Station of Trust
+91 8979141354
info@lawgicalstation.com
GST registration is the process of obtaining a unique identification number for a business liable to pay Goods and Services Tax (GST). As per the Central Goods and Service Tax Act of 2017, businesses with an annual turnover of more than ₹40 lakh (or ₹20 lakh for some special category states) must register as normal taxable entities. In India, a GSTIN (Goods and Services Tax Identification Number), commonly known as a GST number, consists of 15 digits. These digits are unique to each taxpayer and serve as their identification under the GST regime. This identification number helps to share all the operations and data related to the transactions with authorities.
GST or Goods and Service Tax is a destination-based, multi-stage, indirect tax system. It substitutes for VAT and other collective taxes. GST registration refers to the process of registering a firm under the GST Act of 2017. Under the GST regime, any business required to pay service tax, excise duty, VAT, or central excise must register for Goods and Service Tax (GST). GST registration is mandatory for all eCommerce sellers. Citizens can apply for a new GST online without needing to visit a government office. The registration process can be initiated on the GST portal. Upon submission of the GST application, the portal will immediately generate an ARN status.
GST ACT
The Central Goods and Services Tax Act of 2017, implemented to streamline taxation and curb tax evasion, establishes the framework for the Goods and Services Tax (GST) levied on intra-state and inter-state supplies of goods and services in India.
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:
A firm can obtain legal recognition as a supplier of goods or services by registering for GST. This validates the company's legal status as an official entity.
Businesses that are registered can deduct the GST they pay on purchases from the GST they collect on sales by claiming the Input Tax Credit. Consequently, the entire tax liability is decreased.
The GST system has reduced the complexity and time needed for compliance by streamlining the process for submitting taxes and making payments. With the help of a single online platform, businesses can more effectively manage their tax obligations.
Composition Scheme Under GST for Small Businesses allows them to pay tax at a lower, fixed rate. This reduces their tax burden and compliance requirements, making it easier to manage their finances.
With a higher registration threshold, only businesses with an annual turnover above ₹40 lakh are required to register for GST. This excludes many small businesses from mandatory registration, easing their operational processes.
GST eliminates the cascading effect of taxes by allowing input tax credit across the supply chain. This means that businesses can claim credit for the taxes paid on purchases, reducing the overall tax burden on end consumers.
The GST compliance rating is a score given by the government to a business based on parameters such as timely filing of monthly and annual returns, furnishing details of input credits used, and taxes paid. This compliance rating shows customers and other firms how compliant they are with the tax department. Businesses with high compliance ratings are bound to receive Input Tax Credit (ITC) and refunds in a timely manner. The GST authorities prioritise processing ITC claims and refund requests from high-rated businesses, ensuring swift disbursement of credits and funds.
The following documents are required for the new registration process.
Eligibility to Register for GST Registration must be verified before registration. Individuals registered under the Pre-GST law should also opt for GST registration. It is mandatory for businesses that have a turnover of ₹40 lakhs for the sale of goods in normal category states and ₹20 lakhs for the sale of goods in special category states. A company must register as a regular taxable entity under GST law if its annual threshold limit exceeds ₹40 lakhs. The GST council recommends GST rates, tax exemptions, and other tax-related policies. Here is a complete outline for the same
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹20 lakh | Yes–For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹10 lakh | Yes – For Special Category States | Upto 31 March 2019 |
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹40 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | From 1 April 2019 |
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹40 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | Upto 31 March 2019 |
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
Irrespective of the threshold limit GST registration is mandatory for the following:
Businesses exceeding an annual turnover of ₹40 lakhs (for goods) and ₹20 lakhs (for services) should register for GST and fulfil tax obligations on their taxable goods and services. Although it is not mandatory, businesses with annual revenue under ₹40 lakhs in the respective financial year are free to register for GST. Doing so entitles them to benefits from input tax credit. It is noteworthy that states falling under the special category have a separate minimum threshold, which is ₹10 lakhs for services and ₹20 lakhs for goods. Here is a complete outline of the same:
| Normal Category States/UT Opting for ₹40 lakh Limit | Normal Category States Opting for Status Quo | Special Category States/UT Opting for ₹40 lakh Limit | Special Category States/UT Opting for ₹20 lakh Limit |
|---|---|---|---|
| Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands and Chandigarh | Telangana | Jammu and Kashmir, Ladakh and Assam | Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand |
Here are 4 steps to complete your GST registration process
Here are few types of GST registered in India:
Here is clear outline of regular, casual and non resident taxable persons:
Regular taxpayers under GST are obligated to remit GST once their business turnover surpasses a specified threshold in a fiscal year. Suppliers must register with the state or union when providing goods and services.
A person who periodically engages in business transactions involving the delivery of goods or services, or both, in a state or union territory where they do not have a fixed place of business, whether as a principal, agent, or in any other capacity, is referred to as a casual taxable person.
A non-resident taxable person is someone who, while not having a fixed place of business or residence in India, occasionally engages in transactions involving the supply of goods or services, or both, in the course or furtherance of their business, whether as a principal, an agent, or in any other capacity.
As per the Goods and Service Tax Act of 2017 all e-Commerce operators should collect the tax at the source of 1% on the cross sales amount of an e-Commerce seller. e-Commerce operators who manage digital or electronic facilities selling goods should register under the Act mandatorily and they are also required to register for TCS.
A GSTIN number is a 15-digit code that identifies a registered taxpayer (mainly dealers, suppliers, or any business entity across India) registered under the GST regime. GSTIN is an abbreviation for Goods and Services Tax Identification Number. This provides greater transparency in the GST system, helps in collecting all the GST-related data from the vendors, and prevents tax evasion. Having a GST number provides many advantages for small enterprises. It gives businesses access to different government assistance and relief programs, allows them to claim input tax credit on their purchases, and increases their credibility with suppliers and consumers.
The GSTIN plays a crucial role in activities such as availing loans, claiming refunds, simplifying verification processes, making corrections, and understanding one's GST identification number.
Here are the penalties for Non-compliances of GST:
Here are some consequences for not registering for GST. The Goods and Service Tax Act of 2017 states that failure to obtain GST registration in India carries a direct penalty that applies even in cases where the registration is submitted after the deadline:
GST registration offers businesses numerous advantages, establishing legitimacy and ensuring compliance with tax regulations:
Below listed categories are required to register GST
A fundamental error involves neglecting proper record-keeping, whether it pertains to invoices, bills of supply, or purchase records. Maintaining well-organised documentation is crucial for precise GST filing.
Mistakes in invoices, such as incorrect Goods and Services Tax Identification Number (GSTIN), wrong invoice numbers, or inaccurate tax calculations, may result in compliance issues and penalties.
Failure to reconcile purchase data (GSTR-2A) with field data (GSTR-3B) can lead to inconsistencies and compliance issues.
Late GST return filing incurs penalties. Staying informed about due dates and filing returns punctually is crucial.
Validating suppliers' GSTIN through the GST portal is essential. Incorrect or fake GSTINs can result in denial of input tax credit.
Lack of comprehension about the intricacies of the GST Composition Scheme can lead to inaccurate filings.
Ignoring GST notices or compliance requirements can result in legal issues and substantial penalties. Addressing them promptly is essential.
Lawgical Station stands out as a reliable choice for GST registration with its efficient and streamlined process. Our platform offers a user-friendly interface, simplifying the often intricate GST registration procedure. Lawgical Station's expert team ensures accurate documentation and compliance with regulatory requirements, providing a hassle-free experience for businesses. With a commitment to delivering prompt and reliable services, Lawgical Station emerges as a trusted partner for businesses seeking seamless GST registration assistance.
Yes, you can voluntarily register for GST even if your turnover is below the threshold. It might be beneficial for availing input tax credits and participating in interstate transactions, improving your business credibility
Penalties for not registering for GST on time include late fees and interest charges. It's crucial to adhere to registration deadlines to avoid financial implications and ensure compliance with tax regulations.
The effective date of GST registration is when you become liable to pay GST, while the date of registration is when you are officially registered. Understanding this difference is important for determining when your GST obligations commence.
Yes, issuing a tax invoice and tax collection is mandatory for voluntary GST registration. Even if your turnover is below the threshold, compliance with invoicing and collection requirements is necessary to meet legal obligations and maintain transparency in your transactions.
No, input tax credit cannot be availed against a 5% GST liability for goods sold by your LLP. Input tax credit is typically applicable for higher tax rates, and the limited 5% tax rate may not provide eligibility for claiming input tax credit in this scenario.
If not registered for GST and dealing with GST-charging entities, consider registering to avail input tax credits. Without registration, businesses might bear the entire tax burden, impacting profitability.
Resolve GST export error code SB001 on ICEGATE by verifying data accuracy, ensuring proper document submission, and seeking assistance from ICEGATE or GST support for technical guidance.
To address negative amount errors in GSTR3B due to credit notes, rectify the values, report corrections in subsequent returns, and maintain accurate documentation to reconcile discrepancies.
If your GSTIN was cancelled without filing the final return, rectify by filing the pending return immediately. Failure to do so can lead to penalties and compliance issues.
The GST Annual Return is a summary of a taxpayer's financial activities for a fiscal year, including details of sales, purchases, and taxes paid. It provides a comprehensive overview of the taxpayer's GST transactions.
The HSN Code, or Harmonised System of Nomenclature, is a standardised coding system for classifying goods internationally. It simplifies the identification of products for tax and regulatory purposes, aiding in smooth trade.
The full form of SAC Code is ‘Service Accounting Code.’ It is a system of classification for services under GST, helping in uniform taxation and simplifying compliance for service providers.
Yes, a salaried person can apply for GST registration if involved in business activities beyond their employment. Registering is mandatory if the aggregate turnover exceeds the prescribed threshold.
An E-way Bill is a document required for the movement of goods worth over a specified value between different states. It ensures tax compliance and facilitates the smooth transportation of goods by providing details about the consignment.
Station of Trust
Yours Journey begins with questions But end with solutions when you Land at LAWGICAL STATION.
