Overview
GST stands for Goods and Services Tax, which is an indirect tax levied on the supply of goods and services in India. It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is currently levied at multiple rates ranging from 0% to 28% depending on the nature of goods or services.
To register as a Regular Taxpayer under GST in India, a person or business needs to meet the following requirements:
Turnover limit: A person or business is required to register for GST if their aggregate turnover in a financial year exceeds the prescribed threshold limit.
1) The current threshold limit for Sale of Goods is INR 40 lakhs. (INR 20 lakhs for special category states).
2) The current threshold limit for Service Providing businesses is INR 20 lakhs. (INR 10 lakhs for special category states).
Compulsory registration: Certain businesses are required to register for GST, regardless of their turnover, such as entities engaged in inter-state supplies, e-commerce operators, and non-resident taxable persons.
Voluntary registration: A person or business can choose to register for GST voluntarily, even if their aggregate turnover is below the threshold limit.
Once registered, a business is required to file regular returns, pay taxes, and maintain proper records of their transactions. Non-compliance with the GST regulations can result in penalties and legal consequences.
Documents Requirements
Required in Soft Copy Only
Documents of Applicant
-
Passport Size Photo
-
PAN & Aadhar Card
-
Email id and Mobile Number
-
Principal Place of Business Address Proof Light Bill/Rent Agreement/Index-2 Consent Letter (if Required)
-
Additional Place of Business Address Proof Light Bill/Rent Agreement/Index-2 Consent Letter (if Required)
-
Other Supporting Documents
-
Employee Declaration
Note:-It's important to note that the specific documents required may vary based on the individual circumstances of the taxpayer. SureTax Fincare will assist in determining the necessary documentation and provide guidance on the GST Registration.
Advantages
Legal compliance
GST registration is mandatory for businesses with a turnover exceeding the prescribed limit and for those making inter-state supplies. Registering for GST helps businesses comply with the legal requirements under the GST regime.
Avoiding Penalties
GST registration helps businesses avoid penalties, fines, and other legal consequences, for not being compliant with the GST laws.
Input Tax Credit
GST registered businesses can claim input tax credit on the GST paid on their inputs, which can result in significant cost savings.
Improves Credibility
GST registration is a sign of a business being compliant with the tax laws, which can enhance its credibility with suppliers, customers, and banks.
Access to Government Schemes
GST registration may provide access to government schemes and benefits for small and medium-sized enterprises.
Ease of Doing Business
GST has simplified the indirect tax regime in India and made it easier for businesses to operate and pay taxes, thereby improving the overall ease of doing
business.
business.
Access to a Larger Market
GST registration allows businesses to access a larger market and expand their customer base as they can supply goods and services across India without facing any tax barriers.
Better Record Keeping
GST requires businesses to maintain proper records and invoices, which helps in better record-keeping and reduces the risk of tax disputes.
Better Management of Finances
GST registration helps businesses to keep better track of their taxes, expenses, and overall financial
health.
health.
Frequently Asked Question
Any business dealing in goods, with a turnover of more than 40 lakhs (20 lakhs for Northeastern and hill states) is required to register for GST in India. Any Service Providing businesses, with a turnover of more than INR 20 lakhs (INR 10 lakhs for special category states) is required to register for GST in India.
It usually takes 15-20 working days to obtain GST registration, provided all the required documents are in order and the application is complete.
The benefits of GST registration include the ability to claim input tax credit, to charge GST on supplies made, and to participate in the GST ecosystem as a taxable person.
Yes, a person can have multiple GST registrations in India. However, a person can have only one registration for a particular type of business activity or in a particular state or union territory. This is because, under the GST Act, a person is considered as a separate taxable entity for each business vertical they carry out in a state or union territory.
For example, if a person is running a restaurant and a separate retail business, they would require two separate GST registrations, one for the restaurant and one for the retail business. Similarly, if a person is carrying out business in multiple states, they would require separate GST registrations for each state.
Having multiple GST registrations can help a person to maintain separate records for each business vertical and simplify their compliance obligations under the GST regime.
Yes, a business can choose to register for GST voluntarily, even if their aggregate turnover is below the threshold limit.
As per the Goods and Services Tax (GST) laws in India, the following categories of businesses are required to obtain mandatory GST registration:
1) Businesses with an annual turnover exceeding threshold limit (INR 40 Lakhs for Goods related business and INR 20 Lakhs for Service related business). (the threshold limit may vary for some special category states).
2) Businesses engaged in inter-state supply of goods or services.
3) Businesses engaged in e-commerce activities.
4) Casual taxable persons (non-resident businesses supplying goods or services in India).
5) Non-resident businesses supplying goods or services through an e-commerce platform.
6) Businesses required to pay tax under the reverse charge mechanism.
7) Persons who are required to pay tax under the provisions of the GST Act, even if their turnover is below the threshold limit.
8) Input Service Distributors.
9) E-commerce operators.
10) Businesses opting for composition scheme under GST.
Note: The requirement for mandatory GST registration may vary based on the type of business, location, and other factors. It is highly recommended to consult our expert team at SureTax Fincare for guidance on the specific requirements for your business.
Normal GST registration certificate provided to regular taxpayers does not have a validity period and does not expire unless cancelled. However, the GST registration for casual taxable persons and non-resident taxable persons are issued temporarily with an expiry date.
Not registering for GST when required can result in penalties, fines, and legal consequences. It may also affect the business's reputation and credibility.
Yes, a registered GST taxpayer can change their registration details such as address, business name, or bank account details by submitting an application on the GST portal.
Our expert team at SureTax Finacre provide you the necessary assistance & guidance for making an apllication for correction/Updation in GST.
GSTIN is a PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN) issued to a taxpayer in every state that they operate. It is obtained as a part of the GST registration process. Once the GST registration application is verified and passed by the GST officer, a unique GSTIN is assigned to the business.
The Composite Scheme is a simplified tax compliance system under the Goods and Services Tax (GST) regime in India. It allows small businesses with an annual turnover of up to Rs. 1.5 crore to pay tax at a fixed rate, rather than being required to register under regular GST and comply with the complex tax rules and regulations.Under the composite scheme, the eligible business has to file fewer returns, pay tax on a quarterly basis, and avail of a lower tax rate. This scheme is optional and businesses can opt out of it if they choose to.
following categories of businesses are exempted from obtaining GST Registration under GST Act:
1) Small taxpayers involved in the busines of sale of goods and services whose turnover has not crossed the threshold limit are exempt from obtaining GST registration.
2) Agricultural farmers who only supply agricultural produce and do not engage in any other taxable supplies is exempted from GST registration.
3) Any other Individuals or entities engaged in the supply of goods or services as notified by the Government exempted from GST registration.
Note: Exemptions and thresholds may change as per the provisions of the GST Act and the rules framed thereunder.
No, GST registration is not mandatory for businesses located in Special Economic Zones (SEZs) in India. SEZs are treated as a foreign territory for the purposes of indirect taxes, and supplies made within SEZs are considered as exports. Thus, SEZ units are not required to register under the Goods and Services Tax (GST) regime and are exempt from paying GST on supplies made within the SEZ. However, SEZ units making supplies to domestic tariff area (DTA) are required to obtain GST registration and pay GST on such supplies.
There is no need to obtain separate GST registrations for each of your branches if they are all located in the same state; instead, only one GST registration is sufficient for all of your branches. On the other hand, if you are operating a branch in a state other than the one in which it is registered, it must get a separate GST registration for that state.
According to Section 24 of the CGST Act, all e-commerce businesses are required to obtain GST registration mandatorily.An e-commerce operator is defined as any person who owns, operates, or manages an electronic platform that is used by other persons to sell goods or services or both.All traders/merchants selling goods/services online are required to register under GST even if their turnover is below the prescribed threshold limit.The e-commerce operator is responsible for collecting and remitting TCS (Tax Collected at Source) on behalf of the sellers registered on their platform.
A casual taxable person is a person who occasionally engages in taxable supply of goods or services in a state or a union territory where he does not have a permanent place of business. Casual taxable persons are required to obtain a temporary GST registration in order to carry out taxable supplies in the jurisdiction where they do not have a permanent place of business.
A casual taxable person must obtain a temporary GST registration within a maximum period of 30 days before the date of commencement of business.
The validity of the temporary GST registration of a casual taxable person is 90 days, which can be extended up to a maximum of 180 days.