GST Registration

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GST Registration2018-06-01T09:20:37+00:00

Highlights

Concept

Goods and Services Tax is a unified indirect tax combining VAT, CST, Service Tax, Excise duty, Entertainment Tax, etc and applicable all over India from 1 July 2017.

When to register for GST?

Mandatory to register under GST when annual turnover exceeds INR 20/10 lakh or supply goods and services inter-state or through the e-commerce platform.

What are the GST tax rates?

Tax rates vary from 0% to 28% depends on the type of goods & nature of services you are selling.

Input Tax Credit Availment

Only business unit registered under GST can avail credit of tax paid at the time of purchase while filing GST returns.

Return Filing & Payment

Every GST registrant requires filing three monthly/quarterly returns and One annual return. Requires paying tax every month.

Composition Scheme

Business Unit having an annual turnover of less than ₹1 crore may opt the scheme. Requires to pay to subsidize tax ranges from 1% to 5% & file quarterly return.

Why I need GST Registration?

GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business. Benefits to GST registered business at glance are as follows:

  • Become more competitive : You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
  • Expand your business Online : You cannot sell products or services on e-commerce platform without GST registration. If you’re planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.
  • Can take input tax credit : Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
  • Can sell all over India without any restrictions : Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.
  • Apply Government Tenders : Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
  • Open Current Bank Account : Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.
  • Dealing with MNCs : Generally, MNC’s does not comfortable to deal with small business entities until they carry valid tax registration proof.

Frequently Asked Questions

GST stands for goods and service tax. it is an indirect tax which has to be collected from customers when you sell your goods or services and required to be submitted to the government.
It is mandatory to register under GST when - If your annual turnover exceeds INR 20 Lacs* or - If you're doing inter-state sales or - If you're selling products online through e-commerce portal or - If you're into the import or export business - If you want to raise tax invoice for your customers - If business participating in exhibition/event outside the State as Casual Taxable Payer *In case of North Eastern States, annual turnover threshold limit is INR 10 Lakhs.
Yes, you can voluntarily apply for GST Registration even if your business annual turnover does not exceed threshold limit (20/10 Lacs). GST registration not only helps you in getting your business recognized as a legal registrant but also help you avail various benefits like avail to raise GST Invoice, avail input tax credit, and much more if you take GST Registration voluntarily. To know more about various benefits of GST Registration download our GST guide from above.
- If business entity doing supplying goods and services from multiple States, then he/she mandatorily required to registered under GST in different States. - Further, any business entity can apply for multiple GST registration even if they are operating from single State under multiple verticals to avoid accounting complexity between multiple businesses. Illustration : XYZ Private Limited doing the business of selling merchandise and also doing the business of selling software from Bangalore only. Still, a company can apply for multiple GST Registration for their different business domain. If you are supplying goods and services from one state to all over India. You do not need multiple GST registration.
If any business entity mandatorily required to register under GST, however, failed to apply or intentionally ignoring the same then business is liable to pay the penalty of 100% of the tax due or INR. 10,000 whichever is higher.
The documents required depends upon the type of business you are running as. Following below documents required for GST Registration : - Passport Size Photograph - Aadhar card or Passport or Driving License - Pan card of business entity - Address proof of business premises - Bank Statement or Cancel cheque or Passbook ADDITIONAL DOCUMENTS FOR PRIVATE LIMITED COMPANY /LLP /OPC / PARTNERSHIP FIRM - Certificate of Incorporation in case of Company, OPC or LLP - Partnership Deed in case of partnership firm.
GSTIN stands for Goods and Service Tax Identification Number consists of 15 digits. This will be get generated from government end when you have successfully applied for GST registration. - First 2 digit denotes represent State in which business registered under GST - Next 10 Digits denotes PAN of business entity - 13th digit denotes the number of business located in the same state - Last two digits are randomly generated.
GST rate varies from nature of goods/services you are selling; it ranges from 0% to 28%. To find out GST rate on your business download our GST guide from above.
Yes, you can sell both Goods and Services with one GST Registration, Provided you have listed such Goods/Services while registering under GST.
Yes, in case of individual/sole proprietorship you are free to apply for GST registration on your firm name. Further, you can apply your personal name as well.
No, both savings and current accounts can be provided for GST registration.
Sure why not, you can start a business from your home. You just need to provide proof of your residential address for GST Registration.
This is the most common question business doers are facing these days, you need to raise GST invoices with respect to every sale transaction and requires filing monthly/quarterly returns.
Yes, from the very moment you get GST registration certificate, you need to charge GST from your customers.
No, you need single GST registration if you are supplying goods from single state to all over India. If you are supplying goods from 2 or more states then you require registering under GST of all such states.
The process of converting from the old service account to GSTN through GST registration is as follows- #1. Login to CBEC Portal. #2. Receive the Provisional id and password. #3. Create the new user id and password on the GST portal. #4. Enter all your business details along with the promoter details and the business address, Bank details and upload the required documents on the GST portal. #5. Finally, verify with the DSC or Aadhar generated EVC.
GST Composition Scheme is an easy scheme made for the small taxpayers to reduce the compliance burden. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. Any business having an annual turnover less than ₹2 Crore* can opt for composition scheme under GST registration application. *For Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh the above threshold limit is ₹1 Crore.
Advantages of GST Composition scheme : - Need to file a single quarterly return. Four returns in a year - Limited compliances - Less tax liability - Pay the small amount of tax on turnover (1% for traders & 5% for a restaurant) - Not require maintaining detailed records - Can provide auxiliary services up to ₹ 5 lakhs annually under the composition scheme. Disadvantages of GST Composition scheme : - Cannot avail input tax credit of purchases made - Cannot issue a tax invoice - Cannot charge composition tax on an invoice from the customer as usual practice in case of normal GST scheme.
- If Annual turnover exceeds 2 Crore - If you involved in Inter-State supplies - All Service Sector Business except restaurant - Importer of goods & services - E-commerce sellers - Supplier of non-taxable goods - Manufacturer of Notified Goods Relaxation announced on GST Composition Scheme on 23rd GST Council Meeting held.
ARN stands for Application Reference Number. It is the conclusive proof of successful submission of the application to the GST servers. It is generated after the TRN (Temporary Reference Number) & uploading of requisite documents.
Principal Place of Business is the primary location within the State where a taxpayer’s business is performed. The principal place of business is generally where the business’s books of accounts and records are kept and is often where the head of the firm or at least top management is located.
HSN stands for Harmonized System of Nomenclature which is internationally accepted product coding system to maintain uniformity in the classification of goods. Service Accounting Codes (SAC) are adopted by the Central Board of Excise and Customs (CBEC) for identification of the services.
No, In case of a private limited company, LLP, OPC, and partnership firm you can not change the name and other details however in case of sole proprietorship firm it is possible to change the business trade name.
Yes, Digital Signature Certificate is required if you are Private limited, Public limited, LLP or One Person Company.