A business is required to register for GST if its annual revenue exceeds Rs 20 lakh for services (Rs 10 lakh in certain states) or its annual turnover exceeds Rs 40 lakh for goods (Rs 20 lakh in certain states). State entrepreneurs, e-businesses, provisional taxpayers, non-resident taxpayers and vendors must register regardless of their income. Additionally, organizations that rely on the refund mechanism and exported products, as well as sites that choose to register to obtain tax documents and issue invoices under GST, are also required to register. Goods and Services Tax registration provides legal recognition, tax compliance in tax returns and provides a competitive advantage by ensuring compliance.
What is GST Registration in India?
Goods and Services Tax enrollment is the most common way of getting a unique identification number for a business liable to pay Goods and Services Tax (GST). Businesses that have a yearly revenue of more than Rs. 40 lakh in case of goods or Rs. 20 lakhs in case of services should register as normal taxable entities under the GST.
Goods and Services Tax registration is the major step for managing your business. It helps you with building trust and legitimacy while ensuring your business works legitimately. This step will change as per the types of business as well as its location. Businesses that generate more revenue than the limit must register for Goods and Services Tax; failing to do so will result in a lawsuit and a fine. GST enrollment helps ensure compliance and transparency in taxation.
Why is GST Registration Important?
GST enrollment is required for many businesses and people in view of specific measures like turnover, kind of supply and business. It permits businesses to comply with GST rules, get tax reductions and manage exchange across India. Businesses can get the most out of the GST regime and avoid legal problems by knowing the eligibility criteria. Goods and Services Tax registration gives authenticity to the business as well as helps in straightforward and effective management of the Indian tax system. Hence one must take this registration for the benefit of one;s business.
Eligibility for GST Registration in India
Every Business whose turnover exceeds for products, INR 40 lakh, and for services, Rs. 20 lakh in a financial year are required to register under GST law of India.However, if you are working in northeastern states, J&K, Himachal Pradesh and Uttarakhand, the threshold is INR 20 Lakh for importers and INR 10 Lakh for service providers. Additionally, here is a list of some businesses that must register for Goods and Services Tax:
- Individuals who are not taxable.
- Non-resident temporary taxpayers.
- Those that make any taxable interstate supply.
- Agents working for a taxpayer who is registered.
- Operators of online commerce.
- TCS/DDS deductors.
- People employed in the import-export sector.
- Individuals who are liable to reverse charge taxes.
- People in charge of an aggregator business.
- Distributors of input services.
- Indian service providers for OIDAR (Online Information Database Access and Retrieval).
Who is not Eligible for GST Enrollment in India?
There are many kind of businesses which do not need to be registered under GST out of which some are discussed below:
- GST is not applied on non-taxable items for human consumption, such as gasoline and alcohol.
- Transportation options include metro, autorickshaws, metered taxis, and public transportation.
- Transportation of farm produce and goods outside of India.
- Transportation of goods and services with the total value of less than Rs. 1500.
- Governmental and foreign diplomatic services.
Things to Remember While Applying for GST
PAN is required for registration as Goods and Services Tax registration number is based on PAN. Temporary/non-resident taxpayers must apply five days before starting their business. A person must apply for registration within thirty days of the fulfillment of the registration obligation in each state where registration is required by law. Additionally in order to register your GST in India always keep in mind the following things
Document Required for GST Reg.
- PAN (Permanent Account Number) of the applicant
- Aadhaar Card of the applicant
- Certificate of Business Registration and incorporation
- Identity Proof (AadhaarCard, PAN Card, etc) and Address Proof (electricity bill, Home rent Bill etc) with a photograph
- Bank Account Statement
- Letter of Authorisation
- Digital Signature
Benefits of GST Enrollment
- Accurate accounting of taxes paid on goods or services.
- Eligible for input tax credit.
- Collection of taxes legally from the recipients of goods and services.
- Participation in interstate trade without restrictions.
- Improved compliance and streamlined taxation processes.
Step by GST Registration Process in India
- First Go to the GST portal.
- Fill out Part A of GST REG-01 form using PAN, mobile number and email
- Receive a TRN i.e Temporary Reference Number on the registered mobile and email.
- Fill Part-B of Form GST REG-01 using the TRN, upload documents, and submit.
- Receive an ARN i.e Application Reference Number via email and mobile.
- The application is processed and, if approved, GSTIN (GOODS AND SERVICE TAX IDENTIFICATION NUMBER) is issued.
Fees for GST Enrollment
There are no government charges for completing the Goods and Services Tax registration process but you have to pay the professional fees. However, businesses that do not complete the registration process may be subject to a penalty of 10% of the due amount or ₹10,000. After completing the whole Process and uploading the required documents businesses will receive an Application Reference Number (ARN) via SMS and email as confirmation of their registration.
Conclusion
GST registration in India is important for businesses and employees in India. Registration ensures compliance with tax laws, claims tax credits, and facilitates business activities. Registration should be used for places beyond the transition, places joining state property, e-business owners, agencies and organizations in the reverse process. Legal Goods and Services Tax registration not only improves business legitimacy but also helps create a more fair and efficient tax system in India. But in order to get this registration you must be aware about its eligibility criteria which is discussed above.
FAQs
- Who can take GST Registration in India?
Businesses which exceed the turnover limit of the GST are eligible to get this registration.
2. What are the important documents required for Goods and Services Tax registration?
The list of documents includes certificate of business registration and incorporation, Identity Proof (AadhaarCard, PAN Card, etc) and Address Proof (electricity bill, Home rent Bill etc) with a photograph, Bank Account Statement, Letter of Authorisation, Digital Signature etc.
3. Can I register for GST myself?
Indeed, you can register for Goods and Services Tax yourself by signing into the GST portal and filling out the online application form.
4. Can an individual have multiple Goods and Services Tax registration?
Indeed, an individual can have multiple Goods and Services Tax registration.
5. Are there any benefits of GST Registration?
- Proper accounting related taxes have been paid on the input goods or services.
- Eligible for input tax credit.
- Participation in interstate trade without restrictions.
6. Can a business cancel its Goods and Services Tax registration?
Yes, a business can apply for the cancellation of Goods and Services Tax registration if it is no longer liable to be registered or for other specified reasons. This can be done through the GST portal.
