GST Registration

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What is GST?

Goods & Service Tax(GST) levied from 1^st July 2017, is an amalgamation of Indirect taxes in India including Service Tax, VAT, Central Excise Tax, Entertainment Tax, Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax, Taxes on Lottery Betting & Gambling, Taxes on Advertisements. This is considered as one the biggest tax reforms in India which has resulted in ease of doing business along with reducing the complexities in the indirect tax system of India.

What is a GST Registration?

GST Registration of a business with the tax authorities implies obtaining a unique, 15-digit Goods and Service Tax Identification Number (GSTIN) from the GST authorities which is state-wise and PAN-based. The 15-digit GSTIN indicates as follows: The first two digits represent the state code according to the Indian Census of 2011, the next 10 digits are PAN, 13^th digit indicates the number of registration in a state for same PAN which is alpha numeric, 14^th digit is Z in all the GSTINs, last digit is the unique code which can be alphabet or number.

Applicability of GST:

All the business entities falling under below mentioned list require to take the registration compulsorily under the GST Act

1. Turnover of Supplier of Goods

If the turnover from sale of Goods exceeds Rs.40 lakhs in a year GST registration is mandatory. The limit is 20 lakhs for special category states that are North-Eastern States, J&K, Himachal Pradesh and Uttarakhand

2. Turnover of Service provider

If the turnover from supply of services exceeds Rs.20 lakhs in a year GST registration is mandatory. The limit is 10 lakhs for special category.

3. Casual Taxable Person

In case you supply goods or services, in events/exhibitions without having a permanent place of doing business, in such cases, GST is charged based on an estimated turnover of 90 days. The validity of the Registration is also 90 days

4. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
5. Agents of a supplier & Input service distributor
6.Those paying tax under the reverse charge mechanism
7. Person who supplies via e-commerce aggregator
8. Every e-commerce aggregator
9. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

What is aggregate turnover?

“Aggregate turnover” includes the aggregate value of
(i) all taxable supplies
(ii) all exempt supplies
(iii) exports of goods and/or service
(iv) all inter-state supplies of a person having the same PAN.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act, UTGST Act, and the IGST Act. Aggregate turnover shall include all supplies made by the Taxable person, whether on his own account or made on behalf of all his principals. Aggregate turnover does not include value of supplies on which tax is levied on reverse charge basis, and value of inward supplies. The value of goods after completion of job work is not includible in the turnover of the job-worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the Principal.

Documents Required for GST Registration

PAN and Aadhaar of the Applicant
Proof of business registration or Incorporation certificate
Identity and Address proof of Promoters/Director with Photographs
Address proof of the place of business
Bank Account statement/Cancelled cheque(if not, can be updated later on)
Digital Signature
Letter of Authorization/Board Resolution for Authorized Signatory

Penalty for not registering under GST

An offender not taking registration has to pay a penalty of 100% of the tax amount due subject to a minimum of Rs.10,000.

Advantages of GST Registration

Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:

– Legally recognized as supplier of goods or services.

– Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.

– Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

– Getting eligible to avail various other benefits and privileges rendered under the GST laws.

Frequently Asked Questions(FAQ’s)

Where can I apply for GST registration:

The whole procedure for GST registration is done online on the GST website.

When do I need to register under the GST Act?

Within 30 days from the date when your liability arose. In case of a Casual Taxpayer or Non-resident taxable person, 5 days prior to the commencement of the business.

Is GST registration mandatory?

Yes, you are required to obtain GST registration once your turnover exceeds the specified threshold limits.

Can multiple GST registrations be applied?

If a business operates from more than one state, the taxpayer should obtain a separate GST registration for each state. For instance, If an automobile company sells in Karnataka and Tamil Nadu, he has to apply for separate GST registration in Karnataka and Tamilnadu respectively.

Can multiple registrations be taken within a state?

Yes, a business can apply for any number of GST registrations within a state. The procedure of allocating multiple GST registrations only for different business verticals within a state has been removed for ease of business.

Can a person without GST registration claim ITC and collect tax?

No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.

Whether a company having a SEZ unit or developer need to have separate registration?

Yes. a person having SEZ unit or being SEZ developer shall have to apply for a separate registration, as distinct from his place of business located outside the SEZ in the same State or Union territory.

Who can Register for the Composition scheme under GST?

Small taxpayers who wish to have lesser compliances to deal with and lower rates of taxes under GST, can opt for the Composition scheme,
A trader whose aggregate turnover is below Rs 1.5 crore can opt for the Composition scheme. In the case of North-Eastern states and Himachal Pradesh, the present limit is Rs.75 lakh.
Also, the government extended the Composition scheme to service providers having an aggregate turnover of up to Rs.50 lakhs.

What is reverse charge mechanism?

Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply

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