Business Registration

Unlocking the Benefits of GST Registration for Marketers: A Comprehensive Guide

Introduction

• GST, or Goods and Services Tax, is a comprehensive indirect tax that has been implemented in India since July 1, 2017.
• It has replaced multiple indirect taxes levied by the central and state governments, creating a unified tax system across the country. 
• GST is aimed at simplifying the tax structure, increasing compliance, and reducing tax evasion.

Who is eligible to Register under GST in India?

In India, the following individuals and entities are required to register under GST if their annual turnover exceeds certain thresholds:

1. Businesses that sell goods and have an annual turnover of Rs. 40 lakhs or more (Rs. 10 lakhs for certain special category states).
2. Businesses that provide services and have an annual turnover of Rs. 20 lakhs or more (Rs. 10 lakhs for certain special category states).
3. Any person who is registered under any of the existing indirect tax regimes, such as VAT, Service Tax, Excise Duty, etc.
4. E-commerce operators that provide a platform for selling goods or services and have an annual turnover of Rs. 20 lakhs or more.
5. Non-resident taxable persons who supply goods or services in India.
6. Persons who are required to deduct tax at source (TDS) or collect tax at source (TCS).

Consult Our team of experienced professionals & ensure smooth GST Registration. Request a Callback Ask an Expert

What are the Documents Required for GST registration in India?

The documents required for GST registration in India vary based on the type of entity and the category under which the entity falls. Generally, the following documents are required for GST registration:

1. PAN card of the business or entity
2. Proof of business registration, such as a certificate of incorporation, partnership deed, or registration certificate
3. Identity and address proof of promoters, directors, or partners, such as an Aadhaar card, passport, or voter ID
4. Proof of business places, such as rent agreement, property tax receipt, or electricity bill
5. Bank account statement or cancelled cheque of the business or entity
6. Digital signature of the authorized signatory, if applicable
7. In the case of a partnership firm, a partnership deed
8. In the case of a company, memorandum of association and articles of association
9. Photographs of promoters, directors, or partners
10. Authorized signatory letter or board resolution in case of companies

What are the Types of GST Registration?

In India, there are primarily two types of GST registration:

1. Regular GST registration: This type of registration is required for businesses or entities whose annual turnover exceeds the threshold limit for GST registration, as specified by the government. The threshold limit is currently Rs. 40 lakhs (Rs. 10 lakhs for certain special category states) for businesses that sell goods and Rs. 20 lakhs (Rs. 10 lakhs for certain special category states) for businesses that provide services. Regular GST registration is mandatory for businesses that fall under this category.
2. Composition scheme GST registration: This type of registration is an optional scheme for small businesses that have an annual turnover of up to Rs. 1.5 crores. Under this scheme, businesses can pay a fixed rate of tax on their turnover instead of the regular GST rates. However, businesses that opt for the composition scheme are not eligible to claim the input tax credit.

Types of Taxpayers in GST

 Normal  Taxpayers

Normal taxpayers are entities or individuals who are required to register under GST in India and comply with the provisions of the GST Act. They are also known as regular taxpayers or regular dealers.

Normal taxpayers are required to file GST returns periodically and pay the GST on the goods or services supplied by them. They can claim the input tax credit on the GST paid on their purchases or expenses, which can be set off against the GST collected on their supplies.

Normal taxpayers are required to maintain proper books of accounts and records, and ensure that their GST returns are filed accurately and in a timely manner. They may also be subject to GST audits by the tax authorities and are required to comply with any notices or demands issued by the authorities.

2. Casual  Taxpayers

In India, a casual taxable person (CTP) refers to an individual who occasionally engages in the supply of goods or services in a taxable territory where they do not have a fixed place of business.

CTPs are required to register under GST and obtain a unique identification number (UIN) for the period of their temporary business activities. They are required to file GST returns for the period of their business activities and pay the applicable GST on their supplies.

CTPs are not required to obtain a permanent GST registration, but they must comply with all the provisions of the GST Act during the period of their business activities.

 3. Non-Resident Taxable Person

In India, a non-resident taxable person (NRTP) refers to an individual who occasionally engages in the supply of goods or services in India, but who does not have a permanent place of business in India.

NRTPs are required to register under GST and obtain a unique identification number (UIN) for the period of their business activities. They are required to file GST returns for the period of their business activities and pay the applicable GST on their supplies.

Procedure for GST Registration in India

It is important to note that the entire process of GST registration is online and can be completed within a few working days. However, the time taken for approval may vary depending on the accuracy and completeness of the information and documents provided.

1. Visit the GST portal: Go to the official GST portal at www.gst.gov.in and click on the “Services” tab. Select the “Registration” option from the drop-down menu.
2. Fill in the required details: Fill in the basic details of your business, such as the name, address, and PAN number. You will also need to provide the email ID and mobile number of the primary authorized signatory.
3. Submit documents: Upload the required documents, such as PAN card, Aadhaar card, bank statement, and proof of address of the business.
4. Verify Aadhaar: If you are a proprietor or a partnership firm, you will need to verify the Aadhaar card of the authorized signatory using OTP verification.
5. ARN generation: After submitting the application and documents, an Application Reference Number (ARN) will be generated, and an acknowledgement will be sent to the email ID and mobile number provided.
6. Approval: The GST department will verify the application and documents and may ask for additional information or clarification. Once everything is in order, they will issue the GST registration certificate.

What is the penalty for not Registering under GST?

The penalty for not registering under GST in India includes the following:

• Late fee: A late fee of Rs. 50 per day (up to a maximum of Rs. 5,000) may be levied for delay in GST registration.
• Interest: Interest may be charged on the outstanding GST liability at a rate of 18% per annum.
• Penalty: A penalty may be imposed for non-registration, which is equal to 10% of the tax due or Rs. 10,000 (whichever is higher).
• Prosecution: If a person continues to operate without registering under GST, they may be liable for prosecution under the GST Act, which can result in imprisonment or a fine.
• Disqualification from composition scheme: If a person who is eligible for composition registration fails to register under GST, they may be disqualified from the scheme and may be liable to pay the regular GST rates.

Conclusion

In conclusion, GST registration is mandatory for businesses in India with a certain threshold turnover. It provides various benefits, such as input tax credits and competitive advantage. The registration process is relatively simple and can be done online through the GST portal. It is important to comply with the GST regulations to avoid penalties and ensure smooth business operations.