GST REGISTRATION
GST registration is a process by which a taxpayer gets himself registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration. You can also Verify GST number and to know the complete details.
Please note – If you are operating from more than one state, then you will have to take separate registration for each state you are operating from.
WHO IS LIABLE TO GST REGISTRATION?
- Any business whose aggregate turnover exceed threshold limit as prescribed.
- Any person who is registered under an earlier law such as Service Tax, VAT etc.
- A person making inter-state supply of goods or services or both.
- Casual Taxable Person.
- Non-Resident Taxable Person.
- Agent of the Supplier.
- When a business is transferred to someone or when a business is demerged.
- Person Paying tax under RCM.
- E-Commerce operator or aggregator.
THRESHOLD LIMIT FOR GST REGISTRATION
- Any Business entity which is engage in supply of goods and whose aggregate turnover exceeds Rs.40L in Normal Category States and Rs.20L in Special Category states.
- However there are two special category states named Jammu & Kashmir and Assam which opted for threshold limit of Rs.40 lakh in respect of goods NOT Rs.20 lakh AND there is a normal category state Puducherry which opted for threshold limit of Rs.20 lakh in respect of goods NOT Rs.40 lakh.
Special Category States:
- Arunachal Pradesh
- Assam
- Jammu and Kashmir
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Tripura
- Sikkim
- Uttarakhand
Aggregate Turnover
As per GST law aggregate turnover refers to aggregate value of all taxable supplies(excluding inward supplies on which tax being payable.
Types of GST registration :–
Normal taxpayers
Most businesses in India fall under this category. Businesses whose turnover exceeds Rs 40 lakh in a financial year are required to register as normal taxable people. However, the threshold limit is Rs 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.
Casual taxable individual
Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations. The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.
Non-resident taxable individual
Individuals who reside outside India but occasionally supply goods or services as agents, principals, or in other capacities to Indian residents are liable to file for registration under this category. The business owner must pay a deposit equal to the expected GST liability during the GST active tenure. The normal tenure is 3 months. However, individuals can extend or renew the registration if required.
Composition registration
Businesses with an annual turnover of up to Rs 1 crore are eligible for registration under composition scheme. Under this scheme, businesses have to pay a fixed amount of GST irrespective of their actual turnover.
Advantages of GST registration
- Legal recognition of a business
- Uniform accounting of taxes
- Businesses will be eligible to avail of several benefits under the GST regime
- Legal authorisation of collecting tax from sales made
Documents Checklist for GST registration
Take a look at the list of documents that you will need for registering your business under GST:
- Permanent Account Number (PAN) of the applicant
- Copy of the Aadhaar card
- Proof of business registration or incorporation certificate
- Identity and address proof of promoters/directors with a photograph
- Bank account statement/cancelled cheque
- Authorisation letter/board resolution for authorised signatory
- Digital signature