GST Registration Process: Everything You Need to Know

Requirement for GST registration

1. Combined turnover: If you are a service provider and your annual turnover is more than Rs. 20 lakhs, then you must register for GST. However, if you operate in certain states, this cap is lowered to Rs. 10 lakhs. For businesses that only supply goods, registration is mandatory if their annual turnover exceeds Rs. 40 lakhs.
2. Business between states: Businesses that engage in inter-state supply of goods and services, even if their turnover is below the threshold limit, are also required to register for GST.
3. Online Store Platform: Any individual who sells goods or services through an online marketplace like Flipkart, Amazon, etc., must register for GST, regardless of their turnover.
4. Casual Taxable Individuals: Individuals who sell goods or services on a seasonal or temporary basis from a stand or store must register for GST, regardless of their annual turnover.
5. Voluntary enrolment: Any organisation can choose to register for GST voluntarily. Previously, voluntary registration was binding for a year, but now organisations can revoke their registration at any time following changes.
6. Reverse charge mechanism: anyone who is liable to pay tax under reverse charge mechanism , must register for GST.

Types of GST registration

1. Regular GST registration – This is for businesses that fall under the threshold limit and are required to register for GST.
2. Composition scheme GST registration – This is for businesses with a turnover of up to Rs. 75 lakh ( 50 Lakh for few states) . They can pay a fixed percentage of their turnover as tax instead of the regular GST rates.
3. Multiple GST registration – This is for businesses that have operations in multiple states. They are required to obtain separate GST registration for each state.

Taxpayer categories of GST registration

1. Ordinary taxpayers: Most commercial establishments in India fall under this category. Businesses with an annual revenue of more than Rs. 40 lakh are required to register for GST. However, in the northeastern states of Jammu and Kashmir, Himachal Pradesh, and Uttarakhand, the minimum required annual revenue is Rs. 10 lakh.
2. Composition registration: Businesses with an annual revenue of up to Rs. 1 crore can register under the composition scheme. Under this scheme, businesses have to pay a flat GST rate regardless of their actual sales volume.
3. Non-professional tax-paying individuals: Businesses that operate intermittently or seasonally are required to register for GST. These businesses must deposit the GST liability incurred from irregular business operations. The registration is valid for three months, but businesses can request renewals and extensions.
4. Non-resident taxable individual: Anyone who is not a permanent resident of India but conducts business with Indian consumers as an agent, principal, or in another capacity must register under this category. The business owner must make a deposit equal to their anticipated GST liability during the GST active tenure. Although its average duration is three months, registrants can extend or renew their registration if necessary.

As a GST registration consultant, we can guide businesses on the appropriate category for registration and ensure a smooth registration process.

Benefits of GST registration

1. Legitimacy – GST registration lends legitimacy to a business and increases its credibility.
2. Input tax credit – Businesses registered under GST can claim input tax credit on purchases made for their business.
3. Inter-state operations – GST registration is mandatory for businesses engaged in inter-state operations.
4. Compliance – GST registration ensures that businesses comply with the tax laws of the country.

In conclusion, GST registration is a crucial requirement for businesses in India. It is important to understand the process and the various aspects of GST registration to ensure compliance with the tax laws of the country.

GST registration process

1. Gather necessary documents: We will ask you to provide certain documents, including their PAN card, Aadhar card, business registration proof, and bank account details.
2. Submit application: Based on your company potential turnover and other factors, we will determine the appropriate GST registration form and submit the application along with the necessary documents.
3. Verification: Once the application is submitted, the GST department will verify the details provided and may ask for additional information if required.
4. GSTIN and certificate: Upon successful verification, the GST department will issue a GST Identification Number (GSTIN) and a certificate of registration. The GST certificate will be generated in PDF format and it will be sent to your registered email id directly by the GST department.
5. Post-registration compliance: After registration, we will advise you on the compliance requirements such as filing returns, maintaining records, and other obligations under the GST law.

Legal Babu will always be available to guide you throughout the registration process and answer any queries they may have. We strive to ensure a smooth and hassle-free registration process for you.