Register for GST online for Free* and stay ahead on GST Compliance!
GST is a tax registration mandatory for all businesses in India meeting ANY of these conditions:
Procedure of GST Registration
About GST Registration
Introducing Goods and Services Tax (GST) has been a major tax reform in India. Thus much time has been gone since its introduction that queries like “what is GST Registration” does not sound good. So here is a brief introduction
- GST is the only tax that one needs to get his/her business enrolled under.
- In the event that your business isn’t GST enrolled, heavy fines and punishments can be demanded.
- GST Registration grants you to collect GST from your clients.
- So avoid going against the law, get your business enrolled for GST.
You can bring your GST Registration by LegalRaahi. Here, we excel in to abate the burden of a long-winded registration process. Our expert team will advise you on how you can get GSTIN in an easy way. You can apply anytime for your GST number whether you are situated in Delhi NCR, Mumbai, Bengaluru, Chennai, or anyplace in India.
Types of GST
|Features||Central GST - CGST||State GST - SGST||Integrated GST - IGST|
|Tax Levied By||Central Government on Intra-State supplies of Goods and/or Services||State Government, on Intra-State supplies||Central Government, on Inter-State supplies|
|Applicability||Supplies inside a state||Supplies inside a state||Interstate supplies and import|
|Input Tax Credit||Against CGST and IGST||Against SGST and IGST||Against CGST, SGST, and IGST|
|Tax Revenue Sharing||Central Government||State Government||Shared between State and Central governments|
What is GSTIN?
- GSTIN is a unique 15-digit alphanumeric code that is issued to every Firm/Company/Individual, who is enrolled under GST.
- The government has assured that everything within GST is digital so that there is maximum transparency with less corruption.
- The first 2 digits of the GSTIN mean the state code which is issued according to the 2011 census.
- The next 10 digits are the PAN number of the entity.
- The 14th digit is Z by default.
- The 15th or the last digit is the Checksum digit. It comes, naturally, because of the figure of the calculation of the other 14 digits.
GST Registration Process on Government Portal
To enroll for GST on the Government site, you have to follow the some below steps. Carefully & Accurately
- Go to the Govt. GST Portal and look for Registration Tab.
- Fill PAN No., E-mail ID, Mobile No., and State in Part-A of Form GST REG-01 of GST Registration.
- You will receive a transitory reference number on your Mobile and through E-mail after OTP verification.
- Afterwards, you will then have to fill Part-B of Form GST REG-01. To be appropriately signed (by DSC or EVC) and upload the necessary documents specified according to the business type.
- An acceptance will be generated in Form GST REG-02.
- In the event that any data is pending from your side. It will be looked from you by affirming you in Form GST REG-03. For this, you might be required to visit the department and explain or produce the archives inside 7 working days in Form GST REG-04.
- The office may also decline your application if they discover any mistakes. You will get informed about this in Form GST REG-05.
- Lastly, a certificate of registration will be given to you by the department after confirmation and approval in Form GST REG-06
What is the Composition scheme under GST?
Private companies with a yearly turnover of not as much as Rs. 1.5 crore (Rs. 75 Lakhs for the Special Category States) can decide on the Composition scheme.
- Composition dealers require paying nominal tax rates depend on the kind of business. (A maximum of 2% for manufacturers, 5% for the restaurant service sector and 1% for other suppliers.)
- Composition dealers need to file just a single quarterly return (rather than the monthly returns filed by normal taxpayers).
- They can’t give tax invoices. That is, they cannot gather tax from clients and they have to pay the tax out of their own pocket.
- Elements that have settled on the Composition Scheme can’t guarantee any Input Tax Credit.
Who can opt for the Composition scheme?
- All SMEs searching for lower compliance and lower assessments of taxes under GST.
- A GST citizen, whose turnover is underneath Rs 1.5 crore, can settle on the Composition Scheme. (On account of Special Category States, as far as possible is Rs 75 lakh.)
- The Aggregate Turnover of all organizations enlisted under the similar PAN would be taken into application to calculate turnover.
- Will pay tax at typical rates in case he is subject under the opposite charge mechanism.
- Sellers of intra-state supply of goods (or service of only the restaurant sector).
Which businesses are not eligible to apply for the Composition Scheme?
Composition scheme doesn’t apply to:
- Service providers,
- Inter-state sellers,
- E-commerce sellers,
- Supplier of non-taxable goods,
- Manufacturer of Notified Goods,
- All the suppliers of services except those providing restaurant services (not serving alcohol),
- Suppliers of – ice cream, pan masala or tobacco (and its substitutes),
- Casual Taxable Person,
- Non-resident Taxable Person,
- Supplier of exempted goods or services.
How to apply for the Composition Scheme?
- In the event of new enlistment, you can pick the plan at the time of GST Registration.
- In the off chance that you are already enrolled you can file for it by submitting GST CMP-02 online.
What Is Included In Our Package?
GST Certificate with ARN and GSTIN Number
GST HSN Codes with Rates
GST Invoice Formats
GST Return Filing Software
GST Invoicing software
Who Must Get GST Registration
All organizations engaged within buying or selling goods or providing services, or both, should register for GST. However, for below-listed persons, GST Registration is mandatory.
- Previous Law Converted Taxpayer – All people or organizations registered under the Pre-GST tax laws like Service Tax or Excise or VAT, and so forth.
- Turnover for Goods Provider – If your sales or turnover of goods is crossing Rs. 40 lakh per annum then GST Registration is compulsory. For the certain Category States, the limit is Rs. 20 lakh per annum.
- Turnover for Service Provider – In case you are a service provider & sales or turnover is crossing Rs. 20 lakh per annum then GST Registration is compulsory. For the Special Category States, the limit is Rs. 10 lakh in a year
- Casual Taxpayer – If you supply goods or services, in events/exhibitions, and not have a permanent place of working together. In such cases, GST is charged based on an predicted turnover of 90 days. The validity of the enrollment is also 90 days.
- Agents of Suppliers or Input Service Distributor (ISD) – All supplier agents and ISD, to acquire favor of Input Tax Credit, need GST Registration.
- NRI Taxable Person – If you are an NRI or owning the business of NRI in India.
- Reverse Charge Mechanism (RCM) – Businesses who need to pay taxes within the RCM also require to be GST registered.
- E-Commerce Portals & Sellers – Every e-commerce portal (such as Amazon or Flipkart) within the various merchants are selling their products. On other hand for all vendors. You require a GST Registration.
- Outside India Online Portal – For suppliers of online data and database access or recovery services from a spot outside India to Indian Residents.
- Transferee – When the business has been moved.
- Inter-State Operations – Persons making a domestic/inter-state supply. Whatever the turnover.
- Brands – Aggregator who supplies service under his Brand or Trade Name.
- Other Taxation – Individuals who needs to deduct tax u/s 37 (TDS) of the Income Tax Act.
- Voluntary GST Registration – Any element can get GST registration at any-time. Even when the above compulsory conditions don’t concern to them.
- Inter-State Registration – If you are a supplier in more than one state you need GST Registration in all the states that you supply/provide goods or services to.
- Branches – If your business has lots of branches in various states, register one specific branch as a fundamental office or head office and the rest of the branches as additional. (Not appropriate if the business has separate verticals as listed in Section 2 (18) of the CGST Act, 2017).
The Special Category States under GST Act are:
(a) Arunachal Pradesh, (b) Assam, (c) Sikkim, (d) Meghalaya, (e) Tripura, (f) Mizoram, (g) Manipur, (h) Nagaland, and (i) Himachal Pradesh. These states can settle on tax payable at a concessional rate.
Benefits of GST Registration
Elimination of Multiple Taxes
One of the advantages of GST is the end of different circuitous duties that existed before. Such a significant number of duties have been supplanted. Taxes like excise, CENVAT, sales tax, Service tax, octroi, turnover tax and so forth are not relevant anymore and all those have come under common tax called GST
Saving More Money
GST applicability has brought about the elimination of double charging in the system for a typical man. Through this, the cost of goods and services has decreased & helping the basic man saving more money.
Ease of business
GST brought the idea of “One Nation One Tax”. That undesirable rivalry that existed before among the States has profited organizations wishing to do interstate business.
Cascading Effect Reduction
From assembling to utilization, GST is pertinent at all stages. It is giving tax credit advantages at each stage in the chain. In the prior situation, at each stage, the margin used to get added and tax was paid on the entire sum. Under GST the organizations are taking advantage of Input Tax Credit and tax is being paid on the measure of value addition only. GST has diminished the cascading effect of tax thereby reducing the cost of the product.
Because GST has diminished the cost of products, the demand, for few – if not all, products have extended. With the expansion in demand, to meet the expansion in supply, the work diagram has started going up.
Increase in GDP
Higher the demand, higher will be the production. This concludes in a higher Gross Domestic Product (GDP)
Reduction in Tax Evasion
Goods and services tax is a single tax that contains multiple earlier taxes and that incorporate the system efficient with some chances of corruption and Tax Evasion.
More Competitive Product
Manufacturing has become more aggressive with GST eliminating the descend effect of the tax, high logistics cost, inter-state tax. Delivering competitive as GST will address the descending effect of the tax, high log benefits, inter-state tax to the businessman and consumer.
Increase in Revenue
Under the GST system, 17 indirect taxes have been supplanted into a solitary tax. The expansion in product request means higher tax revenue for state and central government.
Penalties of Non-Compliance
All GST Returns must be filed before the 20th of the following month. There are severe laws within the GST Act for non-compliance with the Rules & Regulations. Fine for Not Getting GST Registration, when a business is coming under the purview. The fine is 100% of the tax sum if the offender has not petitioned for GST registration and intends to intentionally avoid. The sum is the tax as suitable. Or Rs. 10,000, whichever is higher.
A punishment of 100% tax due or Rs. 10,000, whichever is higher, is also suitable to those who choose configuration Scheme despite not being acceptable to it. Any offender not paying his due tax or making short installments (genuine errors) is accountable to pay a fine of 10% of the tax amount. This sum can’t be less than Rs 10,000. A person guilty of not providing the GST invoice is accountable to be charged 100% tax due or Rs. 10,000. Whichever is higher.
An offender will be charged a fine of Rs. 25,000 for incorrect invoicing. If a person has not filed for unpaid tax, there will be a fine of Rs. 50 per day. Rs. 20 per day somehow he was to file for NIL returns. And the maximum amount must not surpass Rs. 5,000. There is likewise an arrangement of the fine by a jail term for tax offenders to submit fraud.
Input Tax Credit or ITC
Inputs are all those goods that went into making the completed products issued to the final consumer. Organizations are charged GST on goods/services that are utilized as inputs. The ITC mechanism permits GST registered businesses to accept refunds on the GST paid for acquiring all inputs. This helps to avoid cascading taxation effect, which was the essential purpose behind introduction of the GST.
For example: GST payable on the stock of the last product of a manufacturer is Rs. 850 and the GST paid on inputs is Rs. 725. The producer can demand Rs. 725 as ITC. This brings the net tax payable during the supply to Rs. 125 only (Rs. 850 – Rs. 725).
Under the past indirect tax system of levy of Service Tax, VAT, and Excise – a lot of input tax credit was not appropriately utilized.
Who are eligible to claim Input Tax Credit?
ITC is accessible only for those elements that have enrolled under the GST Act. Only GST registered businesses can assert ITC on the tax paid for the buying of any business relevant inputs.
Who cannot claim ITC?
Input Tax Credit can be asserted only for business purposes. It is not accessible for goods or services completely used for:
- Personal use,
- Exempt supplies,
- Supplies for which ITC is specifically not available.
Along with the above mentioned, there are some other cases where ITC will be switched. Such as Credit Note issued to ISD, Non-payment of invoices within 180 days, recourses bought partly or wholly for excluded supplies or personal use, etc.
Conditions for claiming Input Tax Credit
- GST invoice showing details of tax paid is necessary,
- The goods on which GST has been paid have been received by the consumer,
- The applicant has filed the relevant tax returns,
- The supplier had paid the due tax to the government,
- The ITC applicant is registered under GST,
- If goods were received in installments, ITC can be claimed only after the final lot has been received.
ITC cannot be claimed if:
- Composition tax registered entities paying GST on inputs,
- If depreciation has been claimed on the tax part of a capital good,
- On goods not used as inputs such as supplies for personal use,
- On goods on which ITC is not applicable under the GST Act (exempted goods).
Input tax credits can be used as:
- CGST input tax credits are allowed to be used to pay CGST and IGST,
- SGST input tax credits are allowed to be used to pay SGST and IGST,
- IGST input tax credits are allowed to be used to pay CGST, SGST, and IGST.