by Registration under GST
Registration under GST is a mandatory requirement for all businesses involved in the supply of goods or services whose annual turnover exceeds a certain threshold. The registration process is online and is administered by the Goods and Services Tax Network (GSTN). Here’s an overview of the registration process under GST:
Who is required to register?
As per Section 22 of the CGST Act, 2017, every supplier whose aggregate turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for special category states) in a financial year is required to register for GST. The threshold limit for registration is Rs. 10 lakhs for businesses engaged in the supply of goods in some states like Manipur, Mizoram, Nagaland, and Tripura.
Apart from this, there are certain categories of businesses that are required to register for GST, regardless of their turnover. These include businesses engaged in the supply of taxable goods/services through e-commerce platforms, non-resident taxable persons, and persons liable to pay tax under reverse charge mechanism.
How to register for GST?
Registration for GST can be done online through the GSTN portal. The process involves submitting the necessary documents and information, including the PAN card, proof of business registration, and bank account details. Once the application is verified and approved by the GST officer, a unique GSTIN (Goods and Services Tax Identification Number) is generated.
What are the benefits of registration?
- Legitimacy: Registration provides legal recognition to the business and ensures compliance with the law.
- Input Tax Credit: Registered businesses can claim input tax credit on GST paid on purchases, which reduces their GST liability.
- Compliance: GST registration requires businesses to maintain proper records and file regular returns, which helps ensure compliance with tax laws.
What are the Consequences of non-registration?
Failure to register for GST can result in penalties and fines. Registered businesses are required to file regular returns and pay GST on time. Non-compliance can result in penalties and legal action by the tax authorities.
Persons liable to get registered
Under the GST regime, the following persons are liable to get registered:
- Businesses whose aggregate turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for special category states) in a financial year.
- Businesses making inter-state supplies.
- Casual taxable persons making taxable supplies.
- Non-resident taxable persons making taxable supplies.
- E-commerce operators and aggregators who are required to collect tax at source under Section 52.
- E-commerce sellers who are required to collect tax at source under Section 52.
- Input service distributors.
- Persons who are required to deduct TDS under Section 51.
- Persons supplying goods or services on behalf of other registered taxable persons, such as agents or brokers.
- Any person who is required to pay tax under reverse charge.
- Persons who were registered under the previous tax regime (such as VAT, Service Tax, etc.) and have migrated to GST.
- Persons who voluntarily choose to get registered, even if their turnover is below the threshold limit.
It is important to note that registration is mandatory for all the above-mentioned persons, except for those who are engaged in the supply of exempted goods or services or those who are engaged in the supply of goods or services that are not liable to tax under the GST law.
Compulsory Registration
Under the GST regime, registration is mandatory for certain persons, irrespective of their turnover or the nature of their business. These include:
- Persons making inter-state taxable supplies.
- Casual taxable persons making taxable supplies.
- Non-resident taxable persons making taxable supplies.
- E-commerce operators and aggregators who are required to collect tax at source under Section 52.
- E-commerce sellers who are required to collect tax at source under Section 52.
- Persons who are required to deduct TDS under Section 51.
- Persons supplying goods or services on behalf of other registered taxable persons, such as agents or brokers.
- Any person who is required to pay tax under reverse charge.
- Persons who were registered under the previous tax regime (such as VAT, Service Tax, etc.) and have migrated to GST.
- Persons who voluntarily choose to get registered, even if their turnover is below the threshold limit.
In addition to the above, certain categories of persons are also required to obtain registration under GST, irrespective of their turnover or the nature of their business. These include:
- Businesses engaged in the supply of ice cream, pan masala, tobacco and tobacco products.
- Casual taxable persons making taxable supplies.
- Non-resident taxable persons making taxable supplies.
- Persons who are required to deduct TDS under Section 51.
- Persons supplying goods or services on behalf of other registered taxable persons, such as agents or brokers.
- Any person who is required to pay tax under reverse charge.
It is important to note that failure to obtain registration under GST, when required, can result in penalties and other consequences. Therefore, it is advisable to consult a tax professional to determine whether registration is mandatory for your business under the GST regime.
Registration Procedure
Step 1: Visit the GST Portal
The first step is to visit the GST portal (https://www.gst.gov.in/) and click on the “Services” tab, followed by “Registration” and then “New Registration”.
Step 2: Fill out the GST registration form
The next step is to fill out the GST registration form, which includes details such as the legal name of the business, PAN number, email address, mobile number, etc.
Step 3: Verification of PAN and mobile number
Once the details are filled out, a One Time Password (OTP) will be sent to the registered mobile number and email address for verification. The PAN number will also be verified with the Income Tax database.
Step 4: Uploading of documents
After the verification process is complete, the applicant must upload the required documents, such as proof of address, PAN card, bank account details, etc.
Step 5: Submission of application
Once all the details and documents have been uploaded, the application can be submitted.
Step 6: Issuance of GST registration certificate
After the application is submitted, the GST registration certificate will be issued by the concerned authority, along with a unique GSTIN (Goods and Services Tax Identification Number).
It is important to note that the registration process can take up to 7 working days, depending on the completeness of the application and the documentation submitted. Once the registration certificate is issued, the business can start collecting and remitting GST.
