Overview

A business with a turnover of more than Rs. 40 lakh is required by GST regulations to register as a regular taxable entity. The procedure of registering for Goods and Services Tax (GST) is known as this. For firms located in hill states and northeastern states, the turnover is Rs. 10 lakh. It is possible to finish the GST registration process in six working days.

The online GST portal facilitates the process of GST registration. Company owners can register by filling out a form on the GST portal and sending in the required paperwork. Companies need to finish the GST registration procedure. Conducting business without registering for GST is illegal, and there are hefty fines associated with it.

GST Registration: What Is It?

The proprietor of a business must register as a regular taxable person under the Goods and Services Tax (GST), also known as GST registration, if the business's turnover surpasses the threshold limits of Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh. Certain firms must register for GST, and it is against the law for an organization to conduct business without a GST registration.

Benefits

The advantages of GST registration include the following:

Bank Loans

The filing of GST returns and GST registration acts as documentation of a business's operations and establishes its reputation. Data from GST returns is used by banks and NBFCs to make business loans. Therefore, you can formalize your firm and obtain financing by registering for GST.

Supplier Onboarding

During the supplier onboarding process, GST registration is frequently required in order to become a supplier to reputable businesses. Therefore, registering for GST can aid in increasing your business.

eCommerce

To sell online and through different platforms like Amazon, Flipkart, Snapdeal, Zomato, Swiggy, etc., you must have a GST registration. As a result, selling online is made possible by having a GST registration.

Input Tax Credit

Organizations that have registered for GST are able to deduct the amount owed from the GST taxes paid on a variety of goods and services by collecting GST from the consumer for the supply. Therefore, you can increase margins and save taxes by registering for GST.

Types

There are several types of GST registration under the GST Act. Before choosing the right kind of GST registration, you need to be informed of the many kinds. The many forms of GST Registration include:

Ordinary Taxpayer

In India, the majority of enterprises fit under this group. To become an ordinary taxpayer, you do not have to make any deposits. For taxpayers in this category, there is likewise no expiration date.

Casual Taxable Person

This category is for people who want to open a temporary store or booth. When the stall or seasonal shop is open, you have to pay a deposit in advance equal to the anticipated GST liability. Under this category, the GST Registration has a three-month validity that can be renewed or extended.

Taxpayer by Composition

If you want to get the GST Composition Scheme, apply for this. Under this category, a flat deposit is required. This category does not allow for the Input Tax Credit.

Non-Resident Individual Taxable

Choose this kind of GST registration if you are based outside of India yet sell items to people who reside there. You have to pay a deposit equal to the anticipated GST liability while the GST registration is active, just like with the Casual Taxable Person type. This kind of GST registration typically lasts for three months, although it can be renewed or extended when it approaches its expiration date.

Eligibility

Regardless of turnover, anyone or any company can voluntarily register for GST. If an individual or organization sells more goods or services than a specific turnover threshold, GST registration becomes required.

Service Providers

A GST registration is necessary for any individual or organization providing services with an annual gross revenue of more than Rs. 20 lakhs. The GST turnover cap for service providers in states falling under special categories is set at Rs. 10 lakhs.

Goods Suppliers

In accordance with Notification No. 10/2019, everyone involved in the exclusive supply of goods with an annual gross turnover of more than Rs. 40 lakhs must register for GST. In order for the provider to qualify for the turnover limit of Rs. 40 lakhs, they need to meet the following requirements:

Not supposed to be offering any services.

Providing commodities within the same state—that is, supplying them within the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur, and Uttarakhand—should not constitute the supplier's business.

Should not be associated with the distribution of tobacco, pan masala, or ice cream.

If the aforementioned requirements are not satisfied, the products supplier must register for GST when their revenue reaches Rs. 20 lakhs, or Rs. 10 lakhs in states that fall under special category.

Special Category States

Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand are states that fall under the special category under the GST. 

Total Turnover: Total Turnover is equal to (Taxable + Exempt + Exports + Inter-State + Taxable Supplies) - (Taxes + Value of Inward + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable ). 

The PAN is used to calculate aggregate turnover. Therefore, the total turnover needs to be calculated even if an individual has several locations of business; this must be added up.

Documents

• The applicant's PAN.
• The Adhaar card.
• evidence of an incorporation certificate or business registration.
• Promoters' and directors' addresses and identities are verified with photos.
• Provide evidence of the business address.
• Statement of bank account and canceled cheque.
• Electronic Signature.
• Board Resolution or Letter of Authorization for Appointed Signatory.

Package Inclusion

• Help in documentation processes; 
• Application filing with the GST Department;
• Liaising with the GST department for GST Registration; 
• GST Advisory and Consultancy;
• Return filing.

Other information

Describe GSTIN.

Entities with a GST registration number are issued a Goods and Services Tax Identification Number (GSTIN). The length of GSTIN is 15 characters. The applicant's PAN and State are used to determine the GSTIN allocation. The State Code is represented by the first two digits of a GST registration number. The applicant's PAN is shown in the ten numbers that follow.

Get the Certificate of GST Registration

Those who have registered for GST are given a GST Certificate. It is mandatory for those who possess a GST registration certificate to publicly display this certificate at their place of business. Using the GST Portal, downloading a GST certificate is a rather simple process. Proceed to User Services after logging into the GST Account. To download the GST registration certificate, select View / Download Certificate under User Services.

Enrollment in GST voluntarily

Regardless of company turnover, anyone or any entity that wants to provide goods or services can voluntarily register for GST. A business can receive an Input Tax Credit and issue GST bills to clients by voluntarily registering for GST.

Cost of failing to obtain GST registration.

When an individual or organization surpasses the cumulative turnover threshold, they are required to register for GST within 30 days of becoming eligible to do so. Input tax credit may be lost during the period of delay and a penalty of Rs. 10,000 may be imposed for noncompliance or delay.

GST Registration Fees Revised Online

The GST registration procedure can be finished without incurring any fees.

Businesses that fail to finish the registration process will be charged 10% of the outstanding cost, up to a maximum of Rs. 10,000. A penalty of 100% of the amount owed will be applied in the event of tax evasion.

Following the upload of the necessary files, an Application Reference Number (ARN) will be issued to confirm the registration via email and SMS.