As India introduced the Goods and Services Tax (GST) in 2017, it became necessary for all traders, manufacturers, and service providers to register for GST. It is essential for businesses to comply with the tax laws in India and be recognized as a supplier of goods and services. Ahuja & Ahuja Chartered Accountants offers expert GST registration services in India to make the process hassle-free for your business.
What is GST?
GST is a single tax levied on the supply of goods and services in India, except for petroleum crude, diesel, petrol, aviation turbine fuel, and natural gas. It is a replacement for various taxes such as Service Tax, Central Excise, State Excise, and Entertainment Tax. GST removes the cascading effect of taxes, leading to a reduction in the overall tax burden on goods and services.
Who is liable to register for GST?
Any business engaged in intra-state or inter-state supply of goods or services, whose aggregate turnover in a financial year exceeds Rs. 20 lakhs (Rs. 10 lakhs for Manipur, Mizoram, Nagaland, and Tripura) is required to register for GST. In addition, certain businesses are required to register compulsorily under GST, such as persons engaged in inter-state taxable supply of goods or services, persons required to pay tax under RCM, and electronic commerce operators required to collect tax at source under section 52 of the CGST Act.
Benefits of GST registration:
- Legal recognition: By registering for GST, your business becomes recognized by law as a supplier of goods and services.
- Input Tax Credit: Registered persons are eligible to claim Input Tax Credit (ITC) on inward supplies, which reduces the tax liability of businesses.
- Reduced compliance burden: GST has a simplified return filing system, leading to a lesser number of compliances than previous tax laws.
- Improved export prospects: GST removes the cascading effect of taxes, improving the export prospects of registered persons.
- Eligibility for benefits and privileges: Registered persons are eligible to avail of various other benefits and privileges provided under the GST laws.
Types of GST Registration
There are three types of GST registrations in India, depending on the nature of the business and the type of supplies made by the taxpayer. They are:
Regular GST Registration
This type of registration is required for businesses that engage in regular supplies of goods or services within a state or across state borders. The threshold limit for GST registration for a regular taxpayer is Rs. 20 lakhs, but it may vary for some special category states. The regular GST registration is mandatory for all persons who fall under the ambit of compulsory registration.
Composition Scheme Registration
Composition scheme registration is available for small taxpayers having an annual turnover of up to Rs. 1.5 crores (Rs. 75 lakhs in special category states) engaged in the supply of goods. Under the composition scheme, taxpayers are required to pay a fixed rate of tax and are not eligible to claim input tax credit. However, the composition scheme is not available for service providers.
Casual Taxable Person Registration
A casual taxable person is one who occasionally supplies goods or services in a state or union territory where they do not have a fixed place of business. Such persons are required to obtain casual taxable person registration for a temporary period. The validity of this registration is 90 days, which can be extended for an additional 90 days.
Each of these types of GST registrations serves a different purpose, and the taxpayer must choose the one that is most suitable for their business. As a chartered accountant firm in Delhi / NCR, Ahuja & Ahuja can assist clients in selecting and applying for the appropriate GST registration, as well as ensuring compliance with GST regulations.
Step-By-Step process for GST Registration in India
Step 1: Visit the GST portal
Visit the official GST portal (www.gst.gov.in) and click on the “Services” tab, and then select “Registration” from the dropdown menu.
Step 2: Fill Part A of the GST registration application form
In Part A of the GST registration application form (Form GST REG-01), provide details such as PAN, mobile number, email address, and state of the applicant. After submitting the details, the GST portal will verify the PAN, mobile number, and email address.
Step 3: Receive the TRN
Once the details provided in Part A are verified, the GST portal will generate a Temporary Reference Number (TRN) and send it to the applicant’s registered mobile number and email address.
Step 4: Fill Part B of the GST registration application form
Using the TRN, the applicant can now fill Part B of the GST registration application form with details such as the constitution of the business, jurisdiction, date of commencement of business, reason for registration, address of the principal place of business, details of bank account(s), details of authorized signatory, Aadhaar authentication, and more.
Step 5: Submit the application and documents
After completing Part B of the GST registration application form, the applicant needs to upload the necessary documents required for GST registration, such as PAN card, Aadhaar card, bank statement, proof of address, and others. The applicant also needs to submit a digital signature or e-signature.
Step 6: Receive the ARN
On successful submission of the GST registration application form and documents, an acknowledgement number (ARN) will be generated and sent to the registered mobile number and email address.
Step 7: Verification by the GST department
The GST department will examine the application and documents submitted by the applicant. If they are found to be in order, the applicant will receive the GST registration certificate (Form GST REG-06) within 15 working days from the date of submission of the application.
Step 8: Clarification or notice
If the application and documents are not in order, the GST department may issue a notice seeking clarification or additional information from the applicant. If the applicant fails to respond to the notice within 7 days or if the officer is not satisfied with the response, the application may be rejected.
That’s the step-by-step process for obtaining GST registration in India. It’s important to note that the process may vary based on the type of business, location, and other factors, so it’s always best to consult with a chartered accountant or a GST expert to ensure a smooth registration process.
Ahuja & Ahuja Chartered Accountants’ GST Registration Services:
At Ahuja & Ahuja Chartered Accountants, we provide expert GST registration services in India to ensure that the process is hassle-free for your business. Our team of skilled and experienced Indian Chartered Accountants having industry experience of over a decade are equipped to handle all your GST registration needs.
Our GST services include:
- Consultation on GST registration requirements.
- Preparation and submission of the GST registration application.
- Verification of the application status and following up with the authorities, if required.
- Assistance in obtaining GSTIN (Goods and Services Tax Identification Number).
- Assistance in the selection of the appropriate GST return filing system.
Our team of professionals will ensure that your business is registered for GST in compliance with all the laws and regulations. We understand the importance of GST compliance for your business and will help you in every step of the way.
Summary of GST Registration Services in India
Registering for GST is a crucial step for businesses operating in India. Ahuja & Ahuja Chartered Accountants provides expert GST registration services in India to help your business comply with the tax laws and regulations. Contact us today to avail of our services and make the GST registration process hassle-free.
What is GST registration, and is it mandatory for my business to register for GST?
GST registration is the process of registering your business under the Goods and Services Tax (GST) system. If your business has a turnover of more than Rs. 40 lakhs (or Rs. 10 lakhs for certain special category states), then it is mandatory for you to register for GST.
How do I apply for GST registration for my business?
You can apply for GST registration online through the GST portal (https://www.gst.gov.in/). You will need to provide some basic details about your business, such as your PAN card, proof of business registration, and bank account details, among others.
Can I apply for GST registration myself, or do I need to hire a professional?
While it is possible to apply for GST registration yourself, it can be a complex process, and it is recommended that you seek the help of a professional, such as a chartered accountant or a GST practitioner.
How long does it take to get GST registration for my business?
The time taken to get GST registration can vary depending on various factors, such as the completeness of your application, and the workload of the GST authorities. Typically, it can take between 2-6 working days to get GST registration.
What are the documents required for GST registration?
The documents required for GST registration include your PAN card, proof of business registration, bank account details, photographs, and identity and address proof of the authorized signatory, among others.
Do I need to submit any fees for GST registration?
No, there is no fee for GST registration.
Can I apply for GST registration if my business is not yet operational?
Yes, you can apply for GST registration even if your business is not yet operational. You will need to provide an estimated turnover for the next 12 months, and update it once your business starts operating.
What are the consequences of not registering for GST, even though my business is eligible for it?
If your business is eligible for GST registration but does not register, then you may be liable to pay a penalty of up to 10% of the tax due, or a minimum of Rs. 10,000. Additionally, you may not be able to claim input tax credit, and your customers may not be able to claim tax credit on purchases made from your business.
Do I need to file GST returns after getting GST registration?
Yes, once you have registered for GST, you will need to file regular GST returns to report your business’s transactions and to pay any tax due. The frequency of filing returns will depend on your business’s turnover.
Can I cancel my GST registration if I no longer need it?
Yes, you can cancel your GST registration if you no longer need it, such as if your business has closed down. You can apply for cancellation of your registration through the GST portal, and the process usually takes around 30 days.