Goods and Services Tax (GST) is an Indirect Tax which replaced all the central level and state level indirect taxes such as VAT, Service Tax, and Excise Duty.
Topics Covered –
What is GST?
Government brought a massive taxation reform by implementing Goods and Services Tax (GST) system in 2017 with the object of ‘One Nation One Tax’ and to remove the cascading effect of tax.
GST is an indirect tax levied on the supply of Goods and Services. According to GST Law, it is mandatory for every business to get the GST Registration if its turnover exceeds the prescribed limit.
Laws under GST Law:
- Central Goods and Services Tax (CGST)
- Integrated Goods and Services Tax (IGST)
- State Goods and Services Tax (SGST)
- Union Territory Goods and Services Tax (UGST)
What is GST Registration?
GST is Goods and Services Tax; it is an Indirect Tax which is levied on the supply of goods and Services across India. GST Law mandatorily requires prescribed persons to get registered under GST Law to obtain Goods and Services Tax Identification Number (GSTIN).
GST Registration is a process to get the Goods and Services Tax Identification Number from the Department of GST.
What are the benefits of GST Registration?
- Uniform Indirect tax system in India
- It prevents the cascading effect of tax.
- It has simple and less compliances as compared to previous indirect tax system.
- It provides common portal for Registration and Tax Refund.
- More use of Technology as GST Registration can be applied through online portal.
- It creates unified common market which enhances the exports and investment and ultimately it boosts the Economy.
- It provides Composition scheme for small businesses.
Who are required to get GST Registration?
- Individuals who were registered under the Pre-GST Indirect Tax Laws
- Businesses whose turnover exceed the prescribed threshold limit of Rs. 40 lakhs for goods supplier and Rs. 20 Lakhs for Service providers subjected to the GST law
- E-Commerce Operators.
- Any person who supplies goods or services through E-Commerce Operator
- Non-Resident Taxable Person Or Casual Taxable person
- Any person doing Inter-State Business
- Agents of Supplier, Input Service Distributor and E-Commerce Operators
What are the documents required for GST Registration?
- PAN Card of the applicant
- Aadhar Card
- Address Proof of the Registered Office
- Bank Account Statement
- Incorporation Certificate of the Business
- Digital Signature
- Identity Proof, Address Proof and Photograph of the Director or Promoter of the Business
- Board Resolution or Letter of Authorization from the authorized signatory
**Different Businesses require different documents to get GST Registration.
What is the process of GST Registration?
- Go to the GST Portal that is https://www.gst.gov.in/ .
- There will be a “Services” Option. Click on the services.
- Thereafter, Click on the New Registration.
- Fill the details and proceed with the application.
- Verify the Phone Number and Email Id through OTP.
- When the verification will be successful then Temporary Reference Number (TRN) will be generated.
- As the TRN is generated then Login with the TRN on the same page. Submit following details to proceed further –
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- Business Details
- Promoter Information
- Authorized Signatory
- Principal Place of Business
- Additional Place of Business
- Details of Goods and Services
- Bank Account
Always verify the details before submitting.
- When the application is submitted then Application Reference Number (ARN) will be generated.
- Then Assessing Officer will scrutinize the application and will issue the Goods and Service Tax Identification Number (GSTIN) accordingly.
What is the Penalty for not getting GST Registration?
To prevent tax evasion and any kind of tax corruption, GST has come up with strict penalties for offenders. Delay in filing GST returns leads to considerable fines and punishments. Taxpayers have to pay late fee as well as interest in case of delay in submission of GST returns and payment of taxes.
According to Section 122(1)(xi) of the CGST Act, 2017, if any taxable person fails to get GST Registration who is legally bound to get GST Registration under GST Law then such person shall be liable to pay penalty thereunder.
Generally, the minimum penalty for not getting GST Registration due to genuine mistake is 10% of the due amount and 100% when the taxpayer does not take registration to evade the tax.
Get the GST Registration with the help of GST Experts Team of Manthan Experts and start your business with ease.
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Knowledge Source:
New GST Rules for Input Tax Credit