GST REGISTRATION

GST is the product of the biggest tax reform in India which has tremendously improved ease of doing business and increasing the taxpayer base in India by including millions of small businesses. Tax complexities would be reduced due to the abolishing and subsuming of multiple taxes into a single, simple system. The new GST regime mandates that all entities involved in buying or selling goods or providing services or both are required to register and obtain GSTIN. Registration is mandatory once the entity crosses a minimum threshold turnover or when an individual starts a new business that is expected to cross the prescribed turnover


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WHEN GST REGISTRATION MANDATORY IN INDIA?

Turnover Criteria

All taxpayers who have an annual turnover above ₹40 lakhs are required to get new GST registration.In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.GST registration usually takes between 2-6 working days. We’ll help you to register for GST in 3 easy steps.

Causal taxpayer

If you supply goods or services in events/exhibition where you do not have a permanent place of business, you need to get online GST Registration before starting a business. Such a dealer has to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.

NRI taxpayer

NRI taxpayer, who does not have a place of business in India, wishes to start a business, then he has to apply for GST Registration in India before beginning operations in India. The validity of a new GST registration is 90 days.

Agents of a supplier & Input service distributor

All Input service distributor who wants carry-forward benefit of input tax credit requires gst registration.An Input service distributor (ISD) is a business which receives invoices for services used by its branches. It distributes the tax paid, to such branches on a proportional basis by issuing an ISD invoice.

Reverse Charge

A business who requires to pay tax under the reverse charge mechanism need GST registration. Supply from an Unregistered dealer to a Registered dealer. If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier.

E-Commerce portal

Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendor’s selling their product requires gst registration.Selling online is fast catching business, as per various studies most of the retailers and wholesalers have started selling their products online through these portals. Goods and Service Tax or GST is an INDIRECT tax that is charged on any goods or services supplied whether online or offline.


WHY I NEED GST REGISTRATION?

Become more Competitive

You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.The Goods and Services Tax (GST) has several benefits that help in integrating the economy while making Indian products more competitive internationally.

Expand your Business Online

You cannot sell products or services on e-commerce platform without GST registration. If you're planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.

Can take Input Tax Credit

Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes. Input Credit Mechanism is available to you when you are covered under the GST Act

Can sell all over India without any Restrictions

Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.To get legal recognition as a supplier of goods and/or services. To claim Input Tax Credit under the GST ITC mechanism. To legally collect tax (GST) from the buyers of goods/services. To ensure proper accounting and payment of GST to tax authorities

Apply Government
Tenders

Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.The activities in relation to government contracts has assumed great importance in the modern times with government working on major project either by way of public private partnership or through technically and professional qualified contractors.

Open Current Bank
Account

Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.


ADVANTAGES OF GST REGISTRATION

1. GST eliminates the cascading effect of tax

GST is a comprehensive INDIRECT tax that was designed to bring the indirect taxation under one umbrella. More importantly, it is going to eliminate the cascading effect of tax that was evident earlier.

2. Higher threshold for
registration

Earlier, in the VAT structure, any business with a turnover of more than Rs 5 lakh (in most states) was liable to pay VAT. Please note that this limit differed state-wise. Also, service tax was exempted for service providers with a turnover of less than Rs 10 lakh.

3. Composition scheme for small businesses

Under GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit as it gives an option to lower taxes by utilizing the Composition scheme. This move has brought down the tax and compliance burden on many small businesses.

4. The number of compliances is lesser

Earlier, there was VAT and service tax, each of which had their own returns and compliances. Below table shows the same.Reaping best benefits requires laws and compliance structures be made simpler. That the GST is a consumption tax, and other things being equal, less tax . That the GST , though simple as compared to the erstwhile indirect taxes and where the same taxpayer was required to follow as many VAT laws.

5. Simple and easy online procedure

The entire process of GST (from registration to filing returns) is made online, and it is super simple. This has been beneficial for start-ups especially, as they do not have to run from pillar to post to get different registrations such as VAT, excise, and service tax.

6. Proper Accounting and Collection of Tax

It enables proper accounting of taxes paid on the input goods or services which can be utilized for the payment of GST due on supply of goods or services or both by the business. The person registered is legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

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Frequently Asked Questions

What is the punishment for not maintaining the books of account?

If the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person of a company charged by the Board with the duty of complying with the provisions of this section in respect of Books of Acounts, contravenes such provisions, such managing director, whole-time director in charge of finance, Chief Financial officer or such other person of the company shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to 500,000 Rs. or with both..

My company has no transaction, do I still have to file ROC Returns and ITR?

Yes, every company which is registered under the companies act must file the annual roc return and ITR within its due date. However, for newly incorporated companies, there is some relaxation on time of holding the AGM. To help companies with NIL or up to less than ten transactions during the financial year, we have straightforward pricing.

What are the documents required for filing ROC Return for the company?

The essential documents are balance sheet, profit & loss account, and audit report for filing the ROC Returns. However, in the annual return of the company information concerning shares, registered address changes of any during the financial year. We would need all ROC filing done during the fiscal year..

What is the penalty in the company does not file its financial statement with the ROC?

According to 134 of the companies act, 2013, the company shall be fined any amount between Rs. 50,000 to Rs. 25, 00,000 depending on case to case basis. Further, every key person in charge, including its directors, may be sent to imprisonment for a term of 3 years or fine between Rs. 50,000 to Rs. 5, 00,000 or with both