GST Registration Importance
The execution of the Goods and Services Tax or GST rule in India in 2017 was intended at replacing several present taxes with one inclusive tax. GST is tolled at the level of manufacturing and sales of different goods and services in our country. Being a destination-based tax, it is appropriate for both manufactures and customers.
Online GST registration application is essential under the GST rule for each taxpayer or business owner whose annual income is above 20 lakh. After registering for GST processing, the business owner obtains a GSTIN number which is a whole number. A taxpayer requires the GSTIN number at each level of return billing, generating bill, and invoice procedure, so it becomes the well-known part of GST filing.
GST has aided several Indian business owners in filing their taxes without going through any problem. Its positive influence on the Indian economy can be measured through tax structure generalization, the lessened burden of taxes, SME support. Moreover, it has also made it essential for people to comprehend the procedure and get it done online.
Let’s obtain the details of GST registration and how it influences your business.
GST registration denotes the procedure in which businesses included in buying and selling goods and services required to register for GST. This procedure is necessary for business entities with income above Rs. 20 lakhs (for services). Forty lakhs(for goods supply). Also, businesses concerned about the throughway supply of goods or those making taxable supplies on other’s behalf require to go through the GST registration procedure.
For many businesses, GST registration is necessary. Mostly, it takes 2-6 days for the registration procedure to concluded. Doing the business without registering it under GST is a crime and can proceed to heavy penalties.
Who Should All Register for GST?
The subsequent business entities/individuals entitled to GST registration:
- Businesses having income beyond the brink limit of INR 40 Lakhs (this limit is lesser in the North-Eastern states, Himachal Pradesh, J&K, and Uttarakhand)
- Individuals who scheduled under a variety of tax laws (excise, service tax, VAT) before the GST rule came into being
- Informal taxable person
- Agents who function for a supplier or a service distributor
- Individuals paying tax under the overturn charge means
- Suppliers who work with e-commerce aggregators
- Non-resident chargeable person
- TDS/TCS deductor
- E-commerce aggregators
- Online data recovery or access service providers
What are the advantages of GST Registration?
GST registration has many advantages for individuals/ business entities.
Given below are some of the advantages of registering as a GST taxpayer:
- Acts as evidence that endorses your business as a certified one for the condition of goods and services.
- You acquire the right to gather tax from your customers and pass on the credit of the paid taxes to the suppliers/ customers.
- You can also obtain the advantage of a work scheme under GST to lessen the burden of fulfillment being a small taxpayer.
About GST Registration Procedure and Fees
GST registration can be done online via the government portal – https://www.gst.gov.in/, or a GST Seva Kendra. Given beneath are the steps in the online procedure:
- Go through the GST portal using the link – https://www.gst.gov.in/.
- Under the ‘Services’ tab, clack ‘Registration’ -> ‘New Registration’.
- The online GST registration form split into two parts – Part A and Part B. In Part A,
- Choose ‘Taxpayer’ from the drop-down options.
- Choose your state and district in which you want to employ.
- Enter different details, including the business’s legal name, email address, PAN, and mobile number, in the individual fields.
- Confirm the entered information using OTP.
- On finishing Part A, note down the TRN or Temporary Reference Number you obtain after verification
In Part B,
- To begin GST registration with Part B, log in using your TRN and validate the procedure by entering the correct CAPTCHA code.
- Verify the procedure by entering the OTP sent to the registered mobile number or email address. This will forward you to the GST registration page.
- Submit business-related information, comprising the company name, PAN, the state was chosen for GST registration, and the date when you initiated the business.
- Enter the needed information in the known horizontal tabs of Promoters/Partners, Authorised delegate, Authorised Signatory, and others.
- After entering the needed information and uploading documents, snap ‘Save and Continue.’
- After triumphant submission of your application, sign it digitally and carry on further.
- An ARN or Application Reference Number will sent to you, verifying your GST registration.
Since includes various steps, many individuals consider a cost linked while registering under the regime. You should know that the government does not charge any fee to assign GSTIN. However, there can be charges if you get the GST registration done through tax professionals or other service providers.
What the Documents needed for GST Registration?
Given underneath the list of documents needed :
- Applicant’s PAN Card
- Partnership deed or certificate of integration
- Bank statement or canceled cheque of the firm, individual, or company
- Address and identity proofs of partners and promoters along with photographs
- Digital signature
- Address proof of the business position
- Aadhar Card
- Resolution signed by board members
What the Penalties Charged for not choosing for GST Registration?
Any offender who intentionally avoids registering under the GST administration has to pay a penalty of 100% of the tax due or ten thousand rupees, whichever is higher.
Also Read: What are the advantages of an FSSAI food license in India