GST Registration
The procedure of GST registration is entirely an online process and requires no manual intervention. The process of GST registration is important to avail the taxation benefits. We will help you to solve your GST related queries. Choose us to complete your GST Registration and will ensure you that your communication with professionals is seamless.
Get Started
Overview of GST Registration
With a view to abolish several other indirect taxes and to create a single taxation system, GST was introduced in India. Also, GST helps in the ease of collection and to enhance the efficiency of the process.
GST Registration is required for the businesses whose turnover gets over Rs. 40 lakhs* for sale of goods (Rs 20 lakhs for North Eastern – All hilly states for sale of goods). There has been no change in the threshold limits for service providers. Persons providing services need to register if their aggregate turnover exceeds Rs.20 lakh (for normal category states) and Rs.10 lakh (for special category states)
What are the Benefits of GST Registration?
The advantages of GST Registration are given bellow:-
- Simplifies Taxation Services
GST has combined a number of indirect taxes under one umbrella and integrated the Indian market.
- Reduction In Costs Of Products & Services
With the introduction of GST, the cascading effect of a series of VATs and taxes has been erased which has resulted in the reduction of cost of goods and services.
- Helps In Avoiding Lengthy Taxation Services
GST Registration helps the small businesses in avoiding the lengthy taxation services. As the service providers with a turnover of less than 20 lakhs and goods provider with a turnover of less than 40 lakhs are exempt from paying the GST.
- Aimed At Reducing Corruption And Sales Without Receipts
GST was introduced with an aim of reducing corruption and sales without receipts. Also, it helps in reducing the need for small companies to comply with various indirect taxes.
- Uniformity In Taxation Process
GST Registration brings uniformity in the taxation procedure and allows centralized registration. This helps the businesses to file the tax returns every quarter through an online process.
- Minimizing Tax Evasion
With the introduction of GST, tax evasion is minimized to a great extent.
- Higher Threshold For Registration
Earlier, in the VAT system, any business with a turnover of more than Rs 5 lakh was liable to pay VAT in India. In addition, service tax was exempted for service providers with a turnover of less than Rs 10 lakh. Under GST regime, on the other hand, this threshold has been increased to Rs 20 lakh, which exempts lot of small traders and service providers.
- Composition Scheme For Small Businesses
Under GST, small business under turnover of Rs 20 to 75 lakh can benefit as it gives an option to lower taxes by using the Composition scheme. This move has brought down the tax and compliance burden on many small businesses.
- Simple And Easy Online Procedure
The complete process of GST (from registration to filing returns) is done online, and it is super simple. This has been advantageous for start-ups mainly, as they do not have to run from pillar to pillars to get diverse registrations such as VAT, excise, & service tax.
- Compliances Is Lesser In Number
Previously, there was VAT & service tax, each of which had its own returns & compliances. Under GST, on the other hand, there is just one, unified return to be filed.
- Regulations Of Unorganized Sector
In the pre-GST era, it was often observed that certain industries in India like building construction and textile were largely unorganized and unregulated. Under GST, however, there are provisions for online compliances and payments, and for availing of input credit only when the supplier has accepted the amount. This has brought in accountability and regulation to these industries.
GST Registration
What are the Eligibility Criteria for GST Registration?
The below mention person/entities are required to get registered under GST -
- Any business entity whose aggregate turnover in a financial year exceeds Rs 40 lakhs (Rs 20 lakhs for special category states in GST).
- Note-This clause does not apply if the entity is only dealing in supply of goods/services which are exempt under GST
- Every entity who is registered under an earlier law of taxation (i.e., Excise, VAT, Service Tax, etc.) needs to get register under Goods and Service Tax.
- Any entity or supplier dealing in inter-state supply of goods
- Casual taxable person
- A tax-payer under the reverse charge mechanism
- Input service distributor and its agent
- E-Commerce operator or aggregator*
- Non-Resident taxable person
- Agents of a supplier
- A Person who supplies through E-commerce aggregator.
- Entities who are providing online information, acquiring database, or retrieval services from a place located outside India to a person in India, other than a registered taxable person.
What are the Modes of GST in India?
For GST administration, a model was designed where the government (Central and State) have powers to impose and collect taxes through their respective legislations. The Modes of GST are given bellow:-
- Central GST
CGST is the tax imposed on the Intra State supplies of goods and services by the Central Government. When the place of the seller and the buyer is in the same state it is termed as an Intra-state supply of goods or services. Here, a seller has to collect both CGST and SGST in which CGST remains with the Central government while the SGST is collected by the State government.
- State GST
SGST is the tax levied on the Intra State supplies of goods and services by the State Government.
- Integrated GST
Integrated GST is governed by the IGST Act, where the seller has to collect IGST from the buyer, and the tax collected will be divided between the Central and State Governments.
- Union Territory GST
Union Territory GST is applicable when any goods and services are used in the Union territories (UTs) of India and the revenue is collected by the government of union territory.
What are the Constituents of GST?
Document required for GST
- Registration Number
- Legal Name and Constitution of business
- Trade Name
- Period of validity
- Types of taxpayer
- Date of Liability
- Signature of the applicant
What is the Structure of 5 Slabs Under GST?
GST regimes were made by considering all the layman and inflation rates in mind. To make it simpler and easier, the GST was structured following the four tiers structure. These four zones are given below, which are as follow
Zero Rates
Zero rate tax means the – nil tax is to be applied on the goods and/or services.
Lower Rate
Lower tax rate determines the 5% tax rate which is applied on the CPI (Consumer Price Index) basket & mass consumption.
Standard Rate
Standard rate includes 12% & 18% of the tax rates.
Higher Rates
Higher rates tax includes 28% of the tax rate under GST Regulation.
GST Registration
What Documents are Required for GST Registration?
The documents required for the Online GST Registration varies with the type of business. The lists of documents required for GST Registration (based on the type of business) are listed below:-
For A Sole Proprietorship Business
- PAN card of the owner
- Aadhar card of the owner
- Photograph of the owner (in JPEG format, maximum size – 100 KB)
- Bank account details*
- Address proof**
For A Partnership Firm
- PAN card of all partners (including managing partner and authorized signatory)
- Copy of partnership deed
- Photograph of all partners and authorised signatories (in JPEG format, maximum size – 100 KB)
- Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.)
- Aadhar card of authorised signatory
- Proof of appointment of authorized signatory
- In the case of LLP, registration certificate / Board resolution of LLP
- Bank account details*
- Address proof of principal place of business**
For A HUF
- PAN Card of HUF and the Passport size Photograph of the Karta.
- Id and Address Proof of Karta and Address proof of the place of business.
- Bank Account Details
For A Public Or Private Limited Company
- Pan card of the Company
- Certificate of incorporation of Company
- MOA and AOA of the company.
- Identity Proof and address proof of all directors and Authorised signatory of the Company.
- Passport size photograph of the directors and authorized signatory.
- Copy of Board resolution passed for appointing authorized signatory.
- Details of Bank account opening.
- Address proof of the place of business.
What are the Penalties in Case of Non-Compliance in GST?
In Case Of Delay In Filing GSTR
- Late fee is Rs. 100 per day per Act. i.e., 100 under CGST & 100 under SGST.
- Maximum of Rs. 5,000.
- No late fee on IGST.
For Not Filing GSTR
- Penalty 10% of tax due or
- 10,000 whichever is higher.
For Committing A Fraud
- 100% of tax due or
- 10,000 whichever is higher.
- Additionally, in case of high value fraud cases also have jail term.
For Helping A Person To Commit Fraud
Penalty extending up to Rs. 25,000.
For Charging GST Rate Wrongfully
In case of charging higher rate-
- Penalty 100% of tax due or
- 10,000, whichever is higher (if the additional GST collected is not submitted with the govt).
For Not Issuing Invoice
- 100% of tax due or
- 10,000, whichever is higher.
Non-Registration Under GST-
- 100% of tax due or
- 10,000 whichever is higher.
In Case Of Issuing Incorrect Invoice
- Penalty of Rs. 25,000
What is the Validity of GST Registration Certificate?
The validity of any GST registration certificate depends on and conditional to the type of taxpayer who is receiving the certification. It is valid throughout when the certificate is issued to a regular taxpayer. In such cases, it only invalidates if it is canceled by the GST authority or surrendered by the taxpayer himself.
Though, the validity is restricted to a period of 90 days from the date of registration or for the period specified in the registration application, whichever is earlier in cases certificates issued for the casual taxpayer or Non-Resident Indian (NRI) taxpayer. Moreover, the validity period can also be extended under the provisions of Section 27(1) of the GST Act by the appropriate authorities.
