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In India, the Goods and Service Tax was implemented in 2017. Before GST, the Sales tax regime was followed in which business owners were required to pay their Sales tax and other indirect taxes according to State-wise Indirect tax legislation and rules. Due to many legislation and tax heads, the compliance system for the entities was
very difficult to follow.
very difficult to follow.
With the single GST law, one can now obtain a single GST registration to do business from anywhere in India and to report Sales, file returns and claim several benefits from Government including Input tax credit, E-Invoicing, E-Way billing, etc.
What GST Registration?
GST Registration is an online process for all Individual business owners or owners of Partnership / LLP /Company. Once GST Registration is obtained, the GST department allots a 15 Digit unique identification number to the entity –
- The first 2 digits shall be State Code
- The next 10 digits will be PAN Number
- The thirteenth digit is based on no. of registration in a state
- Fourteenth will be ‘Z’ by default
- The last digit will be random
The department after confirming the GST Registration issues a GST Registration Certificate which is to be displayed at the registered place of the entity.
Why GST Registration is required?
GST Registration for a business is required :
- To collect and pay Indirect taxes to Government.
- To avail of Input Tax Credit.
- To file necessary applicable GST Returns.
- To claim tax benefits under different legislation and exports.
- To report business records with transparency to Government.
- To obtain registration under the E-Way billing system.
- To sell goods online or within different states.
Who should register for GST?
Under GST, liability for tax arises on the supply of a good or service. It depends on the business activity/services provided and the minimum GST exemption limit under the GST rules which guides for the business owner to obtain GST Registration. Apart from obtaining mandatory registration, GST Registration can be obtained voluntarily by any business owner.
But in the case of the below criteria, it is mandatory to obtain GST registration:
- Business Owner with Turnover above Rs 40 lakh
- Service Providers with Turnover above Rs 20 lakh.
- Interstate Suppliers
- Input Service Distributors or Agents of a Supplier
- Casual Taxable Person (CTP).
- E-Commerce Operator
- Restaurants with business turnover above Rs 20 lakh.
- Non-Resident Taxable Person supplying information or database-related services to a person in India.
- Person liable to pay under the Reverse Charge Mechanism (RCM)
- The person deducting TDS/TCS
- Entities recognized under SEZs.
Other than above, business entities with a turnover above Rs 10 lakh are also required to apply for GST Registration if they belong to Special Category States under GST including Himachal Pradesh, Jammu and Kashmir, Uttarakhand, or other North-Eastern States.
Types of GST Registration in India
Under GST, different registration types are specified according to the product/services, location, and specification of the business and its owners. Here are three types of GST registration that you can apply for:
- Normal GST Registration: Registration is granted to business owners based on their threshold limit of turnover or their business activities. Under this type of registration, there are different requirements of compliance and rules for GST reporting including the filing of GSTR 1, GSTR 3B, and Audit returns.
- Registration as a Casual Taxable Person: GST registration as a Casual taxable person means a business that is registered for occasional purposes or which does not have a place of business or a place of supply. For example – the seller after obtaining GST Registration in Delhi provides some legal services in Kolkata.
- Composition Dealer Registration: Manufacturers of Goods, Restaurants, and other business owners as per Section 10 of the GST Act with a turnover below Rs 1.5 crore can apply for this type of registration. Composition dealers are not allowed to claim Input tax credits, also they have to bear the least compliance compared to a Normal GST registration holder.
Documents required for GST Registration
The following documents are required to apply for GST registration online :
|Documents||Proprietorship||Partnership||LLP||Company (Public/Private/OPC/Section 8)|
|PAN of Applicant /Entity/Directors||✓||✓||✓||✓|
|Bank Account Details||✓||✓||✓||✓|
|KYC proof of Applicant/Directors (Aadhaar , Voter ID etc)||✓||✓||✓||✓|
|Proof of Registered Address of Business /Rent agreement( if applicable.)||✓||✓||✓||✓|
|MOA (Memorandum of Association ) and AOA (Article of Association)||✓|
The above documents and a few more as asked at the time of GST Registration are to be submitted.
The consequence of Non-Registration
Section 122 of the CGST Act, states the penal provisions applicable to a person/entity for non registering to GST when identified to be liable for registration. The Section also states for other punitive actions are to be taken against a person/entity for non-compliance with other GST provisions.
Can GST registration be closed later?
GST Registration once obtained can be closed in different situations or can be closed by the department for different reasons which are notified to the taxpayer. One can apply for closure of GST by filling Surrender of GST registration application. But it shall be closed by the department if there is any contradiction or any non-compliance with the rules or Sections of the GST act by way of Cancellation, Rejection, or Suspension of the GST Registration.
Why TaxReturnWala for GST Registration?
There are several compliances related to GST registration, GST returns filing, GST audits, and GST litigation. To Handle all problems and issues of GST, Compliance experts at TaxReturnWala are there to help you at all times during your business journey. We have dedicated support members placed to take care of all your GST worries and get back to you with the most feasible solutions in no time. Being more than a compliance partner, we are there to advise you in all your business statutory and legal needs. To reach out to our GST compliance expert, email us at firstname.lastname@example.org
Do I have to renew my GST Registration every year?
No, it is a one-time registration.
Can I obtain different GST Registration for different businesses or different locations?
Different GST registration can be obtained for different businesses as per Section 25(2) but no separate registration shall be provided for other business branches in the same State or Union Territory. In case, different businesses are owned within states then different registration can be obtained.
Can future amendments be made to GST Registration?
Yes, a request for amendment in GST Registration can be made with the prior approval of the concerned GST officer.
Need more help on GST please write to us at email@example.com