What is GST Registration
Goods and Services Tax introduced in July 2017 was the biggest tax reform in the country. It is a destination based indirect tax on consumption of goods and services, levied at every stage, on the value added, right from manufacture up to the final consumption, the burden of which will be on the final consumer. It was brought as an attempt to regulate prices throughout the country and remove all indirect taxes on goods and services imposed by state and central.
Being a comprehensive, multi-stage, destination-based consumption tax on value addition, GST Registration aims to create a single market with the mission of one nation one tax.
What is the GST Registration procedure?
- For The first step is to log on to www.gst.gov.in.
- The ‘Services’ provides the option of ‘Registration’. Under it choose ‘New registration’.
- The applicant shall be redirected to a new page for filling up of the basic details.
- The applicant shall be asked their category, options being
- Tax payer
- GST practitioner
- Tax Deductor
- Tax Collector
- Non-resident Tax Payer
- United Nations body
- Consulate or Embassy of Foreign Country
- Other Notified Persons
- Non-Resident online Service Provider
- The other information to input shall be
- State/ UT
- Legal Name of business
- Permanent Account Number
- Email Address & Mobile Number
- This concludes Part A of the form
- The details entered will be verified by the portal through a one-time password on the mobile number provided and a verification mail of the email address.
- Depending on the category and type of business, next step shall be submission of documents which have been elaborated in the next section.
- After submission of documents, the submission of Part B of the form can be made.
- The applicant will receive the ‘Application Reference Number’ via email and Text Message upon successful submission of completed forms.
- After scanning of the application by the authorized GST officer, it shall either be approved or additional documents/ information may be asked to be furnished before final approval.
What are the documents required to be submitted while getting GST registration?
The documents required to be submitted depends on the type and structure of the business. Following is a list of some basic documents that would be required. For a more exhaustive list, contact Enterslice.
- Identity Proof of the Individual (for sole proprietorship)
- PAN Card of individual/ company/ LLP
- Registration Certificate of the Company/ Partnership deed/ Registration Certificate of the LLP/ LLP Partnership agreement, whichever applicable.
- Memorandum of Association (MOA) /Articles of Association (AOA) for the company.
- PAN and ID (Identity Proof) of Directors in case of company and of designated partners in case of regular Partnership or LLP
- Copy of cancelled cheque or bank statement
- Copy of electricity bill or any utility bills as proof of Registered Office.
- Rent agreement (for rented premises) along with a NOC (No Objection Certificate) of owner.
How many days do the procedure to obtain GST Registration?
The procedure from making the application until the procurement of GST Registration takes about 5-7 days of time.
What is the prescribed Fee for GST Registration?
There is no prescribed government fee for making an application for GST registration through the official government website.
However, application for GST registration is not only a complex procedure but also require professional expertise. It always advised that a professional must be consulted for the making application for GST registration. Our team at Enterslice provides end to end with GST Registration services.
What are the penalties of non-registration under GST regime?
The Act provides stringent laws against non-registration of those who are liable to be registered under the Act. The Act states that where a taxable person who is liable to be registered under this Act, does not obtain GST registration or furnishes any incorrect information while applying for GST registration, or any time later shall be liable to pay a penalty of Rs. 10,000.
Who has to obtain GST Registration?
As per the regulations, obtaining GST registration is mandatory for individuals or entities involved in the supply of goods or services across the state. GST Registration can be applied for as either normal taxpayer or under GST composition scheme.
- As per Section 22 of the CGST/SGST Act 2017, every supplier which included the agents as well, who makes a taxable supply of goods/ services as per the GST law and the aggregate turnover of a financial year exceeds the threshold limit of Rs. 20 lakh, is liable to obtain GST registration in the State or the Union territory from where the taxable supply is made.
For the states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, named as special category states, the threshold limit is Rs. 10 lakh for GST Registration.
- Section 24 of the Act mentions some categories of suppliers, who have to be compulsorily registered even if their aggregate turnover is below the prescribed threshold limits.
- those undertaking any inter-State taxable supply;
- casual taxable persons undertaking taxable supply;
- those who are have to pay tax under reverse charge;
- Those who are pay tax under sub-section (5) of section 9 which states that the Government may specify certain intra-State supplies of services affected through e-commerce operators. In such cases tax will be paid by such e-commerce operator as if it is the actual supplier in relation to such services;
- persons who are required to deduct tax under section 51, whether or not separately registered under GST Registration Act;
- every non-resident taxable persons making taxable supply;
- those making taxable supply of goods and/or services, on behalf of other taxable persons;
- Input Service Distributor;
- Those who supply goods and/ or services through such e-commerce operator;
- every e-commerce operator; and
- Those supplying online information and database access or retrieval services from anywhere outside India to a person in India.
- Section 23 of the Act mentions that an agriculturist for his agricultural produce and persons solely involved in supply of non-taxable or wholly exempted goods/services under GST law requires no gst registration.
- Voluntary GST Registration- A business which does not legally require to get registered under GST, by its own choice may apply for GST Registration procedure. A business may not reach the threshold of turnover and is not required to be registered compulsorily, thus by GST law does not require to be registered. A business at his own motion can apply to get GST Registration by the same procedure as for the rest. Voluntary GST registration has its benefits which include-
- Tax can be collected from customers by issuing taxable invoices;
- Input Tax Credit can be claimed;
- Easy inter-state sales with very few restrictions;
- B2B customers prefer to buy from registered taxable suppliers etc;
- Better standing and good ratings
Are there any commodities which do not fall under the purview of GST?
Yes, as of now, there are certain products which are excluded from the GST regime. Previous tax structure is applicable on those till a decision is taken in that regard by the GST council.
- Tobacco products will be subject to Central excise and GST.
- Tax on electricity sale and consumption is not under the GST according to entry 53 in list II of seventh schedule of constitution of India.
- Below mentioned petroleum products are also temporarily out of the purview of GST:
- Petroleum crude;
- Motor spirit (petrol);
- High speed diesel;
- Natural gas and
- Aviation turbine fuel.
What is the provision of Multiple GST Registrations?
The GST Act provides for Multiple Registrations which means that the trader has to be GST registration in every state separately, in which it has operations. Though merely providing services in a particular state, does not cause the requirement of GST registration in the particular state, if there is no registered office or unit operating in the particular state.
Also, if a trader has various business segments in a single state, each segment shall require a separate GST Registration. This implies that each segment which has a distinguishable business component becomes a separate entity to be separately registered under the GST regime.
What are advantages of GST Registration?
Following are the advantages of GST registration under GST laws:
- Become legally recognized as a supplier of goods/ services;
- Become legally authorized to collect tax from the purchasers;
- Become eligible to a variety of other benefits and privileges as under the GST laws;
- Accurate accounting of taxes being paid etc.