What is GST Registration?
Every business entity carrying out a taxable business activity by the supply of goods or services and whose turnover exceeds Rs.20 lakh other than northeast India and in other state Rs. 10 Lakh will require registering as a normal taxable person. GST Registration can be applied either as normal taxpayer or under GST composition scheme
What is exactly is the GST (Goods & Service tax)?
GST (Goods a service tax) is a Pan based comprehensive, multi-stage destination based valued added tax on the manufacture, Sale, and consumption of goods throughout India. It replaces all taxes levied by the state and central governments. Goods and Services Tax is not only the tax reforms in India, it is going to be business reforms. 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.
Why GST Registration Mandatory
- Every e-commerce aggregator& Importer has to mandatorily apply for GST Registration under GST laws irrespective of turnover.
- A person who claims input tax credit should apply for registration.
- A person who collect TDS/ TCS and liable to deposit in the Government account shall be required registration with GST portal.
- A person who pays tax on reverse charge mechanism – under reverse charge mechanism the purchaser of goods and services admits to pay the taxes &claim input hence will require GST Registration.
- Input service distributor.
- A person involved in interstate supply of goods and services are mandatorily required to obtain GST registration number.
- All causal dealers must be registered under GST, prior to start of business.
- Non-resident tax payer will require obtaining GST number in advance before any supply of goods and services in India.
- Online database and software service provider other than Indian taxable person.
Voluntarily GST Registration
A person at his own motion may apply for voluntarily GST number even if he has no turnover of supply of goods or services. He can enjoy all other benefits available to a taxpayer under the Act like Claim of Input tax credit; he can collect tax on supply of goods and services. Can issue invoice i.e few other benefits in terms of size and scale of business? B2B customers only prefer to buy from a registered taxable person.
What is timeline for Online GST Registration
- Existing taxpayers – All existing taxpayers registered under VAT/CST, Excise, Service tax i.e mandatorily required to apply for 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 registration then you can only collect tax or avail input tax credit only from the 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 5 days before commencement of business. A casual dealer has to pay GST in advance based on the estimated turnover of 90 days. This 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 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.
What is Procedure for Multiple GST Registration
- GST registration in India has to obtain for each state of business operations under CGST & SGST. Each registered unit will be treated as a distinct person under GST Regime. If a business has more than one business location in a state it is called multiple business verticals then the supplier of goods or services can apply for one single registration for one business segment.
- If a business has more than one business segment then he will have to apply for online GST Registration for each business segment in a state. One person has one factory as well 10 retail outlets of ready-made garments and healthy snacks in Delhi, and then he has to apply GST Registration in Delhi separately for two business segments Apparel and Snacks.
- If we talk about CGST act, it says that it is mandatory for the suppliers of taxable goods and services to get registered in that State or Union territory from where the taxable goods or services supplied. For the purpose of obtaining separate registrations for branches, one can refer GST act to get to know about the related provisions.
- Online GST registration in India is required to be obtained by every taxable person in such state or Union Territory, from where the taxable supply of goods or services is made.
- For example: If there is café in Delhi, then the owner has to apply for GST registration in Delhi. If there is a restaurant in Madhya Pradesh then taxable person is required to apply for GST registration in Madhya Pradesh.
- Same as above mentioned examples if any taxable service is provided then taxable person has to apply for GST registration in such state from where the taxable service is provided.
- If any taxable service is provided from Maharashtra then taxable person has to apply for GST registration in Maharashtra. If taxable services are provided in Chennai, Karnataka, Bihar then taxable person has to apply for GST registration in Chennai, GST registration in Karnataka, GST registration in Bihar.
- If taxable service is provided in the States of Punjab and Haryana, then one must obtain separate GSTIN for each of the two states such as GST registration in Punjab and GST registration in Haryana.
- In GSTIN, first two numbers reflect registration state. Whereas in case the business is operating its business activities in two states the first two numbers of the GSTIN will get change while PAN will be the same. If there is more than one registration within a state then entity code will get change.
Online GST Migration Procedure
GST Registration is 100% online procedure; you just need a basic understanding of GST laws to process online GST registration in India or migrate your existing registration No to GST portal.
- For GST migration login to State government VAT website & for service tax and excise CEBEC online platform.
- Generate provisional login id for migration to GST portal.
- Log in to GST Portal.
- Submit email id and Phone no of the taxpayers.
- Upload necessary documents.
- Digitally sign all the GST forms.
- GST Department within 3 working days will issue you the certificate.