TRANSITION TO GST

As you are aware that our country will transition to GST in latest tax reform, effective 1st July 2017. We at Droom, are here to extend all the support and will ensure that the interests of our 145K+ strong partners are taken care. Our seller community and us have grown stronger with time in terms of business and trust. We want to ensure that same is continued during this transition.

What is GST?

GST is an Indirect Tax which subsumes most of the complex Indirect Taxes such as Excise, VAT, Service Tax, Entertainment Tax and so on. It is applicable to Whole India with single rate of tax for a particular Item in each state. It is a consumption based tax system therefore Revenue will go to the states who consume Services or Goods supplied.

How to Register for GST?

GST Registration process is divided in two parts. The first is filling the forms and verification process which will take up to 3 working days, while the other is approval for your request.

The documents that are required to register for GST are:

  1. Photographs
  2. Constitution of taxpayer
  3. Proofs of place of business
  4. Bank account details
  5. Authorization form

REGISTRATION PROCESS - Part A

REGISTRATION PROCESS - Part B

Benefits of Getting Registered for GST-

  1. Registered person who will comply with the GST law can operate their business without any fear of Penalties, fine and Prosecution.
  2. Registered person/Migrated person can anytime do transactions through E-commerce Companies.
  3. For transacting with E-commerce, dealers should be registered/Migrated in the GST.
  4. Earlier Tax paid on services taken by dealers was lapsed but after registering in GST, Dealers can get the benefit of tax paid on services as well as Goods.
  5. GST Migration is very easy and Droom is ready to give 100% assistance to migrate them from VAT to GST.
  6. Dealers can get benefit of GST paid on Selling service fees and Pro-seller subscription Fees.
  7. Total benefit received by the dealer in current taxation and GST in given below-

    How GST will Impact the Seller - Big Assets

    Sl. No. Particulars VAT/Service Tax After GST Implementation
    A Selling Price of Vehicle 1,00,000 1,00,000
    B Commitment Fees (2.25% on A) 2,250 2,250
    C Selling Service Fees (1.75% on A) 1,750 1,750
    D Tax % on Selling Service Fee 15% 18%
    E Tax amount on Selling Service Fee 263 315
    F Droom Funded Coupon 4000 4000
    G TCS (Tax collected at Source) 0 1%
    H TCS Amount to be collected (1% on [B+F]) 0 63
    Pay-out to Seller/Dealer (B+F-C-E-H) 4,237 4,122
    Input Credit Available to Seller/Dealer 0 315
    63

As per above calculation, it is clear that dealer will get the total benefit of (315+63) ₹378 versus ₹0 in current system.

Please contact our seller support team (email: sellersupport@droom.in or call: 9650 08 08 08, your account managers or Mr. Vipin Arora (email: vipin.arora@droom.in or call: 9650962091) for any support on GST Registration and Migration.

Please find the final list of documents that will help you further:

  1. GST Migration Video which will help you in the complete process on Migration from Existing Service Tax/VAT/Sales Tax to GST.
  2. Updated Guide to Migrate in GST from Existing VAT/Service Tax (as applicable) VAT v/s GST. Please find attached pdf file - download GST Migration and Registration V1
  3. Screenshot of Provisional ID & Password get from VAT website.
  4. Specimen copy of Authorized Signatory Form. Please find attached word form - download Authorization Signatory Form
  5. Registration Form. Please find attached pdf file - download Registration Form

Glossary For GST

Below are some technical terms which is to be used while migrating into GST from existing tax regime-

  1. GST: GST Stands for “Goods and Service Tax”. All the Indirect taxes are subsumed from GST except Customs duty and Excise on Petroleum and Liquor for Human Consumption. Rate of GST for a Particular item or Service will be same in all the states and it will make the uniformity of Taxation in whole India.
  2. GSTIN: GSTIN Stands for “Goods and Service Tax Identification Number”. It is nothing but a technical name of Provisional ID which will be used for the migration purpose.
  3. VAT: VAT Stands for “Value Added Tax”. It is a state level tax and different rules and regulations are there for different states.
  4. DSC: DSC stands for “Digital Signature Certificate”. Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. It is mandatory to do Verification from DSC for Indian Companies, Foreign Companies, Limited Liability Partnership (LLP) and Foreign Limited Liability Partnership.
  5. E-Signature: E-Signature stands for “Electronic Signature”. It is required to verify the documents submitted in electronic form. E-Signature on documents submitted electronically can be done via DSC or Aadhaar Card.
  6. PAN: PAN stands for “Permanent Account Number”. PAN is a mandatory document for registration in the GST.
  7. Migration: Migration in sense of GST means moving from existing tax structure to GST.
  8. Authorized Signatory: It means person who is legally authorized to work on behalf of Entity and represent before the departments, outsiders, and insiders. This person is an Officer or representative vested (explicitly, implicitly, or through conduct) with the powers to commit the authorizing organization to a binding agreement. Also, called signing officer.
  9. OTP: OTP Stands for “One Time Password”. It is password commonly used to verify the Email and Mobile Number of the inputter.
  10. Ward/Circle/Sector Number: It is area wise code which is available on the website of Service Tax Department and Respective state departments.
  11. HSN Code: HSN Stands for “Harmonized System of Nomenclature”. “HSN” is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). As per HSN Code, every item have same meaning and code globally. It is used for goods or physical articles. It can be found @ https://cleartax.in/s/gst-hsn-lookup
  12. SAC Code: SAC Stands for “Service Accounting Code”. It is same as HSN code but used for only Services. It can be found @ https://cleartax.in/s/gst-hsn-lookup
  13. UIDAI: UIDAI Stands for “Unique Identification Authority of India”. Aadhaar is issued by UIDAI.

FAQs

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