GST Law comprising (i) Central Goods and Services Tax Act, 2017 (ii) State Goods and Services Tax Act, 2017 as notified by respective States, (iii) Integrated Goods and Services Tax Act, 2017
A) Introduction of Goods & Service Tax
Since its introduction on 1 July 2017, the Goods & Services Tax (GST) has been mandatory for all service providers, traders, manufacturers, and even freelancers in India. The GST system was implemented to replace Central and state-level taxes such as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT, making the tax process more streamlined. The GST registration charges vary depending on the type of business and turnover.
For those taxpayers whose annual turnover is less than 1.5 crore, the GST framework provides an option for a composition scheme. This scheme allows them to undergo simplified GST procedures and pay taxes at a predetermined rate according to their turnover.
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Goods & Services Tax (GST) is a consumption based tax levied on sale, manufacture and consumption on goods & services at a national level. This tax will be a substitute for all indirect tax levied by state and central governments. With the increase of international trade in services, GST has become a global standard and has replaced the erstwhile “dual taxation” levied by the central & state governments.
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In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs for sale of goods and Rs. 20 lakhs of service providers 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 offense under GST and heavy penalties will apply.
B) Who is required to register for GST ?
Business Entities:
Any enterprise with an aggregate annual turnover exceeding Rs. 40 lakhs. For special category states under GST, the threshold is Rs. 20 lakhs.
Service Providers
Those with an aggregate annual turnover surpassing Rs. 20 lakhs. For special category states, this limit is Rs. 10 lakhs.
Exemptions
It's important to note that entities dealing exclusively in GST-Exempted goods or services are not bound by these thresholds.
Previously Registered Entities
Entities that were registered under older tax frameworks (like Excise, VAT, Service Tax, etc.) need to migrate and register under the GST regime.
Inter-State Suppliers
Any entity or individual involved in the supply of goods across state boundaries.
Casual Taxable Entities
Those who undertake taxable supply occasionally. Entities under Reverse Charge Mechanism: Businesses obligated to pay tax under the reverse charge.
Input Service Distributors & Agents
Distributors of input services, including their representatives.
E-Commerce Platforms
Operators or aggregators of e-commerce platforms. Non-Resident Taxable Entities: Individuals or entities that are non-resident but engage in taxable supply within India.
Supplier's Agents
Representatives who supply on behalf of a principal supplier.
E-Commerce Suppliers
Individuals or entities that offer goods or services through an e-commerce aggregator.
Online Service Providers
Entities delivering online information, database access, or retrieval services from outside India to an individual in India, excluding those already registered under GST.
C). Types of Registration Under GST
Regular GST Registration (GSTIN)
Standard registration for businesses involved in the supply of goods and services, requiring a GST Identification Number.
Composition Scheme Registration
Simplified scheme for small businesses with lower tax rates and reduced compliance, but with certain limitations.
Casual Taxable Person Registration
Temporary registration for businesses that occasionally supply goods or services in a taxable area where they don’t have a fixed place of business.
Non-Resident Taxable Person Registration
For foreign businesses supplying goods or services in India without a permanent business establishment.
Input Service Distributor (ISD) Registration
For businesses distributing input tax credit to different branches having the same PAN.
TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) Registration
For entities required to deduct tax at source or collect tax at source under GST provisions.
- E-commerce Operator Registration
Mandatory for operators facilitating online sales through their platform.
URD (Unregistered Dealer)
Dealers not registered under GST but involved in taxable supply; generally required to register if they exceed the threshold limit.
D). Benefits of Registration Under GST
Input tax credit
Claim input tax credit on purchases and reduce your overall tax liability with GST registration.
Improves credibility
GST registration boosts your business’s credibility and trustworthiness in the eyes of customers and partners.
Removal of cascading
GST eliminates the cascading effect of taxes, ensuring a more efficient and fair taxation system.
Regulatory compliance
Stay compliant with tax laws and avoid penalties by registering for GST.
Simplified tax compliance
GST streamlines tax compliance, reducing the complexity and time spent on managing taxes.
Composition scheme
Small businesses can benefit from the composition scheme, which offers lower tax rates and simplified returns.
- Tax evasion
GST registration helps curb tax evasion, promoting a more transparent and accountable tax system.
Interstate sales
Facilitate interstate sales seamlessly without multiple taxes by registering for GST.
Legal protection
Ensure legal protection and safeguard your business from regulatory actions with GST registration.
- Lesser number of compliances
Enjoy a reduced number of tax compliances, making it easier to run your business.
Attracting foreign investors
Enhance your business’s appeal to foreign investors by demonstrating regulatory compliance through GST registration.
E). Documents required for Goods & Service Tax Registration Certificate.
A). GST REGISTRATION FOR PROPRIETOR BUSINESS
ID Proof
Aadhar Card
Proof of Principal Place of business
Property Tax Receipt /Electricity Bill / Municipal Khata copy / Consent Letter / Rent / Lease Agreement / Documents / Certificate issued by Government
Photos
A photo Copy of the respective Proprietor
PAN
The PAN card of the respective Proprietors
Bank Passbook -Savings A/c
Bank Passbook Savings Or Current Account - 1st Page Or Cheque Leaf
NOC (Owner/Landlord)
No objection certificate by the owner / landlord Aadhar Card must be enclosed. Signature for Notary Public Rs.100 Stamp Paper Consent Letter
- Additional Documents
Principle Place of Business GPRS Shop Photo With Proprietor
Trade Name
Business Trade Name
Registered Contact Details
Permanent Mobile Numbers
B). GST REGISTRATION FOR PARTNERSHIP FIRM
ID Proof
Aadhar Card for All Partners
Proof of Principal Place of business
Property Tax Receipt /Electricity Bill / Municipal Khata copy / Consent Letter-Notary Sign / Rent-Notary Sign / Lease Agreement / Certificate issued by Government
Photos
A photo Copy of the all Partners
PAN
The PAN card of the All Partners
DSC
Digital signature is the electronic signature format of the Partners/ signatory authority for the purpose of e-filing with the Register of Companies.
NOC (Owner/Landlord)
No objection certificate by the owner / landlord Aadhar Card must be enclosed. Signature for Notary Public Rs.100 Stamp Paper Consent Letter
- Additional Documents
Principle Place of Business GPRS Shop Photo With All Partners
Trade Name
Business Trade Name
- Registered Contact Details
Permanent Mobile Numbers & Mail ID for All Partners
- Partnership Agreement
Partner Profit Ratio & Other condition if any
- Appointment of Authorized Partner
Appointment of Authorized Signatory Letter signed for other Partneres.
C). GST REGISTRATION FOR PVT LTD / LTD & OTHERS
ID Proof
Aadhar Card for All Directors
Proof of Principal Place of business
Property Tax Receipt /Electricity Bill / Municipal Khata copy / Consent Letter / Rent / Lease Agreement / Documents / Certificate issued by Government
Photos
A photo Copy of the all Directors
PAN
The PAN card of the All Directors
DSC
Digital signature is the electronic signature format of the Directors/ signatory authority for the purpose of e-filing with the Register of Companies.
NOC (Owner/Landlord)
No objection certificate by the owner / landlord Aadhar Card must be enclosed. Signature for Notary Public Rs.100 Stamp Paper Consent Letter
- Additional Documents
Principle Place of Business GPRS Shop Photo With Directors
Trade Name
Business Trade Name
Registered Contact Details
Permanent Mobile Numbers & Mail ID for All Directors
Proof of Constitution of Business
Certificate of Incorporation / Any proof substantiating Constitution / Certificate for Establishment / Registration Certificate / Trust Deed
Appointment of Authorized Director
Appointment of Authorized Signatory Letter signed for other Partners.