Goods and Services Tax (GST) Registration Guide
Goods and Services Tax is one of the biggest tax reforms India ever witnessed that has improved the ease of doing business tremendously and has also increased the taxpayer base in the country by adding several small businesses. The complexities involved in the earlier tax regime have been reduced due to the elimination and subsuming of various taxes into one simple and single system. The new tax regime makes it mandatory that all the business entities which are involved in the process of buying or selling goods as well as providing services need to register for GST and obtain Goods and Services Taxpayer Identification Number (GSTIN). GST registration is compulsory once the business crosses the minimum threshold or when any individual commences a new business that is likely to cross the prescribed minimum threshold turnover.
In the new tax regime, businesses whose sale of goods are more than INR 40 lakhs (INR 20 Lakhs for Special category states) and sale of services are more than INR 20 lakhs (INR 10 Lakhs for special category states) are required to register themselves as a taxable person. This entire process of registration is known as GST registration. Special category states are Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand
For specific businesses, GST registration is mandatory irrespective of the threshold. If an organization carries on its business without getting registered under the GST regime or violates the provisions laid down under the governing GST laws, it will be construed as an offense under the GST law and heavy penalties would apply.
Who Should compulsorily Register for GST?
- Businesses that were registered under Pre-GST law such as VAT, Service Tax, Excise, etc.
- Individuals with turnover exceeding the threshold limit of INR 40 Lakhs (INR 10 Lakhs for North East States, Himachal Pradesh, J&K, and Uttarakhand)
- Non-Resident taxable person
- Casual taxable person
- Agents of a supplier
- Input service distributor
- Businesses paying the tax under the reverse charge mechanism
- Person supplying via e-commerce aggregator
- An e-commerce aggregator
- Individuals who are supplying any online information, database access and retrieval services from any place outside of India to any person in India, other than any registered taxable person
Documents Required for GST Registration
- PAN of the applicant as an identity proof along with photographs
- Aadhaar card as address proof of promoter
- Proof of business registration – Proof of business registration should be submitted. There’s no requirement to submit this document in case of a proprietorship business as the entity and the proprietor and are considered the same.
- Address and identity proof of the promoters and director – Documents such as passport, aadhaar card, driving license, ration card, and voter’s identity card could be submitted as address proof.
- Place of business’s address proof – Address proof should be provided for all the places of businesses that are mentioned in the application for GSR registration.
- Bank Account details – Scanned copy of the first page of passbook of the bank or the bank statement or a scanned copy of canceled cheque which contains the name of the individual or the business entity, bank account no., IFSC, MICR, and bank branch including bank code needs to be provided.
Taxpayers are required to be GST compliant and be able to ensure that they manage all the changes in the GST law in time. Based on operating geographies, sectors, and size, the changes in the GST regime would be considerable and might require planning in advance.
To prepare for the new GST regime, corporates, as well as individuals, are required to understand the GST policy and its implications for their day-to-day business activities. Taxguru has come up with an excellent and comprehensive GST Compliance course that aims to provide the learners with all the information they need to face this new tax regime. You can check the content of the course and details of this course by clicking here.