The procedure of GST registration is entirely an online process and requires no manual intervention. The process of GST registration is important to avail the taxation benefits. Corpbiz will help you..
Request for GST Certificate
GST Registration with a view to abolish several other indirect taxes and to create a single taxation system, GST was introduced in India. Also, GST helps in the ease of collection and to enhance the efficiency of the process.
GST Registration is required for the businesses whose turnover gets over Rs. 40 lakhs* for sale of goods (Rs 20 lakhs for North Eastern – All hilly states for sale of goods). There has been no change in the threshold limits for service providers. Persons providing services need to register if their aggregate turnover exceeds Rs.20 lakh (for normal category states) and Rs.10 lakh (for special category states).
Also, for certain businesses, GST registration is mandatory and if the entity or an individual carries on business without getting the GST Registration, it will be treated as an offence under GST Act and heavy penalties will be levied. GST Registration is an online process and GST is imposed at every step of the supply network to set off all the available tax benefits.
What are the Benefits of GST Registration?
Following are the benefits of getting a GST Certificate –
The advantages of GST Registration are given bellow:-
- Simplifies Taxation Services
GST has combined a number of indirect taxes under one umbrella and integrated the Indian market.
- Reduction in Costs of Products & Services
With the introduction of GST, the cascading effect of a series of VATs and taxes has been erased which has resulted in the reduction of cost of goods and services.
- Helps in Avoiding Lengthy Taxation Services
GST Registration helps the small businesses in avoiding the lengthy taxation services. As the service providers with a turnover of less than 20 lakhs and goods provider with a turnover of less than 40 lakhs are exempt from paying the GST.
- Aimed at Reducing Corruption and Sales Without Receipts
GST was introduced with an aim of reducing corruption and sales without receipts. Also, it helps in reducing the need for small companies to comply with various indirect taxes.
- Uniformity in Taxation Process
GST Registration brings uniformity in the taxation procedure and allows centralized registration. This helps the businesses to file the tax returns every quarter through an online process.
- Minimizing Tax Evasion
With the introduction of GST, tax evasion is minimized to a great extent.
- Higher Threshold for Registration
Earlier, in the VAT system, any business with a turnover of more than Rs 5 lakh was liable to pay VAT in India. In addition, service tax was exempted for service providers with a turnover of less than Rs 10 lakh. Under GST regime, on the other hand, this threshold has been increased to Rs 20 lakh, which exempts lot of small traders and service providers.
- Composition Scheme for Small Businesses
Under GST, small business under turnover of Rs 20 to 75 lakh can benefit as it gives an option to lower taxes by using the Composition scheme. This move has brought down the tax and compliance burden on many small businesses.
- Simple and Easy Online Procedure
The complete process of GST (from registration to filing returns) is done online, and it is super simple. This has been advantageous for start-ups mainly, as they do not have to run from pillar to pillars to get diverse registrations such as VAT, excise, & service tax.
- Compliances is Lesser in number
Previously, there was VAT & service tax, each of which had its own returns & compliances. Under GST, on the other hand, there is just one, unified return to be filed.
- Regulations of Unorganized Sector
In the pre-GST era, it was often observed that certain industries in India like building construction and textile were largely unorganized and unregulated. Under GST, however, there are provisions for online compliances and payments, and for availing of input credit only when the supplier has accepted the amount. This has brought in accountability and regulation to these industries.
4 Steps Easy GST Certification Process
Frequently Asked Question-FAQs
The below mention person/entities are required to get registered under GST –
The lists of documents required for GST Registration (based on the type of business) are listed below:-
For a Sole Proprietorship Business
For a Partnership Firm
For a HUF
For a Public or Private Limited Company
In case of Delay in Filing GSTR
For not Filing GSTR
For Committing a Fraud
For helping a Person to Commit Fraud
Penalty extending up to Rs. 25,000.
For Charging GST Rate Wrongfully
In case of charging higher rate-
For Not Issuing Invoice
Non-registration under GST-
In case of issuing Incorrect Invoice
The validity of any GST registration certificate depends on and conditional to the type of taxpayer who is receiving the certification. It is valid throughout when the certificate is issued to a regular taxpayer. In such cases, it only invalidates if it is canceled by the GST authority or surrendered by the taxpayer himself.
Though, the validity is restricted to a period of 90 days from the date of registration or for the period specified in the registration application, whichever is earlier in cases certificates issued for the casual taxpayer or Non-Resident Indian (NRI) taxpayer. Moreover, the validity period can also be extended under the provisions of Section 27(1) of the GST Act by the appropriate authorities.