GST Registration

 What is GST Registration?

Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for the entire country.
GST helps to build a transparent and will increase efficiency in tax administration. It has only three accounts; CGST, SGST, IGST have to be maintained. So it is a Simplified and cost saving system as procedural cost reduces due to uniform accounting for all types of taxes.
 
GST and its 3 types- CGST, SGST AND IGST are effectively supporting such major economic development programs.
 

 What is the Threshold Limit for GST Registration?

The registration under GST is mandatory for the business entities based on the criteria of turnover or activities. The business dealing in goods and those providing service have to mandatorily apply for GST Registration if their aggregate turnover for a financial year exceeds Rs.40 Lakhs and Rs.20 Lakhs respectively. However, for business making supplies and providing services in the North Eastern States, the same is Rs. 20 lakhs and Rs. 10 lakhs respectively. Owing to its benefits, many dealers also obtain voluntary registration under GST.

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.

 Who Should Register for GST?

  • Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
     
  • Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
     
  • Casual taxable person / Non-Resident taxable person
     
  • Agents of a supplier & Input service distributor
     
  • Those paying tax under the reverse charge mechanism
     
  • Person who supplies via e-commerce aggregator
     
  • Every e-commerce aggregator
     
  • Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

 What are the resons to obtain GST Registration?

  • Due to crossing the Threshold :
    In case tax payer is making GST application due to your turnover for financial year is more than Rs.20 lakh and Rs.10 lakh in north eastern state
     
  • Due to inter-State supply:
    In case you are providing service or supplying goods outside your state.
     
  • Due to change in constitution:
    In case there is change in form of business.
     
  • Aggregator:
    Where the e- commerce platform sells the services provided by others in their own brand name. Example: OLA and UBER
  • Taxpayer selling through e-Commerce portal:
    In case Tax Payer is selling goods or supplying service through e-commerce portal.
  • Voluntary Registration:
    In case Tax Payer is registering GST voluntarily in case no mandatory criteria attracts to him.
     
  • E-Commerce operator (other than facilitator to supply goods and/or services of other suppliers): 
    Every person who, directly or indirectly, owns, operates or manages an electronic platform to supply of such goods and/or services on their own behalf. 
Note: In case Tax Payer supplies goods and/or services of other suppliers then application under GSTR-8 need to be done as TAX COLLECTING OFFICER (TCS).Example: Flipkart
 

What is GST Registration Process?

The Goods And Services Tax (GST) Registration services at TRAAS WORLD helps you to get your business GST registered and obtain your GSTIN.


TRAAS WORLD GST experts will guide you on the applicability and compliances under GST for your business and get your business registered under GST.
Contact Now mail Click here to submit details
 

 What is the Value of a GST Number?

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

  • Take input tax credit.
  • Make interstate sales without restrictions.
  • Limited compliance for Composition dealers.
  • Lesser Tax Liability.
  • Reduction in logistics cost and time taken across states.
  • Higher exemptions to new businesses.
  • Making it easier to do business.
  • It increases the proximity of our tax system to the global tax system.

What is the Documents Required for GST Registration?

  • Digital Signature:
    DSC of Partners or Directors, in case of LLP and Company only
  • Photograph:
    Copy of passport size photograph of the Proprietor/ Partners /Directors
  • Entity’s PAN Card:
    A copy of PAN Card of business entity
  • PAN & Aadhar Card:
    A copy of Aadhar Card of Proprietor/ Partners/ Directors
  • Business Address Proof:
    Latest Electricity bill/ Any Tax paid bill/ Municipal Khata Copy
  • Rent Agreement:
    If place is rented, rent agreement is mandatory, else consent letter is sufficient
  • Bank details:
    Latest Bank Statement/ Copy of cancelled cheque/ copy of first page of passbook
  • Mobile Number And Mail ID:
    Mobile Number and Mail ID of the Proprietor/ Partners /Directors
  • Certificate of Registration:
    Entity should provide registration certificate with MoA- AoA / LLP Agreement or Partnership Deed as applicable

What is the GST Registration Fees?

GST Registration is a tedious 11 step process which involves submission of many business details and scanned documents.
You can opt for TRAAS WORLD Goods And Services Tax (GST) Registration services where a GST Expert will assist you, end to end with GST Registration.
Contact Now mail Click here to submit details
 

What are the Penalties of Non-Compliance of GST Number?

  • All GST Returns must be filed by the 20th of the following month. There are strict laws under the GST Act for non-compliance with the Rules & Regulations.
  • Penalty for Not Getting GST Registration, when a business is coming under the purview. The penalty is 100% of the tax amount if the offender has not filed for GST registration and intends to purposefully avoid it. The amount is the tax as applicable. Or Rs. 10,000, whichever is higher.
  • A penalty of 100% tax due or Rs. 10,000, whichever is higher, is also applicable to those who choose Composition Scheme despite not being eligible to it.
  • Any offender not paying his due tax or making short payments (genuine errors) is liable to pay a penalty of 10% of the tax amount. This amount cannot be less than Rs 10,000.
  • A person guilty of not providing the GST invoice is liable to be charged 100% tax due or Rs. 10,000. Whichever is higher.
  • An offender will be charged a fine of Rs. 25,000 for incorrect invoicing.
  • If a person has not filed for unpaid tax, there is a penalty of Rs. 50 per day. Rs. 20 per day if he was to file for NIL returns. And the maximum amount must not exceed Rs. 5,000.
  • There is also a provision of the penalty by a jail term for tax offenders to commit fraud.

 GST Registration Frequently Asked Questioned

  • Is GST registration mandatory?
    Yes, you are required to obtain GST registration once your turnover exceeds the specified threshold limits. Click here to check out the latest threshold limits for GST registration.
  • Can I apply for multiple GST registrations?
    If a business operates from more than one state, the taxpayer should obtain a separate GST registration for each state. For instance, If an automobile company sells in Karnataka and Tamil Nadu, he has to apply for separate GST registration in Karnataka and Tamilnadu respectively.
  • Can I apply for multiple registrations within a state?
    Yes, a business can apply for any number of GST registrations within a state. The procedure of allocating multiple GST registrations only for different business verticals within a state has been removed for ease of business.
  • Who can Register for the Composition scheme under GST?
    Small taxpayers who wish to have lesser compliances to deal with and lower rates of taxes under GST, can opt for the Composition scheme,
    A trader whose aggregate turnover is below Rs 1.5 crore can opt for the Composition scheme. In the case of North-Eastern states and Himachal Pradesh, the present limit is Rs.75 lakh. Click here to know all about the Composition scheme.
    Also, the government extended the Composition scheme to service providers having an aggregate turnover of up to Rs.50 lakhs.
  • What turnover should be considered for GST registration threshold limit?
    Aggregate turnover should be taken into consideration to calculate turnover. Aggregate turnover means the aggregate value of all taxable supplies excluding inward supplies liable to reverse charge, but including exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same PAN, to be computed on an all-India basis. It is to be noted that CGST, SGST, UTGST, IGST and cess should be excluded while calculating aggregate turnover.

 Mostly Asked Question

 What are the benefits of registering under GST?

  • For normal registered businesses:

Take input tax credit
Conduct interstate business without restrictions
Contact Now mail Click here to submit details to know more about the Benefits of GST

  • For Composition dealers:

Limited compliance
Lesser tax liability
Less impact on working capital
Contact Now mail Click here to submit details to know more about composition scheme

  • For businesses that voluntarily opt-in for GST registration (Below Rs.40 lakhs*)

Avail input tax credit
Conduct interstate business without restrictions
Easily register on online & e-commerce websites
Get a competitive advantage compared to other businesses
Contact Now mail Click here to submit details to know more about voluntary registrations

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019. Certain states have opted for different threshold limits,