India imposes a tax on the supply of goods and services known as the Goods and Services Tax (GST). Property dealers are required to register for GST if their annual revenue is greater than the threshold amount of Rs. 40 lakhs (Rs. 10 lakhs for hill states and the North-Eastern region). In this blog, we will discuss how property dealers can do GST registration.
GST Registration
In India, the Goods and Services Tax (GST) has taken the place of a number of indirect taxes. Businesses must register for GST within 30 days of exceeding the threshold limit if their annual revenue exceeds Rs. 20 lakhs (Rs. 10 lakhs for Northeastern states). GST registration can be completed online through the GST portal and entails the following steps:
- Obtain PAN and Aadhaar: The first step in GST registration is to obtain a PAN (Permanent Account Number) and an Aadhaar card. These documents are required to create a GST account on the GST portal.
- Create GST Account: Once you have a PAN and Aadhaar card, you need to create a GST account on the GST portal. You can log in to the GST portal using your PAN, and you will receive an OTP on your registered mobile number for authentication.
- Fill Registration Form: After logging in to the GST portal, you need to fill in the GST registration form with the required details, such as business name, address, bank account details, and others. You also need to upload the necessary documents, such as PAN card, an Aadhaar card, and proof of address.
- Verification: After submitting the GST registration form, the application is verified by the GST officer. The officer may ask for additional documents or clarification on the information provided.
- Approval: Once the verification process is completed and the GST officer is satisfied with the application, they will approve the GST registration. You will receive a GST registration certificate with a unique GSTIN (Goods and Services Tax Identification Number).
- Update Business Information: After obtaining the GST registration certificate, you need to update the business information, such as business turnover and other details, on the GST portal regularly.
GST registration is a crucial step for businesses in India, as it enables them to collect and pay GST on their sales and purchases. It also provides legal recognition to the business and helps in availing input tax credits on purchases. Failing to register for GST can result in penalties and legal consequences, making it essential for businesses to complete the GST registration process on time.
Steps GST registration for Property Dealers
Step 1: Visit the GST portal
The first step in the GST registration process is to visit the official GST portal[1].
Step 2: Click on ‘Register Now’
On the GST portal’s homepage, click on the “Register Now” button under the “Taxpayers (Normal)” option.
Step 3: Fill in the required details
The next step is to fill in the required details in the GST registration form. Property dealers need to select the ‘Taxpayer’ option and the ‘State/UT’ in which they operate. They also need to provide their legal name, PAN number, email ID, and mobile number.
Step 4: Verify the OTP
Once the details are filled in, the GST portal will send an OTP (One Time Password) to the registered mobile number and email ID. Property dealers need to verify the OTP to proceed with the registration process.
Step 5: Fill in the business details
The next step is to fill in the business details, such as the business name, the type of business, the date of commencement, and the GST registration type. Property dealers need to select ‘Regular’ as the GST registration type.
Step 6: Provide the address details
Property dealers need to provide their business address details, such as the building/house number, street name, area/locality, and pin code.
Step 7: Verify the details
Once all the details are filled in, property dealers need to verify the information provided in the GST registration form. They can review and make any necessary changes before proceeding.
Step 8: Upload the required documents
The relevant documents, including the PAN card, Aadhaar card, bank statement, and address proof, must then be uploaded. Property dealers are responsible for making sure the documents are in the correct size and format.
Step 9: Submit the application
Once all the details and documents are uploaded, property dealers need to submit the application. The GST portal will then generate an Application Reference Number (ARN) and send it to the registered mobile number and email ID.
Step 10: Wait for approval
Property dealers need to wait for the GST registration application to be approved. The GST portal will notify them of the approval or any discrepancies in the application.
Goods and Services Tax Act
The Goods and Services Tax (GST) Act is a comprehensive law that governs the levy and collection of GST in India. The Act was implemented on July 1, 2017 and replaced several indirect taxes, including central excise duty, service tax, value-added tax (VAT), and others. The primary objective of the GST Act is to simplify the tax structure and promote the ease of doing business in India.
The GST Act has several provisions related to GST registration, payment of taxes, filing of returns, input tax credit, and other aspects of GST compliance. Here are some of the key features of the GST Act:
- Dual GST: The GST Act has provisions for both Central GST (CGST) and State GST (SGST), which are levied on the supply of goods and services within the respective jurisdiction of the Central and State Governments.
- Threshold Limit: The GST Act has a threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for Northeastern states) for GST registration. Businesses with an annual turnover below this limit are not required to register for GST.
- Input Tax Credit: The GST Act provides for input tax credit, which allows businesses to claim credit for the GST paid on their purchases. Input tax credit can be claimed only if the supplier has deposited the GST collected from the recipient with the government.
- GST Returns:The GST Act has provisions for filing GST returns, which registered taxpayers must do on a monthly or quarterly basis. The GST returns contain details of the sales and purchases made during the period, along with the GST paid and collected.
- GST Council: The GST Act provides for the constitution of the GST Council, which is a body comprising of the Central and State Governments. The GST Council is responsible for making recommendations on GST policies and procedures in India.
The GST Act has significantly simplified the tax structure in India and has made it easier for businesses to comply with tax laws. The Act has also helped in promoting the ease of doing business in India and has made the country a more attractive destination for investment.
Conclusion
In conclusion, property dealers can register for GST by following these simple steps. It’s important to ensure that all the details and documents provided are accurate and in the prescribed format to avoid any delays or rejections in the registration process. Once registered, property dealers need to comply with the GST rules and regulations and file their GST returns on time to avoid any penalties or legal complications.
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