GST Fyling - Simplifying Taxes, Empowering Businesses.
Consulting services can provide valuable insights, strategic guidance, pecialized
Opposite Nandan Palace, Oberia Road, Hatia, Ranchi - 834003
Consulting services can provide valuable insights, strategic guidance, pecialized
Opposite Nandan Palace, Oberia Road, Hatia, Ranchi - 834003
Welcome to GST Fyling - Simplifying Taxes, Empowering Businesses.
Financial plans should be regularly reviewed, especially when there are significant life changes or market shifts. Annual reviews are common, but more frequent check-ins may
GST registration is the process by which a business obtains a unique identification number, known as a GSTIN (Goods and Services Tax Identification Number), making it liable to pay Goods and Services Tax (GST) in India. According to the Central Goods and Services Tax Act of 2017, businesses with an annual turnover exceeding ₹40 lakh (or ₹20 lakh in specific special category states) are required to register as taxable entities. The GSTIN, a 15-digit number, uniquely identifies each taxpayer under the GST framework and allows authorities to monitor transactions and related data effectively.
GST, or Goods and Services Tax, is a destination-based, multi-stage, indirect tax that replaces various other taxes, including VAT and excise duties. Under the GST Act of 2017, businesses that previously paid service tax, excise duty, or VAT must now register for GST. Additionally, GST registration is mandatory for eCommerce sellers regardless of turnover.
Citizens can complete GST registration online through the official GST portal, eliminating the need for in-person visits to government offices. After submitting an application, the portal generates an ARN (Application Reference Number) status immediately, allowing applicants to track their registration progress.
The Central Goods and Services Tax Act of 2017, implemented to streamline taxation and curb tax evasion, establishes the framework for the Goods and Services Tax (GST) levied on intra-state and inter-state supplies of goods and services in India.
GST registration is essential for certain businesses and individuals to ensure compliance with the law. Here’s who should apply:
Service Providers
Service providers offering services with a turnover exceeding ₹20 lakhs (₹10 lakhs in special category states) must register for GST. This includes freelancers, consultants, and agencies.
Previously Registered Entities
Businesses registered under VAT, Service Tax, or other previous indirect tax regimes need to transition to GST registration.
E-commerce Providers
Platforms or individuals selling goods or services online through marketplaces such as Amazon or Flipkart must register regardless of turnover.
Inter-State Suppliers
Businesses supplying goods or services across state borders must mandatorily register for GST, irrespective of turnover.
Casual Taxable Persons
Entities occasionally supplying goods or services in taxable areas without a fixed place of business must register under GST.
Agents of Suppliers
Agents representing or supplying goods or services on behalf of others are required to register for GST.
Input Service Distributors (ISD)
Entities distributing GST input tax credit to other branches must register as ISD.
Non-resident Taxable Persons
Foreign entities or individuals supplying goods or services in India need to register as non-resident taxable persons.
Reverse Charge Mechanism (RCM) Entities
Businesses liable to pay GST under RCM, where the recipient pays tax instead of the supplier, must register.
Specialized Categories
Entities like TDS deductors, TCS collectors, and Online Information and Database Access Retrieval (OIDAR) service providers require GST registration.
Eligibility to Register for GST Registration must be verified before registration. Individuals registered under the Pre-GST law should also opt for GST registration. It is mandatory for businesses that have a turnover of ₹40 lakhs for the sale of goods in normal category states and ₹20 lakhs for the sale of goods in special category states. A company must register as a regular taxable entity under GST law if its annual threshold limit exceeds ₹40 lakhs. The GST council recommends GST rates, tax exemptions, and other tax-related policies. Here is a complete outline for the same
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
Earlier Limits for Sale of Goods/Providing Services |
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| Exceeds ₹20 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹10 lakh | Yes – For Special Category States | Upto 31 March 2019 |
New Limits for Sale of Goods |
||
| Exceeds ₹40 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | From 1 April 2019 |
New Limits for Providing Services |
||
| Exceeds ₹40 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | Upto 31 March 2019 |
For Service Providers |
||
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
GST registration is optional without a turnover limit but becomes mandatory when aggregate turnover exceeds ₹20 lakh for service providers or ₹40 lakh for goods suppliers in most states. For special category states, the limit is ₹10 lakh. Aggregate turnover includes all taxable supplies, exempt supplies, exports, and inter-state supplies calculated on a PAN-India basis.
To clarify the GST registration thresholds based on sectors and states, here is an overview of the limits:
| Sector/Category | Threshold Limit for GST Registration |
|---|---|
| Manufacturing Sector | ₹40 lakhs or higher |
| Service Sector | ₹20 lakhs or higher |
| Special Category States | ₹10 lakhs or higher |
Irrespective of the threshold limit GST registration is mandatory for the following:
Registration under GST is an important step towards a unified tax system in India. It offers many advantages to registered businesses. A taxpayer who registers under the GST Act of 2017 will receive the following benefits:
A firm can obtain legal recognition as a supplier of goods or services by registering for GST. This validates the company's legal status as an official entity.
Businesses that are registered can deduct the GST they pay on purchases from the GST they collect on sales by claiming the Input Tax Credit. Consequently, the entire tax liability is decreased.
The GST system has reduced the complexity and time needed for compliance by streamlining the process for submitting taxes and making payments. With the help of a single online platform, businesses can more effectively manage their tax obligations.
Composition Scheme Under GST for Small Businesses allows them to pay tax at a lower, fixed rate. This reduces their tax burden and compliance requirements, making it easier to manage their finances.
With a higher registration threshold, only businesses with an annual turnover above ₹40 lakh are required to register for GST. This excludes many small businesses from mandatory registration, easing their operational processes.
GST eliminates the cascading effect of taxes by allowing input tax credit across the supply chain. This means that businesses can claim credit for the taxes paid on purchases, reducing the overall tax burden on end consumers.
The Indian Goods and Services Tax (GST) system is structured around four types of GST to streamline taxation and ensure efficient revenue collection. These types are designed to cover various aspects of interstate and intrastate transactions and are as follows:
Below is a table outlining the documents needed for GST registration for different types of entities:
| Entity Type | Documents Required |
|---|---|
| Sole Proprietor / Individual | 1. PAN card of the proprietor 2. Aadhaar card 3. Bank account details (cancelled cheque/passbook copy) 4. Address proof (electricity bill/rent agreement) |
| LLP and Partnership Firms | 1. PAN card of the partnership/LLP 2. Partnership deed 3. PAN and Aadhaar cards of partners 4. Bank account details 5. Proof of business address |
| HUF (Hindu Undivided Family) | 1. PAN card of HUF 2. PAN and Aadhaar card of the Karta 3. Bank account details 4. Proof of principal place of business |
| Company (Public and Private) | 1. PAN card of the company 2. Incorporation certificate 3. PAN and Aadhaar cards of directors 3. Bank account details 4. Proof of business address 5. Authorization letter or board resolution |
| Foreign Companies | 1. Registration certificate issued by the foreign authority 2. Taxpayer identification number 3. Passport of the authorized signatory 4. Bank account in India 5. Business address proof in India |
Proper submission of these documents ensures smooth processing of GST registration applications.
Here are 4 steps to complete your GST registration process
1. Get in touch with our experts
Book a slot with our GST experts and resolve all your queries.
2. Provide Business Information
Provide the required documents and fill in essential business details such as business name, SEZ unit, Principal place of business, additional places, mobile number, email address, state, PAN card details for initiating the registration process.
3. Filing for GST Registration
Our team will file your GST registration application on the online portal. Once filed, you'll receive an OTP for verification. .
4. Get your GSTIN
Our team will provide you with the Application Reference Number (ARN) (also called as temporary reference number) after successful verification. You can track application status using the number. GST registration certificate will be available on the official GST website after the process is completed.
All the documents should be submitted within a time frame and accurate as per the government guidelines to avoid delay. The GST certificate will be delivered directly by the Central government. Vakilsearch will initiate and guide you through the process.
What is Form GST Reg 01?
Form GST REG-01 is an application form for obtaining Goods and Services Tax (GST) registration. Anyone who wants to get a GST registration should file it. The form is submitted by taxpayers who have just registered under GST5 in order to obtain the input tax credit (ITC). This form must be submitted in order to receive ITC on such stock.
A GSTIN number is a 15-digit code that identifies a registered taxpayer (mainly dealers, suppliers, or any business entity across India) registered under the GST regime. GSTIN is an abbreviation for Goods and Services Tax Identification Number. This provides greater transparency in the GST system, helps in collecting all the GST-related data from the vendors, and prevents tax evasion. Having a GST number provides many advantages for small enterprises. It gives businesses access to different government assistance and relief programs, allows them to claim input tax credit on their purchases, and increases their credibility with suppliers and consumers.
The GSTIN plays a crucial role in activities such as availing loans, claiming refunds, simplifying verification processes, making corrections, and understanding one's GST identification number.
A GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric code assigned to businesses registered under the GST system in India. Here is an example of a GSTIN:
The GST compliance rating is a score given by the government to a business based on parameters such as timely filing of monthly and annual returns, furnishing details of input credits used, and taxes paid. This compliance rating shows customers and other firms how compliant they are with the tax department. Businesses with high compliance ratings are bound to receive Input Tax Credit (ITC) and refunds in a timely manner. The GST authorities prioritise processing ITC claims and refund requests from high-rated businesses, ensuring swift disbursement of credits and funds.
A GST certificate is a legal document issued to businesses registered under the Goods and Services Tax (GST) regime. It serves as proof of GST registration and includes essential details such as the GSTIN (Goods and Services Tax Identification Number), legal name, trade name (if applicable), type of registration, principal place of business, and any additional places of business.
The certificate ensures compliance with GST laws, enabling businesses to operate legally while enhancing their credibility in the market. It is mandatory for businesses exceeding the prescribed turnover threshold or engaged in interstate supply of goods or services.
GST registration is free for most businesses on the government portal. However, casual and non-resident taxable persons may need to pay fees ranging from ₹500 to ₹10,000 depending on business type and state regulations. Professional services can assist with the process, and charges may apply.
Here are the penalties for Non-compliances of GST:
Here are some consequences for not registering for GST. The Goods and Service Tax Act of 2017 states that failure to obtain GST registration in India carries a direct penalty that applies even in cases where the registration is submitted after the deadline:
GST registration offers businesses numerous advantages, establishing legitimacy and ensuring compliance with tax regulations:
Wrong Documentation A fundamental error involves neglecting proper record-keeping, whether it pertains to invoices, bills of supply, or purchase records. Maintaining well-organised documentation is crucial for precise GST filing. |
Invoice Detail Inaccuracies Mistakes in invoices, such as incorrect Goods and Services Tax Identification Number (GSTIN), wrong invoice numbers, or inaccurate tax calculations, may result in compliance issues and penalties. |
GSTR-2A and GSTR-3B Discrepancies Failure to reconcile purchase data (GSTR-2A) with field data (GSTR-3B) can lead to inconsistencies and compliance issues. |
Missing GST Return Deadlines Late GST return filing incurs penalties. Staying informed about due dates and filing returns punctually is crucial. |
Unverified GSTIN of Suppliers Validating suppliers' GSTIN through the GST portal is essential. Incorrect or fake GSTINs can result in denial of input tax credit. |
Inadequate Understanding of GST Composition Scheme Lack of comprehension about the intricacies of the GST Composition Scheme can lead to inaccurate filings. |
Neglecting GST Notices and Compliance Ignoring GST notices or compliance requirements can result in legal issues and substantial penalties. Addressing them promptly is essential. |
Below listed categories are required to register GST
| Is GST registration mandatory? GST registration is mandatory for businesses with an annual turnover exceeding ₹40 lakh (₹20 lakh for services) in most states or ₹10 lakh in special category states. It is also required for entities involved in interstate trade or supply. |
What is the GST registration number? The GST registration number is a 15-character alphanumeric code assigned to businesses under the GST system. |
| What is the threshold limit for GST registration? The threshold limit for GST registration varies by sector: ₹40 lakhs for manufacturing, ₹20 lakhs for services, and ₹10 lakhs for special category states. |
How much time does GST registration take? GST registration typically takes 2-6 working days, provided all required documents are in order. |
| What happens if the GST registration application gets rejected? If rejected, you can revise the application and resubmit it with the correct details or documents. |
What is CGST? CGST (Central Goods and Services Tax) is collected by the central government on intra-state transactions. |
| What is SGST? SGST (State Goods and Services Tax) is collected by the state government on intra-state transactions. |
What is IGST? IGST (Integrated Goods and Services Tax) is levied by the central government on inter-state transactions. |
| Is a trade license mandatory for GST registration? A trade license is not mandatory for GST registration, but it may be required depending on the business type or location. |