GST Registration

GST Registration

Goods and Service Tax

GST (Goods and Service Tax) is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. All entities involved in buying or selling goods or providing services are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer. They would not be able to  claim an input tax credit of GST paid. Those who do not stick to it will be penalized. Registration under GST is mandatory as per guidelines of the laws.

GST Overview

GST (Goods and Services Tax) is India’s biggest indirect tax reform. A comprehensive dual GST was introduced in India from 1 July 2017. Current scenario of world economy depicts that more than 140 nations, worldwide use GST system. Like Canada, India adopted dual GST (CGST and SGST) system

Advantages of GST

GST chiefly removes the cascading effect on the sale of goods and services. Elimination of cascading effect directly impact the cost of goods. Since the tax on tax is eliminated in this regime, it ultimately results into the the decrease of cost of goods and services That benefits the end users or citizens.

Entire process of GST is digitalized and technologically driven. GST portal has been launched to simplify entire process, gain maximum accuracy and remarkable speed. Using this portal, one can complete all the steps like registration, return filing, application for refund and response to notice very easily.

 GST Registration

In the GST Regime, businesses whose turnover exceeds Rs. 20 lakhs (for NE and hilly states its Rs 10 lakhs) need to register themselves as a normal taxable person. This process of registration is called GST registration.

For certain businesses, registration under GST is mandatory. If the organization is found to ignore this and continues trade without being registered under GST,they will be charged a heavy pety as as its regarded as an offense.

How many returns do I need to file for the GST in a financial year?

Return filing under GST depends upon the nature of your business and the type of registration you have opted for.

If you are normal taxpayer under GST, you are liable to file total thirty-seven returns in one financial year. Three returns in a single month and one annual return.

Practically only 12 monthly returns & 1 annual returns need to be filed in GST.

The penalty for not registering under GST

A penalty of 10% of total amount due or minimum of Rs.10,000 is levied on an offender who fails to pay tax or do a short payments under GST norms. Penalties can reach 100 % of the tax amount because the perpetrator has deliberately avoided paying the tax.

Types of entities for GST

There are various types of GST registration and some types of entities like casual taxable persons, non-resident taxable persons or persons supplying through eCommerce operators are required to mandatorily obtain GST registration irrespective of turnover limit. The GST turnover limit for regular GST registration for service providers and goods supplier shall be as follows:

Service Providers

Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.

Goods Suppliers

As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions

  1. Should not be providing any services.
  2. The supplier not be engaged in making intra-state (supplying goods within the same state) supplies in the states of Arunachala Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim,
  3. Should not be involved in the supply of ice cream pan masala or tobacco.

If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.

Special Category States

Under GST, the following are listed as special category states – Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Aggregate Turnover

It is sum equal to = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies). Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.

PAN Card of the Business or Applicant

GST registration is linked to the PAN of the business. Hence, PAN must be obtained for the legal entity before applying for GST Registration.

Identity and Address Proof along with Photographs

The following persons are required to submit their identity proof and address proof along with photographs. For identity proof, documents like PAN, passport, driving license, Aadhar card or voter’s identity card can be submitted. For address proof, documents like passport, driving license, Aadhar card, voter’s identity card and ration card can be submitted.

  1. Proprietary Concern – Proprietor
  2. Partnership Firm / LLP – Managing/Authorized/Designated Partners (personal details of all partners are to be submitted but photos of only ten partners including that of Managing Partner are to be submitted)
  3. Hindu Undivided Family – Karta
  4. Company – Managing Director, Directors and the Authorised Person
  5. Trust – Managing Trustee, Trustees and Authorised Person
  6. Association of Persons or Body of Individuals –Members of Managing Committee (personal details of all members are to be submitted but photos of only ten members including that of Chairman are to be submitted)
  7. Local Authority – CEO or his equivalent
  8. Statutory Body – CEO or his equivalent
  9. Others – Person(s) in Charge

Business Registration Document

Proof of business registration must be submitted for all types of entities. For proprietorship https://virtualoffice.org.in/proprietorship-registration there is no requirement for submitting this document, as the proprietor and proprietorship are considered the same legal entity. In case of partnership firm, the partnership deed must be submitted. In case of LLP or Company, the incorporation certificate from MCA must be submitted. For other types of entities like society, trust, club, government department or body of individuals, registration certificate can be provided.

Address Proof for Place of Business

For all places of business mentioned in the GST registration application, address proof must be submitted. The following documents are acceptable as address proof for GST registration.

For Own premises

Any document in support of the ownership of the premises like latest Property Tax Receipt or Municipal KHATA copy or copy of Electricity Bill.

Electricity bill for GST Registration
Electricity bill for GST Registration

GST Registration (For Individual):-

GST Registration in Regular Scheme and Composition is applicable on that person, which is Annual Turnover up to 1.5cr. This taxpayers are filling return GSTR-3B Monthly or GSTR-1 Quarterly basis.

GST Registration (For Pvt Ltd):-

GST Registration Regular Scheme is applicable on that person, which is Annual Turnover exceed 1.5cr. This taxpayers are filling return GSTR-3B Monthly or GSTR-1 Monthly basis.

GST Registration (For LLP/Partnership):-

GST Registration Regular Scheme is applicable on that person, which is Annual Turnover exceed 1.5cr. This taxpayers are filling return GSTR-3B Monthly or GSTR-1 Monthly basis.

GST Registration Temporary:-

Regular taxpayers, and casual taxable person has to submit the deposit tax well in advance for the GST registration. The amount that is needed to give the tax would have to be equal to the expected tax liability. So, after applying for the GST registration, a temporary registration number will be generated. After paying the GST deposit, the taxpayer is credited electronically and the GST registration certificate is given. The validity of the temporary GST registration is only for 90 days after the registration.

Documents required for Regular Scheme

  • Pan Card
  • Aadhar Card
  • Trade Name and product & Service Description
  • Lease Agreement
  • No Objection Certificate (NOC) form landlord
  • Electricity Bill
  • Passport Size Photograph
  • Bank statement/Cancel Cheque
  • Property Papers (If Owned) with Electricity Bills

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Documents Required For Organisations

  • Pan Card of all Directors
  • Aadhar Card of all Directors
  • Board Ressolution from Authorised Signatory For GST Registration
  • Lease Agreement (If Office is Rented)
  • No Objection Certificate (NOC) from landlord
  • Electricity Bill / Utility Bill
  • Passport Size Photograph of all Directors
  • Bank statement of Company Bank Account
  • Mobile No. of all directors
  • Email Id of all directors
  • Memorandum of Association (MOA)/Article Of Association (AOA) / COI
  • Directors identifications number (DIN) of all Directors
  • Ministry of corporation affairs data (MCA)
  • Digital Signature Certificate (DSC)
  • Other Company Registration Certificate.

Contact us for registration