Why is GST registration necessary for every business in India?

GST registration

The Goods and Services Tax, right from its execution on the 1st of July, 2017, has been in discussion of a Nation determined towards rewarded development.

In this blog, we will get an idea about the process for getting GST registration and why it is necessary for business. This blog is specifically for our entrepreneurs and those who wish to learn. The fundamental requirement for a business to have GST registration is that the income must be more than 20 lakhs or 10 lakhs for “Exclusive category states” apart from the state of Jammu and Kashmir where Registration is not needed. 

GST Registration For Service Providers

Service providers in India, those included in intra-state state or interstate supply of goods and whose income is within 20 lakhs, are excused from Registration. The conclusion was taken in the 23rd GST council meeting, which explains the prior motto where inter-state suppliers had to register for GST and file returns, despite the amount of income.

Casual Taxable Person

A casual taxable person is anyone who infrequently undertakes transactions, including the supply of goods and/or services in a territory or a state where he has no permanent place of business. He/she is taxable despite the income of their business. These kinds of taxpayers are not qualified for the composition levy. The required person who has to apply for Registration has to apply 5 days before the initiation of business. He/she should take a progress deposit of tax to the amount he is liable. He can carry on with the supplies of his services after obtaining a certificate of Registration.

Non-Resident Taxable Person

A Non-resident taxable person is any person who participates in obtaining and supply of goods but has no enduring business or residence in the country. Similar to a casual taxable person, there is no income limit. Dissimilar to other taxpayers, a non-registered person is not needed to submit his pan number but should give his tax identification number or unique identification number, which can be utilized to testify his identity. He/she should make his Registration 5 days before his start of business and should pay the needed advance amount for which the required person is responsible. Point to be noted, and a non-registered tax person must not apply in a normal application form but in another basic version known as form GST-REG-09.

He/She is accountable to automatically apply, along with an attested passport. He can do it either via the common portal or through a facilitated center informed by the commissioner. A non-registered person, if eager to enlarge his Registration, can also do it via an application in FORM GST REG-11. A non-taxable person can begin with his operations right away after issuing the certificate of Registration. The refund of advance tax paid by a non-taxable person will only revisit after filing all the returns for the period of Registration.

Reverse-Charge Mechanism:-

It is obligatory for a person taking responsibility for reverse charge transactions to register for GST. The reverse-charge mechanism is a stipulation where the liability of tax is on the receiver of goods and not the supplier. This is done on particular imports and other informed supplies.

Other Criteria’s

  • Any person who has registered in any of the preceding tax systems like Excise duty, Service Tax, or VAT must register for GST.
  • In case of a relocation of a business from one person to another, the person to whom the rights are shifted must register for GST.
  • Agents of a supplier.
  • E-Commerce operative.
  • Any person who supplies using an E-Commerce operator
  • Any person is supplying exact information from anywhere outside India to a Non-Registered Indian citizen.

GST Registration For numerous Branches

If you are planning to begin a novel business and open several branches, then divided GST registrations have to receive from every state and every branch. In the case of diverse verticals in business, separate Registration has to acquire for every vertical.

Documents necessary For Registration

The following are the documents necessary for GST registration in India:

  • Aadhar card of all Directors
  • PAN card of all the Directors
  • Applicable Indian mobile number
  • Applicable Email address
  • At least one proprietor/Partner/Kartha/Trustee/Member with valid PAN
  • Valid Indian bank account
  • Indian financial system code (IFSC) number of the bank
  • Jurisdiction details
  • Company PAN number
  • Agreed documents
  • Business Address proof
  • a. If business position is rental, Rental agreement / Lease agreement
  •  b. NOC from the Landlord / Owner (even if the position is one of the Directors’)
  • Current Electricity Bill
  •  OR
  •  Property Tax receipt
  • An endorsed signatory who is a resident of India and who has a convincing PAN number and other required details
  • Incorporation Certificate
  • Memorandum of Association (MoA)

Now, how do you move on and register yourself?

1. Access the representative GST portal Gst.gov.in

2. Tick on Services -> Registration.

3. Under Registration, you will have two drop-down options, tick on New Registration.

4. Under that, you have to fill in the requisite details like your mobile number, Email address, and Pan. (Pan is compulsory for Registration, you will have to apply with the facilitation of the given links in case you don’t have it). In case you are applying for GST registration for Company or LLP, go through the companies or LLPs PAN.

5. You will obtain OTP’s on your mobile number and email for verification.

6. Post entering the same, you will give a provisional identification number with the help of which you can add your registration procedure

7. Upload the necessary documents based on your business kind and enter the information asked for.

The officer may take 3 working days to assess your application. If accepted, you will be receiving the registration certificate within 7 days, along with the GST identification number. If it is pending, you may have to submit additional documents to validate your application, post which the officer will create a decision on your application.

Also Read, LIC-IPO: Things you should know and pros and cons of investing.



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