Shop Act Establishment Registration

Concept: Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST, Service Tax, Central Excise duty, Entertainment Tax, etc and is valid all over India with effect from 1st July 2017.

When to register for GST: Mandatory to get GST Registration when annual turnover exceeds INR 40/20 lakh or supply goods and services inter-state or through E-commerce platform.

GST tax rates: Tax rates vary from 0% to 28% depending on the type of goods & nature of the services you are selling.

Input Tax Credit Availment: Only business units registered under GST can avail credit of tax paid at the time of purchase while filing GST returns.

Return Filing & Payment: Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month.

Composition Scheme: Business units having an annual turnover less than INR 1.5 crore may opt for the scheme. Requires to pay subsidize tax ranges from 1% to 5% & file quarterly returns.

About Shop Establishment Registration

1. Meaning of shop: A place where any trade or business is carried and services are rendered to customers. It includes offices or warehouses for the purpose of trade.

2. Objective: Aim of Shop establishment is to govern and improve the working conditions of shop & offices and rights of the workers, like wages, leaves, holidays & work hours, etc.

3. Who required?: It is mandatory for all business entities other than factories regulated by the Factories Act, 1948 to register under shopex.

4. Validity: Shop establishment certificate is valid for a certain period. This varies from State to State. The owner shall apply for the renewal after expiry.

5. Gumasta License: According to the Maharashtra Shops and Establishment Act 1948, the shop establishment certificate is known as Gumasta License.

6. e-Karmik: As per the Karnataka Shops and Commercial Establishments Act, 1961, the shop establishment license is referred to as e-Karmik.

Key benefits of Shop Establishment Registration

The significance of an obtaining Shop Establishment Certificate can never be ignored as it emphasizes on the following aspects:

• Regulation of working hours.
• Prevention of child labour.
• Separate regulations regarding employment of female staff.
• Proper guidelines for record-keeping.
• Fixed opening and closing time.
• Intervals for rest & lunch.
• Rules regarding Weekly-offs, working condition and wages.
• Important measures such as hygiene & sanitation, lighting and ventilation, safety precautions and hazard management.

What is Shop Establishment known as in different states?

Shop Establishment registration is known by different names in various states. For instance, in Delhi it is known as Delhi Shopex, in Bihar it is known as Trade License, in Maharashtra it is known as Gumasta License, and e-Karmik in Karnataka.