GST Registration In India
Everything You Need To Know About GST Registration
WHAT IS GST REGISTRATION?
Goods and services tax is a new tax system in India that came into force on 1 July 2017.
GST Registration refers to the process by which businesses involved in the purchase and sale of goods and services need to register with GST.
Following this process, it is compulsory for businesses to make a profit of more than Rs. 20 Lakhs (for services) and Rs. 40 Lakhs (for sale).
For some businesses, registration under GST is mandatory. If an organization carries on business without registration under the GST, it will be an offense under the GST and heavy penalties will apply.
Generally, it takes two to six days for the registration process to be completed.
Types of GST registrations
Many Indian businesses fall under this category.
Businesses with a turnover of more than Rs 40 lakh per financial year are required to register as normal taxpayers. However, the limit is Rs 10 lakh if you have business in the northeastern states, J&K, Himachal Pradesh, and Uttarakhand.
Casual taxable individual
Occasional or seasonal businesses need to register their businesses under GST in this category. Businesses need to make a deposit equal to GST liability from occasional operations.
The registration period is three months. However, businesses can apply for renewals and extensions.
Non-Resident Taxable Individual
Individuals living outside of India but occasionally supplying goods or services such as agents, principals, or in other capacities to Indian residents are required to apply for registration under this section.
The business owner must pay a deposit equal to the expected GST debt during the active GST. The average time is three months. However, people can extend or renew a registration if needed.
Businesses with an annual turnover of up to Rs 1 crore are eligible to be registered under the composition strategy. Under this scheme, entities must pay a fixed GST amount regardless of the actual amount of turnover.
Who Should Register for GST?
However, GST registration is mandatory for the following individuals/institutions:
Those registered under the pre-GST law (excise, service tax, VAT, etc.).
Casual Taxpayer / Input Service Distributor (ISD)
Returning information online or accessing service providers
Every e-commerce aggregator
People who pay taxes under the reverse charge mechanism
Agents working for the service provider or distributor
TDS / TCS deductor
Suppliers working with e-commerce aggregators
What is the GST registration process?
The Goods And Services Tax (GST) registration services at ClearTax help you to get your business GST register and get your GSTIN.
ClearTax GST experts will guide you on the applicability and compliances under GST for your business and get your business registered under GST.
What are the Benefits of GST Registration?
GST registration comes with a number of benefits for individuals/business organizations. Listed below are some of the benefits of registering as a GST taxpayer:
GST registration serves as proof that acknowledges your business as a certified one for the provision of goods and services.
You get the right to collect taxes from your customers and transfer the tax liability paid to customers/suppliers.
You can also get the benefit of a composition scheme under GST to reduce the compliance burden, by being a small taxpayer.
What documents are required for GST registration?
For Proprietorship Firm Registration
Owner's PAN card
Photo of owner
Campus electricity bill
Letter of authorization for signature
Bank statement / canceled check
Aadhaar card of owner / directors / partners
For Partnership / Private Limited Company
Company/partnership PAN card
Director / Partner PAN card
Director / Partner Aadhaar Card
Photo of director/partner
Campus electricity bill
Involvement of participation deed/certificate
letter of authorization
GST Registration Process
GST registration can be done online through the government portal - https://www.gst.gov.in/, or GST Seva Kendra.
The steps for the GST online registration process are given below:
Visit the official GST Registration website.
Under the 'Services' tab, click 'Registration' -> 'New Registration'.
The online GST registration form is divided into two parts - Part A and Part B.
In Part A,
Select 'Taxpayer' from the drop-down options.
Select your district and state you want to use for GST registration.
Enter a variety of details, including the official business name, email address, PAN, and mobile number in the appropriate fields.
Verify the information entered through OTP.
To complete Part A, write down the TRN or Temporary Reference Number you receive after confirmation.
In Part B,
To start GST registration with Part B, log in using your TRN and confirm the process by entering the correct CAPTCHA code.
Verify the process by entering the OTP sent to the registered mobile number or email address. This will redirect you to the GST registration page.
Submit business-related information, including company name, PAN, the country chosen for GST registration, and the date you started the business.
Enter the required information in the horizontal tabs of Promoter / Partner, Authorized Signatory, Authorized Representative, and others.
After you have finished entering the required information and uploading documents, click on ‘Save and Continue.
After successfully submitting your application, sign it digitally and proceed.
An ARN or Application Reference Number will be sent to you, confirming your GST registration.
GST registration fees
GST Registration Fees and pricing for online goods and services tax registration vary according to the GST services of the professional. All registered businesses must file monthly, quarterly, and/or annual Goods and Service Tax Returns depending on the type of business. Different returns are required to be filed by special cases such as composition dealers.
What are the penalties charged for avoiding GST Registration?
Any offender who deliberately avoids registering under the GST regime must pay a penalty of 100% of the tax payable due or ten thousand rupees, whichever is higher. Similarly, those who avoid the filing of GST returns are liable to pay a penalty of the tax due, with a minimum penalty of ten thousand rupees.