GST Registration Online

GST Registration Online

GST Registration Process

The Goods And Services Tax (GST) Registration services are available on  https://www.gst.gov.in. under Services tab Ú Registrations Ú New Registrations

Goods and Services Tax Identification Number  (GSTIN)

All business Enterprises or individuals who successfully register under GST are assigned a unique Goods and Services Tax Identification Number also known as GSTIN. Under the GST(Goods and Service Tax) Law, it is mandatory  to have GSTIN to collect, pay GST and claim the Input Tax credit.

A business whose turnover exceeds Rs. 40 lakhs* (Rs 20 lakhs for  seven North Eastern states  and Northern hill states like Himachal Pradesh, Uttarakhand and Jammu & Kashmir) is required to register as a normal taxable person. This process of registration is called GST registration.

For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.

GST registration normally takes between 2-6 working days.

Types of GST Registrations

There are 4 different types of GST Registration:

1. Compulsory Registration
2. Voluntary Registration
3. Register Under Composition Scheme
4. No Registration

1.      Compulsory Registration: Generally, GST Registration is required only if the aggregate turnover of the business exceeds the threshold limit during the financial year. However, in some cases, GST Registration is mandatory even if the aggregate turnover of the business is below the threshold limit. Individuals or business that are required to register under GST are mentioned below:

a.      Inter-State Suppliers of Taxable Goods

b.      e-Commerce Operators or TCS Collectors

c.       e-Commerce Suppliers of Goods

d.      Non-Resident Taxable Person

e.      Casual Taxable Person

f.        Input Service Distributor

g.      Agent

h.      OIDAR Service Provider (Online Information Database Access and Retrieval Services)

i.        TDS Deductor and

j.        RCM (Reverse Charge Mechanism)

2.      Voluntary Registration: Voluntary registration means  applying for registration under GST(Goods and Service Tax) on a voluntary basis. The dealers who are not required to register as per the GST Law can apply for voluntary registration under GST.

3.      Registration Under Composition Scheme: This is a form of voluntary registration as it is an optional scheme. A business is compelled to register under GST if their aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for the Composition Scheme of the goods and restaurant services is at 1.5 Cr. So businesses having turnover below the threshold limit (1.5 Cr) can avail themselves of this scheme.

4.      No Registration: There are many categories of businesses that do not require GST Registration:

o    The business for which aggregate turnover during the financial year does not exceed Rs.40 lacs for goods (Rs.20 lacs for special category states)

or

 Rs.20 lacs for services (Rs.10 lacs for special category states).

o    The business that does not fall under the provisions of compulsory registration.

o    Persons selling goods or services that are exempt under GST or not covered under GST.

o    Agriculturists for the supply of crops produced from the cultivation of land.

Who Should Register for GST?

·         Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)

·         Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 20 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)

·         Casual taxable person / Non-Resident taxable person

·         Agents of a supplier & Input service distributor

·         Those Business who pay tax under the reverse charge mechanism

·         Person who supplies goods /services via e-commerce aggregator

·         Every e-commerce aggregator

·         Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.

MULTIPLE GST REGISTRATIONS

If a business operates from more than one state, then a separate GST registration is required for each state. For instance, If a sweet vendor sells in Karnataka and Tamil Nadu, he has to apply for separate GST registration in Karnataka and TN respectively.

A business with multiple business verticals in a state may obtain a separate registration for each business vertical.

Documents Required for GST Registration

·         PAN of the Applicant

·         Aadhaar card

·         Proof of business registration or Incorporation certificate

·         Identity and Address proof of Promoters/Director with Photographs

·         Address proof of the place of business

·         Bank Account statement/Cancelled cheque

·         Digital Signature (Optional)

·         Letter of Authorization/Board Resolution for Authorized Signatory

Penalty for not registering under GST

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.

The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes

What is Composition scheme and when should a business opt for it?

Small businesses having an annual turnover less than Rs. 1.5 crore** ( Rs. 75 Lakhs for NE States) can opt for Composition scheme.

Composition dealers will pay nominal tax rates based on the type of business:

o    Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).

o    They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.

o    Businesses that have opted for Composition Scheme cannot claim any Input Tax Credit.

Composition scheme is not applicable to :

o    Service providers

o    Inter-state sellers

o    E-commerce sellers

o    Supplier of non-taxable goods

o    Manufacturer of Notified Goods

Who can Register for Composition scheme under GST?

This scheme is a more convient option for all Small and Medium Enterprises who want lower compliance and lower rates of taxes under GST.

A GST taxpayer whose turnover is below Rs 1.5 crore** can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the present limit is Rs 75 lakh. Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.

What are the benefits of registering under GST?

A. For normal registered businesses:

·         Take input tax credit

·         Make interstate sales without restrictions

B. For Composition dealers:

·         Limited compliance

·         Less tax liability

·         High working capital

.

C. For businesses that voluntarily opt-in for GST registration (Below Rs. 40 lakhs*)

·         Take input tax credit

·         Make interstate sales without restrictions

·         Register on e-commerce websites

·         Have a competitive advantage compared to other businesses

How to Search GSTIN of a Registered Business

GST Taxpayers can be searched in Https://www.gst.gov.in under Search Taxpayer tab.

There are three options to search

1                    Search with GSTIN/UIN

2                    Search with PAN

3                    Search Composition Taxpayer

GST Registration Online