GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.
What is GST Registration?
GST refers to Goods and Services Tax which subsumes all taxes such as Sales tax, Service tax, Excise duty etc. into GST. GST registration is required primarily if your annual sales are more than Rs. 20 Lakh. Even if your sales are less than Rs. 20 Lakh, we suggest that you voluntarily opt for GST registration because:
- You will not get any tax refunds on purchases (e.g. if you buy goods worth Rs 1 lakh in a year, and tax rate is 28% – you will lose tax refund of Rs. 28,000)
- You cannot sell outside your state
GST registration typically takes between 2-6 working days. You need to file your application with the department and sign it with your digital signature. GST Registration can be done through LegalRaasta in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.
Who all need GST Registration?
The registration in GST is PAN based and State specific. Supplier has to register in each such State or Union territory from where he effects supply if he fulfills any of the following conditions:
- Having an annual aggregate turnover from all-India operations which is above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States)
- Currently registered under any of the earlier indirect tax regimes (VAT, Excise Laws, Service Tax Laws) irrespective of the threshold limit
- Having branches in multiple states or multiple business verticals in one state
- Making any supply to other states
- Required to pay tax under Reverse Charge (In case your supplier is not registered under GST)
- Required to deduct tax at source or an Input Service Distributor
- Agents of a supplier
- Supplying goods or services through E-commerce Operator
- E-commerce Operator / Aggregator who supplies goods or services under his brand name (e.g. Flipkart, Amazon, Ola)
- 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
Benefits of Registration under GST
GST Registration will give the following advantages to a taxpayer
- He is authorized to collect taxes from his customers and pass on the credit of the taxes paid to them.
- He can claim Input Tax Credit of taxes paid to his suppliers and can utilize the same for payment of taxes due.
- Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
GST Registration Documents
You have to required to prepare some of the documents as per the legal entity :-
Sole Proprietorship Firm -
-Pan Card and Address Proof of the proprietor.
-Bank Statement, rental agreement
In case of Partnership Firm -
Pan card of the Firm with the Partnership deed.
Partnership registration certificate & partners pancard & address proof.
Bank statement & rental agreement, authorization letter
Photo of all partners
In case of Private Limited Company or One Person Company -
Pan Card of the Company , COI , MOA & AOA of Company.
Board Resolution with Directors Id & Address Proof.
Photo of all partners
In case of LLP (Limited Liability Partnership) -
COI & Pan Card of Company.
Deed + Partners Id, Photo & Address Proof