Get your GST Registration in ₹ 1500/- (All Inclusive)
Get Started By paying Rs. 1500/-
Introduction
Goods and Services Tax is an indirect tax imposed by the government on Indian Goods and Services It is a value-added tax levied on most goods and services sold for domestic and commercial consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. The taxes under GST are bifurcated into three parts i.e. CGST, SGST and IGST.
Advantages under Goods and Services Tax
Simple and easy procedure
Composition scheme for small businesses
Input Tax credit
Less Compliances
Eligibility for GST Registration
- Supplier of Goods (Turnover Exceeding 40 Lakhs) : : Business having Aggregate turnover of more than Rs. 40 lakhs during financial year needs to take GST registration with terms and conditions. (Rs. 20 lakhs for North Eastern states and Rs. 10 Lakhs in special category states).
- Casual taxable person: Casual taxable person is the one who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have any fixed place of business such person is also required to get registered its business under GST.
- Supplier of services : : Aggregate turnover of more than Rs. 20 lakhs during financial year needs to take GST registration. (Rs. 10 lakhs for North Eastern states).
- Non-Resident taxable person: Non-Resident taxable person is a person who is not resident of country having GST and supply Goods and Services in such territory is required to get registered its business under GST.
- Registered under Previous Indirect tax: Businesses registered under any previous indirect tax law.
- Reverse Charge Mechanism (RCM): Businesses who need to pay taxes under the RCM.
- Interstate supply of Goods and Services: If the entity deals in Inter-state supply of Goods and Services, needs to apply irrespective of the Turnover limit.
- E-Commerce operators and Vendors: Every e-commerce portal and vendors who are selling their products online.
- Input Service Distributor: An Input service distributor (ISD) is a business which receives invoices for services used by its branches. It distributes the tax paid, to such branches on a proportional basis by issuing an ISD invoice.
Notes: Special states Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand.
Documents Required for GST Registration
Sole proprietorship or Individual
As a proof of Identity
- Aadhaar card/Passport of Individual
- PAN card of Individual
- Photograph of the sole proprietor
Proof of Principal place of business:
- Own office: Sale deed, copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
- Rented or leased office: Electricity bill or Rent/leased agreement and NOC (No objection certificate) from the owner.
Details of Bank account:
- Bank Certificate as per ANF 2A(I) or a canceled cheque
Partnership firm
As a proof of Identity:
- Aadhaar card/ passport of all the partners
- PAN card of firm
Photograph of the partners
Proof of Constitution of Business:
- Partnership Deed / Certificate of Partnership
Proof of Appointment of Authorized Signatory:
- Letter of Authorization
Details of Bank account:
- Bank statement or a canceled cheque
Proof of Principal place of business:
- Own office: Sale deed, copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
- Rented or leased office: Electricity bill or Rent/leased agreement and NOC (No objection certificate) from the owner.
Limited Liability Partnership
As a proof of Identity:
- Aadhaar card and PAN card
- PAN card of LLP
- Photograph of all the partners
Proof of Constitution of Business:
- Certificate of Incorporation
LLP Agreement
Proof of Appointment of Authorized Signatory:
- Letter of Authorization or Copy of Resolution passed by BOD
Details of Bank account:
- Bank statement or a canceled cheque
Proof of Principal place of business:
- Own office: Sale deed, copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
- Rented or leased office: Rent/leased agreement and Electricity/Water Bill.
*Digital Signature (DSC) if available of the authorized signatory.
Private Limited / Public Limited / One Person Company
As a proof of Identity:
- Aadhaar Card & PAN Card of directors
- PAN Card of Company
- Photograph of Directors
Proof of Constitution of Business:
- Certificate of Incorporation
- Memorandum of Association(MOA)
- Article of Association (AOA)
Proof of Appointment of Authorized Signatory:
- Copy of Resolution passed by BOD
Details of Bank account:
- Bank statement or a canceled cheque
Proof of Principal place of business:
- Own office: Sale deed, copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
- Rented or leased office: Rent/leased agreement and Electricity Bill/Water Bill.
*Rent/leased agreement and Electricity Bill/Water Bill.
Procedure of GST Registration
Get your GST Registration in ₹ 1500/- (All Inclusive)
GST registration Certificate along with GST registration number.
Harmonized System of Nomenclature (HSN) code of Goods and Services
We will also provide you the GST rate applicable on your supply of Goods and Services
GST User ID and Password
More Insights on GST Registration
Voluntary GST registration: A person who is not mandatorily required to take Goods and Services (GST) registration as prescribed can take registration voluntarily and file the returns accordingly. That means Small businesses with turnover less than 20 lakhs /40 lakhs who are not covered under mandatory category for GST registration can voluntarily register under GST. That gives you all GST benefits and comply with all the GST Regulations.
Input Tax Credit: Input Tax Credit or ITC is the tax that a supplier pays on a purchase of such goods and services that are used in business and that can reduce tax liability of supplier when supplier makes a sale of finished goods and services. In other words, businesses can reduce their tax liability by claiming credit to the extent of GST paid on purchases of Inputs used to make taxable supply of Goods and Services. Supplier can get Input Tax Credit (ITC) only for those goods used in business to make taxable supplies that means supplier cannot take credit of:
- Personal use
- Exempt supply
- Supplies on which credit specifically not provided by the Act
Registration under Composition scheme: Taxpayer having turnover is below Rs 1 crore can opt for Composition Scheme. Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be availed by any taxpayer whose turnover is less than Rs. 1.crore. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75 lakh.
Person that cannot opt for the composition scheme:
- Manufacturer of ice cream, pan masala, or tobacco
- A person making inter-state supplies
- A casual taxable person or a non-resident taxable person
- Businesses which supply goods through an e-commerce operator
- Taxpayers registered under composition schemes have to pay a nominal amount of GST and cannot take credit of input tax paid on purchase of goods and services.
Condition of Composition scheme:
- The dealer cannot supply GST exempted goods
- The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge Mechanism
- No Input Tax Credit can be claimed by a dealer opting for composition scheme
- The taxpayer has to mention the words “composition taxable person” on every notice or signboard displayed prominently at their place of business and on every bill of supply issued by him.
- If a taxable person has different segments of businesses (such as textile, electronic accessories, groceries, etc.) under the same PAN, they must register all such businesses under the scheme collectively or opt out of the scheme.
Reverse charge mechanism: Reverse charge is a mechanism under which the recipient of the goods or services is liable to pay the tax instead of the provider of the goods and services that means under reverse charge mechanism (RCM), liability to pay tax shifts from supplier to recipient.
Services liable for Reverse charge provided by:
- Any person who is located in a non-taxable territory
- Goods Transport Agency (GTA)
- An individual advocate or firm of advocates
- Government or local authority
- Sponsorship services
- Author or music composer, photographer, artist, etc
- Central Government by its notification notified such goods and services liable for reverse charge
Penalty for not registering under GST
An offender not paying tax or making short payments has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10000.
The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes