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GST Registration
Overview
Under Goods and Services Tax (GST), businesses whose turnover exceeds the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh as the case may be, must register as a normal taxable person.
For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it is an offense under GST and heavy penalties will apply.
Every product goes through multiple stages along the supply chain, which includes the purchasing of raw materials, manufacturing, sale to the wholesaler, selling to the retailer and then the final sale to the consumer. Interestingly, GST will be levied on all of these 3 stages. Let’s say if a product is produced in West Bengal but is being consumed in Uttar Pradesh, the entire revenue will go to Uttar Pradesh.
Also, taxpayers with a turnover of less than Rs.1.5 crore can choose composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
What are the components of GST?
GST will have 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, i.e., when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e., when a transaction happens one state to another.
What is the input tax credit?
Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax.
You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e., tax on sale minus tax on the purchase.
Who needs a GST Registration?
Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for companies whose turnover is more than Rs.20 lakhs (for supply of services) and Rs. 40 lakhs (for supply of goods) yearly to register for a GST.
All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.
What are the GST tax rates?
Items that are considered basic necessities come under exempt list i.e., they are not taxed.
- Household necessities and life-saving drugs etc. are taxed at 5%.
- Products like computers and processed food are taxed at 12%.
- Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%.
- Luxury items are taxed at 28%.
You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html
What is a GST Return?
A GST returns is a document containing details of income that is required to be filed as per the law with the tax authorities. Under the GST law, a taxpayer has to submit two returns on a monthly basis and one such return annually. All returns have to be filed online. All invoices for the previous tax period that went unreported must be included in the current month.
Under GST, a registered dealer has to file GST returns that include: Purchases, Sales, Output, GST (On sales) and Input tax credit (GST paid on purchases).
What is GSTIN?
GSTIN is a unique identification number given to each GST taxpayer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.
Documents Required for GST Registration
Scanned Copy of:
Copy of PAN Card
Copy of Electricity Bill
Copy of LLP Agreement or Partnership Agreement, as applicable
Certificate of Incorporation, as applicable
AOA & MOA, as applicable
Board Resolution, as applicable
Rent Agreement or Consent Letter for use of premises
Photograph of every Director/Partner/Proprietor
Information Required:
PAN & Aadhaar of every Director/Partner/Proprietor
Email & Phone Number of every Director/Partner/Proprietor
Bank Account of applicant
Business Objects
Complete list of Goods/Services
GST Registration Certificate
The GST registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST registration certificate can be downloaded from the GST Portal.
Voluntary registration under GST
Any small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration has its own advantages and some of them are:
Take input credit: In GST, there is a flow of input credit right from manufacturers of the goods till the consumers, across the country. Input credit means a taxpayer while paying tax on output can deduct the tax that has already been paid on inputs and pay only the remaining amount. Voluntarily registered businesses can increase their margins and profits through this.
Do inter-state selling with no restrictions: SMEs can increase the scope of their businesses and find prospective customers and explore online platforms
Register on e-commerce websites: SMEs can widen their market by registering through e-commerce sites.
Have a competitive advantage compared to other businesses.
Startup sampark procedure for GST registration
GST Registration is very detailed procedure, which requires keen knowledge, procedure and team of professionals. Each registration has its tailored requirements. We at Startup Sampark have a full-fledged, dedicated team of professionals. You are required to fill the form and then our experts will reach out to you, to know the exact requirement and gather further information. Then our experts at STARTUP SAMPARK will be at your disposal for assisting you with guidance concerning GST registration and tax rates. Our professionals will assist you in planning seamlessly at the least cost, confirming the successful conclusion of the process. We shall guide you with Do’s and Don’t’s as well. We will begin working on your request once all the information is provided, and the payment is received.
Why STARTUP SAMPARK?
Startup Sampark is one of the platforms which coordinates to fulfil all your Secretarial, Legal, Licensing and Taxation requirements and connect you to consistent professionals. Our team consist of Chartered Accountants, Company Secretaries, Cost Accountants, Advocates, Patent and Designs Agents, Trademarks & Copyright Attorneys, Paralegals and other legal professionals.
We are a management consultancy and technology platform to simplify legal and business related matters. We are committed to help start-ups, small business owners and non-compliant businesses in solving their legal, secretarial and taxation compliance related to setting up and running the business smoothly and compliantly.
Our clients can also track the assignment progress at all times through a dedicated portal provided to you along with User Id and Password. You can comment and find the resolution and ask questions on the dedicated portal provided to you. If you have any questions about the GST registration and tax rates, our experienced representatives are just a call away.
- Step 1: Fill the query form.
- Step 2: Our Expert will connect with you
- Step 3: Make payment through hassle free payment portal
- Step 4: Get confirmation on mail and receive User Login and password
- Step 5: Submission of documents with us on our client portal
- Step 6: Executive will process your application
- Step 7: Track progress of your order all the time on our client portal
- Step 8: Greetings, Order completed
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FAQs
GST law is in force in India since 1st July, 2017. GST is an Indirect tax collected by government on the transactions of goods and services in India. GST registration is a procedure through which government provides and unique 15-digit registration number. Through this number government monitors the returns and taxes paid by suppliers in India
You can apply for GST number directly online through Startup Sampark’s help. Proper care should be taken before selecting the various fields, types of registration, nature of business, products or services, Address documents, where in Startup Sampark will guide you. You can also apply for GST registration on your own.
Apart from our professional fee, there are no government costs involved for GST registration and filing. GST registration is completely free of government charges. There are no deposit requirements as well. Only transactions are liable for GST rates of 5%, 12%, 18% 28%.
Yes, when one crosses the prescribed criteria, then one should mandatorily register itself under GST. Also, even if you are not falling in the criteria, you may also get your business register under GST.
Once you opt for our services for GST registration and upload the required documents, we take one – two business days to process your application and upload and apply to concerned authority. It takes generally 5 – 22 working days to obtain GST certificate.
Any trader of goods with annual turnover of 40 lakhs or service provider with annual turnover of 20 lakhs would require the registration for GST.
If you are a proprietorship entity, you can provide the saving account details and later the same can be updated in your registration dashboard. For partnership, Private limited and LLP current account is Mandatory.
The persons, who are required to register under GST, will have to pay GST. Details and calculation of your sales and purchases need to accounted on monthly basis and accordingly you need to pay GST. For the calculation of GST and Payment of GST and filing of returns, you can subscribe to our monthly, quarterly and yearly packages, wherein we shall guide you with calculation and tax payment.
Majorly there are 4 rate structures in India viz 5%, 12%, 18%, 28%. The other type of rates are 3%, exempt, 0% etc. There are huge differences between zero rated and exempt goods discussed at our blogs section.
The person who are required to register under GST, but do not register will have to pay penalties under GST for NON registration. Also, one may require to pay taxes once the threshold is crossed and not registered for GST. In such a case Input tax credit will not be made available and one may still have to pay taxes which will eventually increase the burden of GST. It is better to comply for the requirements of the law with great spirit so that future legal issue may be avoided.
No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.
A trader dealing only in exempted goods or where his turnover is below Rs.20 Lakhs in the financial year (but not engaged in inter-State supplies) is not required to register under GST.
No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Sub-section (1) of Section 22 of the CGST/SGST Act.
Yes. Composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 150 lakhs. The basic objective is to bring simplicity and reduce cost of compliance for the small taxpayers. The scheme is optional and is mainly for small traders, manufacturers and restaurants.
No. The compliance process will be automated and easy for small traders. Small traders with a turnover below Rs.40 Lakhs need not register under GST. An easy to understand and comply composition scheme for traders having turnover upto Rs. 150 lakhs where tax can be paid quarterly as a percentage of turnover. The returns and payment of tax process under GST is completely online. There will be minimal interface or no interface with the tax authorities.
HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Services will be classified as per the Services Accounting Code (SAC)