GST REGISTRATION
What is GST registration?
The government of India reformed the existing tax mechanism and abolished the previous various tax laws, like excise duty, VAT, service tax, Octroi, entry tax, etc., into one tax, i.e., Goods & Service Tax, w.e.f. 01.07.2017. This concept is introduced by the government as “One Tax, One Nation.”
GST registration means getting registration of a business under the Goods & Service Tax Act, 2017.
Who is required to get GST registration?
- Exceed the threshold limit: If the business sale or turn over is exceed the minimum threshold limit
(a) For Trading or manufacturing businesses: INR 40 Lakh**
(b) For Service providers INR 20 Lakh**
**The threshold limit is INR 10/20 lakh for some North-Eastern states. - Casual Taxable Persons: Persons who have been charged GST casually, like participating in an exhibition, fair, etc., where they do not have a permanent place of business.
- Non-resident Indian (NRI): Non-resident persons of India starting a business in India are required to get GST registration mandatory.
- Input Tax Distributor: Input tax distributors are required to get GST registration mandatory to distribute the input tax.
- E-commerce Operators: Like Amazon, Flipkart, Uber, Ola etc.
- Persons selling the goods or services through e-commerce operators.
- Under reverse charge mechanism: If you fall into a category where the GST is payable under the RCM basis, you are required to get GST registration.
- Outside India online service providers: If you are selling your services, software, etc. in India from outside India, you are required to get mandatory GST registration in India.
What Is the Penalty for Not Getting the GST Registration?
If you are required to get GST registration and you fail to obtain the GST registration, the GST department may charged a penalty of upto 100% of Tax liability subject to minimum of INR. 10000/-
Hence, we recommend getting your business GST registration timely as per provisions.
Can I Get GST Registration Voluntary?
Yes, you can also get your business registered under GST on a voluntary basis.
DISADVANTAGE OF PARTNERSHIP FIRM:
- Sales area: After getting GST registration, you are eligible to sell your goods or services anywhere across India.
- Input Tax Credit: After getting GST registration, you are eligible to book input tax credit on your purchases and also eligible to transfer the input tax credit to your customers/buyers.
- E-way bill: After getting GST registration, you will also be eligible to generate the E-way bill for the transportation of your goods without any interruption from tax authorities at state borders.
- Legal identity of your business: The GST registration certificate will give your business a legal identity.
- Selling through e-commerce operators: After getting the GST registration certificate, you can also eligible to sell your goods or services through e-commerce operators like Flipkart, Amazon etc.
- Open a current account: You can open a current bank account in the name of your entity with any bank through a GST registration certificate.
- Eligible to participate in tenders: In the government or other companies, PSU tenders required a GST registration certificate of the bidder; after getting the GST registration certificate, you are also eligible to participate in these tenders.
What kind of compliance are required after GST registration
After getting GST registration the registered person required to file applicable GST return in a timely manner to avoid any interest, late fee, penalties, etc.
Documents required:
|
Document Type |
TYPE OF
ENTITY |
|
|
Proprietorship |
Partnership firm/company, LLP, or other |
|
|
PAN
CARD |
PAN
Card of proprietor |
PAN
card of entity |
|
Aadhaar
Card |
Of
Proprietor |
Of
partner/director |
|
Photo |
Of
Proprietor |
Authorized
Person |
|
Address
Proof |
Electricity/utility bills and consent of landlord or rent agreement or other property
document, etc. |
|
|
Registration
Certificate or Partnership/LLP Deed etc. |
N.A. |
For
company: Certificate of incorporation, MOA, AoA |
|
Board
Resolution/Authorization Letter |
N.A. |
Applicable |