Goods and Services Tax (GST) has been a big tax reform in India. And so much time has passed since its introduction that questions like “what is GST Registration” do not sound right. So here is a brief introduction
· GST is the only tax that one has to get his/her business registered under.
· If your business is not GST registered, heavy fines and penalties can be levied.
· GST Registration allows you to collect GST from your customers.
· So avoid going against the law, get your business registered for GST.
The below mention person/entities are required to get registered under GST –
· Any business entity whose aggregate turnover in a financial year exceeds Rs 40 lakhs (Rs 20 lakhs for special category states in GST).
· Note-This clause does not apply if the entity is only dealing in supply of goods/services which are exempt under GST,
· Every entity who is registered under an earlier law of taxation (i.e., Excise, VAT, Service Tax, etc.) needs to get register under Goods and Service Tax.
· Any entity or supplier dealing in inter-state supply of goods.
· Casual taxable person
· A tax-payer under the reverse charge mechanism
· Input service distributor and its agent
· E-Commerce operator or aggregator*
· Non-Resident taxable person
· Agents of a supplier
· A Person who supplies through E-commerce aggregator.
· Entities who are providing online information, acquiring database, or retrieval services from a place located outside India to a person in India, other than a registered taxable person.
For GST administration, a model was designed where the government (Central and State) have powers to impose and collect taxes through their respective legislations. The Modes of GST are given bellow:-
· Central GST
CGST is the tax imposed on the Intra State supplies of goods and services by the Central Government. When the place of the seller and the buyer is in the same state it is termed as an Intra-state supply of goods or services. Here, a seller has to collect both CGST and SGST in which CGST remains with the Central government while the SGST is collected by the State government.
· State GST
SGST is the tax levied on the Intra State supplies of goods and services by the State Government.
· Integrated GST
Integrated GST is governed by the IGST Act, where the seller has to collect IGST from the buyer, and the tax collected will be divided between the Central and State Governments.
· Union Territory GST
Union Territory GST is applicable when any goods and services are used in the Union territories (UTs) of India and the revenue is collected by the government of union territory.
· Registration Number
· Legal Name and Constitution of business
· Trade Name
· Period of validity
· Types of taxpayer
· Date of Liability
· Signature of the applicant
GST regimes were made by considering all the layman and inflation rates in mind. To make it simpler and easier, the GST was structured following the four tiers structure. These four zones are given below, which are as follows-
· Zero Rates
Zero rate tax means the – nil tax is to be applied on the goods and/or services.
· Lower Rate
Lower tax rate determines the 5% tax rate which is applied on the CPI (Consumer Price Index) basket & mass consumption.
· Standard Rate
Standard rate includes 12% & 18% of the tax rates.
· Higher Rates
Higher rates tax includes 28% of the tax rate under GST Regulation.
The documents required for the Online GST Registration varies with the type of business. The lists of documents required for GST Registration (based on the type of business) are listed below:-
For A Sole Proprietorship Business
· PAN card of the owner
· Aadhar card of the owner
· Photograph of the owner (in JPEG format, maximum size – 100 KB)
· Bank account details*
· Address proof**
For A Partnership Firm
· PAN card of all partners (including managing partner and authorized signatory)
· Copy of partnership deed
· Photograph of all partners and authorised signatories (in JPEG format, maximum size – 100 KB)
· Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.)
· Aadhar card of authorised signatory
· Proof of appointment of authorized signatory
· In the case of LLP, registration certificate / Board resolution of LLP
· Address proof of principal place of business**
For A HUF
· PAN Card of HUF and the Passport size Photograph of the Karta.
· Id and Address Proof of Karta and Address proof of the place of business.
· Bank Account Details
For A Public Or Private Limited Company
· Pan card of the Company
· Certificate of incorporation of Company
· MOA and AOA of the company.
· Identity Proof and address proof of all directors and Authorised signatory of the Company.
· Passport size photograph of the directors and authorized signatory.
· Copy of Board resolution passed for appointing authorized signatory.
· Details of Bank account opening.
· Address proof of the place of business.
To successfully finish the GST registration, process every taxpayer must follow the requisite process. The procedure for GST Registration is mentioned below.
· Step – 1
The very first step for GST Registration is to fill the online application, and for the same, the taxpayer shall visit the GST portal Www.Gst.Gov.In. Also, the taxpayer (Applicant) needs to create a username and password in the portal.
The Applicant need to click the link on the GST portal, and click on to the ‘New User Login’. By clicking on ‘New User Login’ accept the window on the displayed declaration form and press ‘Continue’ to register yourself for GST Registration.
· Step – 3
The applicant is required to Select ‘New Registration’ and Login to start the GST registration procedure.
· Step – 4
The applicant shall fill the required details asked on the GST portal:-
• Select ‘Taxpayer’ under the drop-down menu.
• Select the respective state and district.
• Enter the details of the business (Name and PAN card).
• Provide the email ID and mobile number (that must be active as OTPs will be sent on the details) in the respective boxes.
• Enter the Captcha shown on the screen and click on ‘Proceed’.
· Step – 5
The next step after filing the required details is to enter the OTP sent to your email ID and mobile number in the respective boxes.
· Step – 6
Click on the ‘Proceed’ button once the details have been entered.
· Step – 7
An applicant will receive the Temporary Reference Number (TRN) on the screen. Save the TRN for further process.
Note-TRN is used to open PART-B in GST registration and to log in to the GST registration application.
· Step – 8
After receiving the TRN, an applicant is required to open the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.
· Step – 9
Select the ‘Temporary Reference Number (TRN)’.
· Step – 10
Enter the TRN selected and the captcha details.
· Step – 11
Once the Captcha details are entered, click on the ‘Proceed’ button.
· Step – 12
An applicant will receive an OTP on the email ID and registered mobile number. Click on ‘Proceed’ Button by entering the OTP received.
· Step – 13
The status of your application will be displayed on the next page. Click on the Edit icon, mentioned on the right side of the page.
· Step – 14
On the next page there will be various sections, where all relevant details are required to be filed along with the necessary documents.
· Step – 15
Before submitting the application, click on the ‘Verification’ page and check the declaration. The below-mentioned methods can be used for submitting the application:
• Electronic Verification Code (EVC).
• By e-Sign method.
• In case the applicant is a company, the application must be submitted by using the Digital Signature Certificate (DSC).
· Step – 16
Once the process is completed, a successful completion message will be shown on the screen. The ARN will be sent on the mobile number and email ID registered by the GST Applicant.
· Step – 17
Check the status of the ARN on the GST portal.
In Case Of Delay In Filing GSTR
· Late fee is Rs. 100 per day per Act. i.e., 100 under CGST & 100 under SGST.
· Maximum of Rs. 5,000.
· No late fee on IGST.
For Not Filing GSTR
· Penalty 10% of tax due or
· 10,000 whichever is higher.
For Committing A Fraud
· 100% of tax due or
· Additionally, in case of high value fraud cases also have jail term.
For Helping A Person To Commit Fraud
Penalty extending up to Rs. 25,000.
For Charging GST Rate Wrongfully
In case of charging higher rate-
· Penalty 100% of tax due or
· 10,000, whichever is higher (if the additional GST collected is not submitted with the govt).
For Not Issuing Invoice
· 10,000, whichever is higher.
Non-Registration Under GST-
In Case Of Issuing Incorrect Invoice
· Penalty of Rs. 25,000
The validity of any GST registration certificate depends on and conditional to the type of taxpayer who is receiving the certification. It is valid throughout when the certificate is issued to a regular taxpayer. In such cases, it only invalidates if it is canceled by the GST authority or surrendered by the taxpayer himself.
Though, the validity is restricted to a period of 90 days from the date of registration or for the period specified in the registration application, whichever is earlier in cases certificates issued for the casual taxpayer or Non-Resident Indian (NRI) taxpayer. Moreover, the validity period can also be extended under the provisions of Section 27(1) of the GST Act by the appropriate authorities.
What are the Eligibility Criteria for GST Registration?
What are the Modes of GST in India?
What are the Constituents of GST?
What is the Structure of 5 Slabs Under GST?
What Documents are Required for GST Registration?
What is the Procedure for GST Registration Process in India?
What are the Penalties in Case of Non-Compliance in GST?
What is the Validity of GST Registration Certificate?
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