A comprehensive indirect tax imposed on the supply of on the supply of goods and services in India is The Goods and Service Tax (GST). GST has replaced several indirect taxes such as service tax, value-added tax, and excise duty. You need to register for GST if you are a service provider or business owner in Mumbai, Maharashtra, and your yearly turnover exceed a fixed limit. Here is the procedure for such GST registration.
The Procedure for New GST Registration in Maharashtra
The GST registration process in Mumbai is easy and can be done online by the GST portal. For GST registration in Mumbai, follow these simple steps:
- Go to the GST portal and tap on the ‘New GST Registration’ tab.
- Choose the type taxpayer you are and suffuse your simple details that are asked such as PAN, name, email address, mobile number.
- Verify your email address and mobile number by putting in the OTP received on your email or mobile number.
- Fill in the complete registration form with your work details such as name of the business, principal place of business, HSN/SAC Code and address.
- Sync the asked documents such as PAN card, bank account details, and proof of address.
- Once you give in the documents and registration form, a GST officer will confirm your application and may question for additional information and documents.
- After complete confirmation, you will receive your GSTIN (GST Identification Number) and can commence collecting and charging GST from your customers.
It is necessary to copy that you need to file orderly GST returns and maintain complete records of your exchanges to obey with GST regulations. If you fail to do so this can result in legal actions and penalties. In synopsis, the registration process for GST in Mumbai, Maharashtra, is a direct process that can be commenced through the GST portal. Keep in mind to comply with GST rules and regulations by maintaining proper records and filing regular returns.
Documents Required for GST Registration in Mumbai
For GST (Goods and Services Tax) registration in Mumbai, the generally required documents are as follows:
- Aadhaar card or any other valid ID proof of the applicant registering for GST
- PAN (Permanent Account Number) card
- Proof of registration of business such as Memorandum of Association (MOA), Partnership Deed, and Article of Association (AOA), Incorporation certificate or any other confirmed document .
- Cancelled Cheque of the bank account or Bank account statement
- Evidence of the principal place of work such as rent agreement, electricity bill, or any other confirmed document.
- Photographs of the Authorized signatory and the applicant.
- Digital Signature Certificate (DSC) of the authorized signatory.
The particular requirements may vary conditional on the type of business, so it’s advised to check the formal GST website or ask a professional for help on guidance on the registration process.
The Conditions for GST Registration
The following are the conditions for GST registration in India:
A business whose yearly turnover crosses Rs. 40 lakhs (rs. 10 lakhs for specific class states) is asked to register for GST. For the businesses involved in supply of goods or services through online e-commerce platforms, registration is necessary regardless of their turnover.
• Voluntary registration
A business whose yearly turnover is lower than the threshold limit can apply for elective registration. This is especially beneficial for small businesses that want take benefit of the input tax credit.
• Inter-state supply
The involvement of any business in the supply of goods or services across state border is required to do GST registration, regardless of their yearly turnover.
• Casual taxable person
A usual taxable person is one who sometimes undertakes transactions on occasional basis involving the supply of services and goods in a taxable region where they does not have exact place of business.
• Non-resident taxable person
Any overseas Indian or entity that delivers taxable services or goods in India is required to acquire GST registration.
• Reverse charge mechanism
If a business in included in buying services or goods from not reported supplier, then the business is required to pay GST under alter charge procedure and is required to obtain GST registration.
• Other specific cases
Recent businesses, like agents of suppliers, input service distributors, and the ones involved in the supply of online information and database access or retrieval services (OIDAR), are required to do GST registration, regardless of their yield.
It is necessary to copy that registration of GST is compulsory for businesses that follow the above conditions. If one fails to register for GST it can result in legal actions and penalties.
The Limit for GST Registration in Mumbai
The registration limit for the Goods and Services Tax (GST) in Mumbai is same as the rest of India. The GST registration limit is set by the yearly yields of a business. If the yields of a business crosses the threshold limit, then the business must register for GST.
As of April 2023, the GST registration threshold limit in India for businesses is as follows:
• For businesses that are involved in supply of goods:
If the yearly yields crosses RS. 40 lakhs, then it is mandatory for business to register for GST.
• For businesses engaged in the supply of services:
If the yearly yields crosses Rs.20 lakhs, thenit is mandatory for business to register for GST.
It is necessary to know that the threshold limits are prone to change, so it is always a better thought to check with the pertinent authorities for the recent information.
The 3 Types of GST Registration
There are three types of GST (Goods and Services Tax) registration in India:
• Regular GST Registration
This type of registration is compulsory for businesses whose yields crosses a certain limit.
The recent yields limit is Rs. 20 lakh for maximum states and Rs. 10 lakh for hilly states and Northeastern states. However, businesses that are involved in inter-state supply of services and goods or are entered or recorded under any previous tax law, need GST registration, irrespective of their yields.
• Composition Scheme Registration
Small businesses with yearly yields up to Rs. 15 crore can go for the Composition Scheme. Under this scheme, businesses have to pay a certain % of their yields as tax and it is not mandatory to maintain detailed books. However, on their purchase they cannot claim input tax credit (ITC) on their purchases.
• Casual Taxable Person Registration
A businessman who sometimes supply goods or services but not regularly in a taxable region do not have a fixed place of commencement of businesses, is considered casual taxpayer. In this type of registration the valid period is around 90 days that can be further extended to 180 days. Based on the estimated liability casual taxpayers are required to deposit tax in advance.
The turnover limit for GST (Goods and Services Tax) in India are as follows:
- The turnover limits for businesses operating in most states is Rs. 40 lakhs (for goods) and Rs. 20 lakhs (for services).
- The turnover limits for businesses operating in certain special region states is Rs. 10 lakhs (for services and goods both).
It is mandatory to copy that businesses that crosses the turnover limit for GST registration compulsorily register for GST to follow with all the rules and regulations.
The above detailed guide on the GST registration process in Mumbai, Maharashtra, explains the simple 7-step method for registration. Additionally, the specifics of required documentation, eligibility requirements, and enrollment kinds are well covered. following GST registration to guarantee compliance with GST laws and rules, a business’s financial records and GST returns for a specific financial year are examined as part of a GST annual audit procedure.