GST Registration

The Goods and Services Tax (GST) was officially launched in India on July 1st, 2017, replacing taxes such as Value Added Tax (VAT), services tax, and excise duty. This comprehensive reform was made possible by the Indian Parliament after enacting the GST Act on March 29th, 2017. GST is an indirect form of taxation released within India that applies to goods and services consumed inside its borders.

Taxable person under GST

The Goods and Services Tax (GST) Act defines "taxable persons," which includes all entities conducting business in India that are registered with the GST system. These entities can include individuals, companies, trusts, HUFs (Hindu Undivided Family), LLPs (Limited Liability Partnership), foreign corporations, Government companies, co-operative societies, local authorities and artificial juridical persons.

GST Registration Turnover Limit

It's important to note that GST registration is open for voluntary enrollment from any individual or organization, even if they don't meet the turnover criteria. However, exceeding the specified turnover by selling goods or services mandates the need for GST registration, without any exceptions.

Service Providers:

Any individual or organization providing services in excess of Rs.20 lakhs in total turnover in a single year is required to acquire GST registration. For those in special categories of states, the GST turnover threshold for service providers is Rs.10 lakhs.

Goods Suppliers: 

According to Notification No. 10/2019, everyone involved in the exclusive supply of goods with an annual turnover of more than Rs. 40 lakhs must register for GST. To be eligible for the Rs.40 lakhs turnover limit, the supplier must meet the standards given below.

·         It is not appropriate to offer any services.

·         In the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur, and Uttarakhand, the supplier should not be involved in making intra-state (supplying goods within the same state) supplies.

·         It's not recommended to sell ice cream, pan masala, or tobacco products.

When the turnover crosses Rs. 20 lakhs and Rs. 10 lakhs in special category states, the supplier of goods will need to register for GST if the aforementioned requirements are not met.

Special Category States: 

Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand are listed as special category states under the GST.

Aggregate Turnover: 

Total turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) - (Taxes + Value of Incoming Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).

On the basis of the PAN, aggregate turnover is calculated. Therefore, even if a single person operates multiple businesses, the total turnover must be added up.

Types of GST Registration

Regular taxable persons, casual taxable persons, non-resident taxable persons, and eCommerce operators are all eligible for GST registration. Regardless of turnover, casual taxable individuals, non-resident taxable persons, and eCommerce businesses are required to seek GST registration.

Casual Taxable Persons: 

The Goods and Services Tax Act categorizes a "casual taxpayer" as someone who provides goods or services on an occasional basis within a state or the EU, provided they don't have a permanent establishment. This means that those who conduct short-term business at events or seasonally would fall into this category for GST purposes.

Non-resident Taxable Persons: 

The foreign person, business, or organization providing goods or services to India would be considered a non-resident taxable person, and must comply with all the GST regulations.

E-Commerce Operators:

An e-commerce operator is any individual who owns, operates or manages a digital or electronic commerce facility or platform. For example, any person who sells over the Internet can be referred to as an e-commerce operator requiring GST registration regardless of turnover.

What is GSTIN or GST Number?

GSTIN, short for Goods and Services Tax Identification Number, is a unique 15-digit identification number assigned to each taxpayer (mainly a retailer or supplier or a legal entity) registered in the GST system. Based on the applicant's PAN and state, a GSTIN is assigned. The State Code is represented by the first two digits in a GST registration number. The applicant's PAN is represented by the subsequent 10 numbers.

 How to Download GST Registration Certificate

People who are registered for GST are given a GST Certificate. Those who have a GST registration certificate are legally required to show it clearly at their place of business. Through the GST Portal, downloading a GST certificate is a rather simple procedure. Go to User Services after logging into the GST Account. To download your GST registration certificate, go to User Services and select View / Download Certificate.

Voluntary GST Registration

Regardless of annual revenue, any person or organisation that desires to offer products or services can voluntarily register for GST. Obtaining GST registration on a voluntary basis can help the business to receive Input Tax Credit and also give GST bills to customers.

Penalty for NOT Obtaining GST Registration.

It is mandatory for individuals or entities that exceed the aggregate turnover threshold to secure GST registration within 30 days of becoming eligible for the same. Failure to comply or delaying the process can result in a penalty of Rs. 10,000 as well as the forfeiture of input tax credit throughout the period of delay.

Benefits of GST Registration

There are several advantages to obtaining GST registration, including:

 Loan Eligibility: By registering for GST and regularly filing GST returns, businesses can establish a track record of their activities and provide evidence of their business's existence to lenders. As a result, banks and non-banking financial companies (NBFCs) may use GST return data to decide whether to lend to a business, making GST registration a valuable tool for formalizing a business and obtaining credit.

Supplier Onboarding: When attempting to become a supplier for well-known companies, GST registration is frequently a requirement during the supplier onboarding process. By registering for GST, businesses may be able to attract more customers and expand their operations.

eCommerce: If a business wishes to sell goods or services online through platforms like Amazon, Flipkart, Snapdeal, Zomato, or Swiggy, among others, GST registration is required. As a result, having GST registration can enable businesses to sell their products and services via online channels.

Input Tax Credit: Companies that have registered for GST are eligible to charge GST on their supplies and offset their GST liability against the GST taxes paid when purchasing various products and services. As a result, GST registration might aid in lowering taxes and increasing profits for businesses.