Goods and Services Tax (GST) Registration

Introduction

The name Goods and Services Tax (GST) reflects a unified taxation system applicable on both goods and services. Implemented on 1st July 2017, GST is a comprehensive, multi-stage, destination-based tax charged at every value addition stage. It ensures a balanced revenue share between the Central and State Governments through a dual GST mechanism.

GST promotes transparency in indirect taxation, reduces tax cascading, controls inflation, and boosts investment inflows, e-commerce, and the “Make in India” initiative.

GST is based on the theme “One Nation One Tax” and features tax slabs ranging from 0% to a maximum of 28%.

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Advantages of GST Registration

• Legal Recognition: Only registered businesses can legally collect GST from customers and claim input tax credits (ITC).
• Input Tax Credit: Registered entities can claim credit on the GST paid on business purchases, reducing the overall tax liability.
• Smooth Compliance: GST registration enables businesses to comply with tax laws and avoid penalties.
• Broader Market Access: Many B2B customers prefer dealing with GST-registered suppliers, improving business opportunities.
• E-commerce Participation: Mandatory for suppliers making sales through e-commerce platforms.
• Transparency: Helps maintain clear tax records and transparency in business transactions.
• Ease of Doing Business: GST replaces multiple indirect taxes, simplifying tax processes and reducing complexities.
• Voluntary Registration Benefits: Even if turnover is below threshold, voluntary registration improves credibility and access to credit.

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Eligibility for GST Registration

• Mandatory Registration:
  • Businesses with an aggregate turnover exceeding the prescribed limits must register.
  • Casual taxable persons, persons supplying through e-commerce operators, and non-resident taxable persons must register irrespective of turnover.
• Turnover Limits: Business TypeNormal States Turnover LimitSpecial Category States Turnover LimitGoods SupplierRs. 40 lakhsRs. 20 lakhsService ProviderRs. 20 lakhsRs. 10 lakhsCasual Taxable PersonNo turnover limit (mandatory)No turnover limit (mandatory)
• Special Category States under GST:
  Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand, Telangana.
• Aggregate Turnover Definition:
  Sum of taxable supplies, exempt supplies, exports, and inter-state supplies minus taxes, inward supplies, reverse charge supplies, and non-taxable supplies, computed PAN-wise across all business locations.

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How to Get GST Registration?

Step-by-step Process:

1. Choose Business Name: Ensure the name complies with intellectual property laws and is not offensive.
2. Select Business Location: Identify the address for your principal place of business.
3. Apply Online:
   • Visit the official GST portal: https://www.gst.gov.in/
   • Fill in the GST REG-01 application form with required details.
4. Submit Documents: Upload necessary documents as per business type.
5. Verification: The application is verified by GST officers; additional documents or clarifications may be sought.
6. GSTIN Issuance: Upon successful verification, a unique GST Identification Number (GSTIN) is allotted.
7. Commence Business: Post-registration, comply with GST filing and payment obligations.

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Documents Required for GST Registration

• PAN Card of Business or Applicant: Essential as GST is linked to PAN.
• Proof of Identity and Address (with Photographs):
  • Identity Proof: Passport, Voter ID, PAN, Aadhar, Driving License.
  • Address Proof: Passport, Aadhar, Driving License, Voter ID, Ration Card.
  • Required from managing directors, partners, proprietors, trustees, authorized persons depending on the business type.
• Business Registration Proof:
  • Required for all entities except sole proprietorship (where owner and business are the same).
• Address Proof for Place of Business:
  • Owned premises: Latest property tax receipt, municipal khata, or electricity bill.
  • Rented/leased premises: Valid rental agreement + owner’s proof of ownership.
  • SEZ premises: Relevant Government-issued documents.
  • Other cases: Consent letter from owner + ownership proof.
• Bank Account Proof:
  • Passbook first/relevant page, bank statement, or cancelled cheque bearing business or proprietor’s name, account number, IFSC, MICR, and branch details.

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Additional Information

• Voluntary Registration:
  Even if turnover is below the threshold, businesses may opt for voluntary GST registration to enhance credibility and claim ITC benefits.
• Casual Taxable Person:
  Someone occasionally supplying goods/services in a state where they don’t have a fixed place of business, must register irrespective of turnover.
• GST Council Updates:
  Threshold limits have been revised over time; always check the latest notifications for updates.

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