Everything About GST Registration
Goods and service tax (GST) says that businesses whose turnover exceeds Rs. 20 lakhs are eligible to register as a normal taxable individual. In case of North-Eastern or Hill States, the limit is 10 lakhs to come under the bracket of taxable business. These businesses which comes under taxable brackets are liable to register under GST.
The entire procedure that a business undergoes is known as GST registration. There are certain businesses for whom GST registration is mandatory. In case they are not registered for GST, there may apply heavy penalties that the company is liable to pay to the government. For these businesses to stay away from offence, they need to register for GST as a priority.
- A business having a turnover of 20 lakhs or more; 10 lakhs or more in case of south- eastern or hill states.
- Individuals registered in pre-GST laws (Excise, VAT, Service Tax, etc.).
- Casual taxable individual.
- Non-Residents liable for taxation.
- Agents of supplier;
- Individuals or businesses who supplies through e-commerce platforms.
- Individuals and businesses paying tax under reverse charge mechanism.
- E-commerce aggregator.
- Individual or business supplying information or database to person in India from outside India.
✓ Person or business exempt under GST or IGST Act.
✓ An agriculturalist.
✓ Person or business issued special category by the government.
There is a procedure to register for GST in India. Let us have a look at the steps in which GST can be registered.
A. Details to be provided:
There are various details that needs to be provided before initiating the GST registration process. Below are the details that needs to be declared:
✓ Mobile number;
✓ E-mail Id;
✓ State or Union Territory.
The above details are to be filled in Part A of form REG-01 on the portal. In case if Commissioner is appointed to carry out the process, these details needs to be sent directly to the Facilitation Centre.
B. Obtain Reference Number:
Once PAN has been verified, a temporary reference number is generated that should be conversed to the applicant.
C. Formal Application:
Using the above information, the applicant then needs to fill the application form. Part B of Form GST 01 has needs to be verified through electronic verification code or duly signed along with the required documents.
D. Required Documents:
The documents required for various types of companies differ from each other. However, the documents needed altogether are summarized below:
✓ Incorporation certificate or proof of registration;
✓ PAN of the applicant;
✓ Aadhar Card;
✓ Digital Signature;
✓ Letter of Authorization or Board Resolution;
✓ Cancelled Cheque or Bank Account Statement;
✓ Address Proof of Business;
✓ Identity and Address proof of Directors.
Each business falling under GST or IGST Act are liable to register and pay GST. In case any of the individual or business are not registered under GST, there are high amount of penalties charged by the government.
The offender is liable to pay 10% of the due tax amount subject to minimum of Rs. 10,000. This may rise to 100% if the offender has evaded tax with wrong intentions.
- Business can obtain input tax credit;
- Interstate sales can be made without any restrictions;
- Reduced tax liability;
- Limited compliance;
- Competitive advantage as compared to other businesses;
- Increased working capital;
- A business can register on e-commerce website.