The Goods and Services Tax is a tax on goods and services in India (GST). In India, the GST, an indirect tax, has completely replaced the services tax, VAT, and excise duty. GST became effective on July 1st, 2017, based on the Goods and Service Tax Act, which the Indian Parliament approved on March 29.
Taxpayer eligible for GST
A "taxable person" is someone who is registered with the GST Act or who must register with the GST Act in order to conduct business in India. Any individual, HUF, business, LLP, AOP/BOI, corporation, government company, body corporate created under the laws of another country, cooperative society, local government, trust, or artificial juridical person is a taxable person.
Turnover Requirement to Register for GST
Any person or organisation can voluntarily register for GST, regardless of their income level. GST registration is necessary if a person or business sells more goods or services than a predetermined threshold.
Service Providers: Anybody or any organisation that earns a yearly gross service revenue of more than Rs. 20 lakh must register for GST. In special category states, the GST turnover cap for service providers has been fixed at Rs. 10 lakhs.
Suppliers of Goods: Per Notification No. 10/2019, everyone who participates in the exclusive supply of Goods and has an annual turnover of more than Rs. 40 lakh is required to register for GST. To qualify for the Rs. 40 lakhs turnover cap, the supplier must fulfil the following criteria:
has no right to provide any services.
In the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur, and Uttarakhand, the supplier should refrain from making intra-state (procuring goods from one state to another) supplies.
should not be involved in selling ice cream, pan masala, or cigarettes.
The product supplier will be required to register for GST if the aforementioned conditions are not met when their annual turnover reaches Rs. 20 lakhs, and Rs. 10 lakhs in states that are included in a special category.
Special Category States: According to the GST, the following states fall into this category: Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.
Total Turnover: The following formula is used to determine total turnover: (Taxable Supplies - Exempt Supplies - Exports - Inter-State Supplies) - (Taxes - Value of Incoming Supplies - Value of Supplies Taxable under Reverse Charge - Value of Non-Taxable Supplies) (Taxes - Value of Incoming Supplies - Value of Supplies Taxable under Reverse Charge - Value of Non-Taxable Supplies).
The PAN is used to calculate aggregate turnover. As a result, the total turnover must be tallied up, even if one person owns multiple firms.
Categories for GST Registration
GST registrations can be made in a number of ways, including by regular, irregular, non-resident, and online business owners. Casual taxpayers, non-resident taxpayers, and eCommerce enterprises all need to register for GST regardless of their annual revenue threshold.
Casual Taxable Persons: According the GST Act, a casual taxable person is a business that occasionally conducts business in a State or a Union territory without a fixed place of business. So, those operating transient businesses during fairs, exhibitions, or during the seasonal period would be regarded as casual taxpayers under the GST.
Non-resident Taxable Persons: A non-resident taxable person is a person, business, or organisation that offers goods or services under the GST but does not have a permanent address or place of business in India (NRI). As a result, any foreign person, business, or organisation that delivers products or services to India would be regarded as a non-resident taxable person and would have to follow by all Indian GST requirements.
Someone who owns, manages, or supervises a digital or electronic facility or platform for electronic trade is considered an operator of electronic commerce. So, regardless of annual revenue, anyone who does business online is considered an eCommerce Operator and is required to file a GST registration.
What is the GSTIN?
An organisation is entitled to a GSTIN, or Goods and Services Tax Identity Number, with a GST registration number (GSTIN). The GSTIN is made up of 15 characters. The applicant's GSTIN is calculated using the applicant's PAN and State. The State Code is the first two digits of a GST registration number. The following 10 digits display the applicant's PAN.
Copy of your GST Registration Certificate should be saved.
Those who have registered for GST are given a GST Certificate. It is legally mandatory for anyone who has got a GST registration certificate to display it prominently at their place of business. Downloading a GST certificate is quite easy with the GST Portal. After logging into the GST Account, you will find User Services there. Choose View / Download Certificate under User Services to download the GST registration certificate.
To register for GST, use Returnfiler.
Once you provide your name, phone number, and email, the process will begin.
A GST specialist will contact you when we get your request to go over your business activity, the state where your firm is based, and to answer any questions you may have.
The GST specialist will also compile and verify the papers required to submit an application for GST registration. We start the GST registration process as soon as the payment is received, and we upload all of your applications to the GST Portal.
You can obtain your GST registration in 3 to 7 working days. Everything that has to be done at the office can be done online without your physical presence.
Voluntary GST registration
Any person or organisation that wants to supply products or services can voluntarily register for GST, regardless of how much money their firm generates. A company can take advantage of the Input Tax Credit and send GST invoices to customers by voluntarily registering for GST.
penalties for failing to register for GST.
Every person or organisation that surpasses the aggregate turnover level must register for GST within 30 days of the day they are obligated to do so. Lateness or non-compliance may result in a penalty of Rs. 10,000 and the loss of the input tax credit for the time of the delay.
Documents Required for GST Registration
Ownership by an individual or lone proprietor
Photo of the owner (in JPEG format, maximum size – 100 KB)
Documents proving your address and bank account information
Businesses that have LLPs and partnerships
* PAN cards for each of the partner (including managing partner and authorised signatory)
* First partnership contract
* A photo of each signature who is authorised and each partner (in JPEG format, maximum size – 100 KB)
* Address proof for partners (passport, driver's licence, voter identity card, Aadhar card, etc.) that has been authorised with an Aadhar card
* The LLP Board resolution and registration certificate are required for LLPs.
* Address verification for the company's main office
* Owner's photo; HUF PAN card of HUF PAN card with Karta's Aadhar card
details about the money
* Addressing correspondence to the corporate headquarters (both open and closed) (Indian and foreign) business's PAN card
* An incorporation certificate is issued by the Ministry of Corporate Affairs.
*PAN and Aadhar cards are required for authorised signatories.
* Articles of Association/Memorandum of Association.
* The authorised signatory is required to be an Indian even for the registration of foreign corporations or branches.
Each director is an authorised signatory, and each director's PAN cards and addresses are confirmed by pictures (in JPEG format, maximum size – 100 KB)
Any additional proof of an authorised signatory's appointment, such as a board resolution appointing them (in JPG or PDF format, with a maximum file size of 100 KB),
Location confirmation for the main business location's financial information
Benefits of GST Registration
The following benefits of GST registration include:
Bank Loans: A company's track record is established by the submission of GST filings and the proof of registration as a corporate entity. Banks and NBFCs utilise the information from the GST return to make business loans. Hence, GST registration may help your business become more official and enable you to receive credit.
GST registration is frequently required throughout the supplier onboarding process in order to become a supplier of reputable companies. Hence, GST registration might help you grow your company.
eCommerce: Possessing a GST registration would make it possible for you to sell online because you need one in order to do so on a variety of platforms, including Amazon, Flipkart, Snapdeal, Zomato, Swiggy, and others.
Input Tax Credit: Businesses that have registered for GST are permitted to charge GST to clients for supplies and deduct the cost from GST taxes paid when purchasing various goods and services. GST registration can therefore boost profits and result in tax savings.