GST-Registration

GST REGISTRATION

In July 2017, the Goods and Services Tax (GST) was launched to subsume most of the indirect tax regime at the central and state level. It is a comprehensive multistage tax system as the tax is imposed on every level of production with complete refund benefit. GST is applicable to all manufacturers, traders and service providers. Hence, it is important for all businesses to apply for GST Registration in India.

WHAT ARE THE ADVANTAGES OF GST REGISTRATION?

With GST Registration, you will be able to enjoy the following benefits:

Ease of Doing Business: Since GST is a comprehensive taxation regime, you do not need to pay multiple taxes and hence can carry out your business in a hassle-free manner.

Multiple Tax Elimination: GST has subsumed several taxes such as VAT, Service Tax, Sales Tax, Excise Duty, etc. which was difficult to manage for small businesses.

More Savings: There is no double taxation for the businesses under GST. Though it is applicable at all stages of production, it also provides refund for the same. It has also reduced the cascading effect of taxes which were earlier there in the country.

Lesser Chances of Evasion: Because of so many taxes applicable before, it was hard to manage and hence, a lot of businesses would evade tax unintentionally. Some businesses also used the previous tax regime to evade taxes intentionally. Chances of both these have been now reduced

HOW MUCH LIMIT IS FOR GST REGISTRATION OF BUSINESSES?

For Normal Category States

As per the 32nd GST Council Meeting, the GST Limits applicable to businesses have been changed. GST limit means that individuals/businesses whose annual turnover is higher than the limit mandatorily need to register for GST.

For Sale of Goods

Annual Turnover of Rs. 40 lakh or more

For Services

Annual Turnover of Rs. 20 lakh or more

For Special Category States

For GST purposes, the special category states are Arunachal Pradesh, Sikkim, Manipur, Meghalaya, Mizoram, Assam, Nagaland, Tripura, Himachal Pradesh, Uttarakhand and Jammu & Kashmir.

For Sale of Goods

Annual Turnover of Rs. 20 lakh or more

For Services

Annual Turnover of Rs. 10 lakh or more

WHY YOU NEED TO APPLY FOR GST REGISTRATION?

You need to apply for GST Registration if:

  • You are supplier of goods or provider of services with annual turnover above the threshold as shown in the above section

  • You or your business is liable to deduct TDS or collect TCS

  • Your business was registered under the pre-GST tax laws.

  • You are an e-commerce aggregator or supply goods via an e-commerce aggregator

  • You make casual supply of goods or services that are taxable

  • You make interstate supply of taxable goods or services

  • You pay tax under the Reverse Change Mechanism

  • You are an agent supplying goods on behalf of other taxpayers

  • You are a new owner of a transferred/merged business

An important point to note here is that any entity can voluntarily apply for GST Registration in India, even if the mandatory laws do not need them to do so

STEPS OF GST REGISTRATION

New-Registration-Tab
require-basic-details
verify-and-TAN-get
fill-GST-form
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GST-Registration-done

DOCUMENTS REQUIRED FOR GST REGISTRATION

Different business entities may need to submit different kinds of documents to verify their application for GST Registration. Given below are a few key documents that every applicant would be required to submit for GST Registration:

PAN

Address Proof

Authorized Signatory Proof

Photograph of the authorized signatory

Proof of business incorporation

Bank account details

PENALTY FOR NON-REGISTRATION OF GST

GST-non-compliance

If mandatory, but failed to register


10% of the tax or Rs. 10,000 whichever is higher

GST-non-compliance

If mandatory but failed to register and deemed to be a deliberate case of fraud

Up to 100% of the tax due