GST Registration in India
All businesses involved in buying or selling goods or providing services or both are required to register under GST. Businesses who not done GST registration can’t be allowed to collect GST from a customer or claim on input tax credit(ITC).There are various types of GST registration and some types of businesses like casual taxable persons, non-resident taxable persons or persons supplying through e-commerce operators are required to mandatorily obtain GST registration irrespective of turnover limit.
Business or entity who provide services of RS 20 lakhs as turnover in a year is required to obtain GST registration, but in NE and hill states, the GST turnover limit has been fixed at RS 10 lakhs. Any businesses who is engaged in the supply of goods and whose turnover exceeds Rs 40 lakhs in a aggregate year and Rs 20 lakhs in NE and hill states in a aggregate year is required to obtain GST registration. But the supplier should not be providing any services and should not be engaged in making intra state supplies (supply within the same state).
Under GST, the following are states which is listed as North Eastern (NE) and hill states- Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Sikkim, Nagaland, Himachal Pradesh, Tripura and Uttarakhand.
GST Registration Check Eligibility
Turnover Exceeds 20/10 LakhIf the aggregate turnover exceeds more than Rs. 20 lakhs and Rs. 10 lakhs for North eastern states then it is compulsory to GST registration. It must be done within 30 days of reaching to that level.
- Inter-state Sales or Service
If you supply of goods and services to another state, that means interstate sales or services then it compulsory to obtain the registration certificate before starting any interstate trade.
- Compulsory Registration
GST registration is compulsory for casual taxable person, non-resident taxable person, input service distributor, E-commerce operator, etc apart from turnover limits.
- If Registered Under Old Law
Any person who was registered under any previous law of indirect tax was required to register under GST, if not then it is compulsory to register under GST immediately.
- Voluntary Registration
Any person or business can obtain GST registration any time without reaching the aggregate turnover limit. That is known as voluntary GST registration. There are many reasons for obtaining GST registration are:-
- To improve the business capability
- To claim input tax credit benefits
- To satisfy the requirements of B2B customers.
Documentation of the GST Registration
For Proprietorship / Individual
- Aadhar and PAN of the Applicant
- Photograph of the Applicant
- Business Address proof (Rent agreement or Electricity/Mobile/Water Bill)
- Bank account details (bank statement or cancelled check)
For Partnership Firms
- Aadhar and PAN of all the Partners
- Photographs of all the Partners
- Business Address proof (Rent agreement or Electricity/Mobile/Water Bill)
- Bank account details (bank statement or cancelled check)
- Partnership deed
For Pvt Ltd Companies
- Aadhar and PAN of all the directors
- Photographs of all the directors
- Business Address proof (Rent agreement or Electricity/Mobile/Water Bill)
- Bank account details (bank statement or cancelled check)
- Pan card of company
- The ministry of corporate affairs incorporation certificate
- Memorandum/Article of association
- Digital Signature
For LLP Firms
- Aadhar and PAN of all the Partners
- Photographs of all the Partners
- Business Address proof (Rent agreement or Electricity/Mobile/Water Bill)
- Bank account details (bank statement or cancelled check)
- The ministry of corporate affairs incorporation certificate
- Memorandum/Article of association.
- Digital Signature
GST Registration Process
For GST registration, following process should be followed:-
- Documentation
The first step is to arrange the all documents required for GST registration. It's depends on the type of applicants for example Proprietorship, Pvt Ltd Companies etc.
Generation of TRN
Second step is to generate TRN (temporary reference number) at GST portal which is confirmed by OTP sent to the phone number and email I'd.
Application at GSTIN
The applicant is required to registered on GST portal after generated of TRN and submission of all the documents & information’s.
ARN Generation
Once submitted application on the GST portal with all information and required documents, then ARN is generated.
GST registration certificate
After generation of ARN, the certificate of GST registration is issued with the GST Identification Number (GSTIN) by the govt within 3-6 working days.
Yes PAN is mandatory for the GST registration. In case of proprietorship, the PAN of the proprietor can be used and in case of public limited company or LLP or any other, then PAN must first be obtained for the company.
And it is not mandatory for foreigners and foreigners companies.
GST registration does not have any expiry date. It means it will be valid until it's cancelled, surrendered or suspended. But GST registration for casual taxable persons and non-resident taxable persons have a validity period which is fixed by the authorities.
No, if a person not registered under GST cannot claim for input tax credit (ITC) on the GST paid and not allowed to collect GST from the customers.
When supply of goods or services are provided to another state in India then it's an inter-state supply. When supply of goods or services are provided in same state then it's intra-state supply.
All businesses that successfully registered under GST are assigned GST Identification Number. It's a 15 digit unique number.
There are many benefits of registering under GST:-
- Take input tax credit
- Make interstate supplies without restrictions
- It eliminates the cascading effect of tax
- Less tax liability