What is GST Registration?
The government of India is running towards big economic reforms after demonetarization and GST is another attempt to regulate prices and control the black money throughout the country with the mission of one Nation, One Tax and abolish the state and central Government Indirect tax laws. GST was introduced in India on 1st July 2017 and GSTIN is PAN-based 15-digit registration Number and you can apply for a separate GST number for each state in which you have either branch office or sales office.
As per the GST Act, businesses whose estimated annual turnover likely to exceed Rs. 20 Lakh (Rs 10 Lakh in Northeast state) can voluntarily apply for online GST Registration. Registration under GST is mandatory for availing Input tax credit on Purchase. As per the latest amendment, New GST Registration is mandatory irrespective of turnover in a financial year for a business-like E-commerce, Export or import business, online aggregator, Causal dealer & foreign supplier etc. If a taxable person supplies goods or services without completing registration procedure specified under the Act then it is considered as an offense and he will be liable to pay a heavy penalty under the GST Act. Furthermore, while doing Export and Import businesses don't forget to register for your IEC registration.
New GST Registration process can usually take around 7 working days. With the help of Enterslice, you can easily complete your Online Registration process in Delhi, Mumbai, Ahmedabad, and Bangalore, Noida, Chennai, Hyderabad and all major cities of India.
Who all are required to have GST Registration in India
Following person are required to apply for New GST Registration-
- Existing Taxpayers
Those taxpayers who were registered under any of the VAT, CST, Excise/Service tax regimes which are replaced by GST and are also covered under the GST requirement shall apply for new GST Registration Certificate.
- New Taxpayers
Any business whose annual turnover is expected to Rs. 20 Lakh (10 Lakh in Northeast state) are required to get new GST registration.
- Casual taxable person
Any Indian taxpayer who is planning to undertake any business for a limited period of time in any particular area shall apply for New GST number online as a causal dealer. For the Casual taxable person, advance GST payment is required at the time of filing of online GST registration with official Portal.
A Casual taxpayer Person includes Individuals, HUF, NGO, Company like Private Company, LLP, One person Company, Government Company, firm, co-operative society, the local authority. The company should have a company registration certificate and a trademark Registration for speedy GST Registration.
- For a Non-resident taxable person
They are much like a Casual taxable person but are foreign citizens or foreign entities.
- Online Aggregator
Market Place seller and supplier of Food Panda, Flip Kart, and Amazon etc require New GST number. As per the new updates, every online food delivery app or every food business outlet should get FSSAI Registration or FSSAI License.
- Other Taxable people
A taxable person who comes under reverse charge mechanism, Agents of Supplier and Input service distributor are eligible for Registration. Furthermore, a small distributor like MSME I.e. Micro Small and Medium Enterprise who have their MSME Registration are also required to get their business register under GST.
What is GST Registration Procedure in India?
Enterslice is top rated online GST Registration consultant in India. We complete GST Registration procedure within 3 days. Following steps are involved in GST Registration procedure:-
Open GST portal and click on "New GST Registration" option available under registration section of Services.
Chose 'Taxpayer" and provide all the required information including:
- Legal name of your business.
- Location of your business.
- PAN of your business.
- e-mail address.
- Mobile number.
The contact information provided by you will be verified through one time passwords (OTP).
4. Now, you are required to fill the Online Registration Form and attach all the required documents. Verify all the particulars and submit the application.
After successful submission of online Registration application, you will receive an Application Reference Number (ARN) via email or Text Message.
After due consideration and scrutiny by a designated GST officer, your application will either be approved or you will be asked to furnish further documents necessary for approval of new GST number.
Eligibility Criteria for GST Registration
Section 22 of the ACT specifies the threshold limit for online registration and also determines the following suppliers to go for online registration process.
If the aggregate turnover of any supplier exceeds 20 lakh rupees then the company needs to go for the new GST number online
However, if the supplier comes under the Special Category States, this threshold limit of aggregate turnover is 10 lakh rupees need Register under GST. Here special category states include states of north-east India, Himachal, Uttarakhand and Jammu & Kashmir.
Mandatory or Compulsory Registration:
Along with these threshold limits, Section 24 of the Act also specifies a list of suppliers for whom registration process is mandatory. The list includes the following suppliers:
- Supplier comes under the reverse charge.
- Anyone claiming or remitting Input Tax Credit.
- Any person affecting inter-state supply.
- The casual taxable person affecting taxable supply.
- The non-resident taxable person affecting 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, needs register under GST.
- A person supplying through E-commerce who collects tax at source u/s 52.
How can Enterslice help in Online GST Registration?
We facilitate hassle-free new Registration number in India. All you have to do is follow this simple procedure:
- Request a Call Back or and order Online.
- Expert Assigned – an In-House CA will be assigned on your order.
- Upload documents via Enterslice Mobile app or website.
- Submission on Portal – a CA will upload documents on GST Portal.
- ARN No- After Online submission, ARN will be generated.
- GSTIN Issued – After ARN No. GST Department issue GSTIN in 2-6 Working days.
- Avail our GST return services.
Our team will send you regular updates on every step of the online registration process, Returns and further Monthly reminder for GST Payment. In case of any issues, feedback or complaints, you can reach out to us at email@example.com
Documents required for GST Registration
GST is pan based state-specific registration, however, for Non-Resident; there is no need of PAN No. You need following documents for new GST number.
- PAN card of the applicant (Company / LLP / Individual/NGO)
- Identity proof 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 the location of a business.
- Bank account details of the business.
- Class 2 or Class 3 DSC for signatories or OTP Verification via Aadhar.
GST Registration Fee
In India it is quite a tedious process and involves various steps and documentation. There is a need to select the SAC/HSN Code at the time of registration; hence you need knowledge of GST laws. Thus, it is recommended to take Professional help for the same. Our team at Enterslice provides end to end online process.
Penalties for not registering under GST
There are strict laws under the GST Act for non-compliance of the GST regulations.
Short Payment or Non-Payment of Taxes – Penalty would 10% of Unpaid amount or Rs. 10,000 Tax Evasion – Penalty 100% of the Tax Amount
What are the benefits of GST Registration?
- It eliminates the issues of double taxation that was an obvious issue in the previous multiple taxes system.
- Simplified procedure- everything is made easier by making everything online.
- Compliances are made easier and easier.
- Registration threshold is set higher. This exempts the small-scale businesses from Online requirements.
- Many unorganized sectors are covered under Goods and Service Tax.
What is the Composition Scheme under GST?
Apart from regular registration, small taxpayers are given a choice to opt for Composition Scheme while following the Registration procedure. This scheme was introduced with the objective to reduce the compliance burden of small taxpayers. As such taxpayers lack the expertise and required resources to comply with all the basic GST provisions and return filing requirements.
Any taxpayer with the annual turnover of fewer than 1.5 crores is eligible to apply for New GST Registration under composition. This annual turnover will be sum total of all total of all the business verticals run on the same PAN.
Timeline for New GST Registration
- For Existing taxpayers – All existing taxpayers registered under VAT/CST, Excise, Service tax i.e mandatorily required to apply for online Registration before 1st June 2017. An only registered person under GST shall be allowed to carry forward of input tax credit.
- For 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 in the registration process then you can only collect tax or avail input tax credit only from the date has been granted.
- For Causal dealer – A casual dealer who intends to start a business under GST regime has to mandatorily initiate registration process at least 5 days before commencement of business. A casual dealer has to pay GST in advance based on the estimated turnover of 90 days. 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 initiate the online Registration process at least 5 days before commencement of business. The validity 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.
Tax Structure under GST
As India is a federal country tax collection powers are assigned on central as well as state level. GST Tax structure has also been defined keeping this in mind. GST constitutes of following three types of taxes;
- CGST (Central Goods and Service Tax).
- SGST/UTGST (State/ Union Territory Goods and Service Tax).
- IGST (Integrated Goods and Service Tax).
Applicable GST Rates in India
Currently in India following GST rates are applicable:
- O% Tax Slab
All the essential Goods goods like milk, curd, food grains, raw foods, fresh meat, fish, chicken, eggs, natural honey, flour, fresh fruits and vegetables etc. and important services like Education Services, Health Service are covered under this category. If you are doing any food business then don't forget to get your FSSAI License.
Along with these essentials, all the exports are also zero-rated under GST.
- 5% Tax Slab
Goods like Sugar, tea, coffee, edible oil, branded paneer, sweets, bread, frozen vegetables, lifesaving drugs, coal, Domestic LPG etc. and transport and few restaurants are covered under this section.
- 12% Tax Slab
Fruit juices, Ayurvedic medicines, tooth powder, umbrella, coloring, books, picture books, sewing machine, cell phones, computer etc are included in this section.
- 18% Tax Slab
Chocolates, Cocoa butter, fat and oil, Vinegar, Electronic Toys Petroleum oils, Petroleum Gases, deodorants, shaving creams, aftershave, hair shampoo etc. along with services of transfer of IPR are covered under this slab.
- 28% Tax Slab
With time there have been numerous changes made in the GST rates. After current changes, only 35 items are left in 28% GST slab rate list.
GST Compliance and Returns
Once Registration procedure is completed you are required to make sure that all GST compliances are done timely including GST return filing. Know all about the required compliances under GST and returns that are to be filed. Periodical returns and due dates of such returns are to be kept in mind to ensure proper compliances. For any normal taxpayer following returns are required to be filed:
- GSTR-1 for information relating to sales to be filed on 10th of next month.
- GSTR-2 for information relating to purchases to be filed on 15th of next month.
- GSTR-3, monthly tax return to be filed on 20th of next month.
- GSTR-4, annual tax return to be filed on 31st Dec of next financial year
There are many other tax returns that are required to be filed by other types of taxpayers. We provide compliance services and ensure that you are updated on all fronts relating to GST.