What is GST Registration

In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.

For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply. CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs.

Who should Register for GST?

1. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.).
2. Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand).
3. Casual taxable person / Non-Resident taxable person.
4. Agents of a supplier & Input service distributor.
5. Those paying tax under the reverse charge mechanism.
6. Person who supplies via e-commerce aggregator.
7. Every e-commerce aggregator.
8. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

Rietway Consultants GST Registration Package

The Services which are included in our package are as Follows:
✅ Consultation for GST Requirement
✅ Preparation of Documents
✅Application Filing
✅GST Certificate and Login Credentials

Documents Required for GST Registration

1. PAN of the Applicant
2. Aadhaar card
3. Proof of business registration or Incorporation certificate
4. Identity and Address proof of Promoters/Director with Photographs
5. Address proof of the place of business
6. Bank Account statement/Cancelled cheque
7. Digital Signature in case of Company

GST Registration Procedure

1. Documentation: The documents required depends on the applicant type, the first step is to arrange the documents required for GST Registration.
2. Application At GSTIN: The applicant is registered on GST Portal for submission of the application, for this purpose OTP is sent on the phone and email.
3. ARN Generation: ARN is generated after submission of application on the GST Portal with all information and required documents.
4. GST Registration: After generation of ARN, the certificate of GST registration is issued by the GSTIN and GST Number is allotted in approx a week time.

What are the components of GST?

GST will have 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e. when a transaction happens one state to another.

What is the input tax credit?
Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax.

You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e. tax on sale minus tax on the purchase.

Penalty for not registering under GST

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.
The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.

FAQ on GST Registration

Q1 What is GSTIN?
All businesses that successfully register under GST are assigned a unique Goods and Services Tax Identification Number also know as GSTIN.

Q2 When should a business apply for multiple GST registrations?
If a business operates from more than one state, then a separate GST registration is required for each state. For instance, If a sweet vendor sells in Karnataka and Tamil Nadu, he has to apply for separate GST registration in Karnataka and TN respectively.
A business with multiple business verticals in a state may obtain a separate registration for each business vertical.

Q3 What is Composition scheme and when should a business opt for it?
Small businesses having an annual turnover less than Rs. 1.5 crore** ( Rs. 75 Lakhs for NE States) can opt for Composition scheme.
**CBIC has notified the increased in the threshold turnover for opting into the Composition Scheme from Rs 1 crore to Rs 1.5 crores.

Composition dealers will pay nominal tax rates based on the type of business: o Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).

o They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.

o Businesses that have opted for Composition Scheme cannot claim any Input Tax Credit.

Composition scheme is not applicable to :
o Service providers
o Inter-state sellers
o E-commerce sellers
o Supplier of non-taxable goods
o Manufacturer of Notified Goods

Q4 Who can Register for Composition scheme under GST?
This scheme is a lucrative option for all SMEs who want lower compliance and lower rates of taxes under GST.
A GST taxpayer whose turnover is below Rs 1.5 crore** can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the present limit is Rs 75 lakh.
Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
**CBIC has notified the increased in the threshold turnover for opting into the Composition Scheme from Rs 1 crore to Rs 1.5 crores.
Obtain GST registration and file CMP-02 to opt-in for the scheme.

Q5 What are the benefits of registering under GST?
A. For normal registered businesses:
Take input tax credit
Make interstate sales without restrictions

B. For Composition dealers:
Limited compliance
Less tax liability
High working capital

C. For businesses that voluntarily opt-in for GST registration (Below Rs. 40 lakhs*)
Take input tax credit
Make interstate sales without restrictions
Register on e-commerce websites
Have a competitive advantage compared to other businesses

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs.