A tax on products and services used in India is known as the Goods and Services Tax (GST). In India, the GST has mostly superseded other indirect taxes including excise duty, VAT, and services tax. Based on the Goods and Service Tax Act, which was approved by the Indian Parliament on March 29, 2017, GST became effective on July 1st, 2017.
Taxable person under GST
A person who conducts business in India and is registered or is required to be registered under the GST Act is referred to as a "taxable person" under the GST Act. An individual, HUF, company, firm, LLP, an AOP/ BOI, any corporation or Government company, a body corporate formed under the rules of a foreign nation, cooperative societies, local governments, trusts, or artificial juridical persons are all examples of taxable individuals.
GST Registration Turnover Limit
Regardless of turnover, anyone or any company can voluntarily register for GST. If a person or organization sells more goods or services than a predetermined threshold, GST registration is required.
Service Providers: GST registration is necessary for any individual or organization that generates an annual total of more than Rs. 20 lakh in revenue from providing services. The GST turnover cap for service providers in special category states has been set at Rs. 10 lakhs.
Goods Suppliers: Per notification No. 10/2019, anyone engaged in the exclusive supply of goods with annual gross revenue of over Rs. 40 lakhs is required to register for GST. The supplier must meet the following requirements in order to be eligible for the Rs. 40 lakhs turnover limit:
Should not be offering any services.
In the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Pondicherry, Sikkim, Telangana, Tripura, and Uttarakhand, the provider shall not be involved in making intra-state (supplying commodities within the same state) deliveries.
Should not be a part of the tobacco, pan masala, or ice cream supply chains.
When the turnover reaches Rs. 20 lakhs, or Rs. 10 lakhs in special category states, the provider of products would be forced to register for GST if the aforementioned requirements are not met.
Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand are listed as special category states under the GST.
Turnover in the aggregate is calculated as follows: Turnover in the aggregate is equal to (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).
The PAN is used to calculate aggregate turnover. Therefore, even if a single person operates many businesses, the whole turnover must be added up.
Types of GST Registration
There are different GST registration categories, including regular, occasional, non-resident, and E-Commerce operators. Regardless of the turnover threshold, casual taxpayers, non-resident taxpayers, and E-Commerce businesses must register for GST.
A casual taxable person is someone who occasionally provides goods or services in a State or a Union territory where the entity does not have a fixed place of business, according to the GST Act. As a result, individuals operating transient businesses at fairs or exhibitions or seasonal enterprises would be considered casual taxable people under the GST.
Non-resident Taxable Persons: Under the GST, a non-resident taxable person (NRI) is any individual, business, or organization that provides goods or services but does not have a permanent home or place of business in India.
E-Commerce Operators: Anyone who owns, runs, or oversees a digital or electronic facility or platform for electronic commerce is considered an e-commerce operator. Therefore, regardless of business revenue, anyone who sells online can be considered an E-Commerce Operator and is therefore required to register for GST.
What is GSTIN?
Organization with a GST registration number is given a GSTIN, or Goods and Services Tax Identification Number (GSTIN). GSTIN has a length of 15 characters. Based on the applicant's PAN and State, a GSTIN is assigned. The State Code is represented by the first two digits of a GST registration number. The applicant's PAN is represented by the next 10 numbers.
Download GST Registration Certificate
To individuals who have registered for GST, a GST Certificate is supplied. Those who have obtained a GST registration certificate are legally required to display it clearly at their place of business. The GST Portal makes downloading a GST certificate very simple. User Services can be found after logging into the GST Account. To download the GST registration certificate, select View / Download Certificate under User Services.
Register for GST through ACCOUNTKART
There are numerous GST registration categories, including standard
Through Account kart, you can get your GST registration in less than 7 working days. To start the process, enter your name, phone number, and email address.
A GST specialist will get in touch with you as soon as we get your request to learn more about your business, the state in which it is located, and to address any issues you might have.
The GST specialist will also gather and check the paperwork needed to apply for GST registration. As soon as the payment is started, the GST registration process begins, and all of your applications are uploaded to the GST Portal.
The GST registration is obtained in 3 to 7 working days. Since everything is online, there is no requirement for physical presence.
Penalty for NOT Obtaining GST Registration.
Any individual or organization that exceeds the aggregate turnover threshold is required to register for GST within 30 days of becoming subject to registration requirements. A penalty of Rs. 10,000 can be imposed for lateness or noncompliance, and the input tax credit earned during the wait will be lost.
Documents Required for GST Registration
Sole proprietor / Individual
Owner's PAN card
Owner's Aadhar card
a picture of the owner (in JPEG format, maximum size – 100 KB)
Account information* Address verification
LLP and Partnership Firms
All partners' PAN cards (including managing partner and authorized signatory)
Copies of partnership agreements
All partners and authorized signatories are shown in a photograph (in JPEG format, maximum size – 100 KB)
Proof of addresses for partners (Passport, driving license, Voters identity card, Aadhar card etc.)
Authorized signatory Aadhar card
evidence of the authorized signatory's appointment
In the case of LLP, registration certificate / Board resolution of LLP
Address proof of principal place of business
PAN of HUF card
PAN card and Karta's Aadhar card
A picture of the owner (in JPEG format, maximum size – 100 KB)
Address verification for the primary place of business
Company (Public and Private) (Indian and foreign)
PAN of the Company
Ministry of Corporate Affairs issues a certificate of incorporation.
Articles of Association / Memorandum of Association
PAN card and authorized signatory's Aadhar card. Even in cases when foreign corporations or branches are registered, the authorized signatory is required to be an Indian.
Address and PAN card evidence of each Company director
Each director's and authorized signatory's picture (in JPEG format, maximum size – 100 KB)
Board resolution designating the authorized signatory or another document attesting to their appointment (in JPEG or PDF format, with a maximum size of 100 KB)
Address evidence of the main site of business.
Benefits of GST Registration
The following are some of the benefits of GST registration are as follows:
Bank Loans: GST registration and submission of GST returns serve as evidence of business activity and build a business's track record. Based on i information from GST returns, banks and NBFCs lend to businesses. Therefore, GST registration might assist you in formalizing your company and obtaining financing.
Supplier On boarding: GST registration is frequently a requirement throughout the supplier on boarding process in order to become a supplier of reputable businesses. Consequently, GST registration can aid in increasing your revenue.
E-Commerce: Having a GST registration would enable you to sell online as it is a requirement to do so on sites like Amazon, Flip kart, Snap deal, Zomato, Swiggy, and others.
Input Tax Credit: Organizations that have registered for GST are allowed to charge GST to customers for their purchases and claim an input tax credit for the GST they have already paid on other products and services. Therefore, GST registration might lower your tax bill and increase your profit margins.
Documents Required For GST Registration
Electricity Bill: Latest electricity bill for the premises where GST registration is applied for
Telephone Bill: Latest Telephone bill for the premises where GST registration is applied for in some states
Property Tax Receipt: Latest Property tax receipt for the premises where GST registration is applied for
Lease/Rent Agreement: If property rented or leased ,lease or rental agreement is required.
Passport Size Photo: Passport size photo of the authorized signatory under GST
Partnership Deed: If applicant is a company, LLP, Partnership deed must be submitted.
Incorporation Certificate: If applicant is a company or LLP Incorporation certificate must be submitted
PAN Card: PAN card of the authorized signatory under GST.
Aadhar Card: Aadhar Card of the authorized signatory under GST.
Consent Letter: If the property is taken by a person without rental agreement.
GST Registration FAQ's
1. What is the cut-off date for GST registration?
Within 30 days of fulfilling the requirements, an entity that must be registered under GST must submit an application for registration. Prior to starting a business, casual taxpayers and non-resident taxpayers must register with the GST.
2. Who is the principal signing with authority?
The person in charge of doing tasks on the GST portal on behalf of the taxpayer is known as the principal authorised signatory. It might be the business's promotion or another dependable person suggested by the business's promoters.
3. Is PAN a requirement to register for GST?
Yes. PAN is required in order to register for GST. The proprietor's PAN may be utilised in the case of a proprietorship. PAN must first be issued for the entity in the event of an LLP, Company, Trust, or another type of legal entity. PAN is not necessary for foreign individuals or foreign businesses to register for GST, nevertheless. Based on the other documents presented to confirm existence, a GSTIN with a set expiration date will be given to non-resident taxable persons.
4. How long is a GST registration valid?
There is no time limit on a GST registration. As a result, it will be valid until it is revoked, returned, or suspended. Only non-resident taxable individuals and occasional taxpayers who register for GST have a validity period that is established by the authorities when issuing the GST registration certificate.
5. Can someone who has not registered for GST still collect GST?
No, only those who have registered for GST are permitted to collect GST from clients. Even the input tax credit on the GST paid is not available to someone who is not registered for GST.
6. What is an E-way bill, exactly?
An electronic document known as an "E-way bill" is used to prove the transfer of items worth more than Rs. 50,000. It is accessible to a supplier or a person shipping products. Part A contains information such as the GSTINs of the supplier and recipient, the location of delivery, the value of the products, the HSN code, and the justification for the transportation, and Part B contains information about the vehicle and mode of transportation.
7. What advantages do E-way bills offer?
There is no longer a need for state boundary checks because the interface is entirely digital. It will make it easier for items to move more quickly and improve truck turnaround times, which will save expenses for the provider.
8. When should an electronic way bill be produced?
Prior to the start of the transport of the goods, an e-way bill must be generated in accordance with rule 138 of the CGST Rules, 2017.
9. Is creating an E-way bill required?
In all circumstances when the value of the consignment exceeds Rs. 50,000, an E Waybill must be generated. On the other hand, it is not necessary to produce one if the products are being carried using a non-motorized mode of transportation or if they are being moved from a port, airport, air cargo facility, or land customs station for customs clearance.
10. What is the cost of failing to produce an E-way bill?
A penalty of Rs. 10,000 or the amount of tax sought to be collected from the taxable person who moves any products without the cover of specified documents (an e-way bill is one of the listed documents)
11. What is a composition scheme, exactly?
Small firms that are registered under the GST composition system are eligible to pay quarterly fixed-rate GST payments and submit quarterly GST returns. Small taxpayers who provide both goods and services, or both, to the final consumer with a lesser turnover would often be subject to the composition levy.
12. What are the requirements for eligibility?
Any current tax payer whose yearly revenue did not exceed Rs. 1.5 crore in the fiscal year before. Service providers, casual taxpayers, and non-resident Indians are not eligible, with the exception of restaurants and caterers.
13. Is it possible to use the composition method to obtain an input tax credit?
A dealer who chooses a composition scheme is not included in the credit chain and so is not eligible to claim any input tax credits. He cannot claim ownership of his input materials.
14. For how long will the plan be in effect?
As long as all of the legal requirements are met, the composition scheme's validity will depend on the choice that a taxpaying person chooses to exercise. However, those who are eligible for the programme might choose to reject it by merely submitting an application.
15. How will the total turnover be calculated?
It will include the value of all taxable supply and be calculated on an all-India basis. Reverse charge on inbound supplies as well as federal, state/union territory, and integrated taxes and cess would be excluded.
16. What is interstate supply, exactly?
When the supply location is situated in a different state than the delivery location, there has been an interstate supply of products or services. The inter- state supply also covers exports of goods and services as well as the provision of commodities or services by a SEZ entity.
17. What is intra-state supply, exactly?
When the site of the supply is in the same state as the supplier, it is considered to be an intra-state supply of products or services. The provision of goods or services to SEZ units or developers, as well as imports and exports, are not included in intra-state supply.
18. What is the SGST?
According to the SGST Act, intrastate supplies of goods and services are subject to the State GST or SGST. The corresponding state government is in charge of running it. Only SGST or IGST input tax credits may offset SGST liabilities.
19. What is the CGST?
In accordance with the CGST Act, intrastate supplies of goods and services would be subject to central GST, or CGST. Therefore, the federal and state governments would combine their taxes with a suitable revenue-sharing.
20. What exactly is IGST?
The tax imposed by the IGST Act on the provision of any products or services during interstate trade throughout India is known as the Integrated GST or IGST. In addition, the IGST would apply to all supplies of goods and services made during importation into India and exportation of goods and services from India.