Goods and Services Tax (GST) registration is the act of registering a business under the GST law in India. Once registered, the business will receive a unique GST Identification Number (GSTIN). This number will allow the business to collect GST from customers and to claim input tax credit on purchases.
For a business operating in India, registering with GST is more than just an article of compliance; it creates a sense of credibility, increases the reliability of your business, and allows your business to grow without limitation.
What is GST Registration?
GST Registration is the act of formally registering as a business in accordance with the Goods and Services Tax (GST) legislation enacted by the Government of India on the 1st of July, 2017.
When a business registers for GST, they receive the following benefits:
- A unique 15-digit GST Identification Number (GSTIN).
- Ability to collect and charge GST to customers.
- Ability to claim input tax credits on purchases.
- Required to file GST Returns regularly.
Without registering under GST, the business cannot collect taxes from customers legally. There are risks of being penalized for doing business without registering.
Who needs to register for GST?
Not all small businesses are required to register immediately; however, there are certain thresholds where GST Registration is mandatory:
1. By way of Annual Turnover:
If your total income exceeds ₹40 Lakhs based on the sale of your goods (in the majority of states).
If your annual total income is greater than ₹20 Lakhs from providing a service.
If your total annual income is greater than ₹10 Lakhs in the special category states.
G.S.T. Registration is required for the following:
2. Interstate Commerce
If you are doing an interstate sale, you must obtain GST registration.
3. E-Commerce Sellers
If your business sells products using an online platform, you must be registered.
4. Non-Individual Business Operators
If your business operates in a temporary capacity (e.g. Seasonal / Exposition/Some other), you must obtain GST registration to operate legally.
5. Input Tax Credit (ITC)
Even if your business’s Gross Turnover is below the threshold limit for GST registration, you may apply for GST registration voluntarily. This will assist with obtaining ITC and enhancing your business reputation.
What is the Process for Obtaining GST Registration?
Obtaining GST registration is completed online via the official GST website.
The following steps outline the process:
1. Go to the GST Website.
2. Complete Part A of the online form.
Enter the following:
- PAN number
- Mobile number
- Email Operating
Complete the verification process using the OTP received via your mobile telephone.
3. Complete Part B of the online form.
Enter the following information:
- Company details
- Address proof
- Banking details
Contact information for the authorized signatory of your business.
4. Upload Necessary Documents.
All required documentation must be uploaded to the site. Refer to the GST site for details of what is required for documentation.
5. Verification.
The application will be reviewed by a GST officer for general compliance.
6. Allotment of GSTIN.
Once approved by the GST officer, a GSTIN and registration certificate will be issued to your business. Typically, GST registration will take from 3 to 7 days once your application and attached documents are reviewed.
How Much Does it Cost for GST Registration?
The Government of India does not charge a fee for GST registration.
Yes, registering for GST Registration is executed at NO COST via the official Government GST website. However, if you would like assistance with obtaining your GST registration documentation, you will have to pay a third-party service to assist with this process.
Documents Needed to Register For GST
The documents needed to register for GST vary according to the structure of your business. A general listing of the necessary documents according to structure is as follows:
Proprietorship
- Owner's PAN Card
- Owner's Aadhaar Card
- One passport-sized photograph
- Proof of business address (i.e., electricity bill / rental agreement)
- Bank Account Information (i.e., canceled cheque or bank statement)
- Partnership / LLP
- PAN Number of the Partnership Firm
- Partnership Deed
- PAN Number and Aadhaar Card of the Partners
- Business Address Proof
- Bank Information
Private Ltd Company or One Person Company (OPC)
• Certificate of Incorporation
• Company PAN Number
• Company Memorandum of Association (MOA) and Articles of Association (AOA)
• Director's PAN Number and Aadhaar Card
• Business Address Proof
• Bank Information
Make sure that all your documents are in order, up to date, and clear so that they are not rejected.
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