Goods and Services Tax (GST) was implemented in India on July 1, 2017. A single, comprehensive tax system was created when GST replaced a number of previous indirect taxes; including VAT, service tax, and excise duty.
Every value addition to goods and services in the nation is subject to this value-added tax.
Since the GST system is a destination-based tax; the tax is not collected at the point of origin, but rather at the point of consumption.
As a result; the tax money is distributed among the states according to the location of consumption rather than the location of production.
Four separate tax slabs—5%, 12%, 18%, and 28%—make up the GST system. The classification of the commodities or services is used to generate these tax rates.
GST is not applied to necessities like food, healthcare, and education but at a 28% rate on luxury goods and services like fine dining and high-end cars.
GST has streamlined India's tax system and made it simpler for businesses to abide by tax laws.
Businesses are no longer obliged to file several tax returns, as was the case previously under the GST system.
This has lowered the regulatory load and made it simpler for firms to function. The GST has also increased tax system transparency and decreased opportunities for tax avoidance.
Steps for Property Dealers to Register for GST
Through the GST site, property dealers can complete the GST registration process online. The steps are as follows:
Step 1: Verify your eligibility
Verifying your eligibility for GST registration is the first step in the procedure. As previously stated, you must register for GST if your yearly turnover exceeds Rs. 20 lakhs (or Rs. 10 lakhs for special category states).
Step 2: Compile the necessary paperwork
You should obtain all required documentation before beginning the registration procedure. Here are some of the papers you could require:
- PAN card for the company
- Copy of the owner's or the signatory's Aadhaar card
- Address verification for the company
- Account information for the company's bank
- Certificate for digital signatures (DSC) of the authorized signatory
- Snapshot of the authorized signer
Step 3: Register on the GST website.
Create an account on the GST portal (www.gst.gov.in) in order to register for GST. By entering your contact information, including your name, email address, and mobile number, you can do this.
Step 4: Complete the GST registration form.
After creating an account, you may begin completing the GST registration form. The information you must supply includes some of the following:
- Information about the firm, including its name, nature, and launch date.
- The address information includes the primary business location's address as well as information about any additional locations.
- Proprietor/partner/director information, including name, PAN, and Aadhaar.
- Authorized signatory information, including name, PAN, and Aadhaar.
- Information about a bank account, including the name of the bank, the account number, and the IFSC code.
- Details on the goods and services provided, including descriptions and HSN codes.
Step 5: Send your application
You must submit the application on the GST portal after completing it. Either use your DSC or provide an electronic verification code (EVC) to accomplish this. An application reference number (ARN) will be provided to you once the application has been submitted.
Step 6: Await confirmation
The GST officials will check the application after submission. If further information is needed, they could ask for it. You will be sent a GST registration certificate after the application is verified.
Advantages of GST registration for property dealers
- Input tax credit
As a GST dealer, you are eligible to claim an input tax credit for purchases you make for your company.
GST registration lends your company validity, which helps foster trust with clients and suppliers.
GST registration guarantees that you abide by the law and stay out of trouble.
- Competitive advantage
Since many clients and suppliers prefer to work with registered companies, having a GST dealer registration can put you ahead of unregistered competitors.
Documents needed for property dealers to register for GST:
- Application's PAN Card
- Application Aadhaar Card
- A partnership deed, a certificate of incorporation, or a memorandum of association serves as evidence of a company's registration.
- Evidence of address, such as a telephone bill, an electricity bill, or a lease agreement
- Statement of a bank account or a voided cheque
- Snapshot of the authorized signer
- In the event of a private limited company or public limited company, a digital signature certificate (DSC)
Goods and Services tax act
The Goods and Services Tax (GST) Act, a comprehensive piece of legislation, controls how GST is levied and collected in India.
The Central Excise Duty, Service Tax, Value-Added Tax (VAT), and other indirect taxes were replaced by the Act when it went into effect on July 1, 2017.
The GST Act's main goals are to enhance the ease of doing business in India and streamline the tax system.
Numerous rules pertaining to GST registration, tax payment, return filing, input tax credit, and other aspects of GST compliance are included in the GST Act. The GST Act has the following salient characteristics:
- Dual GST: The GST Act includes provisions for both the Central GST (CGST) and the State GST (SGST), which are assessed on the provision of goods and services falling under the respective purview of the Central and State Governments.
- Threshold Limit: The GST Act sets a threshold limit for GST registration of Rs. 20 lakhs (Rs. 10 lakhs for Northeastern states). Businesses that do not meet this threshold for annual turnover are exempt from GST registration requirements.
- Input Tax Credit: The GST Act establishes an input tax credit that enables companies to recoup the GST they paid on purchases. Only if the supplier has paid the government the GST it has received from the recipient may it claim an input tax credit.
- GST Returns: Registered taxpayers are required to submit GST returns on a monthly or quarterly basis in accordance with the terms of the GST Act. Along with the GST paid and collected, the GST returns include information on the sales and purchases made during the relevant period.
- GST Council: The GST Act establishes the GST Council, an organization made up of the Central and State Governments. In India, the GST Council must make proposals for GST policies and practices.
The GST Act has considerably streamlined India's tax system and made it simpler for businesses to adhere to tax regulations.
The Act has also contributed to the improvement of India's business environment and increased the allure of the nation as an investment location.
In conclusion, property dealers must register for GST if their yearly revenue exceeds Rs. 20 lakhs (or Rs. 10 lakhs in states that fall under a special category). Regardless of their sales, property dealers who operate in different states must likewise register under GST.
Property dealers can obtain an input tax credit, simplify compliance processes, and gain more trust with clients by registering under the GST.
Property dealers can visit the GST portal to register for GST and finish the process online.
They must present specific documentation, including their PAN card, address evidence, and bank account information.
Especia provides all the services related to GST; you can consult with them for GST registration for Property dealers.
In its capacity as a business, Especia offers comprehensive financial outsourcing services such as valuation, secretarial, transaction counselling, routine tax and compliance, and virtual CFO.
Tax and corporate rules are changing quickly in order to improve governance and provide transparency to how firms function.
FAQ’S related to GST Registration For Property Dealers
1. What is the upper limit for property dealers to register for GST?
Property dealers must have a minimum yearly revenue of Rs. 20 lakhs (or Rs. 10 lakhs for special category states) in order to register for GST. A real estate dealer is required to register for GST if their annual revenue exceeds this threshold.
2. Do property dealers who work in different states have to register for GST?
Regardless of their revenue, real estate dealers operating in various states must register for GST. This is because the GST is a centralized tax system, and the dealer must register in each state where they conduct business.
3. What paperwork is needed for property dealers to register for GST?
PAN cards, proofs of address, bank account information, and evidence of business registration (such as a partnership deed or certificate of incorporation) are all needed for GST registration for property sellers.
4. Do property dealers qualify for GST input tax credits?
When purchasing items like building supplies or office equipment, property dealers who are registered for GST are eligible to receive an input tax credit for the tax they paid on such transactions. Their overall tax liability may be decreased as a result.
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