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Goods and Service Tax or GST is an indirect tax that is levied on the supply of goods and services. It is a type of tax that is first collected by the suppliers from their customers in exchange for their goods and services, then is submitted to the government.
GST came to effect since 1st July 2017, which is an indirect tax, which is like an umbrella term for many indirect taxes. Earlier, there were indirect taxes like consumption tax, value-added tax, etc. Now, there is only GST, which has different tax slabs or charge rates according to the product or service uses.
Every business needs to register itself under GST to charge it to its customers. Let us see what exactly GST registration is and how we can register for it:
GST Registration – How to Register GST Online in India?
According to the GST norms outlined by the government of India, every business has an income of Rs. 40 lakh or over is bind to register for GST. However, this amount is Rs. 10 lakh of annual revenue for North-Eastern States, Jammu & Kashmir Himachal Pradesh.
Every business must register for GST, which falls under these categories. This registration helps you to claim input tax credit at the end of the financial year.
You can register for GST online by visiting the official site. You can either sign-up as a new registration or by entering a Temporary Reference Number (TRN). TRN is a nine-digit identification number, which is assigned to every taxpayer, whether individual or business.
Who Should Register GST?
The following bodies are bind to register for GST.
- Individuals already registered for indirect taxes before the implementation of GST.
- Businesses were having annual revenue of more than Rs. 40 lakhs.
- Businesses were having annual revenue of Rs. 10 lakhs in North-Eastern states, Jammu & Kashmir and Himachal Pradesh.
- Businesses that deal via e-commerce aggregators
- E-commerce aggregators
- Casual taxable persons
- Non-residents taxable individuals
What Is GST Registration Process?
GST registration consists of various steps is you are registering for the very first time. It includes entering all of the credentials, registering for Temporary Reference Number (TRN), getting your GST identification number (GSTIN), validating all your documents and photographs. All these steps are so hectic and time-consuming. Also, if any mistake happens at any stage, one has to restart the whole process.
Therefore, it is suggested to register yourself for GST through any third-party service providers, who can guide and assist.
Documents Essential For GST Registration
You need to present various documents while registering for GST for the first time. The documents you need to have are:
- Permanent Account Number (PAN)
- Aadhaar card
- Address proof of the location of the business
- Incorporation certificate or the business registration proof
- Identity and address proof of all the directors and promoters
- Bank Account statement and also canceled cheque
- Digital signature
- The letter of authorization or board resolution
GST Registration Fees
You need not pay any fees for registering for GST. The official site of the GST from the government does not charge fees. However, if you go through any third-party service provides for registering your business, you need to pay around Rs. 3000- Rs. 6000 for new registrations.
What if anyone does not register for GST?
If someone is intentionally trying to slip from paying GST by not registering, then they have to pay 100% of the due taxable amount.
However, if anyone is not paying GST or paying less amount than what is due because of valid reasons, then they have to pay only 10% of the taxable amount due as a penalty. However, one has to pay a minimum of Rs. 10,000 as a penalty. Contact us for more information.
FAQs Regarding GST Registration
Who are ‘casual taxable persons’?
Individuals who set-up seasonal shops are casual taxable persons. They need to pay an advance amount as their GST liability, which is calculated on the anticipated amount of income earned during the time of that seasonal shop. The duration for GST registration is three months.
Do non-residents need to register for GST?
As mentioned earlier, they do need to register for GST, even if they do not live in India. If they supply good to India, they are liable under GST registration.
What is GSTIN?
GSTIN refers to the Goods and Service Tax Identification Number. It is a unique 15 digits number, which is allotted to every registration. It contains information like state code, PAN, entity number of PAN, alphabet ‘Z’ by default, and a checksum digit.
What benefit will I get for registering for GST?
- Legal authority to collect tax from your customers.
- As a regular taxpayer, you can avail input tax credit.
- It can do business in different states without any restrictions.
What is the average time it takes for GST registration?
Usually, it will take 5-6 working days for completing the GST registration process.