GST Price Slabs for Advertising, Branding, Marketing, Designing, Technology and Consulting Services

The most common word that has been frequently heard by Indians is “GST”. This word caused a commotion in the economic world of India, right from individuals to business everybody in the country is busy understanding GST. The new tax is implemented by the government to streamline the taxation structure.

GST(Goods and Services Tax) is defined as the giant indirect tax structure designed to support and enhance the economic growth of a country. GST system is a single tax (collected at multiple points) with a full set-off for taxes paid earlier in the value chain. Previously tax is levied at each stage separately by the Union government and the States at varying rates, on the full value of the goods but now the final consumer will bear only the GST charged by the last dealer in the supply chain with set-off benefits at all the previous stages.   

The Goods and Services Tax was launched at midnight on 1 July 2017 by the then President of India, Pranab Mukherjee, and Prime Minister of India, Narendra Modi. It aims to streamline the taxation structure in the country and replace a gamut of indirect taxes with a singular GST to simplify the taxation procedure. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12%, 18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition, a cess of 15% or other rates on top of 28% GST applies to few items like aerated drinks, luxury cars, and tobacco products. Taxes to be subsumed under GST are Excise Duty, Service Tax, Central Sales Tax, Surcharge & Fees, VAT, Taxes on Lottery, Luxury Tax, Entry Tax, Entertainment Tax (These are the parts of Central Tax & State Tax)

To simplify the administration of indirect taxes and plug leakages, a comprehensive IT system, GSTN(Goods and Service Tax Network ), will allow universal GST numbers (similar to PAN) to all manufacturers, traders, stockists, wholesalers, and retailers. On further simplification, There would be three different types of levies in GST.

• CGST (Central Goods and Service Tax): Applicable on the supply of goods and services of standard services and commodities which can be amended periodically by a specialized body under the central government.
• SGST (State Goods & Services Tax ) : . It includes the amalgamation of State Sales Tax, Luxury Tax, Entertainment Tax, Levies on Lottery, Entry Tax, Octroi and other taxations related to the movement of commodities and services under state authority through one uniform taxation- SGST.
• IGST (Integrated Goods & Services Tax ): Is charged on the supply of commodities and services from one state to another state.
• UTGST (Union Territory Goods & Services Tax ): The union territories in India are accounted under a specialized taxation called Union Territory Goods and Services Tax as per the GST regime 2016. It will subsume the various taxations, levies, and duties with one uniform taxation in Union Territories as well.

The GST applies to businesses with a turnover of Rs 20 lakh or more per month. As a businessman or a retailer who is registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)  needs to register under GST, online portal or at GST Seva Kendra set up by the Government of India.

Documents/details required to register under GST

• PAN Card of the Business or Applicant
• Identity and Address Proof along with Photographs
• Business Registration Document
• Address Proof for Place of Business
• Bank Account Proof
• Digital Signature

All businesses that successfully register under GST are assigned unique Goods and Services Tax Identification Number also know as GSTIN.If a business operates from more than one state, then a separate GST registration is required for each state.

Small businesses having an annual turnover less than Rs. 75 lakhs can opt for Composition scheme.

• Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).
• They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
• Businesses that have opted for Composition Scheme cannot claim any input tax credit.

Composition scheme is not applicable to :

1. Service providers
2. Interstate sellers
3. E-commerce sellers
4. Supplier of non-taxable goods
5. Manufacturer of Notified Goods

To classify goods and services under GST regime in India, the government used HSN(Harmonized System of Nomenclature) code and SAC( Services Accounting Code ) code. Due to these codes, the industries are classified and their GST price slabs are been decided.

Price Slab for Advertising Services:

 Price Slabs for Other Professional, Technical and Business Services.

Price Slabs for Photography & Videography and Their Processing Services

Price Slabs for  Other Professional, Technical and Business Services (Branding, Sponsorship Services)

Benefits of Businesses for Registering Under GST

For normal registered businesses:

1. Take input tax credit
2. Make interstate sales without restrictions

 For Composition dealers:

1. Limited compliance
2. Less tax liability
3. High working capital

For businesses that voluntarily opt-in for GST registration (Below Rs. 20 lakhs)

1. Take input tax credit
2. Make interstate sales without restrictions
3. Register on e-commerce websites
4. Have a competitive advantage compared to other businesses

To summarize, one should review the complete business process, the system, and tools used to ensure all business transactions are 100% accurately recorded in a timely manner to prepare the business for GST.

SAC Codes & GST Rates for Services | GST Registration | Types of GST in India- CGST, SGST, IGST and UTGST Explained