What is GST Registration

What is GST in India?

As per the new GST Act, every individual or company involved in the business of supplying goods & services and having an annual turnover of more than Rs.40 Lakhs is required to obtain GST registration.

The online procedure started by the government allows the individuals & entities to focus on the key areas of their business without causing any delay. You have to fill out a simple registration form for GST and you are done. There is no need to visit our office as the entire process is online.

GST Registration Limit for Sale of Goods

The registration limit for almost all the states is Rs.40 Lakhs whereas, for the hilly areas & northern states, it is Rs.10 Lakhs.

GST Registration Limit for Sale of Services

The GST registration limit for individuals & entities for almost all states is Rs.20 Lakhs whereas for the hilly areas & north-eastern states, it is Rs.10 Lakhs.

Types of GST in India

CGST

CGST stands for central goods and services tax. It is levied on intra-state sales of goods & services (transactions take place within the state) and the revenue is collected by the central government whereas the input tax is later utilized by the state government against the CGST payment.

SGST

SGST stands for state goods and services tax. It is levied on the intra-state sale of goods & services (transactions takes place within the state) and the revenue is collected by the state government.

UTGST

UTGST stands for union territory goods and services tax. It is levied on intra-state sales of goods and services (transactions take place within union territory) and the revenue is collected by Union Territory Government.

IGST

IGST stands for integrated goods & services tax. It is levied on inter-state sales of goods & services (transactions taking place in another state) and the revenue is collected by both central & state governments.

Who should register for GST?

You will have to meet certain eligibility criteria in order to obtain GST registration online in India. A unique GST registration number is allocated to the individuals & businesses after new registration.

Individuals & businesses who must register for GST are as follows –

  1. Individuals already registered under the existing laws such as VAT, Service tax, Excise tax etc.
  2. Individuals & businesses who are involved in supplying of goods whose turnover exceeds the threshold limit of Rs.20 lakhs (for hilly areas & north-eastern states) and Rs.40 Lakhs (For rest of the states) are entitled to obtain GST registration.
  3. Individuals & businesses who are involved in supplying of services whose turnover exceeds the threshold limit of Rs.10 lakhs (for hilly areas & north-eastern states) and Rs.20 Lakhs (For rest of the states) are entitled to obtain GST registration.
  4. Casual taxable persons/Non-resident taxable persons.
  5. Individuals paying tax under the reverse charge mechanism scheme.
  6. Individuals supplying through E-commerce aggregator.
  7. Agents of supplier & input service distributor.
  8. Every E-commerce aggregator.

Documents Required for GST Registration

Documents for GST registration vary as per the structure of your business. The GST registration documents are the documents needed for new or online GST registration. You just need to upload the documents online and submit the application.

There are different types of documents that you are required to submit under the new GST registration process.

Documents Required for GST Registration for Individual/Sole proprietorship

  • Photograph of the owner
  • Aadhar card of the owner
  • PAN card of the owner
  • Owner’s address proof
  • Owner’s bank account details

Documents Required for GST Registration for Partnership Firm

  • Photograph of all partners & authorized signatories (JPEG format)
  • Aadhaar card of authorized signatory
  • PAN card of all partners (including both authorized signatory & managing partner)
  • Address proof of all partners (You may submit voter’s identity card, Aadhaar card, driving license, passport etc.)
  • Registration certificate /Board resolution of LLP (In LLP case)
  • Partnership deed copy
  • Appointment proof of authorized signatory
  • Address proof of principal place of business
  • Bank account details

Documents Required for GST Registration for Hindu Undivided Family (HUF)

  • Photograph of the owner (Karta)
  • PAN card of karta
  • Aadhaar card of karta
  • PAN card of HUF
  • Address proof of principal place of business
  • Bank account details

Documents Required for GST Registration for Public & Private Limited Company

  • Company’s memorandum of association/Articles of association
  • PAN card of the company
  • Incorporation certificate issued by the ministry of corporate affairs.
  • PAN card & Aadhaar card of the authorized signatory (must be an Indian citizen)
  • PAN card & address proof of all company directors
  • Address proof of principal place of business
  • Photograph of all company’s directors and the authorized signatory (JPEG format)
  • Board resolution copy appointing authorized signatory/Any other appointment proof of authorized signatory (JPEG format)
  • Bank account details

Documents Required for GST Registration for Society or Club

  • Photograph of the partners or promoters
  • Copy of the club or society’s registration certificate
  • PAN card of the club or society including promoters or associated partners.
  • Letter of authorization signed by authorized signatory/signatories.
  • Registered office address proof (Water bill/Utility bill/rent agreement (if rental premises), Municipal khata copy (If owned by the society or club and NOC from the owner of the premises)
  • Bank account statement, copy of passbook’s first page or a crossed cheque copy

In which circumstances GST Registration is mandatory?

  • Turnover Criteria – All individual & businesses whose turnover exceeds Rs.40 lakh has to mandatorily apply for the GST registration.
  • Causal Taxpayer – In case you are supplying goods or services in events/exhibitions and not have a permanent place of doing business, you should go for the online GST registration before starting a business. In such cases, dealer required to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.
  • NRI Taxpayer – Any NRI individual, who does not have a place of doing business in India and wishes to start a new business, he must apply for GST Registration before starting business operations in India. The validity of Casual GST registration is 90 days.
  • Agents of Supplier & Input Service Distributor – All supplier agents and Input service distributors who want benefit of input tax credit must apply for GST registration.
  • Reverse Charge – Businesses who needs to pay taxes under the reverse charge mechanism also required to go for GST registration.
  • E-Commerce Portal – Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendor’s selling their products should be GST registered.

GST registration not only helps you in getting your business recognized as legally registered but also opens a number of opportunities for your business.

Also See: GST Return: Documents, Types of GST Returns, GST Codes

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