Before directly talking about the cost of registration for GST, one must know about the basics of the goods and services registration under the Goods and Services Tax Act of 2017. This registration of goods and services is compulsory for all those businesses who fall under the threshold limit of the goods and services tax. Up to a certain extent one can do the business without obtaining the GST registration, but once it crosses the GST limit, it has to register as the taxpayer with the GST department.
Even after crossing the threshold limit if the business owner is not registered as the taxpayer, heavy fines or penalties can be levied upon him. Hence to do business smoothly in the market between the competitors you must obtain goods and services tax registration. The current blog will discuss the cost of registration for GST in detail which will help you out to understand the costing you need to arrange for this registration.
What is GST Registration?
Once the business crosses the threshold goods and services tax limit and after that he or she must need to get registered with the department of goods and services tax as a taxpayer. The registration of individuals or organizations with the department of goods and services tax as a taxpayer is called GST registration. There are many forms of registration of GST like regular GST, composition scheme for GST etc. Under which one’s business falls, it’s up to the taxpayer as well as the type of business one is involved in. turnover plays a great role while examining the same.
When the GST came it faced both the negative and possible welcome. Some people are in favor of the same and some people are in the opposition. In the end it got implemented in India smoothly. This introduced India with the biggest tax reform. After 2017 the Indian tax system changed a lot. After the introduction of GST, the tax system became more transparent and clean. One of the reasons behind that is digitalization of the entire process of goods and services tax.
Who Must Register for GST?
Individuals as well as organizations which cross the turnover limit or the ones who fall under the Section 24 of the Goods and Services Act of 2017 must register for goods and services tax in India. The list of such individuals and organizations are given below:
- In case of the goods the turnover limit is Rs. 40 lakhs and for special category of states it is Rs. 20 lakhs
- In case one is providing services then the turnover limit for the goods and services tax is Rs. 20 lakhs
- For the one who is involved in the business through e-commerce sites turnover does not matter they have to take GST registration in all situation
- For the interstate transactions as well turnover does not matter, they also needs goods and services tax registration compulsorily
Cost of Registration for GST in India
To get the goods and services tax registration one needs to spend some money, this is called the cost of registration for GST. Some of the key things which are helps in the calculation of the cost of registration for goods and services tax are mentioned below:
Professional Fees
Whenever one wants to do goods and services tax registration with the department of the GST, one needs to take help from a professional. This professional can be an experienced Advocate or he or she may be a Chartered Accountant and lastly it may be Company Secretary as well. This is because registering GST is a multi stage process. While completing the process you need to provide certain information to the GST department. Although the entire process of the registration is online it’s not easy to do the same. Even a small mistake can result in rejection of application or unnecessary delay. Hence it is suggested to take expert advice for the cost of registration for GSTto the professional.
There is no fixed professional fees as a cost of registration for GST. It may vary from professional to professional. Some may charge high or some may charge low for the same work. Accordingly, the cost of registration for goods and services tax also changes. If we talk about the average professional fees as a cost of registration for goods and services tax in the market, then it may fall between Rs. 5000 to Rs 10,000. It depends on professionals and their experience of work.
Government Fees
The good thing about this registration of GST is that there are no government fees for the same. This means this registration is free as per the government. Again people took it wrong here. Maybe there are no government fees for the ame but it does not mean that the cost of registration for GST is zero. As mentioned above if you are hiring a professional then you have to pay for him or her. Hence we can say that although the government fees for the goods and services tax registration is zero, it does not mean the cost of registration for goods and services tax is also zero.
Cost of GST Return Filing
After the registration of the GST with the department of goods and services tax, one needs to file gst returns. These returns are mandatory to be filed in order to save oneself from the fines and penalties. For the filing of these reuters again the professional help is required and again they charge for the same. The average fees for the GST return filing is Rs. 1000 to Rs. 2000 per month or some people charge it yearly basis well. This is also involved in the cost of registration for GST.
Conclusion
The process of registration of the Goods and Services Tax that is GST, involves professional fees, necessary for expert assistance from professionals like Chartered Accountants or Company Secretaries to navigate the complexities of the registration process. This cost of registration for GST typically ranges between Rs. 5000 to Rs. 10,000. While the government does not impose any specific fees for the GST registration, the need for professional assistance incurs as the cost of registration for GST.Additionally, after the goods and services tax registration, the obligatory goods and services tax return filing requires further professional support, which might incur additional fees, generally averaging between Rs. 1000 to Rs. 2000 per month. While the government fees for the registration are absent, the associated professional assistance costs form a significant part of the overall cost of GST registration.
