With effect from 1
stJuly 2017, GST was launched all over India, except in the state of Jammu & Kashmir. Subsequently, on 8
thJuly 2017, Jammu & Kashmir also came under the purview of GST, and the entire nation was brought under a unified indirect tax system. GST applies to all traders, manufacturers and service providers. Various taxes like Service Tax, Central Excise, State Excise, Entertainment tax and different central and states taxes are subsumed under one tax, i.e., GST. It is a tax leviable on the supply of goods or services or both, except alcoholic liquor for human consumption.
There are five products that are not presently leviable to GST. These products are petroleum crude, diesel, petrol, aviation turbine fuel and natural gas. GST will be charged on these products from such date as may be notified by the government on the recommendations of the GST Council.
GST removes the cascading effect of taxes leading to a reduction in the overall tax burden on goods and services. It has enhanced the ability of companies to compete globally, which improves the export prospect of companies. Under the GST regime, the Centre and state provide input tax credit for central and state GST. It is leviable on all supplies, whether inter-state or intra-state.
In any tax system, registration is the elementary requirement for identifying taxpayers and ensuring tax compliance in the economy. Registration of any business entity under GST law implies obtaining a GSTIN (Goods and Services Tax Identification Number) from concerned authorities. Once the GSTIN is allotted to a taxpayer, he becomes eligible to collect tax on outward supplies and avail ITC for taxes on inward supplies.
The Registration of GST is an entirely online process, except in cases where Aadhaar authentication has not been opted by the applicant or where authentication has failed or where the officer considers it necessary to carry out the physical verification. In such cases, the proper officer initiates the physical verification of premises.
ADVANTAGES OF TAKING GST REGISTRATION
* The taxpayer gets recognized by law as a supplier of goods and services.
* No Cascading effect of tax in product price, which improves the export prospects for the registered persons.
* Lesser number of compliances than previous laws due to a simplified return filing system.
* Benefit of Input tax credit (ITC) on inward supplies.
* Registered persons are eligible to avail of various other benefits and privileges provided under the GST laws.
WHO IS LIABLE TO GET REGISTERED?
* Any business engaged in intra-state supply of goods or services or both whose aggregate turnover in a financial year exceeds Rs.20 lakhs. For Manipur, Mizoram, Nagaland and Tripura, the threshold
turnover limit for GST registration is Rs.10 lakhs.
* Any business engaged exclusively in the intra-state supply of goods whose aggregate turnover in a financial year exceeds Rs.40 lakhs for the Normal Category States. However, this benefit of enhanced turnover limit of Rs.40 lakh in case of exclusive supply of goods is not applicable for the states of Arunachal Pradesh, Uttarakhand, Meghalaya, Sikkim, Telangana, Puducherry, Nagaland, Mizoram, Manipur and Tripura.
Compulsory Registration under GST
* Any person engaged in inter-state taxable supply of goods.
* Any person engaged in inter-state taxable supply of services if the aggregate turnover exceeds Rs.20 lakhs. For Manipur, Mizoram, Nagaland and Tripura, this threshold limit of Rs.20 lakhs comes down to Rs.10 lakhs.
* Casual taxable persons, making taxable supplies.
* Persons required to pay tax under RCM.
* Deemed suppliers
* Non-resident taxable persons
* Persons required to deduct tax as source under section 51 of the CGST Act.
* Agents of a supplier
* Input Service Distributors
* Electronic commerce operators required to collect tax at source under section 52 of the CGST Act
* Persons supplying goods or services or both via electronic commerce operators (ECO). However, threshold limit of Rs.20 lakh (Rs.10 lakh in Mizoram, Manipur, Nagaland and Tripura) is available in case of suppliers supplying services through ECO.
* person supplying Online information database access and retrieval services (OIDAR) from a place outside India to a person in India, other than a registered person.
* Other persons notified by the Government on the recommendation of the council.
PERSONS NOT LIABLE FOR REGISTRATION
* Person dealing exclusively in the business of supplying goods and/or services that are not liable to tax or wholly exempt from tax.
* An agriculturist, to the extent of supply of produce out of cultivation of land.
* Person making only reverse charge supplies.
* Person making inter-state taxable supplies of notified handicraft goods having an aggregate value of such supplies up to Rs.20 lakh (Rs.10 lakh in case of Manipur, Mizoram, Tripura and Nagaland).
VOLUNTARY REGISTRATION
Though not liable to be registered, a person may get himself registered voluntarily, and all the provisions of GST ACT shall apply to such person. It is a self-registration by the suppliers who want to get listed within the framework of GST. It helps in making inter-state sales more freely. It allows the supplier to easily avail of loans from the banks or financial institutions due to a good compliance rating. Businesses registered under GST are more compliant and scalable, which helps the businesses attract more customers.
WHAT IS GSTIN?
GSTIN is a unique 15-digit PAN-based identification number allotted to every person registered under GST. Department issues the GST certificate and GSTIN to the registered person after approving the registration application.
DETAILS AND DOCUMENTS REQUIRED FOR GST REGISTRATION
GST Registration for Proprietorship
* Business Name
* Email & Mobile number
* Description of Goods & Services
* Nature of Business
* Registration details under other laws, if any (e.g., TIN, IEC Code, etc.)
* Copy of PAN card
* Passport size photograph of proprietor
* Proof of place of business (utility bill and ownership proof)
* Residential Address proof of proprietor
GST Registration for Limited Liability Partnership
* Email & mobile number of the LLP
* Email & mobile number of every partner
* Description of Goods & Services
* Nature of Business
* Registration details under other laws, if any (e.g., TIN, IEC Code, etc.)
* PAN card copy of LLP
* Certificate of Incorporation
* LLP Deed
* Copy of PAN card, photograph and address proof of all partners
* Proof of place of business (utility bill and ownership proof)
* Proof of appointment of authorized signatory
GST Registration for Private Limited Company
* Email & mobile number of the Company
* Email & mobile number of every director
* Description of Goods & Services
* Nature of Business
* Registration details under other laws, if any (e.g., TIN, IEC Code, etc.)
* PAN card copy of Company
* Certificate of Incorporation
* Memorandum of Association
* Articles of Association
* PAN card copy, photograph and residential address proof of all directors
* Proof of office address (utility bill and ownership proof)
* Proof of appointment of authorized signatory
PROCESS FOR OBTAINING GST REGISTRATION
Every person who wants to obtain voluntary registration and every person liable to be registered under GST shall, within 30 days from the day he becomes liable to obtain
registration under GST, apply for
GST registration online following the
GST registration process mentioned below:
* Every person seeking registration shall, before applying for registration, declare his PAN, mobile number, email address and state in Part A of Form GST REG-01 (
GST Registration Application Form) on the GST common portal.
* The GST department validates the PAN, mobile number and email ID mentioned by the applicant.
* On successful validation, a Temporary Reference Number (TRN) is generated and communicated to the applicant on the validated mobile number and email ID.
* Using TRN, the applicant shall electronically submit the application in Part B of the application form, along with specified documents at the Common Portal.
* Part B of the application contains the details, such as the constitution of business, jurisdiction, option for composition scheme, date of commencement of business, reason to obtain registration, address of the principal place of business and nature of the activity carried out therein, details of bank account(s), details of authorized signatory, Aadhaar authentication, etc.
* Upon successful submission of such application, an acknowledgement number (ARN) is issued to the applicant electronically to
check GST registration status, and the application is forwarded to the Proper Officer for approval. He examines the application and accompanying GST Registration documents.
* If they are found in order and the applicant successfully validates his Aadhaar authentication, the proper officer will grant the registration certificate in Form GST REG-06 within 7 working days from the date of submission of the application.
* However, if the application and accompanying documents are not found in order, the Proper Officer issues notice electronically, within 7 working days from the application submission date, thereby seeking clarification, information or documents from the applicant.
* If the applicant furnishes the clarification, information or documents within 7 working days from receipt of the notice, the proper officer examines the same, and if he is satisfied with it, he will issue the registration certificate to the applicant in Form GST REG-06. However, in cases where the applicant does not respond to the notice within 7 days or if the officer is not satisfied with the applicant's response, the proper officer may reject the application.
It should be noted that the Government does not levy any GST registration fees for Online GST Registration in India.
CONCLUSION:
Hence, if you fall under the GST registration limit and still don't have GST Registration and want to apply for a GST registration number, you can walk in or contact MAG to register your business under GST. Being the best GST registration service provider, we will be happy to help you apply for GST number.
So, to get your business registered under GST, you can reach out to us at
info@manishanilgupta.com. We aim to provide the most satisfactory and hassle-free services to our clients.
