What is GST Registration?
GST which stands for Goods and Services Tax, was introduced by the Prime Minister of India in an attempt to regulate prices throughout the country and remove all state or central Govt. imposed indirect taxes on goods and services. As per the rule, GST registration is mandatory for individuals or entities engaging themselves in the supply of goods or services across the state to get registered for GST online. One can apply for GST Registration either as normal taxpayer or under GST composition scheme.
What exactly is Goods & Service Tax?
Goods and Service Tax is a comprehensive, multi-stage, destination based consumption tax on value addition. Major change here is that GST is a destination based tax, i.e. taxing authority having jurisdiction in the final place of consumption collects the tax on such goods and services. The government aims to remove all tax barriers between central & states. It aims to create a single market with the mission of one nation one tax.
Eligibility Criteria for GST Registration
- Conditional registration: Section 22 of the ACT specifies threshold limit for GST registration. It states that for following suppliers GST registration is required:
- If the aggregate turnover of any supplier exceeds 20 lakh rupees need GST Registration
- However, if the supplier is based in any of the Special Category States, this threshold limit of aggregate turnover is 10 lakh rupees need GST Registration. Here special category states include states of north-east India, Himachal, Uttrakhand and Jammu & Kashmir.
- Mandatory / Compulsory Registration: Along with these threshold limits, Section 24 of the Act also specifies a list of suppliers for whom GST registration is mandatory. This list includes the following suppliers:
- Anyone required to pay tax under reverse charge.
- Anyone claiming or remitting Input Tax Credit.
- Any person effecting inter-state supply.
- Casual taxable person effecting taxable supply.
- Non-resident taxable person effecting taxable supply.
- Input Service Distributor
- E-commerce Operator
- Any person supplying on behalf of other, whether as an agent or not.
- Every person supplying online information and database or retrieval service from a place outside India to a person in India, who is not a registered person need GST Registration.
- A person supplying through E-commerce who collects tax at source u/s 52.
Voluntarily GST Registration in Delhi
A person at his own motion may apply for voluntarily GST registration even if he has no turnover of supply of goods or services. He can enjoy all other benefits available to any other taxpayer under the Act. Voluntary registration has its share of banes and boons. The benefits of voluntary GST registration include:
- He can collect tax from his customers
- He can claim Input Tax Credit
- Can issue GST invoice
- B2B customers prefer to buy from registered taxable suppliers etc.
GST Registration Process
- The first step is to log on to www.gst.gov.in
- On “Services” tab of the menu options at the top of the page, click on “Registration” our of the three options “Registration”, “Payments” and “User Services”
- Under Registration choose “New registration”
- You will be redirected to a new page where in you will be prompted to fill in your basic details. Before that you will be asked whether you are a taxpayer or a GST practitioner, out of which you need to select the former.
The information that you will be asked includes the legal name of your business, the location of your business, the PAN of your business as well as your email address and contact number. ?
This concludes Part A of the form
- The details you have entered so far will be verified by the portal through an email confirmation and one-time password.
- In the next step, depending on the category and type of your business, you are required to submit a few documents. Let’s see what the documents are in a bit.
- After that you can proceed to the submission of Part B of the form.
- You will receive an Application Reference Number via email or Text Message after successful completion of submission of forms.
After due consideration and scrutiny by a verified GST officer in the country, your application will either be approved or you will be asked to furnish further documents necessary for approval of GST Registration.
Basic documents required for GST registration
- PAN card of the applicant.
- Identity proofs and address proofs of all the promoters of the business.
- Proof of registration of business, or Partnership Deed in case of partnership and registration certificates.
- Address proof for location of business.
- Bank account details of the business.
- Class 2 or Class 3 DSC for signatories.
Timeline for GST Registration
- Existing taxpayers – All existing taxpayers registered under VAT/CST, Excise, Service tax i.e mandatorily required to apply for GST Registration before 1st June 2017. An only registered person under GST shall be allowed to carry forward of Input tax credit.
- New Taxpayers – All liable taxpayers are required to be registered within 30 days and if you will file well on time then you can avail input tax credit from the 1st day of your business. If you delay the GST registration then you can only collect tax or avail input tax credit only from the GST registration date has been granted.
- For Causal dealer – A casual dealer who intends to start a business under GST regime has to mandatorily apply for GST Registration 5 days before commencement of business. A casual dealer has to pay GST in advance based on the estimated turnover of 90 days. GST Registration for the causal dealer is only valid for 90 days.
- For Non-resident, taxable person – a non-resident taxable person who wishes to commence a business without setting up fixed establishment or office then he has to apply for Online GST Registration in India 5 days before commencement of business. The validity of GST registration for non-resident is for maximum 90 days. Another extension may be applied for another 90 days and tax has to be paid in advance.
Fee for GST Registration
There is no official government cost/ fee for applying for GST registration on the official government website.
However, filing for GST registration is quite a tedious process and involves various steps and documentation. Thus, it is recommended to get professional help for the same. Our team at Enterslice provides end to end with GST Registration services.
Penalty for Non- Compliance
There are stringent laws under GST Act for non-compliance.
- In case of non- payment and short payment of taxes accrued, the offender will be liable to pay a penalty. Such penalty will be 10% of unpaid tax or Rs. 10,000, whichever is higher.
- However if the offender has deliberately evaded payment of taxes under law, the penalty amount will be 100% of such unpaid taxes.