01 Jan 2018Posted By: Jatin


Everything About GST Registration - Eligibility, Process, Procedure - How to apply GST online ?

In this article, we cover the following topics 

  1. What is GST?
  2. When GST Registration mandatorily required?
  3. GST Required irrespective of turnover
  4. Who should get GST Registration?
  5. Benefits of GST Registration 
  6. What are the documents and details required for GST Registration?
  7. GST Registration Process
  8. Is there any penalty for not registering under GST?
  9. What is GSTIN? - Know your GSTIN
  10. When a business needs multiple GST Registration?
  11. What is GST Composition scheme? when should a business opt for it?
  12. Benefits of GST Composition scheme 
  13. Disadvantages of composition scheme 
  14. Who can not opt for GST composition scheme?
  15. What are the compliances after GST Registration?
  16. Are there any fees for GST Registration?
  17. How does GST Certificate look like?
  18. How to check the validity of business whether registered under GST or not?
  19. What to do if GST Registration is applied by mistake?

 

What is GST?

GST stands for Goods and Service Tax. This is a unified indirect tax which is implemented from 1st July 2017 in India.

Fundamentally, the indirect tax is a tax levied on goods and services rather than income and profits.

The government collects the tax on the sales made by businesses and businesses collects the tax from their customers indirectly while charging the same tax on Invoice. Learn how to raise tax invoice.

GST is chargeable whether you are selling goods or service or both.

 

When GST Registration mandatorily required?

  • If your annual turnover exceeds INR 20 Lakhs. In case of North Eastern States, GST registration required when your turnover exceeds INR 10 Lakhs
  • If you are selling goods outside the State in which you’re located (Inter-State trade), irrespective of turnover.
  • If you are selling your product over e-commerce platform such as Amazon, Flipkart, Snapdeal, etc
  • If you are Importer or exporter
  • If you want to raise tax invoice for your customers
  • If business participating in exhibition/event outside the State as Casual Taxable Payer.

Need professional support for GST Registration?

 

GST Registration required irrespective of the turnover 

  • Inter-State Trade
  • Casual Taxable Person
  • Non-Resident Taxable Person
  • Agent of a supplier
  • In case Reverse Charge Mechanism applicable
  • Input Service Distributor
  • E-Commerce Operator and aggregator
  • The business supplying online information and database access or retrieval services from a place outside India to a person in India 

 

Who should get GST registration?

Despite aforesaid mandatory provisions, GST Registration can be applied voluntarily. GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business 

 

Benefits of GST Registration 

  • Become more competitive – Your business will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration i.e. GSTIN.
  • Expand your business Online – You cannot sell products or services on e-commerce platform without GST registration. If you’re planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.
  • Can avail input tax credit – Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
  • Can sell all over India without any restrictions – Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.
  • Apply to Government Tenders – Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
  • Can Open Current Bank Account – Especially, in case of sole proprietor business Banks & Financial Institution do not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business GST registration certificate can help you to open a current bank account?
  • Dealing with MNCs – Generally, MNC’s does not deal with small business entities until they carry valid tax registration proof.

 

What are the details and documents required for GST registration? 

The documents required depends upon the type of business you are running as. Following below documents required for GST Registration: -

  • Passport Size Photograph
  • Aadhar card or Passport or Driving License
  • Pan card of business entity
  • Address proof of business premises 
  • Bank Statement or Cancel cheque or Passbook

ADDITIONAL DOCUMENTS FOR PRIVATE LIMITED COMPANY /LLP /OPC / PARTNERSHIP FIRM

  • Certificate of Incorporation in case of Company, OPC or LLP
  • Partnership Deed in case of partnership firm

 

 

GST Registration Process

Our professional can assist you filing GST registration application error and hassle-free. For this you must follow the below process:-

  • Arrange aforesaid specified documents based on your business entity.
  • Choose a package based on your requirement.
  • Upload your information & documents on our web portal.
  • Our professional team verify your documents. In case there any discrepancy our team will connect and assist you to collect prompt documents.
  • On successful verification of documents. Our team will apply your GST registration application on Government GST portal and provide ARN within 3 working days.
  • Our team will track your application on regular basis & provide you GST certificate when issued from government end.

 

Is there any penalty for not registering under GST? 

If any business entity mandatorily required to register under GST, however, failed to apply or intentionally ignoring the same then business is liable to pay the penalty of 100% of the tax due or INR. 10,000 whichever is higher

 

What is GSTIN? 

GSTIN stands for Goods and Service Tax Identification Number. This will be get generated from government end when you have successfully applied for GST registration.

 

When a business needs multiple GST registrations? 

  • If business entity doing supplying goods and services from multiple States, then he/she mandatorily required to registered under GST in different States.
  • Further, any business entity can apply for multiple GST registration even if they are operating from single State under multiple verticals to avoid accounting complexity between multiple businesses.

Illustration

XYZ Private Limited doing the business of selling merchandise and also doing the business of selling software from Bangalore only. Still, company can apply for multiple GST Registration for their different business domain

If you are supplying goods and services from one state to all over India. You do not need multiple GST registration.

 

 

What is GST Composition scheme and when should a business opt for it?

GST Composition Scheme is an easy scheme made for the taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover.

Any business having an annual turnover less than ₹2 Crore* can opt for composition scheme under GST registration application.

*For Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh the above threshold limit is ₹1 Crore.

 

Benefit of GST Composition scheme

  • Need to file a single quarterly return. Four returns in a year
  • Limited compliances
  • Less tax liability
  • Pay small amount of tax on turnover

Type of business

CGST

SGST

Total GST

Manufacturer/ Trader

0.5%

0.5%

1% of turnover

Restaurant

(without alcohol)

2.5%

2.5%

5% of turnover

  • Not require maintaining detailed records
  • Can provide auxiliary services up to ₹ 5 lakhs annually under the composition scheme.

Disadvantages of GST Composition scheme

  • Cannot avail input tax credit of purchases made
  • Cannot issue tax invoice
  • Cannot charge composition tax on invoice from customer as usual practice in case of normal GST scheme

 

Who can NOT opt for composition scheme?

  • If Annual turnover exceeds 2 Crore
  • If you involved in Inter-State supplies
  • All Service Sector Business except restaurant
  • Importer of goods & services
  • E-commerce sellers
  • Supplier of non-taxable goods
  • Manufacturer of Notified Goods

Relaxation announced on GST Composition Scheme on 23rd GST Council Meeting held.

 

What are the compliances after GST Registration?

  • Raise GST Invoices - After GST registration, every business requires to raise Tax Invoice on every sells of goods and services.  

Learn how to raise Tax Invoice  

Download GST Invoice Template

  • GST Return filing - after the GST Registration, businesses have to file the GST Returns on time If you are registered under the regular GST scheme, then you have to file the return monthly or quarterly on regular basis. If you are registered under Composition scheme, you have to file the GST return on the quarterly basis with some conditions. 

Learn more about GST return filing  

What if we do not file GST return?

  • Payment of Tax - Pay taxes on monthly/quarterly basis based on monthly/quarterly invoices raised to customers. 

Download guide how to pay GST tax online

           

 

Are there any fees for GST Registration? 

There is no government fee applying for GST registration. However, if you want a professional assistance to file your GST registration application error & hassle free without any rejection or clarification as there are a lot of the complex fields while registering under GST on GST Portal like selecting the correct jurisdiction area or range, HSN Codes, SAC codes & many more. We can offer you the same service at an all-inclusive price of  INR 1499/-. Just provide us requisite documents and leave the rest to us

Further, if you are a private limited company or OPC or LLP then you mandatorily require Digital Signature to apply for GST registration. The cost of DSC is INR 1200/- for 2-year validity.

 

How does GST Registration Certificate look like?

 

How to check the validity of business whether registered under GST or not?

  • Visit www.gst.gov.in
  • Click on search taxpayer
  • Type GSTIN & click on search to find out the validity or genuineness of business  

 

What to do if GST registration is applied by mistake?

You can surrender your GST Registration by submitting the application under Form GST REG-16. Learn more how to cancel GST registration

Voluntary Registration can be surrender only after expiry of 1 year. Migration case can be surrender anytime.

 

In case you still have any doubt regarding GST registration you may consult our business advisors at 8881069069

Comments


Posted By rajkumar
Posted Date 2018-05-17 12:30:15

DEAR SIR pls help me i nead a gst no


Give a Reply








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