GST Registration

GST Registration

What is the GST Registration?

The Goods and Service Tax is the biggest indirect tax reform which amalgamates all the other taxes into one single tax structure. Under GST Regime, the goods and services are now taxed under a single law being Goods and Service Tax Laws. The taxes are levied at a single rate. The collection is then bifurcated between both Central and State Government in name of CGST and SGST or IGST.The registration under GST is mandatory for the business entities based on the criteria of turnover or activities. The GST registration in India is completely an online process. GST Registration affirms seamless flow of Input Tax Credit in addition to providing recognition as a registered supplier. Owing to its benefits, many dealers also obtain the voluntary registration under GST.

Who should apply for GST registration?

  • Those who are registered under the Pre-GST Law (i.e Excise, VAT, Service Tax etc.)
  • Those businesses whose turnover is above the threshold limit of Rs. 40 lakhs(Rs. 20 lakhs for the North- Eastern States, J&K, Himachal Pradesh, and Uttarakhand)
  • For the casual taxable person/ Non-resident taxable person.
  • Those who are the agents of the supplier and Input service distributor.
  • Individuals who are paying tax under the reverse charge mechanism.
  • Those who supply via e-commerce aggregator.
  • Those who are supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.
  • All E-commerce aggregator.

DOCUMENTS REQUIRED FOR GST REGISTRATION:-

For Sole Proprietorship/ Individual

  • Aadhaar card, PAN card, and a photograph of the sole proprietor
  • Details of Bank account- Bank statement or a cancelled cheque
  • Address Proof (Own office) Copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
  • Address Proof (Rented office) Rent agreement and NOC (No objection certificate) from the owner.

For Partnership deed/LLP Agreement

  • Aadhaar card, PAN card, Photograph of all partners.
  • Details of Bank such as a copy of canceled cheque or bank statement
  • Proof of address of Principal place of business and additional place of business :
    • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal Khata/property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • In case of LLP- Registration Certificate of the LLP, Copy of board resolution
    Appointment Proof of authorized signatory- letter of authorization

For Private limited/Public limited/One person company

  • Company’s PAN card
  • Certificate of Registration
  • MOA (Memorandum of Association) /AOA (Articles of Association)
  • Aadhar card, PAN card, a photograph of all Directors
  • Details of Bank- bank statement or a canceled cheque
  • Proof of Address of Principal place of business and additional place of business:-
  • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal khata/ property tax receipt
  • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • Appointment Proof of authorized signatory- letter of authorization

For HUF

  • A copy of PAN card of HUF
  • Aadhar card of Karta
  • Photograph
  • Proof of Address of Principal place of business and additional place of business:
    • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal khata/ property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • Details of Bank- bank statement or a copy of a cancelled cheque

For Society or Trust or Club

  • Pan Card of society/Club/Trust
  • Certificate of Registration
  • PAN Card and Photo of Promotor/ Partners
  • Details of Bank- a copy of canceled cheque or bank statement
  • Proof of Address of registered office :
    • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal khata/ property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • Appointment Proof of authorized signatory- letter of authorization

Benefits of GST Registration in India

  • Elimination of Multiple Taxes

One of the benefits of GST is the elimination of multiple indirect taxes. Every tax that currently exists will not be in a picture. It means current taxes like excise, octroi, sales tax, Service tax, CENVAT, turnover tax etc will not be applicable and all that will fall under common tax called GST.

  • Saving More Money

GST applicability means the elimination of double charging in the system for a common man. Through this, the price of goods and services will reduce & help common man for saving more money.                                       

  • Ease of business

GST brought the concept of “one country one tax”. It will prevent unhealthy competition among states and will be beneficial to do interstate business.

  • Cascading Effect reduction

From manufacturing to consumption, GST will be applicable at all stages. It will provide tax credit benefit at every stage in the chain. In the current scenario, at every stage, the margin is added and tax is paid on the whole amount, in GST you will have tax credit benefit and tax will be paid on margin amount only. GST will reduce the cascading effect of tax thereby reducing the cost of the product.

  • More Employment

It is expected that demand for a product will increase and to meet the demand, supply has to go up as GST will reduce the cost of the product. Besides, the requirement of more supply will be addressed by only increasing employment.

  • Increase in GDP

Higher the demand, higher will be the production. Hence, it will increase the gross domestic product. Moreover, It is estimated that GDP will grow by 1-2% due to GST.

  • Reduction in Tax Evasion

Goods and services tax is a single tax which will include various taxes to make the system efficiency with fewer chances of corruption and Tax Evasion.

  • More Competitive Product

It will make manufacturing more competitive as GST will address the cascading effect of the tax, inter-state tax, high logistics cost. It will be beneficial to the businessman and consumer.

  • Increase in Revenue

Under the GST regime, 17 indirect taxes has been replaced with a single tax. Apart from this, the increase in product demand will ultimately increase tax revenue for state and central government.

What is GSTIN?

  • The first 2 digits of the 15 digit GSTIN will represent the state code. For example: 01 for Jammu and Kashmir, 02 for Himachal Pradesh, 03 for Punjab, etc.
  • The next 10 digits will be the PAN of person or entity engaged in Business.

GST Registration Process (on Government Portal):-

GST Registration will give the following advantages to a taxpayer.

  • Go to the Government GST Portal and look for Registration Tab.

Fill PAN, Mobile No., E-mail ID and State in Part-A of Form GST REG-01 of GST Registration.

  • You will receive a temporary reference number on your Mobile and via E-mail after OTP verification.
  • You will then need to fill Part-B of Form GST REG-01 duly signed (by DSC or EVC) and upload the required documents specified according to the business type.
  • An acknowledgment will be generated in Form GST REG-02.
  • In case of any information sought from you and intimated to you in Form GST REG-03, you may need to visit the department and clarify or produce the documents within 7 working days in Form GST REG-04.
  • The office may also reject your application if they find any errors. You will be informed about this in Form GST REG-05.
  • Finally, a certificate of registration in Finally, a certificate of registration will be issued to

you by the department after verification and approval in Form GST REG-06.

What is GST Return?

Every person registered under the GST Act has to periodically furnish the details of sales and purchases along with tax collected and paid thereon, respectively, by filing online returns. Before filing the return, payment of tax due is compulsory otherwise such return will be invalid.

Steps for filing GST return:

GST return can be filed in different forms depending upon the nature of transaction and registration.Return Forms that are applicable for Normal Tax payers and their due dates are:

  • Monthly Details of outward supplies in FORM GSTR-1 by the 10th of next month.
  • Monthly Details of inward supplies in FORM GSTR-2 by the 15th of next month.
  • Monthly Filing of Return along with payment of tax due in FORM GSTR-3 by the 20th of next month.
  • Annual Filing of Return in FORM GSTR-9 by 31st December of next financial year.

Types of returns under GST:-

There are multiple returns under the GST regime. The most common used return will be GSTR 1, 2, 3, 4 & 9. GSTR 1, GSTR 2 & GSTR 3 will be submitted by all businesses on a monthly basis along with GSTR 9 on an annual basis. GSTR 4 is submitted by composition taxpayers on a quarterly basis.

Return/Form

Details

Filer

Frequency

Due Date

GSTR – 1

Outward sales by Business

Registered Normal Taxpayer

Monthly

10th of next month

GSTR – 2

Purchases made by Business

Registered Normal Taxpayer

Monthly

15th of next month

GSTR – 3

GST Monthly return along with the payment of tax

Registered Normal Taxpayer

Monthly

20th of next month

GSTR – 4

GST Quarterly return for Composition Taxpayers

Composition Taxpayer

Quarterly

18th of month next quarter

GSTR – 5

Periodic GST return for Non-Resident Foreign Taxpayer

Non-Resident Foreign Taxpayer

Monthly

20th of next month

GSTR – 6

Return for Input Service Distributor (ISD)

Input Service Distributor

Monthly

13th of next month

GSTR – 7

GST Return for TDS

Tax Deductor

Monthly

10th of next month

GSTR – 8

GST Return for E-commerce Operator

E-commerce Operator (Tax Collector)

Monthly

10th of next month

GSTR – 9

GST Annual Return

Registered Normal Taxpayer

Annually

31st Dec of next financial year

 

 

 

  • Professional fees :

  • 1999

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