According to GST rules, it is mandatory for a business that has a turnover of above Rs.40 lakh to register as a normal taxable entity. This is referred to as the Goods and Service Tax (GST) registration process. The turnover is Rs.10 lakh for businesses that are present in hill states and North-Eastern states. The GST registration process can be completed within 6 working days.
GST registration can be easily done on the online GST portal. Business owners can fill a form on the GST portal and submit the necessary documents for registration. Businesses must complete the GST registration process. It is a criminal offense to carry out operations without registering for GST and heavy penalties are levied for non-registration.
What is GST Registration?
GST Registration is the process by which a taxpayer gets registered under Goods and Service Tax (GST) is known as GST registration. Once the registration process has been completed, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15-digit GSTIN is provided by the Central Government and helps to determine whether a business is liable to pay GST
What are the Types of GST Registration?
Under the GST Act, GST Registration can be of various types. You must be aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:
1. Normal Taxpayer
Most businesses in India fall under this category. You need not provide any deposit to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this category.
2. Casual Taxable Person
Individuals who wish to set up a seasonal shop or stall can opt for this category. You must deposit an advance amount that is equal to the expected GST liability during the time the stall or seasonal shop is operational. The duration of the GST Registration under this category is 3 months and it can be extended or renewed.
3. Composition Taxpayer
Apply for this if you wish to obtain the GST Composition Scheme. You will have to deposit a flat under this category. The Input tax credit cannot be obtained under this category.
4. Non-Resident Taxable Person
If you live outside India, but supply goods to individuals who stay in India, opt for this type of GST Registration. Similar to the Casual Taxable Person type, you must pay a deposit equal to the expected GST liability during the time the GST registration is active. The duration for this type of GST registration is usually 3 months, but it can be extended or renewed at the type of expiry.
What is GST in India
GST which came into effect in 2017 is a type of indirect tax and replaced various other taxes such as VAT, service tax, excise duty, luxury, tax, entry tax, etc.
There are various terms associated with GST which is important to know so that you can understand GST better. Given below are those terms related to GST which in turn will provide a better understanding of this type of tax:
- Comprehensive: As GST replaced other taxes, it has covered every aspect of sales and purchase, and hence is called comprehensive as it includes every facet of business life.
- Multi-stage: Production of any goods or services contains various stages. These stages can include the acquisition of raw supplies, manufacturing, storage, selling to wholesalers, retailers, and ultimately, end customers. GST is charged at each level. It is a multi-valued tax as a result.
- Destination based: Instead of in the state where the goods was made, GST is assessed in the state where it is sold. For instance, the GST will be assessed and collected in Karnataka if these commodities were made in Gujarat and sold in that state.
- Value addition: GST is levied at each stage of the production of an item. For example, right from the purchasing of a textile product to its design to make it into a piece of cloth to its retailing where it is branded, advertised, and then sold, GST is levied on each stage which also increases the price of the item.
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Eligibility to Register for GST
GST Registration must be completed by the following individuals and businesses:
- Individuals who have registered under the tax services before the GST law came into effect.
- Non-Resident Taxable Person and Casual Taxable Person
- Individuals who pay tax under the reverse charge mechanism
- All e-commerce aggregators
- Businesses that have a turnover that exceeds Rs.40 lakh. In the case of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and North-Eastern states, the turnover of the business should exceed Rs.10 lakh.
- Input service distributors and agents of a supplier.
- Individuals who supply goods through an e-commerce aggregator.
- Individuals providing database access and online information from outside India to people who live in India other than those who are registered taxable persons.
- GST registration is mandatory for businesses that have an annual turnover of Rs.20 lakh and more.
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Documents Required for GST Registration
- PAN card
- Aadhaar card
- Bank account information
- Proof of address
- Digital Signature
- Photograph (JPEG format, maximum size – 100 KB)
- Articles of Association/Memorandum of Association
- Certificate of incorporation issued by Ministry of Corporate Affairs
- Proof of appointment of authorised signatory
- For LLP, the registration certificate/LLP Board resolution
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How to Get GST Number?
In order to get the GST number follow the simple steps:
Step 1: Visit the official GST Portal at www.gst.gov.in.
Step 2: Select ‘Services‘ under Services tab and Click on ‘Registration‘.
Step 3: Now, Click on “New Registration” and enter all the requested details like valid email address, mobile number and a PAN for the business.
Step 4: Click on Proceed after submission of details to get GST Registration Number.
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