What is GST Registration
Businesses whose turnover exceeds Rs. 40 lacs "Rs 10 lacs for NE and hill states" is required to register as a normal taxable person. This process called as GST registration.
Some businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, Under GST and heavy penalties will apply if it will be an offence.
It is mandatory to get GST registration under-
If your annual turnover exceeds Rs.40 Lacs (INR) or
If you're doing inter-state sales or
If you're selling products online through e-commerce portal or
If you're into the import or export business
If you want to raise a tax invoice for your customers
If business participating in exhibition/event outside the State as Casual Taxable Payer
Gst registration limit
In case of North Eastern States, an annual turnover threshold limit is INR 20 Lakhs
Gst registration process
GST registration usually takes between 2-6 working days. This video help you to register for GST in easy steps. gst.gov.in registration
Click here for registration- https://reg.gst.gov.in/registration/
New gst registration
CBIC has notified the increase in threshold turnover from Rs 20 lacs to Rs 40 lacs. The notification will come into effect from 1st April 2019.
GST Registration Rule as per Act.
Every person, other than a non-resident taxable person, a person required to deduct tax at source under section 51, a person required to collect tax at source under section 52 and a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) who is liable to be registered under sub-section (1) of section 25 and every person seeking registration under sub-section (3) of section 25 (hereafter in this Chapter referred to as ―the applicant‖) shall, before applying for registration, declare his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Documents required for GST registration
(1) PAN (Permanent Account Number)*
(2) Aadhar Card (Optional)
(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 (After registration process)*
(7) Digital Signature/EVC*
(8) Letter of Authorization/Board Resolution for Authorized Signatory (If Applicable)
For more information of required document click here- https://www.gst.gov.in/docadvisor/
Why I Need GST Registration?
GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business. Benefits to GST registered business at glance are as follows:-
Become more competitive : You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
Expand your business Online : You cannot sell products or services on e-commerce platform without GST registration. If you're planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.
Can take input tax credit : Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
Can sell all over India without any restrictions : Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.
Apply Government Tenders : Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
Open Current Bank Account : Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.
Dealing with MNCs : Generally, MNC’s does not comfortable to deal with small business entities until they carry valid tax registration proof.
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. The notification will be effective from 1st April 2019.
Composition dealers will pay nominal tax rates based on the type of business:
Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).
They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
Businesses that have opted for Composition Scheme cannot claim any Input Tax Credit.
Composition scheme is not applicable to :
Service providers
Inter-state sellers
E-commerce sellers
Supplier of non-taxable goods
Manufacturer of Notified Goods
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. The notification will be effective from 1st April 2019. Learn the Rules about Composition scheme & Know the pros & cons of being a composition dealer.
Obtain GST registration and file CMP-02 to opt-in for the scheme.
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
For more GST related post click hear - https://www.justinfoz.com
Businesses whose turnover exceeds Rs. 40 lacs "Rs 10 lacs for NE and hill states" is required to register as a normal taxable person. This process called as GST registration.
Some businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, Under GST and heavy penalties will apply if it will be an offence.
It is mandatory to get GST registration under-
If your annual turnover exceeds Rs.40 Lacs (INR) or
If you're doing inter-state sales or
If you're selling products online through e-commerce portal or
If you're into the import or export business
If you want to raise a tax invoice for your customers
If business participating in exhibition/event outside the State as Casual Taxable Payer
Gst registration limit
In case of North Eastern States, an annual turnover threshold limit is INR 20 Lakhs
Gst registration process
GST registration usually takes between 2-6 working days. This video help you to register for GST in easy steps. gst.gov.in registration
Click here for registration- https://reg.gst.gov.in/registration/
New gst registration
CBIC has notified the increase in threshold turnover from Rs 20 lacs to Rs 40 lacs. The notification will come into effect from 1st April 2019.
GST Registration Rule as per Act.
Every person, other than a non-resident taxable person, a person required to deduct tax at source under section 51, a person required to collect tax at source under section 52 and a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) who is liable to be registered under sub-section (1) of section 25 and every person seeking registration under sub-section (3) of section 25 (hereafter in this Chapter referred to as ―the applicant‖) shall, before applying for registration, declare his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Documents required for GST registration
(1) PAN (Permanent Account Number)*
(2) Aadhar Card (Optional)
(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 (After registration process)*
(7) Digital Signature/EVC*
(8) Letter of Authorization/Board Resolution for Authorized Signatory (If Applicable)
For more information of required document click here- https://www.gst.gov.in/docadvisor/
Why I Need GST Registration?
GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business. Benefits to GST registered business at glance are as follows:-
Become more competitive : You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
Expand your business Online : You cannot sell products or services on e-commerce platform without GST registration. If you're planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.
Can take input tax credit : Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
Can sell all over India without any restrictions : Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.
Apply Government Tenders : Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
Open Current Bank Account : Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.
Dealing with MNCs : Generally, MNC’s does not comfortable to deal with small business entities until they carry valid tax registration proof.
GST Registration FAQs
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. The notification will be effective from 1st April 2019.
Composition dealers will pay nominal tax rates based on the type of business:
Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).
They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
Businesses that have opted for Composition Scheme cannot claim any Input Tax Credit.
Composition scheme is not applicable to :
Service providers
Inter-state sellers
E-commerce sellers
Supplier of non-taxable goods
Manufacturer of Notified Goods
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. The notification will be effective from 1st April 2019. Learn the Rules about Composition scheme & Know the pros & cons of being a composition dealer.
Obtain GST registration and file CMP-02 to opt-in for the scheme.
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
For more GST related post click hear - https://www.justinfoz.com
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