What is GST Registration ?
GST stands for “Goods and Services Tax” that is an indirect tax which has replaced VAT, service tax, excise duty and various other indirect taxes. GST is a destination based comprehensive value added tax levied on goods and services based on the phenomenon of “One Nation, One Tax “.
Goods & Services Tax (GST) was implemented on 1st July 2017 and is applicable to all Indian goods and service providers including freelancers, traders & manufacturers; once their supply turnover crosses Rs. 20 lakh. It is an all-in-one tax that subsumes a variety of state (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty). GST is to be charged at every step of the supply chain, with complete set-off benefits available. The procedure for GST is completely online and requires no manual intervention. There will also be a composition scheme under GST for businesses with a supply turnover of less than Rs. 50 lakh.
Does GST applies to all businesses ?
Yes, GST is applicable to all service providers, manufacturers and traders which extends to all kinds of startups and companies, import-export businesses, bloggers, writers or anyone earning from Google Adwords or through PayPal, whether they are LLPs, proprietorship, partnerships or private limited companies.
Documents required for GST Registration: The list of documents required for registration of GST for various business are as follows:
PROPRIETORSHIP
〉 PAN Card and address proof of proprietor
LLP
〉 PAN Card of LLP
〉 LLP Agreement
〉 Partners’ names and address proof
PRIVATE LIMITED COMPANY
〉 Certificate of Incorporation
〉 PAN of Company
〉 Articles of Association
〉 Memorandum of Association
〉 Resolution signed by board members
〉 Identity and address proof of directors
〉 Bank Details
Who is liable to be registered ?
Mandatory Registration
Every supplier of taxable goods or services whose aggregate turnover in a financial year exceeds Rs. 20 Lakhs is liable to be register under GST in the State from where he makes the taxable supply.
In case, the taxable person is conducting business from any of the North-Eastern states of India including Sikkim, the threshold of annual gross turnover for GST registration is Rs. 10 Lakhs.
Irrespective of the above mentioned thresholds, there are some condition where the person shall be required to be registered under this act. It is produced as follows:
» Person/entity making inter-state taxable supply;
» Casual taxable and Non-resident taxable persons;
» Person/entity who are required to pay tax under reverse charge;
» Person/entity who are required to deduct tax;
» Person/entity who supply goods and/or services, other than branded services through electronic commerce operator;
» Input service distributor;
» Every electronic commerce operator;
» An aggregator who supplies services under his brand name or his trade name;
» Such other person or class of person as may be notified by the government.
Voluntary Registration
» A person having all-India gross annual turnover below the threshold turnover
Kinds of Registration under GST
Multiple Registration/ State-wise Registration
The taxable person, being a single legal entity, supplying goods and/or services from more than one State will have to take separate registration in each of those States.
Registration for Casual Dealers
A supplier who is not registered on regular basis in a state and desires to conduct business for a limited period of time in that particular state will have to obtain registration in that state for that limited period.
These suppliers are regarded as Casual Dealers.
The registration certificate will be initially valid for a period of 90 days which may further be extended.
Such dealer shall at the time of application for registration will have to make an advance deposit of tax in the manner prescribed by the government.
Registration for Non-Resident Supplier
A supplier who is registered and conducts business in any particular state but is not the resident of that state and makes intra-state supplies of goods and/or services in which he is registered is regarded as a Non-Resident Supplier.
The registration certificate will be initially valid for a period of 90 days which may further be extended.
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