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GST
GST registration is a process by which a taxpayer gets himself
registered under GST. Once a business is successfully registered, a
unique registration number is assigned to them known as the Goods
and Services Tax Identification Number (GSTIN). This is a 15-digit
number assigned by the central government after the taxpayers obtain
registration.
Please note – If you are operating from more than one state, then you
will have to take separate registration for each state you are operating
from.
Now, you must be wondering if every business is required to register
under GST? Let’s understand GST registration and its procedure in
detail.
Who should register for GST?
All the businesses supplying goods whose turnover exceeds INR 40
lakh in a financial year are required to register as a normal taxable
person. However, the threshold limit is INR 10 lakh if you have a
business in the north-eastern states, J&K, Himachal Pradesh, and
Uttarakhand.
The turnover limit is INR 20 lakh, and in the case of special category
states, INR 10 lakh, for the service providers.
Also, here is the list of certain businesses for which GST registration
is mandatory irrespective of their turnover:
Casual taxable person / Input Service Distributor (ISD)
Non-resident taxable person
Inter-state supplier of goods and services
Supplier of goods through an e-commerce portal
Any service provider
Liable to pay tax under the reverse charge mechanism
TDS/TCS deductor
Online data access or retrieval service provider
What are the documents required for GST
registration?
Take a look at the list of documents that you will need for registering
your business under GST:
Permanent Account Number (PAN) of the applicant
Copy of the Aadhaar card
Proof of business registration or incorporation certificate
Identity and address proof of promoters/directors with a photograph
Bank account statement/cancelled cheque
Authorisation letter/board resolution for authorised signatory
Digital signature
Types of GST registration
1. Normal taxpayers
Most businesses in India fall under this category.
Businesses whose turnover exceeds Rs 40 lakh in a financial year are
required to register as normal taxable people. However, the threshold
limit is Rs 10 lakh if you have a business in the north-eastern states,
J&K, Himachal Pradesh, and Uttarakhand.
2. Casual taxable individual
Occasional or seasonal businesses need to register their businesses under
GST for this category. Businesses need to make a deposit equal to the
GST liability from the occasional operations.
The tenure for registration is 3 months. However, businesses can apply
for renewal and extensions.
3. Non-resident taxable individual
Individuals who reside outside India but occasionally supply goods or
services as agents, principals, or in other capacities to Indian residents
are liable to file for registration under this category.
The business owner must pay a deposit equal to the expected GST
liability during the GST active tenure. The normal tenure is 3 months.
However, individuals can extend or renew the registration if required.
4. Composition registration
Businesses with an annual turnover of up to Rs 1 crore are eligible for
registration under composition scheme. Under this scheme, businesses
have to pay a fixed amount of GST irrespective of their actual turnover.
Important facts about GST registration
Any business that has a turnover of over 20 lakh INR is required to
register for GST.
If you are a supplier of goods to more than one state, you are required to
register for GST in all the states you supply goods.
There is no registration fee for GST.
Failing to file for GST will result in a fine of 10,00 INR or 10% of the
due amount.
an Application Reference Number (ARN) via email or SMS to confirm
your registration.
GST registration status
After Applying for GST Registration you will have an Application
Reference Number (ARN). A GST registration application is
processed after 15 days of submission, but you can check the GST
registration status online on the GST portal.
Download the GST registration certificate
A GST registration certificate is a valid document that shows a
business has neem registered under the GST regime. Any business in
India whose turnover exceeds the threshold limit for GST registration
is required to get registered under GST.
Any eligible person can apply for GST registration on the GST portal,
by visiting www.gst.gov.in on the web browser. After the verification of
application is done by the officer, the registration is approved. The
registration will be effective from the date when liability for registration
arises, in case the application was submitted within thirty days from
that date. However, if the submission was delayed, then the GST
registration is valid from the date of grant of the registration.
Advantages of GST registration
1. Legal recognition of a business
2. Uniform accounting of taxes
3. Businesses will be eligible to avail of several benefits under the GST
regime
4. Legal authorisation of collecting tax from sales made
Penalty for not registering under GST
All the businesses required to register under GST mandatorily will
have to pay a penalty of 10% of the tax amount payable up to a
maximum of INR 10,000.
FAQs on GST Registration
Is GST registration free of cost?
Yes, no charges are applied while registering for GST.
What is the turnover limit for GST?
A business whose aggregate turnover exceeds Rs 20 lakhs has to
mandatorily register under GST. This limit is set at 10 lakh INR for
North Eastern and hilly states which are flagged as special category
states.
What income qualifies for GST?
The amount of 40 lakh INR (supply of goods in normal state), 20 lakh
INR (supply of goods/services in Normal state) 20 lakh INR (supply of
goods in a specific state), or 10 lakh INR (Supply in a specific state)
and above would be required to qualify for registration under GST.
Who is not eligible for GST registration?
Individuals engaged in supplying goods or services that are not liable
to be taxed or individuals who are engaged in supplying goods or
services that are wholly exempted from tax are not required to obtain
GST registration.
Is GST compulsory?
Yes, you are required to register for GST once your turnover exceeds
the specified limit.
How many days does it take for GST registration?
GST registration usually takes between 2-6 working days.
Can I file for cancellation of GST registration?
The registration which is granted under GST can be cancelled only for
a few specified reasons. The cancellation can either be initiated by the
department on their own or the registered person can apply for
cancellation of their registration. In case of death of a registered
individual, the legal heirs can apply for cancellation.
Brief of GST
Goods and Services Tax, GST is an indirect tax for the entire nation, which makes India a
common united market by ensuring indirect taxes are replaced in the country. Passed in
the Parliament on March 29, 2017, the Goods and Services Tax Act is a comprehensive
and multi-stage tax levied on every value addition. The GST Act came into effect on 1st
July, 2017 and holds a great significance as both the Central and State Government rely
on the GST for their indirect tax revenue.
Types of GST
There are four different types of GST as listed below:
The Central Goods and Services Tax (CGST)
The State Goods and Services Tax (SGST)
The Union Territory Goods and Services Tax (UTGST)
The Integrated Goods and Services Tax (IGST)
1. The State Goods and Services Tax (SGST)
SGST is defined as one of the two taxes imposed on transactions of goods and services
of every state. Levied by State Government of every state, SGST replaces every kind of
existing state tax that include Sales Tax, Entertainment Tax, VAT, Entry Tax, etc. Under
SGST, the State Government can claim the earned revenue.
2. The Central Goods and Services Tax (CGST)
CGST is referred as the Central Tax levied on transactions of goods and services which
take place within a state. Imposed by the Central Government, CGST ensures to replace
all other Central taxes inclusive of State Tax, CST, SAD, etc. Prices of goods and
services under CGST are charged in accordance with the basic market price.
3. The Integrated Goods and Services Tax (IGST)
IGST is applied on the interstate transactions of goods and services. IGST is also
applicable on the goods being that are imported to distribute among the respective
states. The IGST is levied when the movement of products and services occur from one
state to another.
4. The Union Territory Goods and Services Tax (UTGST)
Applicable on the Intra UT supply of goods and services, the aim to impose UTGST is to
apply a collection of tax to provide benefits as same as SGST. The UTGST is applicable
to five Union Territories namely Lakshadweep, Damn and Diu, Dadra and Nagar Haveli,
Andaman and Nicobar Islands, and Chandigarh.
Benefits of GST
GST presents a transparent tax system imposed on the supply of goods and services.
When an item is bought, a common individual sees only the state taxes applicable on the
product label and not the various tax components embedded on the product.
The aim of imposing GST is to improve the ease of business operations by enhancing tax
compliance, boosting revenue receipts of both central and state government and
accelerating economy growth. Eradication of cascading of taxes result in lowered tax
burden on many products.
Following are the few benefits of GST mentioned below:
Eradicates the cascading tax effect
Allows higher threshold to businesses for registration
Composition scheme for small business operations
Easy and Convenient online processes
Lesser Tax Compliance
Enhanced Efficiency of logistics
Products not a part of GST
Diesel, Crude oil, petrol, natural gas, and jet fuel are not involved under GST as of now.
Liquor is kept out of GST and therefore it would require an amendment under
constitutional provision to be brought into GST net.
How are decisions taken at the GST Council?
Decisions cannot be taken in the Council without the agreement of both The Union and
the State Governments. A 75% majority of the weighted votes of members present and
voting are eligible to take decision.
GST Rates in India
There are four slabs categorized based on goods and services, as proposed by the
Government:
5%: Under this slab, household items are included like sweets, sugar, spices, tea, coffee,
coal, edible oil, etc.
12%: Under this slab, computers and processed foods are included like cheese, ghee,
ayurvedic medicines, cell phones, and fertilizers, etc. Services like work contracts,
business-class air tickets, and non-ac hotels are also included.
18%: This slab qualifies for toothpaste, soaps, hair oil, etc. as well as capital goods and
industrial intermediaries.
28%: This slab involves luxurious items such as premium cars, consumer durables – AC,
Refrigerators, etc.
Alankit, as one of the leading top GST Suvidha Providers (GSPs) offers prominent GST
services to taxpayers for the ease of all the stakeholders in the GST regime.
GSP (GST Suvidha Provider) is a top-notch entity authorized to enable a platform for
GST compliances.
The Company serves as a one-stop solution for all GST compliance related services. For
smooth implementation process of businesses, Alankit has introduced web or mobile-
based GST accounting software:
GST Muneemji Software (Secure and Integrated cloud-based compliance
software)
E-Raahi (E-way bill generating Application)
Saarthi(A Point of Sale (PoS) device for billing and business accounting)
Platinum Gateway: API services to companies; connecting your ASP solution to
GSTN
To achieve compliance in the GST regime, the company has introduced one-of-its-kind e-
Way billing software to generate bills in a hassle-free, affordable manner.
