GST Registration Online - An Overview
GST or Goods and Services Tax was introduced by the Prime Minister of India in an attempt to regulate prices throughout the country and remove all state or central Govt. imposed indirect taxes on goods and services by initiating GST registration in India.
As per the new GST regulation, businesses whose turnover exceeds Rs 20 lakhs (10Lakhs for North East and hill states) is required to get their GST as a normal taxable person. This process is called the register for GST.
Apart from the other turnover bracket, there are certain cases where GST apply online is mandatory for individuals or entities engaging themselves in the supply of goods or services across the state to get new GST registration online. One can apply for online GST Registration either as a normal taxpayer or under GST composition scheme.
What is Goods and Service (GST) Tax is all about?
As we glare to the name, the name itself depicts that the GST will be applicable on both the goods and services following a dual system of GST keeping the work of both the Central and the State Government independently. The GST Council is headed by the Union Finance Minister and will also include various State Finance Ministers.
GST Tax Structure
The following is the chart shows the applicable tax structure of the Goods and Service Tax.
*0% is GST rate is applied to the most essential goods such as rice, wheat etc. The complete bifurcation of the GST tax rate applied to the different categories of goods and services can be easily accessed by just contacting us. You give us a call and our team will reach you very soon with the complete detail.
Advantages of GST Registration
After reading the article so far, you must be bogged by some of the thoughts like why there is so much bragging of GST. So, there are some of the advantages that will clear your mind on the benefits of registering under GST:
- For Registered Businesses
- Avail Input Tax Credit;
- Interstate sales without restriction;
- For Composition Dealer
- Limited compliances imposed;
- Less tax liability;
- High working capital;
- A Business that Voluntarily Opted GST Online Registration in India
- Avail Input Tax Credit;
- Inter-state supply without restriction;
- Easy Registration on e-commerce websites;
- Competitive Advantages compared to other businesses;
- Apart from the Other Benefits the Following are the Benefits of GST Registration
- Eliminates the cascading effect of the tax;
- Higher threshold limit for registration;
- Simple and easy online procedure;
- Facility of Composition Scheme;
- Simple and easy online procedure;
- Less number of compliances
Eligibility for GST Registration
Sections 22 of the ACT specify the threshold limit for GST and also determine the following suppliers to go for online GST registration process.
If the aggregate turnover of any supplier exceeds 20 lakh rupees then the company needs to go for the New GST Registration online
However, if the supplier comes under the Special Category States, this threshold limit of aggregate turnover is 10 lakh rupees need new GST. Here special category states include states of north-east India, Himachal, Uttarakhand and Jammu & Kashmir.
Mandatory or Compulsory GST Registration
Along with these threshold limits, Section 24 of the Act also specifies a list of suppliers for whom online GST registration is mandatory. The list includes the following suppliers:
- Input Service Distributor (ISD);
- Supplier under the Reverse Charge Mechanism;
- A Person Supplying through E-commerce by collecting Tax at Source u/s 52;
- A Person Claiming or Remitting Input Tax Credit (ITC);
- Any Person doing Inter-State Supply;
- The Casual Taxable Person affecting Taxable Supply;
- The non-resident taxable person affecting taxable supply.
- E-commerce Operator
- Any Person Supplying on Behalf of other like as an Agent or not;
- Any Person Supplying Online Information and Database or Retrieval Service from a place outside India to a person in India who is Unregistered and needs an online GST Registration.
Indirect Taxes that are Replaced under New GST Registration
After the introduction of register for GST, all indirect taxes department have been close merged. As, GST apply online Department website. Hence, the following are the details of the indirect taxes of central and state government that are replaced after the introduction of the register for GST.
- Taxes that are levied and collected by the Central Government
- Service tax
- Central Excise duty
- Additional Duties of Custom ( also known as CVD)
- Special Additional Duty of Custom (SAD) And,
- Taxes that are levied and collected by the State Government
- State VAT
- Central Sales Tax
- Entertainment and Amusement Tax
- Taxes on lotteries, betting, and gambling
Like many other countries such as Canada and Brazil, India will also follow the dual form of GST applies online. At the Intrastate level where goods and services are sold within the state, CGST (Central Goods and Service Tax) and SGST (State Goods and Service Tax) will be levied on it.
On the other hand, while selling any goods and service in another state i.e. interstate then IGST will be levied. IGST stands for Interstate Goods and Service Tax. Any goods that are imported come under the IGST and termed as interstate supply. Not only this, but the imported goods will also attract the basic customs duty.
However, Exports and supplies to Special Economic Zone will be considered as zero-rated.
Who all are required to have GST Registration Certificate in India?
- Existing Taxpayers
All existing taxpayers registered under VAT/CST, Excise, Service tax i.e. mandatorily required to apply for online GST Registration as only the registered person under GST will be allowed to carry forward of Input tax credit.
- New Taxpayers
All taxpayer who is liable under the earlier tax regime are required to get their GST.
- For Causal Dealer
A casual dealer who wants to start a business under GST regime has to apply for online GST Registration within five days of commencement of business. A casual dealer has to pay GST in advance calculated on the estimated turnover of 90 days. The validity of Online GST Registration for the causal dealer is decided for only 90 days.
- For Non-Resident Taxable Person
A non-resident taxable person who commences a business without setting up fixed establishment or office then he has to apply for Online GST within five days before commencement of business. The validity of new GST for non-resident is for maximum 90 days. Furthermore, another extension may be applied for another 90 days and the tax has to be paid in advance.
Documents Required for GST Registration
Missing one document can pull you one step back from register for GST. So, the following are the GST registration documents that are required at the time of online GST registration in India.
- Proof of Registration of Business;
- Office Address Proof;
- Identity Proof/ Address Proof;
- Business Bank Account Details;
- PAN Card;
- Lease Agreement or Rent Agreement.
What is GST Registration Process?
The GST Registration process is as easy as a piece of cake. Swarit Advisors helps flairs the light on the road to get your GST Registration online and obtain the GSTIN registration. Into the bargain, Swarit Advisors will also guide you about the compliances and regulation that are implanted under GST.
Hence if you are not good with the above form then following is the detailed explanation on GST Registration Process:
- Log on to gst.gov.in gst apply online
- Click on the “Service” which is available at the top of the page and select on ”Registration” from the three options “ Registration” “Payments” and “User Service”
- Select “New Registration”
- Fill in the details like the basic details, about the nature of applicants like taxpayer or a GST practitioner
- Fill the details like legal name of the business, location of the business, PAN of your business account, email address and another contact number. The Part A of the Form will include all this.
- The details will be verified by the portal through an email- confirmation and one- time password.
- Submit the required documents which will depend upon the type of your business.
- Submit Part B of the form
- You will get an Application Reference Number (ARN) via email or Text Message to confirm the successful completion of forms.
After the scrutiny of the forms and the documents, the GST officer will either approve your application or either reject on the grounds of other necessary documents approval for GST.
Voluntarily Online GST Registration
A person on his own motion may apply for voluntarily GST Registration online even if he has no turnover of supply of goods or services. He is still eligible to taste all the benefits that are available to any other taxpayer under the Act. Voluntary New GST registration process has its share of blessing and a curse. The benefits of voluntary online GST registration process include:
- Easily collection of tax from his customers
- The process to claim Input Tax Credit becomes facile
- Can issue GST invoice
- Customer are more likely to buy from the registered taxable suppliers
GST Registration Fees
There is no official government cost or fees that need to pay for the GST Online registration on the official government websites.
However, filing for GST registration in India is still a sweaty task and involves various steps and documentation. Thus, it is recommended to get professional help for the same. Our team at Swarit Advisors provides you the end to end services related to GST Registration Procedure.
Penalty for Not Registering under GST
- There are strict laws under the GST Act for the non- compliance of the act
- If there is any delay in the payment or non- payment of the taxes accrued, then the offender will be liable to lose the pocket and pay a heavy penalty on it. Such penalty will be 10% of the unpaid tax or Rs 10,000 whichever is higher
- However, if the offender has deliberately evaded the payment of taxes under the law the penalty amount will be 100% of the unpaid tax
What are GST Returns and how to File?
The Registered taxpayer is burden with various compliances. One of the most important compliances that are under the GST is to file GST return filing on a timely basis. GST returns are filed with the documents relating to the purchases, sales, tax collected, ITC etc. After filing all the relevant information tax liability is computed and paid off. Kindly read our full article on GST Returns and GST compliances and Due dates to file GST Registration.
Hierarchy of Officers in GST Department
There are 9 classes of officers as per the CGST Act, with 17 officers and a general class, whereas the SGST Act contains 6 classes of officers, with a general class.
- As per Model GST Law, Board i.e. the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 has the power to appoint officers of CGST (Note: State laws may have similar provision).
- The Commissioner of SGST under SGST law will have jurisdiction over the whole of the appropriate State. All other officers shall have jurisdiction over the whole of the State or over such areas as the Commissioner may, by notification, specify.
- The powers of the First Appellate Authority have been restricted to those specified under Section 79 of the CGST law. (Note: State laws may have similar provision)
The following are the hierarchy of the officers under the Central Goods and Service Tax act
- Principal Directors General of CGST or Principal Chief Commissioners of CGST or;
- Directors General of CGST Chief Commissioners of CGST or;
- Principal Additional Directors General of CGST or Principal Commissioners of CGST;
- Additional Directors General of CGST or Commissioners of CGST;
- First Appellate Authority;
- Additional Directors of CGST or Additional Commissioners of CGST;
- Joint Directors of CGST or Joint Commissioners of CGST;
- Deputy Directors of CGST or Deputy Commissioners of CGST;
- Assistant Directors of CGST or Assistant Commissioners of CGST;
- Or such other class of officers as may be appointed for the purposes of this Act.
Furthermore, the hierarchy of officers under the State Goods and Service Tax Act
- Commissioner of SGST;
- Special Commissioners of SGST;
- Additional Commissioners of SGST;
- Joint Commissioners of SGST;
- Deputy Commissioners of SGST;
- Assistant Commissioners of SGST, and;
- Or such other class of officers and persons as may be appointed for the purposes of this Act. (List is indicative).
Now, to check the hierarchy of the appeals under GST department you can read our article on “Hierarchy of Appeals under GST Department”
GST Registration FAQs
All businesses that are registered under GST are assigned with a unique Goods and Service Tax Identification Number or GSTIN.
If a business provider operates from more than in one state, then a separate GST is required for each state.
The term “Composition Scheme” denotes a GST scheme that can be opted by the small businesses having an Annual Turnover below Rs 1 crore and Rs 75 lakhs for special states.
All the Service Providers, Inter-state Sellers, E-commerce Sellers, Suppliers of non-taxable goods, and Manufacturers of Notified Goods are outside the domain of the GST Composition Scheme.
Any GST taxpayer whose business turnover is below Rs 1 crore can opt for the Composition Scheme. However, the limit of turnover for North East state has been decided on Rs 75 lakhs.
A reverse charge is a mechanism in which the liability of paying the GST tax is levied on the buyer, and not on the supplier.
When the goods and services are offered or supplied periodically, and the payments are also made on a timely basis, it is called a continuous supply under GST.
The term “Compliance Rating” denotes a rating which is given to all the registered taxpayer on their performance.
The rating is given for implementing and complying with all the provisions of the GST timely and properly.
The one who is supplying Agriculture Produce, NIL rated or exempt supplies, or supply under Reverse Charge are exempt from GST Online Registration.
Yes, a person can anytime get the voluntary registration under GST in accordance with subsection (3) of section 25.
Yes, an individual can cancel his/her GDT Registration when he/she has opted for voluntary cancellation of his/her GST Registration.
In case of default, an officer can decide to cancel the GST Registration of an individual or business.
No, there is no such concept as the Central GST Registration in India. An entity having more than one branch will have to take separate state wise GSTIN for each branch.
A Non-Resident Taxable Person is one who is a foreigner and occasionally wants to affect the taxable supplies from any state in India and for that, he needs a GST Registration.
Yes, there is a need to have DSC in the case of Public Limited Company, Limited Liability Partnership Firm, Private Limited Company, or OPC.
The advantages of the GST Composition Scheme are Reduced Tax Liability, No Need to Maintain Detailed Records, File Single Quarterly Return, Limited Compliances, Small Amount of Tax, and Provides Auxiliary Services up to Rs 5 lakhs.
The disadvantages of the GST Composition Scheme are No ITC, No Composition Tax charged on Invoice, and cannot issue Tax Invoice.
ARN or Application Reference Number is generated automatically after the submission of form and documents on the GST Portal.
HSN Code or Harmonised System of Nomenclature, is an internationally accepted Product Coding System. It is used to maintain Uniformity and Consistency in the Classification of Goods.
One can register for GST by visiting the official GST Portal.
There is no fee involved in the process of GST Registration. However, the process of document and identity verification may require some charge.
Any Goods or Services Provider who is earning an annual turnover above Rs 20 lakhs is required to register their business under the provision of the GST Act.
A Minimum of 3 days are required to acquire GST Number.
The term “Destination-based Tax” denotes the place where the goods or services are used.
The Goods and Services Tax or GST includes all the Indirect Taxes that were levied under the preceding Tax Regime in India.
As per the GST Act, a 28% tax slab, together with NCCD and Compensation Cess, is applicable to the Cigarettes and Smoke-less Tobacco.
In India, GST is proposed in 3 tiers, i.e., CGST, SGST, and IGST.
The GST Council in India has the sole authority to levy and administer GST in India.
Integrated Goods and Service Tax or IGST applies to all the goods and services that are supplied in various states other than the origin state.
The GST Tax Rates are decided mutually by the Central Government and respective State Government.
IGST or Integrated Goods and Service Tax, will apply on Imports.
IGST or Integrated Goods and Service Tax, will apply on Exports.
The GST or Goods and Service Tax Act came into force on 01.07.2017.
Yes, B2B transactions are covered under GST.
The term ITC or Input Tax Credit means the tax paid by the company on purchase to reduce the tax levied on sale.