Goods and services tax is levied on every part of India which includes Bangalore as well. Hence GST registration in Bangalore is equally important as other parts of India. The threshold limit for the registration of goods and services tax in Bangalore is the same as other parts of India excluding the specific states. This city is a hub of businesses. Every now and then new businesses are establishing in this city which is why it is necessary to understand the GST registration in Bangalore. Because goods and services tax is directly or indirectly affecting every goods and services provider in the market. If you are having business in Bangalore or thinking about starting one you must be aware about the entire things related to the GST registration. To gain knowledge about the same, you must read this blog till the end.
What is GST Registration?
To be recognized as a taxpayer under the Goods and Services Tax Act of 2017 through the online portal of goods and services department is known as GST registration. This registration is necessary for all those goods and service providers who are falling under the GST threshold limit. There are some businesses who fall under section 24 of the Goods and Services Tax Act, which are the exception to the threshold limit of GST. It means businesses which fall under section 24 of the GST Act need to take this registration even though they are not falling under the GST threshold limit. GST registration in Bangalore is basically a type of enrollment as a taxpayer with the department of goods and services tax.
History of GST Registration in India
The journey towards implementing the Goods and Services Tax (GST) in India began in 2000 when Prime Minister Atal Bihari Vajpayee initiated a committee to draft the GST law. Over the years, various committees and task forces advocated for GST, emphasizing the need to revamp the country’s tax structure. In 2006, the Finance Minister proposed an initial introduction date for GST, but it faced several delays.
Significant progress was made in 2010, but the actual implementation was postponed. It wasn’t until 2014 that the GST bill was reintroduced in parliament, sparking thorough discussions and amendments. Despite initial challenges, the bill passed in the Lok Sabha in 2015 but encountered hurdles in the Rajya Sabha. However, in 2016, it finally received approval from both houses and gained the President’s assent in 2017, marking its introduction with four supplementary laws.
Objective of GST Registration in Bangalore
The Goods and Services is popularly known as GST among the masses was introduced with several key aims. It aimed to realize the vision of ‘one nation, one tax,’ consolidating numerous indirect taxes in India. The main aim or goal of the GST is to establish a uniform tax system across the country, eradicating the cascading effect of taxes, which leads to tax-on-tax. Additionally, the GST intended to fortify the tax system against evasion, widen the taxpayer base, and encourage the digitalization of the tax framework, enabling smoother, more efficient processes for taxpayers across the nation.
Threshold Limit of GST Registration in Bangalore
Not everybody needs to do GST registration in India. Only those businesses as well as individuals falling under the threshold limit of GST registration in Bangalore will be required to obtain GST registration. Different types of threshold limit are mentioned below:
GST Threshold Limit for Goods in Bangalore
Initially, when the Goods and Services Act of 2017 was rolled out, both goods and service providers had a registration threshold set at Rs. 20 lakhs. However, it became apparent that this limit was adversely affecting small enterprises. In response, the government increased the threshold for businesses dealing with goods to Rs. 40 lakhs, aiming to offer more support to small-scale firms. This change was brought about by Notification No. 10/2019-Central Tax issued on March 7, 2019, which raised the threshold from Rs. 20 lakhs to Rs. 40 lakhs.
GST Threshold Limit for Services in Bangalore
There’s a common misunderstanding that the GST threshold applies uniformly to both goods and services, but that’s not the case. When GST was launched in 2017, the situation was the same for both sectors. However, changes occurred in 2019. The threshold level for businesses dealing with goods has been raised, now set at Rs 40 lakhs, whereas the threshold for service-oriented businesses remains unchanged at Rs 20 lakhs.
Exception of GST Threshold in Bangalore
In Banglore, certain categories are exempt from the GST threshold. They don’t have any turnover limit. They are specified under section 24 of the Goods and Services Tax Act of 2017. These exceptions encompass various scenarios: Firstly, businesses engaged in online commerce must register for the Goods and Services Tax, irrespective of their turnover. Similarly, those involved in interstate transactions must also register, regardless of their turnover. Individuals involved in making casual supplies and those subject to casual taxation, as well as those who are required to pay taxes under the system of the reverse charge mechanism, are required to register for GST.
Moreover, companies and individuals liable to pay taxes under Section 9 Clause 5, Non-Resident Indians engaged in taxable supplies, individuals covered by Section 51, agents or representatives obligated to pay GST on behalf of their principal, and distributors of input services all fall within the scope of mandatory GST registration, irrespective of turnover.
How to Get GST Registration in Bangalore?
Follow the steps given below in order to get GST registration in Bangalore:
- The very first step is to check the eligibility criteria for GST registration in Bangalore
- Visit the official GST portal or website of the government of India
- Create an account on the same website or portal of the government of India by providing the required details
- Log in to your account
- Fill in Form GST REG-01 with the necessary information
- Upload the required documents with the above mentioned form which is available for the goods and services tax registration
- Check the entire application once you complete the same
- Submit the application with the required registration fees
- After submitting the application, an Application Reference Number (ARN) is generated.
- The application is then verified by a GST officer
- They may ask for further information or documents if necessary.
- The application is reviewed within three working days
- If no issues are found, the GST registration certificate is issued.
Documents Required for the GST Registration in Bangalore
Some of the key Documents Required for the GST registration in Bangalore are mentioned below:
- Incorporation proof of the entity
- Personal documents of the key personals of the entity
- Business address proof of the entity as per its registered business address of the office
- Contact details as well as email id of the key personals of the entity
- Recent copy of bank statement so the key persons of the entity
- One passport size photograph of key persons of the entity
- Authority letter
- Board of resolution regarding the GST registration
Different Types of GST Return Filing in Bangalore
GST returns in India encompass various forms for different purposes. Some of the key forms related to GST return filing are mentioned below:
- GSTR-1 records outward supplies
- GSTR-2 manages inward supplies
- GSTR-3B summarizes outward and inward supplies
- GSTR-4 is for Composition Dealers
- GSTR-5 is for non-resident taxable individuals
- GSTR-6 for Input Service Distributors
- GSTR-7 for TDS deduction
- GSTR-8 for E-commerce operators collecting TCS.
- GSTR-9 for regular taxpayers,
- GSTR-9A for Composition Dealers
- GSTR-9B for E-commerce operators
- GSTR-9C for audited entities
- GSTR-10 is for canceled registrations
- GSTR-11 is for UIN holders
Conclusion
Understanding the significance of GST registration in Bangalore is crucial, considering its impact on businesses across the city. The process involves enrolling as a taxpayer under the Goods and Services Tax Act, essential for those meeting the threshold or specified under section 24. GST’s history in India dates back to 2000 and saw multiple developments before its eventual enactment in 2017. The primary aim was to unify the tax structure and mitigate tax cascading effects. In Bangalore, the threshold limits for goods and services differ, impacting the businesses’ need for registration. While the process involves several steps and required documentation, the diverse range of GST returns, from GSTR-1 to GSTR-11, fulfills specific reporting needs for various entities, underscoring the comprehensive nature of compliance within the framework for GST registration in Bangalore.
