The implementation of the products and Services Tax or GST regime in India in 2017 was aimed toward merging existing indirect taxes with one comprehensive tax. GST is levied at the stage of producing and sales of various merchandise and services in our country. Being a destination-based tax, it’s applicable for each maker and customers.
GST has helped several Indian business owners in filing their taxes while not facing several hassles. Its positive impact on the Indian economy will be gauged in terms of tax structure simplification, reduced burden of taxes, SME support, to call a couple of. However, it’s additionally created it crucial for folks to grasp the GST registration method and obtain the registration done on-line.
Let’s get into the small print of GST registration and the way it impacts your business.
WHAT IS GST REGISTRATION?
GST registration refers to the method in which businesses concerned in buying and merchandising merchandise and services got to register for GST. Following this method is necessary for business entities having turnover on top of Rs. 20 lakhs (for services) and Rs. 40 Lakhs (for merchandise supply). Besides this, businesses who are concerned within the interstate provide of products or those creating subject provides on other’s behalf additionally got to bear the GST registration method.
For most businesses, GST registration is necessary. Generally, GST registration in Chennai takes 2 to 6 days for the registration method to be completed so as in any other state. Continued with the business while not registering it underneath GST is an offense and might result in hefty penalties.
WHO ALL OUGHT TO REGISTER FOR GST?
The below mentioned business entities/individuals are eligible for GST registration:
- Businesses having turnover more than the threshold limit of forty Lakhs (this limit is lower within the North-Eastern states, Himachal Pradesh, J&K, and Uttarakhand)
- Individuals who are registered underneath varied tax laws (excise, service tax, VAT) before the GST regime came into existence
- Casual subject person
- Agents who work for a provider or a service distributor
- Individuals paying tax underneath the reverse charge mechanism
- E-commerce aggregators
- Suppliers who work with ecommerce aggregators
- Non-resident subject person
- TDS/TCS deductor
- Online information retrieval or access service suppliers
WHAT ARE THE ADVANTAGES OF GST REGISTRATION?
GST registration comes with many edges for individuals/business entities. Given below are a number of the advantages of registering as a GST taxpayer:
GST registration is proof that acknowledges your business as an authorized one for the availability of products and services.
You get the right to gather tax from your customers and pass away the credit of the paid taxes to the customers/suppliers.
You can additionally get the advantage of a composition theme underneath GST to scale back the burden of compliance, being a little payer.
ABOUT GST REGISTRATION METHOD AND CHARGES
GST registration will be done on-line through the govt portal – https://www.gst.gov.in/, or a GST Seva Kendra. Given below are the steps within the on-line GST registration process:
- Visit the GST portal through the link – https://www.gst.gov.in/.
- Click ‘Registration’ -> ‘New Registration’ Under the ‘Services’ tab, .
- The online GST registration kind is split into 2 components – half A and half B.
In Part A,
- Select ‘Taxpayer’ from the drop-down choices.
- Select your state and district in which you would like to use for GST registration.
- Enter varied details, together with the legal name of the business, email address, PAN, and mobile variety within the several fields.
- Verify the entered data via OTP.
- On finishing half A, note the TRN or Temporary Reference variety that you simply receive once verification.
In Part B,
- To start GST registration with half B, log in with your TRN and validate the method by entering the right CAPTCHA code.
- Verify the method by entering the OTP sent to the registered mobile number or email address. This can direct you to the GST registration page.
- Submit business-related data, together with the corporate name, PAN, the state chosen for GST registration, and therefore the date after you started the business.
- Enter the specified data within the given horizontal tabs of Promoters/Partners, Authorised signer, Authorised Representative, and others.
- After you’re through the specified data and uploading documents, click ‘Save and Continue’.
- After submission of your application, sign it digitally and proceed further.
- An ARN or Application Reference variety will be sent to you, confirming your GST registration.
Since GST registration involves many steps, several people believe there should be a price associated whereas registering underneath the GST regime. You must recognize that the government doesn’t charge any fee to allot GSTIN. However, there will be charges concerned if you get the GST registration done through tax professionals or similar alternative service suppliers.
WHAT ARE THE DOCUMENTS NEEDED FOR GST REGISTRATION?
Given below is that the list of documents required for GST registration:
- Applicant’s PAN Card
- Partnership deed or certificate of incorporation
- Address proof of the business place
- Aadhar Card
- Bank statement or canceled cheque of the firm, individual, or company
- Address and identity proofs of partners and/or promoters along side pictures
- Digital signature
- Resolution signed by board members
WHAT ARE THE PENALTIES CHARGED FOR NOT CHOOSING GST REGISTRATION?
Any person who deliberately avoids registering underneath the GST regime has got to pay a penalty of 100% of the tax due or 10 thousand rupees, whichever is higher. Similarly, people who avoid filing GST returns are prone to pay a penalty of tax due, subject to a minimum penalty of 10 thousand rupees.