Goods And Service Tax Registration (GST)
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GST registration allows your firm to operate legally and
establishes your brand as reliable and trustworthy. GST registration is the
first step toward successfully managing your company's taxes, as the GST portal
has streamlined numerous processes, from application to filing returns.
You've probably heard of the Goods and Services Tax, whether
you're a business owner, a service provider, or a customer (GST). On July 1,
2017, India's GST went into force, transforming the country's entire taxation
system.
In layman's words, it's a single indirect tax levied on the
added value provided by a company's goods and services. The Government of India
taxes companies exclusively on their respective offerings at every level, from
manufacturing to distribution, and the tax burden is passed on to the final
consumer.
The first step in paying the GST is to register your
business with the GST system. If you're a startup founder, the process is
likely to be overwhelming. Here is a simple tutorial to help you understand
everything you need to know about GST registration for your company.
Who is qualified to become a GST registrant?
To be eligible for GST registration, your yearly turnover
must fall between one of the following ranges:
The barrier for the manufacturing industry is Rs. 40 lakhs
or higher.
The threshold for the service sector is Rs. 20 lakhs or
more.
The barrier for businesses in the north-eastern and hill
states is Rs. 10 lakhs or more.
You must also apply for GST registration if you match any of
the following criteria:
You sell goods or services in a state other than your own.
You sell your items through e-commerce platforms like Flipkart or Amazon.
You're in the import-export business.
You'd want to send tax invoices to your customers.
You are a corporation that is attending an exposition or
event outside of your state as a Casual Taxable Payer.
Under the reverse charge technique, you are taxable.
You're a tax agent representing a registered taxpayer.
You're a distributor of input services (ISD)
You run an e-commerce site or an aggregator company.
You provide OIDAR (Online Information Database Access and
Retrieval) services to India from outside the country.
Note: If you do not register for GST registration despite
completing these requirements, your firm will be fined 100% of the tax owed or
Rs. 10,000, whichever is higher.
What documents are required for GST registration?
You must have the following documents on hand in order to
register for GST:
Photographic images (passport size)
Identity proofs for company PAN cards, such as Aadhar Card,
Passport, or Driver's License
For your offices, you'll need proof of address.
Bank account information can be obtained through a
statement, a cancelled check, or a passbook.
Certificate of Incorporation for a Private Limited Company
or Limited Liability Partnership (LLP) or an OPC Partnership Deed for a
partnership company
What exactly is GSTIN?
A GST officer will review your whole application after your
GST registration is complete. If it is approved, you will be given a GST
Identification Number, or GSTIN, which you must provide on all of your
invoices.
The entire process takes two to six days, from registration
to receipt of the GSTIN.
When is it OK to register for several GST registrations?
You may be able to register for numerous GST numbers under
the following circumstances:
If your business operates in more than one state – for
example, distributing items to multiple states – you must register for GST in
each state.
If your company operates in one state but has many
verticals, you can register for multiple GSTs to make your accounting process
easier.
If a company is based in one state but delivers products and
services across the country, it does not need to register for numerous GST
registrations.
In India, the goods and services tax (GST) was established
to make tax compliance easier and to avoid multiple taxes.
Non-resident Indians' (NRIs) investments in India have
advanced the country's economic progress. The Indian government has taken a
number of efforts to assist NRIs with commerce and business.
In India, the goods and services tax (GST) was implemented
to make tax compliance easier and avoid multiple charges. Its goal is to
encourage digitization while also increasing efficiency through compliance
automation. The new GST registration process is simple and straightforward.
Domestic taxpayers and non-resident taxable people have unique sets of rules
for registration, returns, and refunds, among other things (NRTPs).
NRTP refers to someone who occasionally engages in
transactions involving the supply of goods or services, or both, but does not
have a fixed place of business or habitation in India, as defined by the Indian
GST law. This can be done in any capacity, including as a principal or agent.
There are a few crucial aspects that NRTPs should keep in mind when it comes to
GST registration.
Limitation on turnover
If a supplier's aggregate turnover surpasses a certain
threshold, the law requires them to register for the delivery of products or
services. Even if the turnover limit is not met, registration is required for
certain designated categories of people. NRTPs making taxable supplies are one
of these categories; as a result, a non-resident making taxable supplies is
required to register under the Indian GST legislation regardless of the amount
of turnover involved. These NRTPs must apply for registration five days before
they begin doing business.
Penalties for failing to register or registering late under
GST GST eligible individuals and businesses must register by the due date.
Certain penalties are levied if you do not register or register late.
Individuals or businesses who register late or fail to
register for GST must pay a penalty of the greater of 10,000 INR or the amount
of avoided tax. Section 122 of the CGST Act applies to this penalty.
Consider the following scenario:
Mr A failed to register for GST and owes outstanding taxes
of 9,000 INR. He must pay a penalty of 10,000 INR because his avoided tax
amount does not exceed 10,000 INR. Mr. B also failed to register for GST,
resulting in a total of 11,000 INR in tax evasion. As a result, because his
avoided tax amount exceeds 10,000 INR, he must pay a penalty of 11,000 INR.
Certificate of GST Registration
A GST Registration Certificate is a legally binding
electronic document that confirms a person's GST registration. It is not a
tangible copy and is only sent out after a successful GST registration. The
certificate must be displayed at the registered organization's main office, as
well as any secondary locations, if any exist. A punishment of 25,000 INR will
be imposed if this is not done.
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