Overview of Goods and Service Tax Registration
Goods & Services Tax, commonly known as GST is the greatest tax change in India. It is constantly improving and expanding the taxpayer base in India, by bring various taxpayers under the GST regime. Further, it has annulled and subsumed various taxes into a uniform law for Indirect Taxes. Under the new goods and service tax registration system, all businesses engaged with purchasing or selling of goods/services or both are required to register for GST. Without GST, a person can neither collect GST from his customers nor can claim any Input Tax Credit of tax paid by him and in worst cases, he could be punished too.
Further, registration under GST is compulsory for businesses whose aggregate turnover in case of goods, exceeds Rs. 40 lacs (Rs. 10 lacs for North-Eastern and Hill states) and in case of services, Rs. 20 lacs.
In every State/Union Territory, all the registered taxable persons having a business place shall be allotted PAN based 15 digit GST Identification Number (GSTIN). A given PAN based legal entity would have one GSTIN per State, that means a business entity having its branches in multiple States will have to take separate State wise registration for the branches in different States.
utility of Goods and Service Tax Registration
- Legitimately recognized as provider of goods or services.
- Appropriate bookkeeping of taxes paid on the input goods or services which can be used for instalment of GST due on supply of goods or business or both by the business.
- Lawfully approved to gather tax from his buyers and pass on the credit of the taxes paid on the goods or services provided to buyers or beneficiaries.
Getting qualified to profit different advantages and benefits under the GST laws.
Who has to obtain Goods and services tax Registration compulsorily?
How to obtain your GST Registration from TaxHelpdesk?
Once your order is placed, TaxHelpdesk’s dedicated team for reviewing of documents will check the documents uploaded by you within 24 working hours. After reviewing documents, a Tax Expert will be assigned and your order will be processed. Apart from this, you also will be able to check the status of the order in your assigned account.
Structure Of GST Registration/GSTIN
Types of GST Registration
Under the GST Act, there are four types of registration namely:
Normal Taxpayer: Most businesses in India fall under this category and no amount is to be deposited to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this type of category.
Casual Taxpayer: Individuals who wish to set up a seasonal shop or stall can go for Casual Taxpayer registration. Amount equal to the GST liability is to be deposited in advance. The duration of the GST Registration 3 months and it can be extended or renewed afterwards.
Composition Taxpayer: Taxpayer whose aggregate annual turnover is below Rs. 1.5 crores (Rs. 75 lacs for NE states and hill states) can opt for this scheme. A fixed rate of amount is to be deposited and no Input Tax Credit can be availed.
Non Resident Taxable Person: If you live outside India, but supply goods to individuals in India, opt for this type. A deposit equal to the expected GST liability is to be paid. Duration for this type is usually 3 months, but it can be extended or renewed.
How to apply for GST Registration?
Document lists for GST registration
– PAN Card copy of the applicant
– PAN Card copy of at least one proprietor/partner/karta/director
– Aadhaar card copy
– Proof of place of business
– Proof of business registration or incorporation certificate
– Bank account details
– Mobile and email address
– Authorisation letter/board resolution for authorised signatory
– Digital Signature
Time frame for GST Registration
Particulars | Time Involved |
Applying for GST Registration Number | 1-2 days |
Verification of documents | 3-5 days |
Physical copy of GST Registration Number | 3 days |
FAQs
Any supplier who carries on any business at any place in India & whose aggregate turnover exceeds Rs. 40 lakhs in a financial year is liable to get himself registered and obtain GSTIN. However, the said limit is reduced to Rs 10 lakhs to the states specified in Article 279A (4)(g) of the constitution viz. Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
The “Aggregate Turnover” means total turnover of a person having the same PAN in respect of the following: (a) All taxable supplies including interstate supplies (b) Exempt supplies (c) Exports of goods and/or service The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act.
Yes, it is mandatory to obtain GSTIN in case of certain category of persons. The major categories are given below:
(a) Persons making any Inter-State taxable supply of Goods / Services.
(b) Persons who are required to pay tax under Reverse Charge Mechanism (RCM), or
(c) Persons who are required to deduct tax under GST (TDS).
(d) Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise
(e) Input service distributor
(f) Casual taxable persons or Non-resident taxable persons
Registration number under present tax laws (Excise, Service Tax, VAT, CST etc) cannot be used under GST and every person would be required to obtain a fresh GST registration number and the same will be required to mention on all Tax invoices for supply of Goods / Supplies
GST registration is not tax specific and there is single registration for all the taxes i.e., CGST, SGST/UTGST, IGST and cesses.
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