Do you want to perform GST registration in India? Are you in need of complete information about GST registration in India? If yes, then you are at the proper place. One Click Business Solutions Private Limited is the number one business services provider in India. We deal with GST Registration, annual compliance and other services. Let us have a detailed discussion about GST registration in India.
According to the GST law, every individual including company, LLP and others need to complete GST registration whenever Threshold limits of total turnover for exemption from registration and payment of GST for the suppliers of goods is Rs. 40 lakhs and Rs. 20 lakhs (in the States of Manipur, Arunachal Pradesh, Mizoram, Meghalaya, Nagaland, Sikkim, Telangana, Puducherry, Tripura and Uttarakhand) with effect from 01.04.2019.
The following classes of taxpayers will get exemption from getting registration :
Suppliers of services, with turnover up to Rs. 20 lakh, involved in inter State supplies
Suppliers of services, having turnover up to Rs. 20 lakh, involved in supplies through e-commerce platforms
Taxpayers may select for numerous registrations within a State/Union territory regarding multiple places of business situated within the same State/Union territory.
Compulsory registration is needed for only those e-commerce operators who are needed to collect tax at source.
Registration will be provisionally suspended while cancellation of registration is under process, so that the taxpayer gets relief of continuous compliance as par the law.
Revocation of cancellation of those registration which were cancelled till 31.03.2019, has been approved. Filing of the application for revocation can be done till 22.07.2019.
When GST registration becomes mandatory, there are a lot of cases comes under GST. Now let us go through a few cases where GST registration is compulsory for every individual even when they earn Re. 1 turnover. Let us go through the detail of GST registration :
Selling on E-commerce -
If commodities are to be sold on Flipkart or Amazon then GST registration is mandatory.
Export Cases -
In case you are involved in export of goods and services, GST registration is compulsory.
Inter State Supply –
If you perform inter state supply then GST registration is mandatory.
Reverse Charge –
In case reverse charge mechanism is applicable, then it is compulsory to perform GST registration process.
Non Resident Taxable Person –
It is compulsory for a non resident taxable person to do GST registration in India.
Casual Taxable Person –
Casual taxable person requires a compulsory GST registration in India.
Crossing the Threshold –
If turnover of an individual within state exceeds 20 lakh, then he must do GST registration.
Input Service Distributor –
An input service distributor must do GST registration in India.
Documents for GST registration of individuals and sole proprietors
Mobile no and email ID
Aadhaar card of owner
PAN card of owner
Photograph of ownr
Bank account details
Proof of address
Documents for GST registration documents of Partnerships and LLP
Mobile no and email ID
Address proof of partners involved
Aadhaar card of any authorised signatory
PAN cards of partners
Signatory's proof of appointment
Photographs of partners
LLP proof of registration
Principal address proof of Business
Documents for GST Registration documents of Hindu Undivided Families (HUFs)
Mobile no and email ID
PAN card of HUF
PAN card of Karta (patriarch of family)
Photograph of Owner
Principal address proof of business
Documents for GST registration of Companies
Mobile no and email ID
Incorporation certificate from the Ministry of Corporate Affairs
PAN card of Company
Memorandum/ Articles of Association
PAN card of Signatory
Appointment proof of signatory
PAN card of all directors
Aadhaar card of Signatory
Address proof of all directors
Principal address proof of Business
N.B.: - Only scan copies of all documents need to be submitted. Hard copy is essential for Non Resident Indians (NRI) or foreign nationals.
CGST – Central Goods & Services Tax is collected by the Central Government when an intra-state sale is done.
SGST – State Goods & Services Tax is collected by the State Government when there is an intra-state sale.
IGST – Integrated Goods & Services Tax is collected by the Central Government on any inter-state sale.
Step 1 – Provide One Click Business Solutions with the required details and information about the business
Step 2 – Select a package and make online payment with different available modes for payment
Step 3 – On placing an order, an application will be allocated to our experienced professionals
Step 4 – We have experts to examine accuracy of the documents carefully and file application form of GST
Step 5 – We have qualified experts to make regular follow up with government department to process GST application online
Step 6 – On getting GSTIN, GST certificate will be provided by us.
Saving more Money
Applicability of GST has resulted removal of double charging in the system for a common man. During this, the price of goods and services has decreased and assisting the common man saving more money.
Removal of Multiple Taxes
One of the advantages of GST is the removal of various indirect taxes that are present earlier. Various taxes have been changed. Taxes like octroi, excise, service tax, sales tax, turnover tax, CENVAT and others are not pertinent anymore and all those have come under common tax known as GST.
Cascading Effect Reduction
From manufacturing to consumption, GST is valid to all stages. It offers tax credit advantages at each stage in the chain. In the earlier situation, at every stage, the margin used to get added and tax was paid on the complete amount. Under GST, the businesses are getting advantage of tax and Input Tax Credit is being paid on the amount of value addition only. GST has decreased the cascading effect of tax thus reducing the price of the product.
Ease of business
GST includes the concept of "One Nation One Tax". That harmful competition that was present among the States once has benefited businesses want to perform interstate business.
Reduction in Tax Evasion
Goods and services tax is a single tax that incorporates a variety of earlier taxes and has made the method competent with fewer chances of dishonesty and Tax Evasion.
As GST has decreased the cost of products, the demand, for some – if not all, products have enhanced. With the enhanced demand, to meet the increase in supply, the employment graph has begun going up.
Enhanced in GDP
Higher the demand, higher will be the production. This causes in more Gross Domestic Product (GDP).
Enhanced Competitive Product
Manufacturing has become more competitive with GST, removing the cascade effect of the tax, high logistics cost and inter-state tax. Getting competitive as GST will deal with the cascading effect of the tax, higher log benefits and inter-state tax to the businessman and consumer.
Raise in Revenue
Under the GST rule, 17 indirect taxes have been changed into a single tax. The increase in product demand denotes higher tax revenue for state.
Not having GST Registration - 100% tax unpaid or Rs. 10,000 whichever is higher
Not giving GST invoice - 100% tax unpaid or Rs. 10,000 whichever is higher
Wrong Invoicing – Rs. 25,000
Not filing GST Tax Returns - For Nil Return, Rs 20 per Day, Regular Returns, Rs 50 per Day
Choose Composition Scheme even if not eligible - 100% tax unpaid or Rs. 10,000 whichever is higher
Individuals registered under the Pre-GST law (i.e. VAT, Excise, Service Tax and others)
Businesses with earnings more than threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, Himachal Pradesh, J&K and Uttarakhand)
Casual taxable individual / Non-Resident taxable individual
Agents of a seller and Input service distributor
Those paying tax according to the reverse charge mechanism
Individual who delivers through e-commerce aggregator
Each e-commerce aggregator
Someone offering online information and database access or retrieval services from a place outside India to an individual in India except a registered taxable individual
CBIC has reported the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The announcement is supposed to be effective from 1st April 2019.
GST stands for Goods and Service Tax. It includes an indirect tax that needs to be collected from customers when you sell your goods or services and requires to be submitted to the government.
It is compulsory to complete GST registration in following scenarios :
You are doing inter-state sales or
Your annual turnover is more than Rs. 40 Lacs or
You are involved into import or export business
Selling products online through e-commerce portal or
Business attending in exhibition/event outside the State as Casual Taxable Payer
You want to enhance a tax invoice for your consumers
In case of North Eastern States, an annual turnover threshold limit is Rs. 20 Lakhs
All businesses that register under GST successfully are allocated a unique Goods and Services Tax Identification Number, known as GSTIN.
If a business is operated from more than one state, then a separate GST registration is compulsory for every state. For example, if a sweet trader sells in West Bengal and Rajasthan, he needs to apply for separate GST registration in West Bengal and Rajasthan correspondingly. A business with several trades in a state may acquire a separate registration for each trade.
Small businesses having an annual turnover less than Rs. 1.5 crore (Rs. 75 Lakhs for North Eastern States) can choose for Composition scheme.
CBIC has informed the enhancement in the threshold turnover for selecting the Composition Scheme from Rs 1 crore to Rs 1.5 crores. The notification is supposed to be effective from 1st April 2019.
Composition dealers will pay nominal tax rates depending on the kind of business :
Composition dealers need to file only 1 quarterly return (in place of 3 monthly returns filed by normal taxpayers)
They cannot issue taxable invoices, i.e. collection of tax from customers and needs to pay the tax due to their own pocket
Businesses that have selected for Composition Scheme cannot state any Input Tax Credit.
Composition scheme is not relevant to following situation :
Supplier of non-taxable goods
Manufacturer of Notified Goods
This scheme is an attractive alternative for all SMEs who want reduced compliance and reduced rates of taxes under GST.
A GST taxpayer whose turnover is below Rs 1.5 crore can choose composition scheme. For North-Eastern states and Himachal Pradesh, the present limit is Rs 75 lakh.
Turnover of all businesses incorporated with the same PAN needs to be taken into consideration to compute turnover.
CBIC has informed the enhancement in the threshold turnover for selecting the Composition Scheme from Rs 1 crore to Rs 1.5 crores. The notification will be taken into effect from 1st April 2019.
Get GST registration and file CMP-02 to opt in for the scheme.
For normal registered businesses :
Perform inter-state sales without restrictions
Get input tax credit
Know more about the advantages of GST
For Composition dealers :
Less tax liability
To know more about composition scheme
More working capital
For businesses that willingly opt for GST registration (Below Rs. 40 lakhs*)
Obtain input tax credit
Involve in inter-state sales without restrictions
Register on e-commerce websites
Have a competitive benefit as compared to other businesses
To know more about voluntary registrations
CBIC has informed the enhancement in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification is supposed to be effective from 1st April 2019.