What is GST?
GST is a product of the biggest tax reform in India that has tremendously improved the ease of doing business and also increased the taxpayer base in India by including millions of small businesses under one uniform tax system. The tax complexities have reduced considerably due to the introduction of GST in India. As multiple tax systems are abolished and subsumed into a single, simple tax system under GST.
The GST regime mandates that all the entities that are involved in buying or selling the goods or providing services or both are required to register and obtain the GSTIN.
What is GSTIN?
GSTIN is a unique 15 digit code that is allocated to every taxpayer that has valid GST registration in India. It is a unique code that is allocated to every taxpayer which is given based on the state and the PAN. GSTIN is mandatory for businesses when the annual turnover is exceeding Rs.20 lakh. If the business is carrying out a business e-commerce platform it is necessary to obtain the GSTIN.
GST registration is mandatory once the entity is crossing a minimum threshold turnover or when the individual starts a new business that is expecting to cross the prescribed turnover.
Who is eligible to obtain GST registration?
Businesses are required to get a GST registration if they fall in the below categories.
Aggregate turnover
A service provider that is providing services valuing more than Rs.20 Lakhs aggregate in a year is needed to get GST Registration. Whereas an entity that is engaged exclusively in the supply of the goods whose aggregate turnover crosses Rs. 40 lakh is required to get GST registration mandatorily.
Interstate Business
An entity should get GST registration in India if they are involved in supplying goods from one state to another.
E-commerce platform
Any individuals that supply goods or services through the E-commerce platform should get the GST registration in India. The individuals shall register under GST irrespective of the turnover. To commence with an E-commerce business it is necessary to obtain the GST registration.
Casual taxable persons
An individual who is undertaking the supply of Goods or services seasonally or intermittently through a temporary stall or shop is required to get GST registration. Irrespective of the turnover the individual should apply for GST registration
Voluntary registration
An entity can obtain GST registration voluntarily, earlier an entity that has a voluntary GST registration was not able to surrender GST registration for up to a year. After the recent revisions, voluntary GST registration can be surrendered by the applicant at any time.
What are the documents required to obtain GST registration?
The following documents must be submitted by regular taxpayers applying for GST registration.
PAN Card of the business
PAN of the applicant
Identity proof of the applicant along with the photographs
Address proof of the applicant.
Business registration document or the Certificate of Incorporation.
Business location proof
Bank Account statement or canceled cheque
Digital Signature Certificate
Letter of authorization or Board Resolution for the authorized signatory.
What are the different types of GST Registration?
Mentioned below are the different types of GST registration:
Normal Taxpayer
This category of GST registration in India applies to the taxpayers that are operating a business in India. Taxpayers that are registering for normal taxpayers do not require to deposit and are also provided with unlimited validity dates.
Composition Taxpayer
To register as a Composition taxpayer the individual is required to enroll under the GST composition scheme. The taxpayers enrolled under the composition scheme can pay a flat GST rate. But the taxpayers opting for the composition scheme are not allowed to claim the input tax credit.
Casual taxable person
A taxpayer that is establishing a stall or a seasonal shop should register under the casual taxable person. Here the taxpayer is required to deposit an amount equal to the GST liability. The liability should is required to match the active registration periods. The registration is active for 3 months.
Non-resident Taxable Person
The category of the non-resident taxable person applies to the individuals that are located outside India. To register as a casual taxable person the taxpayer is required to deposit an amount that is equal to the amount of the GST liability. The liability is required to match against the active registration periods. The registration for the Non-resident taxable person is valid for 3 months.
GST registration
Eligibility Criteria
Documents required
Types of GST Registration
FAQs
ledgers software
Procedure to obtain GST registration
How to obtain GST registration?
1. When we receive your request our GST expert reaches to you and understands your business activity, the state where the business is operating.
2. The documents required to obtain GST registration are collected by the GST expert.
3. Once the payment is initiated we start with the registration process begins and our advisors will be available for any queries relevant to GST registration.
4. You obtain the GST registration within 3 to 7 working days. Everything is completely online you don't need to be physically present at the office for the same.
Benefits of GST registration
What are the benefits of GST Registration?
GST registration has various benefits here we have listed some of them:
GST has eliminated the cascading effect of Tax: GST is a form of Indirect tax that is designed to subsume all the indirect taxes under one umbrella. GST has reduced the cascading effect of tax that was evident earlier.
Registration threshold is higher: Earlier under VAT any business that had a turnover of more than Rs. 5 Lakh was liable to pay VAT. This limit was different in different states. Also, the service providers were exempted from service tax if the turnover was less than Rs.10 lakh.
Under GST this threshold has been increased to Rs.20 lakh which has exempted many small traders and service providers.
Composition Scheme for the small businesses: Small businesses are benefitted as they can exercise the option for utilizing the composition scheme. The composition scheme has considerably brought down the compliance and the tax burden on small businesses.
Simple and easy online procedure: The process of GST registration is completely online and it is super simple. All you need to do is submit the documents required to our experts.
Fewer Compliances: Under GST there is only one return that is to be filed. There are around 11 returns under GST out of which all of them can be filed online. IndiaFilings can also help you to file your GST returns.
Improved efficiency of the logistics: Under the Goods and Services Tax Act the restrictions on the interstate movement of the goods have been reduced considerably. This reduction in unnecessary logistics costs has caused profits for the businesses that are involved in the supply of goods through transportation.
The unorganized sector is now regularized under GST: Before the GST era, a lot of industries in India like construction and textile were largely unregulated and unorganized. Under GST there are provisions where the compliances can be met online. This has brought considerable accountability and regulation to these industries.
Composition Scheme under GST
What is the composition scheme under GST?
The composition scheme under the GST Act has minimized the burden of compliance for the small taxpayers. The Government came up with the composition scheme wherein the taxpayer with a turnover of less than Rs.10 crore choose not to register as a normal taxpayer. Instead, the taxpayer may choose to get registered under the Composition scheme and pay taxes on the supplies at a nominal rate. Here under the composition scheme the taxpayer is not eligible to issue a tax invoice and also cannot utilize the input tax credit.
Benefits of registering as a Composite taxpayer
Here are some benefits of registering as a Composite taxpayer under GST:
Limited Compliance: When the taxpayer is registering as a composite taxpayer he is required to furnish the quarterly return and should not be worried about other compliance burdens.
Limited Tax Liability: The major reason to register as a Taxpayer is that under the composition scheme the tax rate is such that the taxes paid by the taxpayer are nominal.
