease agreement or utility bill.
- Bank account canceled check displaying account holder’s name, MICR code, IFSC code, and bank branch details.
- Authorized signatory information: Partnership firms – partners’ list with identity and address proof; Companies – directors’ list with identity and address proof.
- If your business is registered under Central Excise, Service Tax, Sales Tax, or VAT, GST registration is mandatory. You must transition from the existing registration to GST.
Transportation Services
Under GST, transportation services encompass the movement of goods by road, rail, air, or sea. This includes services provided by trucking companies, railways, airlines, shipping companies, and other transportation providers. GST is applicable to the charges levied for transporting goods from one location to another, regardless of the mode of transportation used. This tax is calculated based on the value of transportation services provided.
Restaurant and Catering Services
Another significant service covered under GST is restaurant and catering services. This includes the provision of food and beverages by restaurants, cafes, eateries, and catering businesses. Whether it’s dining in, takeaways, or catering for events, all these services are subject to GST. The tax is levied on the total value of the food and beverage services provided, including any additional charges such as service charges or delivery fees.
