Goods and Service Tax Registration
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Goods and Service Tax Registration
The Goods and Services Tax (GST) is a tax imposed in India on goods and services or both, and it went into force on July 1, 2017. The tax was created to replace major existing indirect taxes with a single comprehensive tax.
In essence, GST has consolidated several indirect taxes into a single tax, making tax compliance management effective for service and commodity businesses. Various indirect taxes, such as the central excise tax, service tax, VAT, entertainment tax, etc. were rolled into the GST. This huge development has made it easier to file tax returns without the challenges that were faced in the past.
What is GST and how does it work?
GST is a destination-based tax applicable on all transactions involving the supply of goods and services or both for consideration subject to exceptions thereof. The Goods and Service Tax is a tax paid on the manufacturing and sale of goods and services throughout the nation.
GST registration is a process through which individuals or businesses obtain a unique number, from the tax authorities, known as Goods and Service Tax Identification Number.
Eligibility criteria to obtain GSTIN based on the following factors: –
- Turnover Threshold for GST Registration
– If the turnover exceeds INR 40 lakhs or higher in case of the sale of goods. However, in the case of a special category state, the limit is INR 10 lakhs or higher.
– If the turnover exceeds INR 20 lakhs or higher in the case of service providers. However, in the case of special category states the limit is INR 10 Lakhs.
Special category states include Assam, Uttarakhand, Mizoram, Telangana, Sikkim, Arunachal Pradesh, Tripura, Himachal Pradesh, Manipur, Meghalaya, and Nagaland. - Mandatory Registration
Some businesses are required to register under GST regardless of the turnover limit. This includes:
– Interstate supply of Goods and Services.
– Casual Taxable Person
– TDS or TCS Deductors
– E-Commerce Operators
– Input Service Distributor
– Person subject to reverse charge mechanism.
– Engaged in the business of import-export.
– Non-Resident Casual Taxable Person
– Persons previously registered under VAT, Excise, and Service tax. - Voluntary Registration
A person can go for voluntary GST registration even in the case of not meeting the above criteria. Voluntary registration gives the advantage of taking input tax credits and expanding their operations. - Documents Required to Obtain GSTIN
– Permanent Account Number
– Identity Proof (Aadhaar Card/Voter-ID/Passport or any other government-issued ID proof).
– Address Proof (Aadhaar Card/Voter-ID/Passport/ Driving License or utility bills of the business premises)
– Passport size photo (Director/Partner/Proprietor)
– Business Registration Documents (Partnership deed in case of Partnership firm/ Certificate of Incorporation in case of Private Limited/LLP/Public Limited/ Ownership deed or any other document in case of Proprietorship).
– Bank Account Details (Statement/Cancelled Cheque)
– Digital Signature Certificate - GST Registration Process
– Visit the GST official site – (gst.gov.in)
– Fill out the forms as required.
– Verification of the uploaded information and documents.
– Application Reference Number (ARN) is generated
– Usually it takes 3-6 working days to generate GSTIN. - Key Forms that are required to fill in the GST registration Process
– GST REG-01: – This is the application form for GST registrations. It consists of two parts, Part A and Part B. Part A includes all the personal details of the applicant such as the Name of the applicant, email address, mobile number, etc. Part A shall be filled in the form GST-REG-01. After submitting part, A, a Temporary Reference Number (TRN) shall be generated. Part B shall be filled by using the TRN.
– GST REG-02: – This form is used to complete Part B of the GST Registration process. Part B includes the detail of the business such as legal name, trade name, date of commencement of business, Principal place of business, Authorized signatory, bank account details, etc.
– GST REG-03: – This form is issued if GST authorities required any additional information or clarification. This form requests you to provide the requested information within the specified timeframe.
– GST REG-04: – This form allows you to make necessary changes or amendments if you have provided incorrect or incomplete information in the GST registration application. GST authorities may issue this form to fill in the correct information and resubmit the form.
– GST REG-06: – This form is used by the GST Authorities to inform the status of your GST application. Application is accepted or rejected shall be intimated by the issuing of this form. If the application is accepted, this form will be issued to notify your GSTN and the effective date of registration. - Komplytek Consulting provides the following GST Services
– GSTIN Application filing
– Follow up with the GST Authorities.
– GST Consultancy
– GST Return Filing
– All supporting formalities associated with GST Registration Process and Return Filing.
Registrations are important for a business under various laws and regulations. As a part of legal formality, Registrations ensure that your business operates in a legal framework and complies with applicable laws and regulations. Timely registrations and meeting the legal formalities help you to avoid legal penalties and fines.
Komplytek helps you to get familiar with the requirement of registrations under various laws and regulations. Registration under various tax authorities ensures that your business meets its tax obligations on a timely basis. Specific registration requirements and implications may vary depending on the nature of the business. Our team of legal experts helps you to ensure compliance with relevant laws and regulations applicable to your business.
