What is GST Registration

After 1st July, 2017 any business whose turnover exceeds more than 12 lacks is required to register under GST regime. For the North East India and hill state the value of turnover is 10 lacs. The process of registering a business is called GST registration.  

You may face heavy penalties if you are running organisation without  GST registration as it is mandatory for certain business.

The normal registration process may take between 2-6 days. Here is the official Government website to register under GST https://reg.gst.gov.in/registration/

Who needs to register for GST?

GST registration is compulsory for anyone belonging to the following category: 

  1. Any business with annual turnover Rs. 20 Lacs or more. (For North East state and low density population state the value is Rs. 10 Lacs.)
  2. Anyone registered under the pre GST law i.e. VAT, service tax etc.
  3. Casual taxable person
  4. Non-Resident taxable person
  5. E-commerce operator
  6. Inter-State supplier of goods
  7. Person who supply through an e-commerce operator
  8. TDS Deductor
  9. Inter-State supplier of goods
  10. Person supplying online information and database access or retrieval services from outside India to a non-registered person in India

What is GST Registration Process?

Visit the following website to register online for GST in India https://reg.gst.gov.in/registration/

Supporting Documents Required for GST Registration-

  • Aadhaar card
  • PAN of the Applicant
  • Digital Signature
  • Address proof of the place of business
  • Bank Account statement/Cancelled cheque
  • Proof of business registration or Incorporation certificate
  • Identity and Address proof of Promoters/Director with Photographs
  • Letter of Authorisation/Board Resolution for Authorised Signatory

GST Registration Fees

A great news for businesses is that GST registration is completely free 

However some professional, auditors and tax payers are charging somewhere between Rs. 1000-2500 for Goods And Services Tax (GST) Registration services.

Penalty for not registering under GST

There is a provision penalty if you don't register under GST. An offender has to pay a penalty of 10% of the tax amount due, subject to a minimum of Rs.10,000.

The penalty will be 100% of the tax amount due when the offender has deliberately evaded paying taxes.

FAQs for GST Registration 

What is GSTIN?
This is an unique Goods & Service Tax Identification Number (GSTIN) which is  assigned by Gov. to all GST registered dealer.  

When should a business apply for multiple GST registrations?
Multiple GST registrations is required if a business operates from more than one state. Business of multiple vertical in same state may obtain a separate registration for GST.

What is Composition scheme and when should a business opt for it?  
Gov. has introduce composition scheme for all the small business owners whose turnover is less than Rs 1 Cr. In this scheme dealers pay nominal tax that is based on their type of business.

  • Only one quarterly return needs to be filed by composition dealers.
  • Don't need to issue taxable invoices.
  • They cannot claim any input tax credit.

This scheme is not applicable for 

  • E-commerce sellers.
  • Inter-state sellers.
  • Service providers.
  • Supplier of non-taxable goods.
  • Manufacturer of Notified Goods.

What are the benefits of registering under GST?

A. For normal registered businesses:

  1. Input tax credit benefits.
  2. No restrictions on interstate sales.

B. For Composition dealers:

  1. Limited compliance.
  2. Less tax liability.
  3. High working capital

C. For businesses that voluntarily opt-in for GST registration (Below Rs. 20 lakhs)

  1. Can avail Input tax credit.
  2. Interstate sales without having any restriction.
  3. Register on e-commerce websites.
  4. Competitive advantage compared to other businesses.

To manage your business accounting, GST invoice & filing return  

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