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Welcome to OnlineCorpServ, your premier destination for streamlined business solutions, including comprehensive GST registration consultant services. As a business owner, you understand the importance of adhering to tax regulations, and our team is here to ensure that your journey towards GST compliance is smooth and hassle-free.
Before we understand the process of GST registration in India, let’s understand some of the basics of GST like, what is GST, who is required to register for GST i.e. eligibility criteria, types of GST registrations etc.
GST stands for Goods & Service Tax. Goods and Service tax is an indirect tax enforced through ‘Goods and Service Tax Act 2017 (Popularly known as GST Act), effecting from 1st July 2017. Prior to enactment of GST there used to be multiple indirect taxes applicable in India like Service Tax, Value Added Tax, Excise Duty, Luxury Tax, Octroi and Entry Tax etc. GST is a multi-staged tax, wherein tax is levied at every value addition. It is single indirect tax that is levied at PAN India level. Under GST regime tax is levied at every point of sale and in case of sale within the state, Central Goods & Service Tax (CGST) and Stage Goods & Service Tax (SGST) is charged. While in case of interstate sales, Integrated Goods & Service Tax (IGST) is charged. Here it is also important to mention that GST is a destination-based tax, which means tax is leviable in the state where goods are consumed. i.e. if a seller of Haryana state sells the goods to a buyer in Uttar Pradesh, then entire tax revenue will go to Utter Pradesh State (and Central Govt.) and no portion of tax revenue will go to Haryana state.
GST registration is a critical step for businesses operating in India, mandating registration for entities surpassing the prescribed turnover threshold. This registration enables businesses to collect and remit Goods and Services Tax to the government. Failure to comply with GST regulations can result in penalties and legal repercussions, making it imperative for businesses to enlist professional assistance.
Every business in India is free to register for GST on voluntary basis irrespective of its turnover. However, every business whose annual turnover exceeds INR 40 lakhs for goods and INR 20 lakhs for service are compelled to register for GST. However, there are some special category states where the annual turnover threshold for GST registration is INR 20 lakhs for goods and INR 10 lakhs for services i.e. any business whose turnover exceeds these limits will have to take the GST registration in Noida, Gurgaon, and Delhi. Following are the Special category states who have opted for lower threshold limit of INR 20 lakhs for goods and INR 10 lakhs for services: 1. Sikkim 2. Manipur 3. Meghalaya 4. Arunachal Pradesh 5. Mizoram 6. Tripura 7. Uttarakhand 8. Puducherry Following UTs and Special category states have opted for revised threshold of higher limits of INR 40 lakhs for goods and INR 20 lakhs for services (in spite having the option to remain with lower threshold): 1. Assam 2. Jammu & Kashmir 3. Ladakh
Turnover is basically value of goods or service sold. GST law mentions the term aggregate annual turnover which means turnover of all businesses under one Permanent Account Number (PAN) shall be aggregated to arrive at Aggregated Annual Turnover to compare with threshold limit for GST purpose.
For the purpose of calculating turnover for GST registration threshold following shall be included:
• Value of taxable sales
• Value of exempt sales
• Value of export sales
• Value of both Intra-state and Inter-state sales
• Value of stock transfer between different entities within same PAN
• Sales subject to RCM (reverse charge mechanism)
Following values shall be excluded for the purpose of turnover calculation
• RCM Purchase i.e. purchase under reverse charge mechanism
• CGST/SGST/UTGST/IGST/Compensation cess
Yes, there are certain scenarios wherein above threshold limit of INR 40 lakhs/ and INR 20 lakhs etc. are not applicable. Following are few important cases in which threshold limits does not apply:
• Inter-state supplies: Interstate supplier of goods and services required to register for GST irrespective of their turnover.
• Non-resident taxable person: Non-resident person who supply goods or services to resident within India are required to register for GST irrespective of GST threshold.
• Casual Taxable Person: The individual who occasionally undertake supply of goods or services within a state where they do not have fixed place of business or from more than one state, then such persons are required to register for GST irrespective of turnover
• Person liable to pay GST under RCM (reverse charge mechanism): Person who are required to pay GST under RCM must register for GST irrespective of their turnover.
• Online service providers from outside India: Service providers from outside India to a non-registered person in India are required to register for GST, irrespective of turnover
• Person required to deduct TDS or TCS: Those required to deduct TDS or TCS are required to register for GST irrespective of their turnover.
• E-commerce operators: Entities providing platform for supply of goods or services are required to register for GST irrespective of their turnover.
• Person making sale on behalf of someone else: Persons making sale on behalf of someone else, whether as agent or principal, must register in GST irrespective of their turnover.
• Other person as notified: Such other persons or class of persons as notified by government to compulsorily register for GST.
Following are the 8 different types of GST registrations, which caters to different types of entities/businesses:
1. Regular GST registration
2. Registration in Composition Scheme of GST
3. Casual Taxable Person Registration
4. Registration as Non-Resident Taxable Person
5. Input Service Distributor (ISD) Registration
6. Registration as Tax deductor (in case of TDS) and Tax collector (in case of TCS)
7. E-commerce operator
8. URD (Un-Registered Dealer) Composition scheme
• Claiming input tax credit: Registered suppliers are eligible to claim tax credit on the input used during the value addition process.
• Gain legal recognition: A GST registered supplier is perceived more legally recognized among the buyers of the goods and services, as the supplier is legally authorized to collect the tax from his customers and pass on the credit of input tax to the purchaser or recipient of the goods and services.
• Enhance credibility in the market: Purchasers, suppliers and other stakeholders perceive the GST registered supplier as a party who comply with national tax laws and this enhances his credibility in the market.
• Seamless flow of input tax credit at national level: GST registration gives benefit of seamless flow of input tax credit between suppliers and recipients at national level, which is a great advantage for all businesses.
• Increased compliance burden
• Increased cost on IT infrastructure and training
• Complexity for small businesses
GST registration in a complete online process needs to carry out on government website i.e. gst.gov.in. For ease of understanding, the step-by-step process of GST registration
Access the govt. website https://www.gst.gov.in. or Contact us for GST Registration.-
Expert Guidance:
With DOCS, you benefit from the expertise of seasoned professionals well-versed in the nuances of GST regulations.
Tailored Solutions:
We recognize that every business is unique, with distinct requirements and challenges. At DOCS, we offer personalized solutions tailored to your specific needs, whether you're a budding startup or an established corporation.
Legal Compliance: Avoid penalties and legal issues by registering for GST, fulfilling your tax obligations, and staying compliant with the law.
Input Tax Credit: Claim input tax credit on goods and services used for your business, reducing your tax liability and boosting your cash flow.
Market Competitiveness: Gain credibility and trust among your customers and suppliers by being GST compliant, enhancing your competitive edge in the market.
Nationwide Operations: Expand your business across India seamlessly, as GST replaces multiple state and central taxes, simplifying interstate trade.
Government Contracts: Become eligible to bid for government tenders and contracts, as GST registration often serves as a prerequisite for participation in such opportunities.
GST registration is registration of business with GST authorities and getting a unique 15 digits Goods and Service Tax Identification Number (GSTIN). This is required so that all the data collection, correlation, analysis, compliance verification etc. can be done for the identified entity.
Following are the key advantages of GST registration:
• Enhanced Credibility in the Market
• Legally recognized entity to collect GST, pass the input credit and deposit tax to GST authorities
• Can claim input tax credit against input consumed
• Seamless flow of input tax credit at national level
No person can collect GST or claim input tax credit, without registering himself under GST
If business turnover exceeds the GST threshold limit anytime during the financial year, one needs to register for GST within 30 days from the date of crossing the threshold.
A Regular GST registration Certificate is granted on permanent basis i.e. no renewals required. However, the GST registration certificate is subject to be surrendered, cancelled, suspended or revoked, as per GST laws.
Yes. The proper officer can reject an application for registration after due verification. Where the application submitted is found to be deficient, the proper officer may issue a notice to the applicant electronically within 3 working days from the date of submission of the application and the applicant shall furnish such clarification/documents electronically, within a period of 7 working days from the date of the receipt of such notice.
Yes. a taxpayer can apply for cancellation of GST registration through FORM GST REG-16 in the following circumstances:
• Discontinuance of business or closure of business
• Change in constitution of business leading to change in PAN
• Death of sole proprietor
• Transfer of business on account of amalgamation, merger, de-merger, sale, lease or otherwise
• Taxable person (including those who have taken voluntary registration) is no longer liable to be registered under GST
• Any other reason (to be specified in the application)
Application in FORM GST REG-16 has to be submitted within a period of 30 days of the “occurrence of the event warranting the cancellation”.
To apply for a new registration, you must have following documents:
• PAN card/details of your business
• Valid and accessible e-mail ID and Mobile Number
• Proof of constitution of your business
• Proof of promoters/partners
• Proof of principal place of business
• Details of Authorised Signatories including photographs and proof of appointment
• Details of Primary Authorised Signatory
• Business bank account details along with bank statement or first page of bank passbook
• Valid Class II or Class III DSC of authorised signatory in case of companies and LLPs; Valid Class II or Class III DSC or Aadhaar (for E-Sign option) in case of other entities.
Note: Your mobile number should be updated with the Aadhaar authorities otherwise you cannot use E-Sign option because OTP will be sent to the number in the Aadhaar database