GST Registration

Overview

The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

Since India is federal country, Centre Government and State Government both have powers to levy taxes. Under GST regime, Centre and State both have power to levy GST. Therefore, GST in India is divided into two parts:

1. Central GST (CGST)

2. State GST (SGST)

GST will be divided into two components, one is CGST which is levied by Central Government and other is SGST which is levied by State Government.

However, there will be one more type of GST is Integrated GST (IGST). IGST will be levied on inter-state transactions. Since, there are chances that people will get confused in case of transactions between two persons of two different States and there will be difficulty setting off dues of taxes between two States, thus IGST will be levied by Centre. Now, Centre will apportion the State’s portion of GST from IGST to relevant State.

All businesses whose turnover is above Rs.20 lakhs, or Rs.10 lakhs (for North-Eastern states), are expected to do GST registration as a regular taxable person. GST online registration is also mandatory for NRI taxable individuals, entities engaging in e-commerce, entities supplying goods and services via e-commerce operators, individuals who are eligible for TDS (Tax deducted at source), entities engaging in the provision of online information or retrieval services or database access, etc.

Most entities and businesses in the country are required to complete GST registration online. Even entities that are not mandated to complete GST online registration can do so on a voluntary basis as registration enables the entity to gain legal recognition as a supplier of goods and/or services, thereby allowing the entity to levy GST on customers who avail their goods or services. As such, entities that have completed GST registration online can be eligible to avail input tax credit.

Advantages of GST Registration

  • Hassle free Interstate registrations as the GST registrants are free to do the interstate transactions with lesser restrictions which in turn make the business units more comprehensible and will also have a wider customer base across the nation.
  • Registrants can avail the input tax credit on all the purchases and services availed by them.
  • Registered dealers can provide their community a privilege of the input tax credit as the dealer can issue tax invoice which will be further used for the availing of the input tax credit.
  • Register dealer can sale their product online with E-Commerce companies like Amazon & Flipkart etc.

Disadvantages of GST Registration

  • Multiple registrations will be under the demand after the registration for all those business units who operates in various states for their trading activities.
  • Returns will be another disadvantage under the GST there will be 3 returns (GSTR-1, GSTR-2, and GSTR-3/3B) per months and ending up to 37 returns per year.

Obligations of GST Registration

  • Pay all the tax due for the period & file return accordingly.
  • All the invoice issued must contain particulars like tax, registration number etc.
  • Keep Proper Business and Accounting Records at least for five years.
  • Inform the GST authorities in case of change in the particulars like change in business name, address, composition of business etc. within 30 days.

Who are required to get registration under GST

  • Any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs for North Eastern and hill states).
  • Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.)
  • When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.
  • Anyone who drives inter-state supply of goods
  • Casual taxable person
  • Non-Resident taxable person
  • Agents of a supplier
  • Those paying tax under the reverse charge mechanism
  • Input service distributor
  • E-commerce operator or aggregator (need not register if total sales is less than Rs. 20 lakh)
  • Person who supplies via e-commerce aggregator
  • Person 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

Required Documents

  • Copy of Rental Agreement (along with NOC from owner)/Sale Deed in case of own property.
  • Detial of Goods & service
  • Unique Email id & Mobile number
  • Copy of PAN card
  • Additional place of business, if any.
  • Detail of bank account number

Process

How Vakil Salah help you to get GST registration?

Document Collection

We will collect the details & document required for GST registration from you.

Application preparation

After collecting details, we will prepare your application based on the information provided & submit the application Form (Part A and Part B) on your behalf.

GST registration Number Allotment

Once the application and the attached supporting documents are verified, GST department will issue unique number based on pan & state.

FAQ's

1.What is meant by GST?

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

2.Can a person have more than one GST number?

Yes, but they have to proved that both business are vertically different.

3.How GST number formed?

In a GST registration number, the first two digits represents the State Code, followed by the next 10 digits representing the PAN of the applicant, one digit representing entity code, one digit is left blank and the last digit is a check digit.

4.How many return are required to file by registered person?

It depend on class of registeration the taxable person have taken & also their turnover.