What is GST (Goods and Services Tax)?
GST stands for Goods and Services Tax. It is a value-added tax levied on the sale of goods and services. GST was implemented on 1st July 2017, replacing the previous complex tax structure of various indirect taxes such as VAT, service tax, and excise duty.
GST is a comprehensive indirect tax that is levied on every stage of the supply chain, from the manufacturer to the end consumer.
Goods & Services Tax is a single tax which is levied only on value addition at each stage of their production or distribution. Credits of input taxes paid at the procurement of inputs will be available. Thus, the final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
GST has been implemented with the aim of simplifying the tax structure, reducing tax evasion, and promoting the ease of doing business in India.
What is GST Registration – Process & Documents
GST registration is the process of obtaining a unique Goods and Services Tax Identification Number (GSTIN) from the GST authority. Any person or entity that supplies goods or services and has a turnover exceeding a certain threshold limit is required to register for GST.
Recommended Read: Person Liable for mandatory GST registration
It is important to note that GST registration is mandatory for certain businesses, and failure to register can result in penalties and legal action. Therefore, it is advisable to consult a GST consultant or a Practicing CA to ensure compliance with GST laws.
As GST became a reality on 1st of July 2017, so it is important to understand who all person needs to register under GST, how a user can register their business for GST, and what all they need for business registration under the regime for GST.
How to register existing taxpayers for GST
A business or an enterprise with service tax or any VAT registration can register themselves under the GST regime.
Formalities required for GST:
- Provisional id received from personalized authority
- PAN of the tax payer/business
- Mobile number
- Email id
- Bank account details
New GST Registration
How to register under GST if you are new taxpayer
Eligibility criteria for GST
Your business needs to have an annual turnover of around Rs. 40 lakhs or more. However, if the business is located in any of the seven Northeastern places, then your business turnover limit is Rs. 20 lakhs
Who has to register for GST?
A person who is liable to be registered shall apply for registration in every such State or Union Territory in which he is so liable, within 30 days from the date on which he becomes liable to North eastern part of India.
Anyone having multiple business verticals in any State may obtain a separate registration for each of their business vertices. A person may get himself registered voluntarily, and all provisions of this GST Act, as apply to a registered taxable person, shall apply to such person.
To register for GST, a person must need to have a Permanent Account Number (PAN) to get eligible for grant of registration. There is also Exception which is for a non-resident taxable person.
Online GST Registration Process:
Online GST Registration process is quite complex for newbies. You can’t get it done without the help of professionals.
Bizindigo will help you in getting your GST number. We provide easy, hassle-free company registration, trademark, and GST registration services online. You just have to give the required documents and the process will be done by the Bizindigo team.
Alternatively, you can apply for GST its your own via an online GST portal, registration can be done which is maintained by the Central Government or State Government.
Here are the steps involved in online GST registration:
- Visit the GST registration portal (www.gst.gov.in) and click on “Register Now.”
- Fill in the details required in Part A of the application form, such as the name, PAN, email address, and mobile number of the applicant.
- After submitting Part A, a Temporary Reference Number (TRN) will be generated and sent to the applicant’s email and mobile number.
- Using the TRN, the applicant needs to complete Part B of the application form, which involves filling in additional details such as business type, nature of business, and bank account details.
- The applicant must then upload the required documents, such as PAN card, Aadhaar card, bank statement, and proof of address.
- After submitting the application, an acknowledgement (ARN) will be generated, which the applicant can use to track the status of the application.
- Once the application is approved, the applicant will receive the GSTIN, which is a 15-digit unique identification number.