Each Service Provider needs GST Registration and due to which it is subjected to a particular set of GST Registration regulations. The Government of India enacted the Goods and Services Tax (GST), a unified tax system, on July 1, 2017. Doing business and conducting trade in India has become quite simple and easy, thanks to the GST Registration of Service Provider. According to some experts, GST is consumption or destination based tax. Service providers now have easier access to the GST Registration requirements all because of 23rd GST Council Meeting. In this post, we’ll go through GST Registration for Service Providers. 

What is GST Registration? 

GST Registration is the procedure used to register a taxpayer for the Goods and Service Tax (GST). The Goods and Service Tax Identification Number (GSTIN) is given following completion of the registration process. The Central Government provides the 15-digit GSTIN, which aids in determining whether a business pay GST or not. 

Limit on Turnover for GST Service Providers 

All service providers must register for GST, just like any other type of business, if their combined yearly turnover exceeds Rs. 20 lakh in the majority of states and Rs. 10 lakh in the Special Category Status. 

GST Registration for Service Providers 

Any firm operating in India, whether it deals with goods, services, or both, must obtain GST Registration if its annual revenue exceeds the threshold amount established as a guide under the new GST regime. However, there is one exception to this general rule, which requires some enterprises to register under GST without disclosing their turnover. 

GST Registration for Inter-State Sale Service Providers 

Regardless of yearly aggregate turnover, all other business categories must register for GST if they are involved in the supply of goods from one state to another. However, as per the resolution made at the 23rd GST Council Meeting, this restriction does not apply to service providers. As a result, service providers who offer goods interstate or intrastate and have a turnover of at least Rs. 20 lakh (or Rs. 10 lakh in the Special Category States) may choose not to register with the GST. Additionally, service providers who offer their services through an e-commerce operator are also eligible for this exemption. 

Documents Required for GST Registration by Service Providers  

The following paperwork must be submitted in order to register for GST- 

• An accurate permanent account number (PAN) 
• In India, a real mobile number 
• Authentic email address 
• Location Valid Bank Account Number with IFSC from India 
• A minimum of one owner, partner, director, trustee, Karta, or member who has a PAN 
• An authorized signatory who resides in India and has accurate information, including a PAN 

Compulsory Registration for Certain Service Providers 

Subject to the yearly aggregate turnover requirements, the government has granted an exemption from obtaining GST registration to the majority of service providers. Nevertheless, regardless of annual aggregate turnover, the following categories of service providers would still need to be registered under GST- 

• Service Providers for OIDAR 
• Operators in E-Commerce 
• Taxable Non-Resident Individual Providing Services to Indian Residents 
• A Temporary Taxable Person 

Procedure of GST Registration for Service Providers 

The procedure is extremely easy for service providers who need to register for GST and the same is given below-  

• For the purpose of enrolling in GST, you must go to the government GST portal^[1], click on login, and you will be given a provisional ID and password. 
• To begin GST Registration, click “New user login.” 
• Use your ID and password to log in. 
• You will be directed to a screen where you must input your mail address and mobile number after logging in. 
• You will receive an OTP on your mobile number and mail after inputting the information; type it in the OTP field. 
• Create the username and password you like, then Establish security concerns 

India has a robust services-based economy, where the sector creates a sizable portion of job opportunities and boosts GDP. Now, service providers must contend with an entirely new set of facts. The services sector would experience both significant benefits and drawbacks from the introduction of the GST. Determining the destination of some services may be difficult because the GST is allegedly a location-based tax. Determining state GST, central GST, or interstate GST on B2B and B2C transactions may become challenging as a result. 

Registration of Service Providers in Different States 

When it comes to registration in various states and when a service provider must consider a multi-state registration, there has been a great deal of uncertainty. When you have business operations in a state, such as a place of business or office, you must register in that state, which necessitates registration in numerous states. When you have service operations in more than one state, you must get numerous registrations, completely comply with each registration’s requirements, manage your invoicing for that state, and as a result, the input tax credit also becomes state-centric. 

GST Invoice for Service Providers

If a service provider is not registered for GST, they can still produce a bill of supply without mentioning GST. A service provider who is registered for GST can provide invoices to consumers and collect GST from them. 

Conclusion 

The GST Registration of Service Provider has made doing business and conducting trade in India very simple and easy. Every trader’s and business owner’s market has expanded. GST has favourable effects on the service industry in India, such as consolidated taxes for interstate service providers, distinct distinctions between products and services, input credit facility, and uniform return filing. Consult an expert for GST Registration for Service Provider in case you have any confusion. You can also reach an expert at Bizadvisor.io 

Read our article:All You Need to Know about Benefits of GST Registration