Registration
GST Registration
GST INTRODUCTION
GST is known as the Goods and Services Tax. It is an indirect
tax which has replaced many indirect taxes in India such as the excise duty,
VAT, services tax, etc. The Goods and Service Tax Act was passed in the
Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words, Goods and Service Tax (GST) is
levied on the supply of goods and services. Goods and Services Tax Law in
India is a comprehensive, multi-stage, destination-based tax that is
levied on every value addition. GST is a single domestic indirect tax
law for the entire country.
BENEFITS OF REGISTERING FOR GST
Registration under GST is an important step towards a unified
tax system in India. It offers many advantages to registered businesses. A
taxpayer who registers under the GST Act of 2017 will receive the following
benefits:
·
Legal Recognition
·
Input Tax Credit (ITC)
·
Simplified Process
·
Composition Scheme
·
Higher Threshold for GST Registration
·
Eliminates the Cascading Effect of Taxes
TURNOVER LIMITS FOR GST REGISTRATION
GST registration is optional without a turnover limit but
becomes mandatory when aggregate turnover exceeds ₹20 lakh for service
providers or ₹40 lakh for goods suppliers in most states. For special category
states, the limit is ₹10 lakh. Aggregate turnover includes all taxable
supplies, exempt supplies, exports, and inter-state supplies calculated on a
PAN-India basis.
To clarify the GST registration thresholds based on sectors and states, here is
an overview of the limits:
|
Sector/Category |
Threshold Limit for GST Registration |
|
Manufacturing Sector |
₹40 lakhs or higher |
|
Service Sector |
₹20 lakhs or higher |
|
Special Category States |
₹10 lakhs or higher |
DOCUMENTS REQUIRED FOR GST REGISTRATION
|
Entity Type |
Documents Required |
|
Sole Proprietor / Individual |
1. PAN card of the proprietor |
|
Private Limited Company |
1. PAN card of the company |
|
LLP and Partnership Firms |
1. PAN card of the partnership/LLP |
|
HUF (Hindu Undivided Family) |
1. PAN card of HUF |
|
Public limited Company |
1. PAN card of the company |
|
Foreign Companies |
1. Registration certificate issued by the foreign authority |
REDUCED NUMBER OF COMPLIANCES
GST consolidated various returns required under the earlier tax
system into a unified return format. This reduces the number of returns that
businesses need to file and simplifies the compliance process. For instance,
businesses had to file separate returns for excise, VAT, and service tax,
whereas under GST, there are about 11 returns, out of which only four are basic
returns applicable to all taxpayers.
COMPOSITION SCHEME UNDER GST FOR SMALL BUSINESSES
GST introduced the Composition scheme for small taxpayers.
Businesses with turnovers up to a specified limit can opt for this scheme,
where they pay a fixed percentage of their turnover as tax and have simplified
compliance requirements. This eases the tax burden and administrative
complexities for small businesses, encouraging their participation in the
formal economy.
THERE ARE FOUR TYPES OF GST IN INDIA: NAMELY
•Integrated Goods and Services Tax (IGST)
•State Goods and Services Tax (SGST)
•Central Goods and Services Tax (CGST)
•Union Territory Goods and Services Tax (UTGST)
📄 Document
Title: GST REGISTRATION DOCUMENTS
📜 Document Instructions:
Format: 🖼️ Image (JPG)
📄 Document
Title: COMPANY PROFILE OF GST REGISTRATION
📜 Document Instructions:
Format: 📄 PDF
Service Related FAQ
What is the most significant benefit of the GST system?
The GST system brings about increased transparency in operations
The GST system brings about increased transparency in operations
An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.
What Happen When We Will Not Submit Return Of GST ?
If you don't file the GST returns that are required to be filed under the law, then late fees will apply for every day of default that occurs.
How Many Penality Amount Of Gst Return?
Penalty on Missing the GST Due Date: 20/day, i.e. Rs. 10/- day in each CGST and SGST (in case of Zero tax liability), subject to a limit of Rs. 5000/-, from the provided amount.
