Overview of GST Registration
GST was implemented in India with the goal of eliminating various other indirect taxes and establishing a single taxation structure. GST also facilitates collection and improves the efficiency of the process.
Businesses with a turnover of more than Rs 20 lakhs (10 lakhs in the North East and hill states) must register for GST as a normal taxable person, according to the new GST regulation. The GST register is the name of this procedure.
Apart from the various turnover brackets, there are other instances where getting a new GST registration online is required for people or companies engaged in the provision of goods or services across the state.
What exactly is the Goods and Services Tax (GST)?
When we look at the term, we can see that it implies that the GST will be applied to both products and services, as part of a dual system of GST that separates the duties of the federal and state governments. The GST Council will be chaired by the Union Finance Minister and would include representatives from various state finance departments.
Structure of the GST Tax
The chart below depicts the Goods and Services Tax's relevant tax structure.
*The GST rate of 0% is applied to the most basic items, such as rice and wheat. The entire breakdown of the GST tax rate applied to the various categories of goods and services is freely accessible.
Advantages of GST Registration
After reading thus far, you must be perplexed by some of the ideas, such as why there is so much GST bravado. So, here are a few advantages that will help you understand the advantages of GST registration:
Taxation Services are Streamlined
GST has brought together a lot of indirect taxes under one roof, allowing the Indian market to become more integrated.
Costs of goods and services are being reduced.
The cascading impact of a variety of VATs and taxes was eliminated with the introduction of GST, resulting in a reduction in the cost of goods and services.
Allows you to avoid lengthy tax services
Small enterprises can avoid lengthy taxation services by registering for GST. Service providers with a turnover of less than 20 lakhs and products providers with a turnover of less than 40 lakhs are not required to pay GST.
Designed to reduce fraud and sales without receipts.
The purpose of the GST was to reduce corruption and sales without receipts. It also makes it easier for small businesses to deal with numerous indirect taxes.
Taxation Process Uniformity
GST registration gives taxes procedure standardization and enables for centralized registration. This makes it easier for businesses to complete tax forms online every quarter.
Keeping Tax Evasion to a Minimum
Tax evasion has been greatly reduced with the implementation of the GST.
Registration Requires a Higher Bar
Previously, any business with a turnover of more than Rs 5 lakh was required to pay VAT in India under the VAT system. In addition, service providers having a turnover of less than Rs 10 lakh are free from paying service tax. On the other hand, under the GST regime, this barrier has been raised to Rs 20 lakh, exempting a large number of small traders and service providers.
Scheme of Composition for Small Businesses
Small businesses with a turnover of Rs 20 to 75 lakh might benefit from GST because the Composition scheme allows them to cut their taxes. Many small firms have had their tax and regulatory burdens reduced as a result of this change.
Online Procedure That Is Simple And Easy
The entire GST process (from registration to submitting returns) is completed online and is extremely straightforward. This has mostly benefited start-ups, as they no longer have to run from pillar to post in order to obtain various registrations such as VAT, excise, and service tax.
The Number of Compliances Is Decreasing
Previously, there existed VAT and service tax, each with its own set of returns and requirements. In the case of GST, however, there is only one unified return to file.
Unorganized Sector Regulations
Certain industries in India, like as construction and textiles, were primarily unorganised and unregulated prior to the introduction of the GST. However, under GST, there are facilities for online compliance and payments, as well as the ability to claim input credit only once the supplier has received the amount. These industries are now more accountable and regulated as a result of this.
What are the GST Registration Eligibility Criteria?
The following individuals/entities are necessary to register for GST:
- Any business organization whose aggregate turnover in a financial year exceeds Rs 40 lakhs is needed to register under GST (Rs 20 lakhs for special category states in GST). This clause does not apply if the entity's sole business is the supply of GST-exempt goods and services.
- Agents of a supplier
- Every entity that is currently registered under an earlier taxation law (e.g., excise, VAT, service tax, etc.) must register under the Goods and Service Tax.
- Any organization or supplier involved in the interstate distribution of products.
- Person who pays taxes on a regular basis.
- Under the reverse charge mechanism, a taxpayer.
- Distributor of input services and its representative.
- Operator or aggregator in the field of e-commerce.
- Taxpayer who is not a resident of the United States.
- Entities that provide online information, database acquisition, or retrieval services to a person in India who is not a registered taxable person from a location outside India.
- A Person who supplies through E-commerce aggregator.
What are the different GST modes in India?
For GST administration, a paradigm was developed in which both the federal and state governments have the authority to impose and collect taxes through their respective legislations. The GST modes are as follows: -
GST at the national level(CGST)
The Central Government levies a tax on intra-state deliveries of goods and services, known as the CGST. An intra-state supply of products or services occurs when the seller and buyer are both located in the same state. A seller must collect both CGST and SGST in this case, with the CGST going to the federal government and the SGST going to the state government.
GST levied by the state
The SGST is a tax levied by the state government on intra-state deliveries of goods and services.
GST that is integrated
The IGST Act governs Integrated GST, which requires sellers to collect IGST from buyers and divide the tax collected between the federal and state governments.
GST in the Union Territories
When products and services are utilized in India's Union territories (UTs) and revenue is collected by the government of the union territory, it is referred to as Union Territory GST.
What are the GST Constituents?
- Number of the registration.
- The company's legal name and constitution.
- Validity period is specified.
- There are various types of taxpayers.
- Liability Start Date.
- The applicant's signature is required.
What is the GST Structure of 5 Slabs?
GST regimes were created with the average person in mind, as well as inflation rates. The GST was designed in a four-tiered structure to make it simpler and easier to understand. These four zones are listed below in alphabetical order:
Rates of 0%
The term "zero rate tax" refers to the application of no tax on products and/or services.
The 5 percent tax rate is determined by the lower tax rate, which is applied to the CPI basket and mass consumption.
The standard rate includes tax rates of 12 percent and 18 percent.
Under the GST Regulation, the higher rates tax includes a tax rate of 28%.
What Documents Do I Need to Register for GST?
The type of business determines which documents are necessary for Online GST Registration. The following are the lists of documents required for GST registration (depending on the type of business): -
- For a sole proprietorship business.
- The owner's PAN card
- The owner's Aadhar card.
- The owner's photo (in JPEG format, maximum size - 100 KB).
- Details of your bank account.
- Proof of address is required.
For a partnership firm
- All partners' PAN cards are required (including managing partner and authorised signatory).
- A copy of the collaboration agreement.
- All partners and authorised signatures (in JPEG format, maximum size – 100 KB) must be photographed.
- Proof of partners' addresses (Passport, driving license, Voters identity card, Aadhar card etc.).
- Authorized signatory's Aadhar card
- Proof of the authorised signatory's appointment.
- Registration certificate / LLP Board resolution in the case of an LLP.
- Details of your bank account.
- Proof of the major place of business's address.
For a HUF
- You'll need a HUF PAN Card and a passport-sized photograph of the Karta.
- Karta's ID and address evidence, as well as the address evidence of the business.
- Details of your bank account
For a Public or Private Limited Company,
- The company's pan card is required.
- Company's certificate of incorporation.
- The company's moa and aoa.
- All directors and authorised signatory of the company must provide proof of identity and address.
- Photographs of the directors and authorised signatories at passport size.
- A copy of the board resolution naming an authorised signatory.
- Details on how to open a bank account.
- Proof of the company location's address.
In India, how does one go about registering for GST?
To complete the GST registration procedure successfully, each taxpayer must follow the steps outlined. The steps to register for GST are outlined here.
The first step in GST registration is to complete an online application, which may be found at www.Gst.Gov.In. In the site, the taxpayer (Applicant) must also generate a username and password.
The applicant should go to the GST site and click on the ‘New User Login' tab. Accept the window on the displayed declaration form and hit "Continue" to register for GST Registration by clicking on "New User Login."
To begin the GST registration process, the applicant must select ‘New Registration' and Login.
The applicant must provide the following information on the GST portal: From the drop-down option, choose ‘Taxpayer.' Choose the appropriate state and district. Fill up the company's information (Name and PAN card). Fill in the appropriate areas with your email address and cell phone number (both of which must be active because OTPs will be issued to these addresses). Fill in the Captcha on the screen and click the ‘Proceed' button.
After filling up the needed information, input the OTP supplied to your email address and mobile number in the appropriate fields.
Once all of the information has been submitted, click the ‘Proceed' option.
On the screen, an applicant will be given a Temporary Reference Number (TRN). The TRN should be saved for further use. Note-TRN is used to log in to the GST registration application and to open PART-B in GST registration.
After receiving the TRN, an applicant must reopen the GST portal and select "Register" from the "Taxpayers" option.
Choose ‘Temporary Reference Number (TRN)' from the drop-down menu.
Fill in the TRN and captcha information. Step 11
After entering the Captcha information, click the ‘Proceed' button.
An OTP will be sent to the applicant's email address and registered mobile number. By entering the OTP received, click the ‘Proceed' button.
On the next page, you'll see the status of your application. On the right-hand side of the page, click the Edit icon.
On the next page, there will be numerous places where the needed information, as well as the essential documents, must be fi
Check the declaration on the ‘Verification' page before submitting the application. The following methods are available for submitting the application: • Code of Electronic Verification (EVC). • Using the e-Sign technique. • If the applicant is a business, the application must be filed with the use of a Digital Signature Certificate (DSC).
A successful completion message will appear on the screen once the process is completed. The ARN will be provided to the GST Applicant's registered mobile number and email address.
On the GST portal, you can check the status of the ARN.
What are the Consequences of GST Non-Compliance?
The Consequences of Non Compliance of GST are as follows-
In the Event of GSTR Filing Delay
- The late cost is Rs. 100 each day, according to the Act. 100 under the CGST and 100 under the SGST.
- A maximum of Rs. 5,000 is allowed.
- On IGST, there is no late fee.
Penalty for not filing GSTR
- 10% of tax owed
- Rs. 10,000, whichever is greater.
For Committing a Fraud
- 100% of the tax due
- 10,000, whichever is greater.
- In addition, high-value fraud crimes may result in a prison sentence.
For Assisting Someone in Committing Fraud
A fine of up to Rs. 25,000 may be imposed.
For Incorrectly Charging GST Rate
Non-registration for GST purposes-
- 100% of the tax due,
- Rs 10,000, whichever is greater.
In the Event That an Incorrect Invoice Is Issued
- A fine of Rs. 25,000 is imposed.
What is the GST Registration Certificate's Validity?
The sort of taxpayer who receives a GST registration certificate determines and conditions the validity of the certificate. When an ordinary taxpayer receives a certificate, it is valid for life. It only becomes invalid in such instances if the GST authority cancels it or the taxpayer surrenders it.
In circumstances where certificates are granted for casual taxpayers or Non-Resident Indian (NRI) taxpayers, the validity is limited to 90 days from the date of registration or the term mentioned in the registration application, whichever comes first. The validity term can also be extended by the authorized authorities under the terms of Section 27(1) of the GST Act.
GST Registration is implemented in several stages.
Furthermore, GST registration is required for some businesses, and if a corporation or an individual conducts business without first obtaining a GST registration, it will be considered a violation of the GST Act, with severe penalties imposed. GST registration is an online process, and GST is levied at every point in the supply chain to offset all tax benefits.
Every product goes through a number of steps, including the acquisition of basic materials, production, wholesaling, and retailing, and finally the final sale to the user for consumption/usage.
In a nutshell, all commodities and services go through many stages, including: (a) basic material purchase and manufacture, (b) full selling and retailing of the commodities, and (c) final sale to the consumer for consumption. The following situations necessitate GST registration: -
- The aggregate turnover threshold has been exceeded.
- Compulsory Registration is necessary for certain enterprises.
- Registration is done voluntarily.
The GST is included in the final price of all goods and services before they are purchased, and it eliminates all indirect taxes that were previously imposed by the central government and state governments in India.
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Frequently Asked Questions
A unique Goods and Service Tax Identification Number, or GSTIN, is provided to each GST-registered firm.
A separate GST is necessary for each state if a business provider operates from more than one location.