What is GST Registration?
GST (Goods and Services Tax) registration is a process by which a business becomes a registered taxpayer under the GST regime. Once registered, the business receives a unique GSTIN (Goods and Services Tax Identification Number). GST registration is mandatory for businesses whose turnover exceeds a certain threshold, or for specific types of businesses such as interstate suppliers and e-commerce operators.
Who Needs to Register for GST?
1. Threshold Limit : Businesses with an annual
turnover exceeding ₹20 lakhs (₹10 lakhs for special category states) must
register for GST.
2. Interstate Suppliers : Any business supplying
goods or services across state borders.
3. E-commerce Operators : Platforms facilitating
online sales.
4. Casual Taxable Persons : Individuals who
supply goods or services occasionally.
5. Non-resident Taxable Persons : Foreign
businesses with no fixed place of business in India.
6. Others : Agents of suppliers, input service
distributors, and those paying tax under the reverse charge mechanism.
Steps for GST Registration
1. Pre-requisites :
- PAN card of the business or applicant.
- Valid Indian phone number and email
address.
- Proof of place of business (rent
agreement, utility bill, etc.).
- Bank account statement or cancelled
cheque.
- Digital signature (DSC) for companies and
LLPs.
- Aadhaar card for identity verification.
2. Online Application Process :
1. Visit
the GST Portal : Go to the official GST registration portal [GST
Portal](https://www.gst.gov.in/).
2. Fill
in the Registration Form : Click on 'Register Now' under the 'Taxpayers' tab.
Select 'New Registration'.
3. Enter
Details : Provide details such as legal name, PAN, email, and mobile number.
Complete the OTP verification.
4. TRN
Generation : After successful verification, a Temporary Reference Number (TRN)
is generated.
5. Complete
the Application : Log in with the TRN, fill in the required information in Part
B of the form, and upload necessary documents.
6. Verification
and Submission : Use either EVC (Electronic Verification Code), DSC, or E-sign
method to verify and submit the application.
7. Application
Reference Number (ARN) : Upon successful submission, you will receive an ARN,
which can be used to track the status of the application.
3. Processing :
- The GST officer may verify the application
and documents.
- If all details are correct, the GSTIN will
be issued within 7 working days.
- If there are discrepancies, you may be
asked to provide additional information or clarification.
Post-Registration Compliance
1. Display GSTIN : Display the GSTIN on the name
board of your principal place of business and on every tax invoice.
2. Invoicing : Issue GST-compliant invoices for
all transactions.
3. Filing Returns : Regularly file GST returns
(GSTR-1, GSTR-3B, etc.) on a monthly/quarterly basis as applicable.
4. Maintain Records : Maintain detailed records
of sales, purchases, and stock for a minimum of six years.
5. Pay Taxes : Ensure timely payment of collected
GST to the government.
Penalties for Non-Compliance
1. Late Registration : A penalty of 10% of the
tax due or ₹10,000, whichever is higher.
2. Filing Returns : Late filing attracts a late
fee and interest on the unpaid tax amount.
3. Non-filing : Continuous non-filing of returns
can lead to cancellation of GST registration.
Benefits of GST Registration
1. Legal Recognition : Enhances credibility with
customers and suppliers.
2. Input Tax Credit : Allows the business to
claim the input tax credit on purchases.
3. Compliance Benefits : Simplifies tax processes
and reduces the burden of multiple taxes.
4. Expansion : Facilitates interstate trade
without multiple tax barriers.
For further
details and to start the registration process, you can visit the [GST
Portal](https://www.gst.gov.in/).
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