GST

GST Registration in India

Businesses in India who are involved in selling and buying goods/services should compulsorily be registered with Goods and Services Tax (GST) when they fulfill annual turnover of more than INR 40 lakh (for supply of goods) and INR 20 lakh (for supply of services). To say about it briefly, Goods and Services Tax (GST) was launched in July 1, 2017 for the traders, service providers (including freelancers) and manufacturers to merge a number of Central and State level Taxes, such as, Excise Duty, VAT, Customs Duty, Entertainment Tax, Luxury Tax, etc. under this Single Tax Liability. Some of the main features of GST should be known to every businesses of this type to understand its significance:

GST has three components applicable as per the nature of trade of Goods and Services done in India:

• CGST (Central Component, collected as Central Revenue Account)
• SGST (State Component, collected as State Revenue Account)
• IGST (Central Component, collected as Central Revenue Account and a fixed share transferred to the account of the buyer’s State)
• Note : UGST is applicable in UTs of India.
• GST is charged based on various slabs made by classifying the Goods and Services as given by Central Board of Indirect Tax (relaxation applicable)
• GST threshold value is exempted as INR 10 lakh for the businesses running in NE States of India.

Apart from Normal GST, depending on the type of trade done, easy GST options are permitted for small taxpayers:

• Composite GST
• Voluntary GST
• GST Registration can be done fully online with NIL charge.
• Once registered, a trader is liable of monthly (quarterly, for Composite GST Taxpayers) GST Return filing as the annual income compliance.
• Failing GST Registration (when mandatory)/Return Filing by any trader is a severe punishable offense as per CGST Act.

Benefits of GST Registration

For traders availing Normal GST:

• Claim Input Tax Credit, Eligibility of Relaxed InterState Sales, etc.

For traders availing Composition GST:

• Simplified Return filing procedure, Secured with Limited liabilities, Less Tax Liability, High working capital, etc.

For traders availing voluntary GST:

• Claim Input Tax Credit, Eligibility of Relaxed InterState Sales, Competitive Advantages, etc.

Documentation for GST Registration

• Applicant’s PAN Details
• Applicant’s Contact Details, Mobile Number, Email, etc.
• Applicant’s Aadhaar Details
• Note: Aadhaar Authentication is mandatory for New Registration that has come in effect from August 21, 2020, where:
• Option is available for registrant to select YES or NO for Aadhaar Authentication
• A NEW registrant who does Aadhaar Authentication gets Registration Certificate within ONLY 3 working days’ time with no requirement of physical verification
• Applicants avoiding Aadhaar Authentication during GST Registration would be permitted only after physical verification of the place of business/document verification. The applicant may receive Notice from the Department
• Proof of Business Registration/Incorporation Certificate
• Promoters/Directors Details, such as Ids, Addresses and PP Photographs
• Address Proof of Place of Business
• Bank Account Statement/Cancelled Cheque
• Digital Signature
• Letter of Authorization/Board Resolution for Authorized Signatory