What is GST Registration ?
GST registration, under the Goods and Services Tax (GST) regime in India, is a mandatory process for businesses whose turnover exceeds the threshold limits set by the government. As of now, these thresholds are Rs. 40 lakh for businesses involved in supplying goods (Rs. 10 lakh for special category states) and Rs. 20 lakh for businesses supplying services (Rs. 10 lakh for special category states).
Here’s what GST registration entails:
Mandatory Requirement: Businesses exceeding the turnover thresholds must register under GST. Failure to register can lead to penalties under GST laws.
Process: The registration process typically takes between 5 to 10 working days. It involves submitting an online application on the GST portal with necessary documents and information about the business.
Benefits: Once registered, businesses are legally recognized under GST, can collect taxes from customers, and are eligible for input tax credit on purchases. This helps in avoiding cascading taxes and improves compliance.
Penalties for Non-compliance: Operating without GST registration when required is considered an offence. Penalties may include fines or prosecution under GST laws.
Assistance: Various agencies and consultants can assist in the GST registration process to ensure it is completed efficiently and correctly.
In summary, GST registration is essential for businesses meeting the turnover criteria specified by the government. It formalizes the business under GST, enabling compliance with tax laws and facilitating smoother operations in the GST framework.
Who should obtain the GST registration?
GST registration is mandatory for the following categories of persons under the Goods and Services Tax (GST) regime in India:
Individuals Registered Under Pre-GST Laws: This includes entities registered under previous indirect tax laws such as Excise, VAT, Service Tax, etc.
Businesses Exceeding Turnover Threshold: Businesses whose aggregate turnover exceeds the threshold limits must register for GST. As of now, the thresholds are:
Rs. 40 lakh for businesses involved in supplying goods (Rs. 10 lakh for special category states)
Rs. 20 lakh for businesses supplying services (Rs. 10 lakh for special category states)
Casual Taxable Person / Non-Resident Taxable Person: Persons who occasionally undertake transactions involving the supply of goods or services or both, but do not have a fixed place of business.
Agents of a Supplier & Input Service Distributor: Agents who supply or receive goods or services on behalf of a principal or distribute input tax credit.
Persons Paying Tax Under Reverse Charge Mechanism: This applies when the recipient of goods or services is liable to pay GST instead of the supplier.
Person Supplying via E-commerce Aggregator: Individuals or entities who supply goods or services through an e-commerce aggregator.
Every E-commerce Aggregator: Platforms that facilitate the supply of goods or services between the supplier and the recipient.
Person Supplying Online Information and Database Access or Retrieval (OIDAR) Services: Providers of online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.
For these categories, obtaining GST registration is crucial to comply with the GST laws, collect tax from customers, and avail input tax credit on purchases. Failure to register when required can lead to penalties under GST regulations. Therefore, businesses and individuals falling under any of these categories should ensure timely registration to avoid legal repercussions and to smoothly operate within the GST framework.
Documents Required For GST Registration
To apply for GST registration in India, you typically need to provide the following documents and information:
PAN of the Applicant: Permanent Account Number (PAN) of the entity or individual applying for GST registration.
Aadhaar Card: Aadhaar card of the authorized signatory (in case of individuals) or of the promoters/directors/partners.
Proof of Business Registration or Incorporation Certificate: Depending on the type of business entity (e.g., Partnership deed, Certificate of Incorporation, Registration Certificate under any other law, etc.).
Identity and Address Proof of Promoters/Directors/Partners: Identity proof (such as PAN card, Aadhaar card, Passport, Voter ID, etc.) and address proof (such as Aadhaar card, Passport, Voter ID, Driving License, etc.) of all promoters/directors/partners with photographs.
Address Proof of the Place of Business: Proof of the principal place of business, such as a rental agreement or ownership deed along with utility bills like electricity bill or property tax receipt.
Bank Account Statement/Cancelled Cheque: Bank statement or a cancelled cheque of the bank account mentioned in the GST registration application.
Digital Signature: For companies and LLPs, a Class 2 Digital Signature Certificate (DSC) is required for signing the GST application electronically.
Letter of Authorization/Board Resolution for Authorized Signatory: In case the authorized signatory is different from the promoter/director, a letter of authorization or board resolution authorizing the person to sign and submit the GST application.
These documents are crucial for the successful submission of the GST registration application. They help verify the identity, address, and legitimacy of the business entity applying for GST registration under the GST Act. It’s important to ensure all documents are valid, up-to-date, and correctly submitted to avoid delays or rejections in the registration process.
GST Registration Fees
Under the GST law in India, there are no government-prescribed fees for obtaining GST registration directly through the GST portal. We offer assistance packages for GST registration. These services are designed to simplify the registration process and ensure compliance.
Expert Assistance: A GST expert will guide you through the entire GST registration process, ensuring that all necessary steps are completed correctly.
Document Preparation: They will assist you in preparing and organizing the required business details and scanned documents for submission.
End-to-End Support: Comprehensive support from initial consultation to final submission of your GST registration application.
Time Saving: Outsourcing the registration process can save significant time and effort, especially for businesses unfamiliar with GST laws and procedures.
Cost of Services: While there is no fee for GST registration itself, our fee covers the expertise, convenience, and support provided throughout the registration process.
Additional Benefits: Some service providers may offer ongoing support, updates on GST regulations, and assistance with compliance even after the registration process is complete.
Before choosing a service provider, it’s advisable to compare different offerings, consider the level of support required, and ensure transparency regarding fees and services provided. This helps in making an informed decision that best suits your business needs and budget.