About GST Registration
The Goods and Services Tax (GST) is a comprehensive tax system that encompasses both goods and services, as its name suggests. This tax structure is designed to streamline the indirect tax framework in India and enhance overall efficiency in tax administration. It operates through a dual GST mechanism, allowing both the Central and State Governments to collect independent revenue. This dual approach ensures that each level of government receives its fair share of tax revenue, promoting fiscal balance and encouraging cooperative federalism.
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Economic Impact
- GST is expected to boost e-commerce, the Made in India movement, and investment inflows. It is modelled after the concept of "One Nation One Tax," with tax rate slabs from zero percent to twenty-eight percent.
GST Registration Requirements
- Businesses without GST registration cannot collect GST from customers or claim input tax credit (ITC).
- Registration is necessary to claim ITC and collect GST from clients.
- GST is a destination-based tax applied to all transactions involving goods or services for payment.
Turnover Limits for Registration:
- Non-resident taxable persons, casual taxable persons, and those supplying through e-Commerce operators must register regardless of turnover threshold.
- Service providers must register if annual revenue exceeds Rs. 20 lakhs (Rs. 10 lakhs for special category states).
- Suppliers of goods must register if annual revenue exceeds Rs. 40 lakhs, with some exceptions.
Threshold Adjustments:
- Initial threshold limits and subsequent adjustments necessitate mandatory registration under the Act.
- From April 1, 2019, the limit for goods supply in normal category states is Rs. 40 lakhs and Rs. 20 lakhs for special category states.
- The service provider threshold limits remain unchanged.
Turnover Calculation for GST:
- Total turnover includes taxes, inward supplies, supplies taxable under reverse charge, and non-taxable supplies.
- PAN-based computation requires all locations owned by an individual to be considered for total turnover.
Voluntary GST Registration:
- Any individual or entity can register for GST voluntarily regardless of business volume.
- Benefits of voluntary registration include increased legitimacy, meeting B2B client needs, and claiming ITC advantages.
Documents Required for GST Registration:
- Specific individuals required to submit documents.
- Company: Managing Director, Directors, Authorized Person.
- HUF: Karta.
- Proprietary concern: Owner.
- Local Authority: CEO or similar position.
- Statutory Body: CEO or equivalent.
- Trust: Trustees, Managing Trustee, Authorized Person.
- Partnership Firm or LLP: Managing, Authorized, Designated Partners (photos of 10 partners required).
- Association of Persons or Body of Individuals: Managing Committee members (photos of 10 members required).
- Others: People in authority.
Business Registration Proof:
- Required for all types of business entities except proprietorships.
- Entities must submit their charter document.
Business Location Address Proof:
- Required for all business locations with the GST registration application.
- Documents include property tax receipt, municipal Khata, or electricity bill for owned premises.
- For rented premises, a rental agreement and lessor's ownership proof are required.
- For SEZ property, required documentation issued by the Indian government must be uploaded.
- In other cases, a consent letter from the property owner and proof of ownership such as municipal Khata or electricity bill is needed.
Bank Account Proof:
- Scanned copy of the following documents:
- First page of the passbook.
- Relevant bank statement page.
- Cancelled check with bank account number and proprietor/business entity's name.
- IFSC MICR and bank branch information including code.
FAQ's
In an effort to be recognized by the products and offerings Tax machine, a commercial enterprise have to first check in for GST.
Every company providing goods or services that has a yearly revenue of more than Rs. 40 lakhs (Rs. 20 lakhs for services) you have to sign up. Lower thresholds of Rs. 10 lakhs apply to states under special category.
The PAN card of the company evidence of the directors or partners identities and addresses proof of business registration proof of the address at which the business is located, and bank account information are among the required documents.
If all the necessary paperwork is in order and there are no errors, the GST registration process normally takes seven to ten working days.
The capacity to collect GST from clients claim input tax credit and gain legal recognition as a supplier are among the advantages as is increased marketability and competitiveness.