GST Registration

Overview:

In India, the Goods and Services Tax (GST) is an indirect tax that replaced many other taxes like VAT, service tax, and excise duty. If you are a business owner or planning to start a business, understanding GST Registration is crucial. Here’s everything you need to know in simple terms.

What is GST Registration?

GST registration is the process of getting your business or enterprise registered under the Goods and Services Tax system. Once you’re registered, you are legally recognized as a GST taxpayer. This allows you to charge GST on the goods or services you sell and claim tax credit on your business inputs.

Eligibility and Threshold Limits

Not all businesses need to register for GST. However, some businesses are required by law to get registered. These include:

1.     Businesses with Annual Turnover Above the Threshold Limit:

o    For service providers: ₹20 lakhs (₹10 lakhs for special category states**).

o    For goods suppliers: ₹40 lakhs (₹20 lakhs for special category states**).

2.     E-commerce Sellers:

o    If you sell through an online platform, GST registration is mandatory, regardless of your turnover.

3.     Businesses Making Inter-State Supplies:

o    If your business sells goods or services across state borders, you must register for GST.

4.     Casual Taxable Persons:

o    Temporary businesses, like event organizers, need GST registration.

5.     Non-Resident Taxable Persons:

o    Foreign businesses supplying goods or services in India must register.

6.     Voluntary Registration:

o    Businesses can opt for voluntary GST registration even if they don’t meet the threshold limit. This is useful for availing input tax credit and expanding credibility.

Benefits of GST Registration

Documents Required

1. For Sole Proprietorship (Individual)

• PAN Card : PAN card of the business owner.
• Identity Proof: A government-issued identity proof of the applicant (Aadhaar card, Voter ID, Passport, or Driver’s License).
• Address Proof: Proof of business address (Utility bill, Rent agreement, or Property tax receipt).
• Bank Account Details: Cancelled cheque or bank statement showing the business account details (account number, IFSC code).
• Photographs: Passport-sized photographs of the applicant (usually 2-3).
• Authorized Signatory (if applicable): If someone other than the business owner is applying, an authorization letter is required.

2. For Hindu Undivided Family (HUF)

• PAN Card: PAN card of the HUF.
• Identity Proof: Identity proof of the Karta (head of the family), such as Aadhaar card, Voter ID, or Passport.
• Address Proof: Proof of business address (e.g., Utility bills, Rent agreement, or Property tax receipt).
• Bank Account Details: Cancelled cheque or bank statement with the business bank details (account number, IFSC code).
• Photographs: Passport-sized photographs of the Karta and/or authorized signatories (if applicable).
• Partnership Deed: If any partnership exists within the HUF.

3. For Public Limited Company and Private Limited Company

• PAN Card: PAN card of the company.
• Certificate of Incorporation: A copy of the company’s Certificate of Incorporation issued by the Registrar of Companies (RoC).
• Memorandum of Association / Articles of Association
• Identity Proof: Identity proof (Aadhaar card, PAN card, Passport) of all directors.
• Address Proof: Proof of business address (Utility bill, Rent agreement, or Property tax receipt).
• Bank Account Details: Cancelled cheque or bank statement showing the business account details (account number, IFSC code).
• Photographs: Passport-sized photographs of directors and authorized signatories (usually 2-3).
• Board Resolution: A resolution from the board of directors, authorizing a person to apply for GST registration, if someone other than the director is filing the application.
• Authorized Signatory: If the authorized person is applying on behalf of the company, an authorization letter is required.

4. For Limited Liability Partnership (LLP)

• PAN Card: PAN card of the LLP.
• LLP Agreement: Copy of the LLP Agreement.
• Identity Proof: Identity proof (Aadhaar card, PAN card, Passport) of all partners.
• Address Proof: Proof of business address (Utility bill, Rent agreement, or Property tax receipt).
• Bank Account Details: Cancelled cheque or bank statement showing the business account details (account number, IFSC code).
• Photographs: Passport-sized photographs of the partners and authorized signatories (usually 2-3).
• Authorized Signatory: If someone other than a partner is applying, an authorization letter is required.

5. For Partnership Firm

• PAN Card: PAN card of the partnership firm.
• Partnership Deed: Copy of the partnership deed that defines the terms of partnership.
• Identity Proof: Identity proof (Aadhaar card, PAN card, Passport) of all partners.
• Address Proof: Proof of business address (Utility bill, Rent agreement, or Property tax receipt).
• Bank Account Details: Cancelled cheque or bank statement showing the business account details (account number, IFSC code).
• Photographs: Passport-sized photographs of the partners and authorized signatories (usually 2-3).
• Authorized Signatory: If someone other than a partner is applying, an authorization letter is required.

6. For Companies/LLPs Registered Outside India (Non-Resident Taxable Person)

• Passport: A copy of the passport of the non-resident.
• Address Proof: A valid address proof in the country of origin.
• PAN Card: If available, a PAN card in India. If not, a declaration can be made to apply for PAN.
• Business Activity Details: A brief description of business activities in India.
• Authorized Signatory: A person authorized to apply on behalf of the non-resident business.

How to Register for GST?

GST registration is a straightforward online process. Lets see what can we do for you:

Commonly Asked Questions (FAQs)

1. Is GST Registration Mandatory for All Businesses?

• No, only businesses meeting the turnover threshold or those making interstate sales need to register.

2. What Happens if a Business Doesn’t Register for GST?

• Businesses that are required to register but don’t, could face penalties and legal consequences.

3. Can GST Registration Be Cancelled?

• Yes, GST registration can be voluntarily cancelled, or it may be canceled by authorities if compliance requirements are not met.

4. Do Freelancers and Professionals Need GST Registration?

• Freelancers and professionals need GST registration if their annual turnover exceeds the limit set for services.

Conclusion

GST registration is an essential step for businesses in India, ensuring compliance with tax laws and unlocking several benefits. Whether you're a small business or a large corporation, being GST registered can open up new opportunities and simplify the tax process. If you are unsure about the process or whether you need to register, consider consulting with our experts to guide you through the process.

** The Special Category States include Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand, Jammu & Kashmir (including Ladakh), Andaman & Nicobar Islands, and Lakshadweep.