- Umang Goyal & Company
GST Registration in India
Updated: Jul 27, 2022
Good and service tax is an indirect tax levied on the supply of goods and services. Every business who are dealing in goods with an annual turnover that exceeds Rs. 40 lacs or service with an annual turnover that exceeds Rs 20 lacs, is mandatorily required to obtain GST registration.
However, if you are dealing in interstate supply of goods or service, you are liable to take mandatory registration, even the turnover hasn’t reached the threshold limit. If a business operates from more than one state, then a separate GST registration is required for each state.
Apart from this, a business can obtain voluntary GST registration to avail GST benefits such as input tax credit, unique GSTIN, and legal identity as a supplier. It is always advisable to take a voluntary registration to avail GST benefits. GST registration is an entirely online and paperless process. Our dedicated team will help and assist you to obtain GST registration.
Who should register under GST
Crossing the threshold limit
The Registration under GST is mandatory for the business based on the criteria of turnover. The business dealing in goods and those providing service have to take GST Registration if their aggregate turnover exceeds Rs.40 Lacs and Rs. 20 Lacs respectively. However, However, for northeastern states, it is 10 Lacs.
E-Commerce operator
E-commerce operator is every person who, directly or indirectly, operates, owns or manages an electronic platform to facilitate the supply of goods or services. GST registration for e-commerce operators is mandatory irrespective of turnover criteria. Hence, seller on Amazon, Flipkart or any other platforms must obtain GST Registration.
Casual Tax Payer
Casual taxable person is the person who occasionally undertakes transactions involving the supply of goods or services through a temporary stall or shop for the furtherance of business where he has no fixed place of business. GST registration for Casual Tax Payer is mandatory irrespective of turnover criteria and shall apply for GST registration five days before to the commencement of business
Inter-State Supply
Inter-State supply of goods or services is when the location of the supplier and the place of delivery is in different states. However, the GST rate for the goods or services would remain the same. GST registration for Inter-State Supply is mandatory irrespective of turnover criteria and shall apply for GST registration prior to the commencement of business.
Exporters and Importers
Export or import of Goods and Services will be deemed as inter-state supplies. Exports will be treated as zero-rated supplies, and no GST will be payable on exports of goods or services. However, credit of input tax will be available, and the same will be available as refund to the exporters. Complete set-off of GST credit is available on the GST paid on import on goods and services. The LUT(Letter of Undertaking) is a document submitted by the exporter to export goods or services without the payment of taxes.
Under Reverse Charge Mechanism
Normally, the supplier of goods or services pays the tax on the supply and collect it from the buyer. In the case of RCM, the receiver is liable to pay the tax. For example, If a supplier is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid by the receiver to the Government instead of the supplier.
Voluntary registration
Every business is eligible for voluntary or optional Registration under Goods and Services Tax even though he may not be required by law. To avail, the benefits under GST law such as Provide input tax credit to customers, Take input credit, Make inter-state sales without many restrictions, Be compliant and have excellent rating etc. It is always advisable to take a voluntary registration.
Types of GST Registration
Regular Scheme | Composition Scheme |
Regular scheme can be opted by any taxpayers operating a business in India. Taxpayers registering under the regular scheme do not require a deposit any security amount and are also provided with unlimited validity date. The regular taxpayers can avail input tax credit of GST paid on the purchase of goods or services. The taxpayers registered under the regular scheme must file returns monthly. Advantages of the Regular Scheme –
| The composition scheme is proposed for small businesses whose turnover of taxable goods not more than 1.5 Crores, And GST is borne by the seller @1% of such turnover by Traders, @2% by Manufacturers, 5% for Restaurants & 6% for Service Providers. One of the significant benefits of composition supplier is high fund availability in the business. A regular taxpayer will be required to pay output tax on his supplies at a standard rate, and credit of input is available only when his supplier files a return. A Composition Dealer is not allowed to collect the GST from the customers and cannot claim the Input Tax Credit on any purchases. Composition Dealer can not make interstate sales. The sales are restricted to intrastate (within a registered state). The Composition taxpayers are required to file 4 Quarterly return and one annual return. Advantages of Composition Scheme:
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Documents Required for GST Registration
Document for Proprietorship Firm
Passport Size Photograph of Proprietor
Copy of PAN Card and Aadhar Card of Proprietor
Bank Details of Proprietor
Business Address Proof (Electricity Bill / Rent Agreement / Ownership Proof)
Document for Private Limited Company/ Partnership Firm/ LLP
Colour Photograph of All Directors / Partners
Digital Signature of any Director /Parner
Entity’s PAN Card
PAN and Aadhaar of All Directors / Partners
Certificate of Incorporation / Partnership Deed
Board Resolution Approving for Registration
Power of Attorney in the name of Authorised Representative (If any)
Business Address Proof (Electricity Bill / Rent Agreement / Ownership Proof)