phoenixtax February 10, 2021From July 1, 2017, any seller or business who wants to do business or sell across India must enroll for GST except if the seller sells goods or services under the exempt category. Many indirect taxes in India have been replaced by GST. The sole indirect tax for the entire country is GST and it is based on the consumption of Goods and Services. Goods and Services Tax rate may vary from 0% to 28% depending upon the types of services or nature of the goods being sold.
The entire process of GST registration is paperlessly supported by the Central Government of India and will take place digitally. But certain fields in the portal will require professional help for which you can seek the help of a GST consultant in Chennai.
To avail of eligible benefits, businesses must register under GST Act 2017. To obtain GSTIN, taxpayers must provide certain details, show necessary documents and fill in various information in the GST portal. After filling necessary details, a temporary reference number will be given and the application will be sent to the GST authorities for review and approval. Upon registration, each business will be given a unique number which will be called GSTIN.
Registration under the Goods and Services Tax (GST) regime is mandatory for all businesses whose turnover exceeds 40,00,000 INR for the sale of goods and remains 20,00,000 INR for the supply of services. Such businesses are expected to register as normal taxable persons and this process is called GST registration. Businesses operating without registering under the GST regime will be an offense and heavy penalties will be levied upon violating the law.
From 1st April 2019, an increase in threshold turnover from Rs. 20 lakhs to Rs. 40 lakhs has been notified.
If a company operates from more than one state, a separate GST can be obtained for each state. Similarly, a business can apply for multiple registrations within a state.
Usually, GST registration takes 2-6 working days to be registered.
WHO SHOULD REGISTER FOR GST?
- Businesses whose turnover exceeds 40 lakhs per year.
- Suppliers supplying interstate
- Businesses operating in more than one place
- Businesses possessing Pre-GST registration
- Goods and services providers outside India
- Any e-Commerce suppliers
- Service providers outside India
- Normal / Non-resident taxable person
- Transferee/successor in case of business transfer/succession
DOCUMENTS REQUIRED FOR GST REGISTRATION
If a partnership firm, Deed of Partnership
For others, Registration certificate of the entity / Incorporation certificate
Pan card of the applicant
Aadhar card of the applicant
ID and address proof of Directors / Promoters / Karta of Hindu undivided Family with photographs.
Address proof of the business place
Canceled cheque / Bank account statement containing account number, branch name and address, address of account holder and latest transaction details
Signature (Digital)
Front / first page of passbook
Authorized signatory’s photo
GST REGISTRATION PROCEDURE
The applicant will be asked to provide a PAN number, mobile number, and email ID to enter in Part A of Form Goods and Service Tax REG-01 on the GSTN portal.
PAN number will be verified on the GST portal along with the mobile number and email ID provided with a one-time password(OTP). After verification, the applicant will receive an Application Reference Number (ARN) to the mobile number and email ID.
An acknowledgment will be issued to the applicant electronically. Part B Of Form GST must be filled by entering necessary information upon entering the Application Reference Number.
If any additional information is required by the GST authorities, the application will be sent back to the applicant. The applicant must provide necessary information and documents within 7 days from the date of receipt to complete GST registration.
If the information provided is found to be satisfactory, the GST registration will be provided to the principal place of business and also for all other additional places of business.
PENALTIES
An offender who is not abiding by the laws of paying GST (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.
When the offender has deliberately evaded paying taxes the penalty will be at 100% of the tax amount due.
BENEFITS OF GST REGISTRATION
You can claim GST credits for Goods and Services purchased for your businesses by registering for GST. GST integrates various tax lines and eliminates multiple tax layers imposed on goods and services.
Reach out to us for the best service on GST registration in Chennai, we are always ready to help you.
