How does GST Registration work for you?
turn over of 20 lacs would require the registration for GST and have a valid GST Number.
We help you get a Secure GST Identification Number.
Step 1
We make it easy for you to get your GST from the comfort of your own home.
Step 2
We help you get a Secure GST Identification Number.
Step 3
GST Registration – Meaning
GST (Goods and Service Tax) registration is the major tax reform in India. This reform changed the way business activities were conducted in India. The Initiative was taken to improve the ease of doing business in India. This move not only benefitted the unorganized sectors of India but also improved the flow of foreign investment in India.
WHAT IS GSTIN?
Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit pan based state-specific Registration Number, and the first two digits denote the state code. Goods and Service Tax Identification Number is a unique number issued after successful GST Registration of every taxpayer.
WHAT IS THE ELIGIBILITY OF GST REGISTRATION?
Every business whose estimated annual turnover exceeds Rs. 40 Lakhs (Rs 20 Lakhs for Northeast states) is required to register as a regular taxpayer. Particular businesses like Export-Import, E-commerce, Casual Dealer, and Market Place Aggregator. Such business units need a GSTIN irrespective of the annual business turnover.
Who must Apply for GST Registration?
- Individuals who were filing Tax under the Pre-GST laws such as Vat, Service Tax, etc.
- Businesses with turnover above the prescribed limit of Rs. 40 Lakhs.
- People involved in Distribution and Supply to manufacturers
- People seeking Tax Refund under double taxation mechanism
- Manufacturer of Goods
- People providing materials through e-commerce aggregator
- People providing materials through e-commerce aggregator
- Every kind of e-commerce aggregator
GST Registration Online – An Overview
Launched on July 1 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers. A variety of Central taxes like Service Tax, Excise Duty, CST and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are absorbed in one tax – GST, implemented on 01.07.2017. GST is to be charged at every step of the supply chain, with full set-off benefits available. The procedure for GST is entirely online and requires no manual intervention.
Every product goes through multiple stages along the supply chain, which includes the purchasing of raw materials, manufacturing, sale to the wholesaler, selling to the retailer and then the final sale to the consumer. Interestingly, GST will be levied on all of these 3 stages. Let’s say if a product is produced in West Bengal but is being consumed in Uttar Pradesh, the entire revenue will go to Uttar Pradesh.
Also, taxpayers with a turnover of less than Rs.1.5 crore can choose composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
GST will have 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e. when a transaction happens one state to another.
Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax. You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e. tax on sale minus tax on the purchase.
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Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for companies whose turnover is more than Rs.20 lakhs (for supply of services) and Rs. 40 lakhs ( for supply of goods) yearly to register for a GST. All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers. Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are less than Rs.20 lakhs.
Following people are not required to apply for GST Registration: Any supplier whose aggregate turnover is less than the prescribed limit and is not even covered under the mandatory GST requirement list. When supplies are covered under reverse charge mechanism. The ones supplying non-taxable goods and services under GST. Agriculturists.
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- Items that are considered basic necessities come under exempt list i.e. they are not taxed.
- Household necessities and life-saving drugs etc. are taxed at 5%.
- Products like computers and processed food are taxed at 12%.
- Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%.
- Luxury items are taxed at 28%.
- You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html
Following people are not required to apply for GST Registration: Any supplier whose aggregate turnover is less than the prescribed limit and is not even covered under the mandatory GST requirement list. When supplies are covered under reverse charge mechanism. The ones supplying non-taxable goods and services under GST. Agriculturists.
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A GST Return Filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.
- Output GST (On sales)
- Sales
- Input tax credit (GST paid on purchases)
- Purchases
For filing a GST Return, you need to have GST compliant sales and purchase invoices attached.
The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTN is responsible for maintaining Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.
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The list of documents required for registration of GST for various business are as follows:
Proprietorship
- PAN Card and address proof of proprietor
LLP
- PAN Card of LLP
- LLP Agreement
- Partners’ names and address proof
Private Limited Company
- Certificate of Incorporation
- PAN Card of Company
- Articles of Association, AOA
- Memorandum of Association, MOA
- Resolution signed by board members
- Identity and address proof of directors
- Digital Signature
The following can be shown as proof of address of a director:-
- Passport
- Voter Identity Card
- Aadhar Card
- Ration Card
- Telephone or Electricity Bill
- Driving License
- Bank Account Statement
Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone bill.
One of our GST representatives will collect all the required documents and process the GST application through the iCFO platform. Application Filing Once all the documents are collected, the application will be processed and filed. Then immediately the ARN number will be issued. GST Registration Certificate The GST registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST registration certificate can be downloaded from the GST Portal. Penalties For Failure To GST Registration As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST. Voluntary Registration Under GST (for Companies With A Turnover Below Rs.20 Lakhs) Any small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration has its own advantages and some of them are:
- Take input credit: In GST, there is a flow of input credit right from manufacturers of the goods till the consumers, across the country. Input credit means a taxpayer while paying tax on output can deduct the tax that has already been paid on inputs and pay only the remaining amount. Voluntarily registered businesses can increase their margins and profits through this.
- Do inter-state selling with no restrictions: SMEs can increase the scope of their businesses and find prospective customers and explore online platforms
- Register on e-commerce websites: SMEs can widen their market by registering through e-commerce sites.
- Have a competitive advantage compared to other businesses.
A GST Return Filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.
- Output GST (On sales)
- Sales
- Input tax credit (GST paid on purchases)
- Purchases
For filing a GST Return, you need to have GST compliant sales and purchase invoices attached.
FAQs on Hassle-Free GST with Digital Kumar
Yes, you can apply for GST Registration online. You can simply register your business on the official GST portal and then scan and upload all the required documents. You will then receive an acknowledgement. A GSTIN will be generated on acceptance of the application and a temporary password and login will be sent. GSTIN is a unique 15-digit ID. A GSTIN Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura must get a GST registration if their supply turnover exceeds Rs. 10 lakh. As mentioned above, this threshold limit applies only to businesses that operate within their home state. A business that conducts trade with another state must seek registration regardless of turnover.
The exemption limit is a supply turnover of Rs. 20 lakh for businesses in all except for the Indian states in the northeast region. Businesses in Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, and Tripura must get a GST registration if their supply turnover exceeds Rs. 10 lakh. As mentioned above, this threshold limit applies only to businesses that operate within their home state. A business that conducts trade with another state must seek registration regardless of turnover.
The composition scheme under GST would be applicable to businesses with a turnover of up to Rs. 50 lakh. Small businesses with turnover less than Rs. 1 crore* (Rs. 75 Lakhs for Northeastern states) can opt for composition scheme. Such taxpayers would pay a fixed percentage of its turnover and cannot avail of the benefits of input tax credit. Such businesses cannot collect tax from its customers. The floor rate of tax cannot be less than 1%. *GST Council has decided to increase the limit to Rs. 1.5 crores but official notification is awaited.
Composition dealers are required to pay tax based on their business types.
- They need to file only one return on a quarterly basis. Whereas normal taxpayers are required to file three returns on a monthly basis.
- Composition dealers cannot collect taxes from customers
- They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
- No input tax credits can be claimed
Persons who are not eligible for GST composition scheme include:
- Service providers (except restaurant owners)
- Non-taxable goods suppliers
- Sellers operating through an e-commerce platform
- Suppliers involved in the inter-state supply of goods
- Manufacturers of notified goods
Yes, GST applies to all service providers, manufacturers, and traders. It extends to any dealers, bloggers, and writers, earnings from Google AdWords through PayPal, import-export businesses, all kinds of startups and companies, whether they are LLPs, proprietorships, partnerships or private limited companies. It also applies, regardless of the threshold limit,
- Businesses operating outside their home state
- A business not registered to the state
- Businesses paying a reverse charge
- Input service distributor
- E-commerce operators
- Aggregators selling services under own brand name (Ola, for example)
- Online sellers
Suppliers or agents
- Under the GST regime, only one registration is allowed against one PAN. However, businesses, which operate in more than one state must have
- When a person runs a business in more than one state, then he must have a separate GST registration for each state.
- If the business has multiple verticals within a state, then the registration has to be done for each business vertical.
ARN which stands for Application Reference Number is generated ARN stands for Application Reference Number. It is the conclusive proof of successful submission of the application to the GST servers. It is generated after the TRN (Temporary Reference Number) & uploading of requisite documents.
No. provides the GST registration service online. So, you need not have to be physically present during the registration process. All we need is just a computer or laptop or phone, Internet connection, and the required papers. We can get the job done for you, even if you are at the remotest location in India.
Some of the best reasons to choose us are:
- Easy to get GST registration and GST Identification Number online.
- No hassle compliances as we completely take control of them.
Our legal representatives are available to explain the whole process and clear any queries you may have.
Although the GST portal has a user-friendly interface, the GST Forms have a lot of complex fields. Hence, it is highly recommended that you seek the help of a professional for submitting the application, the required procedures, filing your returns and completing other formalities in the portal.
