GST Registration

Overview of GST Registration Online

Since its introduction on July 1, 2017, the Goods & Services Tax (GST) has been mandatory for all service providers, traders, manufacturers, and freelancers in India whose annual turnover exceeds Rs.20 Laks (₹10 lakhs for special category states) . This comprehensive tax system replaced various Central and state-level taxes such as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT, thereby streamlining the tax process.

Composition Scheme for Small Taxpayers

For taxpayers with an annual turnover of less than ₹1.5 crores, the GST framework offers a composition scheme. This scheme allows for simplified GST procedures and taxes at a predetermined rate based on turnover

Who Needs GST Registration?

GST registration is essential for:

• Business Entities: Enterprises with an annual turnover exceeding ₹40 lakhs. For special category states, the threshold is ₹20 lakhs.

• Service Providers: Entities with an annual turnover exceeding ₹20 lakhs. For special category states, this limit is ₹10 lakhs.

• Inter-State Suppliers: Those involved in the supply of goods across state boundaries.

• Casual Taxable Entities: Those who undertake taxable supplies occasionally.

• Entities under Reverse Charge Mechanism: Businesses required to pay tax under reverse charge.

• Input Service Distributors & Agents: Distributors and their representatives.

• E-Commerce Platforms: Operators or aggregators of e-commerce platforms.

• Non-Resident Taxable Entities: Non-resident individuals or entities engaging in taxable supply within India.

• Supplier's Agents: Representatives supplying on behalf of a principal supplier.

• Online Service Providers: Entities delivering online information, database access, or retrieval services from outside India to an individual in India.

GST Registration Turnover Limit

GST registration can be obtained voluntarily by any entity, regardless of turnover. However, it becomes mandatory if the turnover exceeds specific limits:

• Service Providers: Annual turnover above ₹20 lakhs (₹10 lakhs for special category states).

• Goods Suppliers: Annual turnover above ₹40 lakhs (with specific conditions).

Benefits of GST Registration

Registering for GST offers numerous benefits:

• Legal Compliance: Ensures adherence to tax regulations and avoids penalties.

• Input Tax Credit: Allows claiming credits for GST paid on purchases, reducing tax liability.

• Inter-State Trade Ease: Facilitates transactions across state boundaries without tax challenges.

• Elimination of Cascading Effect: Reduces overall cost by removing tax on tax.

• Competitive Edge: Enhances credibility with potential customers.

• Access to Larger Markets: Preferred by major corporations.

• Optimized Cash Flow: Better management and lower tax liability improve cash flow.

• Enhanced Credit Rating: Consistent compliance boosts credit profile.

• Legal Safeguard: Protects businesses and upholds their rights.

• Simplified Compliance: Streamlined processes for filing returns and making payments.

• Transparent Operations: Accurate record-keeping promotes trustworthiness.

GST Registration Certificate

A GST Registration Certificate confirms a business's registration under the GST system and includes:

• GST Identification Number (GSTIN): .

• Business Name and Official Address: .

• Upon approval of registration by GST authorities, the GSTIN (GST Number) is generated. The Goods and Services Tax Identification Number (GSTIN) is a unique 15-digit code. Decoding the GST number (GSTIN) as follows :

  • The first two digits represent the state code.
  • The next ten digits represent the PAN number.
  • The 13th digit is alphanumeric and is assigned based on the number of registrations a legal entity has within one state.
  • The last two digits include a blank first digit for future use and a check digit as the last digit.

Voluntary GST Registration

Businesses with a turnover below ₹20 lakhs can voluntarily register for GST. Benefits include:

• Availing input tax credits
• Unrestricted inter-state sales
• Eligibility to list on e-commerce sites
• Competitive edge over non-registered businesses

Documents Required for GST Registration and Other Information required for GST Registration

Below is the checklist of Information & documents needed for GST registration:

• Sole Proprietor / Individual: PAN card, Aadhaar card, photograph, address proof, Email id and Mobile Number, Name of Firm and Details of proposed Goods or services.

• LLP and Partnership Firms: PAN cards of Firm or LLP & All Partners, partnership deed, photographs of All Partners, address proof, Aadhaar card, proof of appointment, bank account details, address proof of business.

• HUF: PAN card of HUF, PAN card and Aadhaar card of Karta, photograph, bank account details, address proof.

• Companies: PAN card, certificate of incorporation, Memorandum/Articles of Association, PAN and Aadhaar cards of authorized signatory and directors, photographs, board resolution, bank account details, address proof of business.

Penalty for Not Obtaining GST Registration

• Non-Payment or Underpayments: Penalty of 10% of the tax amount due, with a minimum of ₹10,000.

• Intentional Tax Evasion: Penalty of 100% of the evaded tax amount.

Get GST Registration Online

E Accountax Manager can assist you in obtaining GST registration online. Here's how:

• Enter Your Details: Enter your name, phone number, and email to begin the process.

• Consult with a GST Expert: A GST expert will reach out to understand your business and verify documents.

• Payment and Registration: Once payment is initiated, the registration process begins.

• Receive Your GST Registration: You will receive GST registration within 3 to 7 working days.