GST Registration in India

GST Registration – An Overview

The Goods and Services Tax, popularly known as GST, was introduced on July 1, 2017, as a replacement for various central and state-level taxes, including Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT. GST introduction has since ensured the streamlining of the tax process in India. GST registration is mandatory for traders, service providers, manufacturers, and freelancers.

Taxpayers with a yearly turnover of not more than INR 1.5 Crore have the option to avail themselves of the benefits of a composition scheme. This scheme paves the way for a simplified GST process, facilitating the payment of taxes at a prearranged rate in line with their turnovers.

GST has united various indirect taxes, including VAT, service tax, and excise duty, into a unified single tax system. The consolidation of multiple taxes restructured as GST has streamlined compliance, lowered tax evasions, eliminated the domino effect of taxes, promoted the ease of doing business, and boosted the efficacy of the country’s economy.

What is a GST Registration Certificate?

GST registration certificate is an official document issued by the Government of India to business entities registered under the Goods and Services Tax (GST) framework. This certificate stands as a testimony to the entity’s legal standing and legitimate registration under GST.

This GST registration certificate displays critical information, including the GST identification number, business name, and the official address of the business.

GST Certificate plays a critical role for entities for the following reasons:

1. Tax Collection Authority – This certificate legally allows businesses to levy and collect GST from their customers.
2. Tax Credit Claims- This certificate authenticates businesses' ability to claim credits for the GST paid on their purchases and operational expenses.

Besides the tax-related functions, the GST Certificate also helps in areas including:

1. Loan Applications- Entities with GST certification find it easy to apply for and secure loans from financial institutions, as it serves as proof of their legitimacy.
2. Government Tenders- Businesses with a GST certificate is authorized to participate in government tenders, as they represent adherence to tax compliance.
3. Goodwill- The GST Certificate not only boosts its goodwill but also earns the trust of consumers owing to its adherence to national tax laws.

Overall, the GST Certificate is important for accomplishing tax obligations and crucial in cementing an entity’s credibility and operational legality. Furthermore, the GST registration verification is of utmost importance for any business.

What is GSTIN?

Goods and Services Tax Identification Number, better known as GSTIN, is a distinctive 15-digit alphanumeric code assigned to every taxpayer who is registered under the GST regime in India. The GSTIN is the primary identifier for individuals and businesses in GST-related matters for seamless transactions and regulatory compliance.

After the applicants successfully apply for GST registration, they are issued GSTIN, which is mandatory for smooth business operations and executing tax obligations.

Benefits of GST Registration

GST registration offers a variety of benefits to individuals and business entities, and these include the following:

• Regulatory Compliance—GST registration safeguards the interests of individuals and business entities operating in India. It ensures their legal and tax compliance, thus saving them from paying penalties for violations.
• Tax Credit Entitlement—Businesses are entitled to claim GST credits on purchases, offsetting these against GST on sales. This, in turn, helps them reduce their overall tax liability and streamline their cash flow.
• Facilitation of Inter-State Trade- GST registration allows entities to conduct their businesses across two states without the burden of taxation issues, ensuring seamless business operations.
• Abolishment of Tax-on-Tax—The migration to the GST tax regime has helped authorities remove the effect of paying tax on an already taxed amount, thus reducing the total cost of products or services. It has indeed benefitted the end-use consumer.
• Market Advantage – Businesses with GST registration earn the trust of their customers, which in turn attracts more business opportunities for them in the future.
• Market Expansion Plans – Businesses with GST Registration not only earn their customers trust but also earn collaborations with bigger market players, thus helping them with market expansion.
• Streamlined Cash Management – Businesses with GST registration are often guided by competent management, which significantly helps them reduce their tax liabilities and manage cash flows.
• Improved Credit Score – The businesses which manage their GST and other regulatory compliances easily boost their credit profile.
• Legal Protection - GST registration safeguards the legal and regulatory standards of the business, thereby protecting their legal rights.
• Easy Compliance—GST registration is not a complicated process. It helps business entities streamline their processes for filing tax returns and making online payments.
• Operational Transparency—GST registration allows business entities to maintain updated business records. This helps build a sense of reliability and facilitates operational transparency.

Types of GST Registrations in India

The Goods and Services Tax (GST) in India is classified into three significant categories. Let us understand all the three types of GST registrations:

• Central Goods and Services Tax (CGST) – CGST is that form of GST, which is charged by the central government on the goods and services supplied within any particular state of India. The CGST is applicable to the transactions done within the boundaries of one particular state.
• State Goods and Services Tax (SGST) – SGST is that form of GST, which is levied by the state government on the goods and services supplied within its authority. Like the CGST, SGST is also applicable to transactions that happen within the boundaries of a specific state.
• Integrated Goods and Services Tax (IGST)– The IGST is a form of GST that is levied by the central government on goods and services supplied within different states or between a state and a Union Territory. IGST is applicable only to transactions wherein the goods or services cross the boundaries of any state or Union Territory.

Eligibility Criteria for New GST Registration

GST registration is essential for certain businesses and service providers. The eligibility criteria for applying for mandatory new GST registration include the following:

• Business Enterprises – Any business that has an aggregate annual turnover of more than INR 40 Lakhs is mandated to apply for GST registration. However, for any special category state, the threshold amount is INR 20 Lakhs.
• Service Providers – All service providers with an aggregate annual turnover of over INR 20 Lakhs must get GST registration. However, the limit for any special category states has been set at INR  10 Lakhs.
• Exemptions – Any business or service provider dealing with goods and services exempted from the purview of the GST is not required to fulfil these thresholds.
• Previously Registered Businesses—Businesses that were previously registered under older tax structures, such as Excise, Service Tax, VAT, etc., are required to shift to the newer GST structure.
• Inter-State Suppliers—Any individual or business dealing with goods supplied across state boundaries must obtain GST registration.
• Guidelines for Casual Taxable Entities –Anyone who undertakes taxable supply sometimes is also required to adhere to GST guidelines.
• Businesses under the Reverse Charge Mechanism- Businesses that are bound by the framework to pay tax under the reverse charge must also obtain a GST registration certificate.
• Input Service Distributors & Agents– Input service distributors and their agents or representatives are mandated to obtain registration under GST.
• E-Commerce Platforms – All operators and aggregators delivering goods and services through e-commerce platforms must get a GST registration certificate.
• Non-Resident Taxable Entities – Even if certain individuals and business entities are non-resident and do not reside in India but are involved in taxable dealing within India, they are required to obtain GST registration.
• Agents of Suppliers – Anyone who is identified as a representative and supplies goods and services on behalf of the main falls under this category.
• E-Commerce Suppliers – Any individuals or businesses, which deliver goods and services through e-commerce aggregators are also mandated to register themselves for GST.
• Online Service Providers – All entities involved in the business of offering information online, database access, or retrieval services from outside India to any individuals in India, except for the ones who have an existing GST, are also required to obtain a GST registration certificate.

Documents Required for GST Registration

In order to ensure successful GST registration, several documents are required. The documents required for GST registration in India are showcased below:

• Applicant’s PAN Card
• Applicant’s Aadhaar Card
• Proof of business registration/Certificate of Incorporation
• Identity proof of Promoters/Director
• Address proof of Promoters/Director
• Photographs of Promoters/Director
• Address proof of the place of business
• Bank Account statement/Cancelled cheque
• Digital Signature
• Letter of Authorization/Board Resolution for Authorized Signatory

GST Registration Procedure

The process of GST registration is now easy and simple. The step-by-step GST registration procedure is as follows:

• Step 1

The applicant must visit the GST portal to login and begin the registration process.

• Step 2

As part of the registration process, the applicant must provide all the relevant details, such as the legal business name, PAN, email ID, mobile number, district, and state.

• Step 3

Once the details are submitted, the applicant receives an OTP on their registered mobile number and email ID. Once this is verified, a TRN number is generated, which is sent via email.

• Step 4

After receiving the TRN, the applicant needs to click on the new registration tab and select the TRN.

• Step 5

Next, the applicant needs to submit the details related to the promoters/partners, place of business, business details, authorized signatory, state, Aadhar authentication and verification.

• Step 6

The applicant needs to click Save and Continue to proceed further.

• Step 7

The applicant receives the ARN confirmation via SMS. 

Penalty for Violating GST Registration Norms

It is mandatory for certain businesses to obtain GST registration. Violating the regulatory and legal GST norms attack the following penalties:

1. Non-Payment or Underpayments – In the case where a taxpayer fails to pay tax or underpays accidentally, a penalty equal to 10% of the pending tax is imposed. GST regulations on tax violations draw penalties for non-compliance. Therefore, it is advisable to make the tax payments within stipulated time limits. However, this violation draws a minimum penalty of INR 10,000.
2. Deliberate Tax Evasion – In case an individual or a business avoids paying taxes intentionally, they draw a penalty equivalent to 100% of the amount evaded as tax. 

Completing the entire registration process takes around 30 days.

 

GST Registration Fees

The expert consultants at Corpbiz help you streamline your GST registration process by offering end-to-end guidance. Our GST registration fees stays in the range of INR 2000 to INR 5000.

Completing the entire registration process takes around 30 days.

 

GST Registration Timeline

GST registration is mandatory for certain businesses to maintain legal, regulatory, and operational transparency in India. The timeline for getting GST registration approval is 7 to 10 working days. Completing the entire registration process takes around 30 days.

Why Corpbiz?

1. Professional Team
2. Industry Knowledge
3. Expertise
4. Customer Centric Approach
5. Best Price
6. Relationship Manager
7. Google Verified