Goods & Services Tax (GST) Registration in India.
A business will need to get registered as a normal taxable person if the turnover exceeds Rupees twenty lakh/ ten lakh (as applicable) and is involved in taxable supply of goods or services under GST, and the process of registration is called GST registration. Here at Lawspedia, we tell you all about GST registration.
Why is GST registration important?
To avail various benefits under the GST regime, the process of goods and services tax registration is required by the persons, for example, availing of seamless input tax credit. To eradicate multiple taxes and reduce the cascading effect in taxation, GST registration is required. It has been made mandatory and hence timely registration will ease up individual process.
After migration to GST from various platforms, 8 million tax payers of the country will be provided with a unique PAN based GSTIN (GST Identification Number).
Casual Goods and Services Tax Registration Process
A Casual Taxable Person who supplies goods or services occasionally in a territory where GST is applicable and has no fixed place of business needs to get registered under Casual Registration.
Small businesses and taxpayers where annual turnover is less than Rupees fifty lakh can opt for the enrollment of GST for its composition scheme where they will be taxed at a nominal rate of just 1% or 2.5% (manufacturers) under CGST and SGST each. Such persons and dealers will be required to maintain lesser detailed records and they also need to file just one quarterly return in place of 2 monthly returns.
They cannot collect taxes i.e. taxable invoices cannot be issued by them and are required to pay taxes from themselves. No input tax credit can be claimed by them. This scheme is just for small businessmen and not for operators, e-commerce traders and interstate sellers.
GST will be applicable for businesses with turnover more than 20 lakh (10 lakh in case of North Eastern states).
What is the registration process for GST in India?
GST registration process will be online through a portal maintained by Central Government of India. Govt. will also appoint GSPs (GST Suvidha Providers) to help businesses with the registration process.
Based on the information provided by GSTN, registration process looks like this:
The applicant, will need to submit his PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal or through Facilitation center (notified by board or commissioner).
The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP). Once the verification is complete, applicant will receive an application reference number on the registered mobile number and via E-mail. An acknowledgement should be issued to the applicant in FORM GST REG-02 electronically.
Applicant needs to fill Part- B of Form GST REG-01 and specify the application reference number. Then the form can be submitted after attaching required documents.
If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
If you have provided all required information via Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the principal place of business as well as for every additional place of business will be issued to the applicant. If the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals.If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG – 07 for registration. If he is no longer liable to deduct or collect tax at source then the officer may cancel and communicate the cancel of registration.
Documents required for GST registration:
PAN card of the Company
Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation.
Details and proof of place of business like rent agreement or electricity bill, cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch details
Authorized signatory like List of partners with their identity and address proof in case of partnership firm or List of directors with their identity and address proof in case of company.
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