GST Registration
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Assistance for GST registration with 1 year LEDGERS Accounting software license for Invoicing, GST E-invoicing and GST filing through LEDGERS.
INR 2899 All InclusiveINR 359919 % Off
GSTIN + LEDGERS
- GST Registration
- GST Invoicing
- GST E-Invoicing
INR 5899 All InclusiveINR 689914 % Off
GSTIN + Accountant
- GST Registration
- LEDGERS Platform
- Accountant Support
- Quarterly Accounting
- GSTR-3B Return Filing
- GSTR-1 Return Filing
Professional Support for GST Registration
GST registration is really important for businesses in India. If your business makes enough money or falls into certain categories that need GST registration, you have to register according to the rules. Accounts Profession can help you get your GST registration smoothly. Get in touch with our experts today to make your GST registration process easier!
A Brief Guide to GST Registration Online
Since July 1, 2017, the Goods & Services Tax (GST) has become compulsory for all service providers, traders, manufacturers, and even freelancers in India. It replaced various Central and state-level taxes like Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT, simplifying the tax process. GST registration fees differ based on the business type and turnover.
For businesses with an annual turnover below Rs. 1.5 crore, there’s a Composition Scheme available under GST. This scheme simplifies GST procedures, letting them pay taxes at a fixed rate according to turnover.
GST applies at every stage of the supply chain, from acquiring raw materials to production, wholesale, retail, and selling to end consumers. For instance, if a product is made in West Bengal and used in Uttar Pradesh, the GST revenue goes entirely to Uttar Pradesh, highlighting GST’s consumption-based nature.
Essential Elements of GST
The Goods and Services Tax (GST) system in India has three main parts:
- Central Goods and Services Tax (CGST): This tax is imposed by the Central Government on transactions that happen entirely within one state. It applies when goods or services are bought and sold within the same state.
- State Goods and Services Tax (SGST): The State Government charges SGST on transactions that occur within its own state boundaries. Just like CGST, SGST applies to deals made within one state.
- Integrated Goods and Services Tax (IGST): IGST is levied by the Central Government on transactions involving goods or services moving between different states or between a state and a Union Territory. It’s applicable when goods or services cross state or Union Territory borders.
Who Needs to Register for GST?
GST registration is necessary for different types of entities:
- Businesses: Any business with yearly earnings over Rs. 40 lakhs (Rs. 20 lakhs for special states).
- Service Providers: Those making more than Rs. 20 lakhs annually (Rs. 10 lakhs for special states).
- Exemptions: Entities exclusively dealing in GST-exempted goods or services are not subject to these limits.
- Previously Registered Entities: Businesses registered under older tax systems need to switch to GST.
- Inter-State Suppliers: Businesses supplying goods across state borders.
- Casual Taxable Entities: Those who occasionally make taxable sales.
- Entities under Reverse Charge Mechanism: Businesses required to pay tax under reverse charge.
- Input Service Distributors & Agents: Those distributing input services and their representatives.
- E-Commerce Platforms: Operators of online selling platforms.
- Non-Resident Taxable Entities: Non-resident individuals or entities selling taxable items within India.
- Supplier’s Agents: Representatives selling on behalf of a main supplier.
- E-Commerce Suppliers: Individuals or entities offering goods or services through online platforms.
- Online Service Providers: Entities offering online information or services from outside India to individuals in India, except those already registered under GST.
Turnover Threshold for GST Registration
GST registration is open to everyone, but it’s obligatory if you exceed certain sales thresholds.
For Service Providers: If your service income tops Rs. 20 lakhs annually, GST registration is required. In specific states like Arunachal Pradesh and Assam, this threshold is Rs. 10 lakhs.
For Goods Suppliers: If you exclusively sell goods and your turnover exceeds Rs. 40 lakhs annually, GST registration is mandatory. However, there are conditions:
- You should not offer services.
- You should not sell within certain states.
- You should not deal in specific items like ice cream, pan masala, or tobacco.
Failure to meet these conditions means you must register when your turnover reaches Rs. 20 lakhs (Rs. 10 lakhs in some states).
Special Category States: Certain states like Arunachal Pradesh and Assam have unique regulations.
Aggregate Turnover: This is your total sales minus taxes and other deductions. It’s calculated using your PAN, even if you have multiple businesses.
Benefits of GST Registration for Businesses
Benefits of Registering for GST:
- Legal Compliance: Ensures businesses follow tax rules, avoiding penalties.
- Input Tax Credit: Businesses can claim credits for GST paid on purchases, reducing tax liability.
- Inter-State Trade Ease: Facilitates transactions across state borders without tax issues.
- Elimination of Cascading Effect: Removes tax on already taxed amounts, reducing overall costs.
- Competitive Edge: Builds trust with customers and expands business opportunities.
- Access to Larger Markets: Big companies prefer working with GST-registered vendors.
- Optimized Cash Flow: Efficient management and lower tax help improve cash flow.
- Enhanced Credit Rating: Maintaining good GST compliance can improve a business’s credit score.
- Legal Protection: GST registration safeguards business rights.
- Simplified Compliance: Easy online filing of returns and payments streamlines the process.
- Transparent Operations: Encourages accurate record-keeping, promoting trustworthiness.
GST Certificate
The GST Certificate, issued by the Indian government to entities registered under the Goods and Services Tax (GST) system, serves as an official document confirming a business’s lawful registration. It includes key details such as the GST identification number, business name, and address.
Possessing a valid GST Certificate is essential for businesses because:
- Tax Collection Authority: It enables businesses to levy and collect GST from their customers lawfully.
- Tax Credit Claims: With this certificate, businesses can rightfully claim credits on the GST they’ve paid for their purchases and operational expenses.
Beyond its tax-related functions, the GST Certificate holds significance in various other areas:
- Loan Applications: Businesses may be required to present their GST certificates when applying for loans to validate their authenticity.
- Government Tenders: To qualify and participate in official government tenders, businesses often need to furnish their GST certificates as evidence of tax compliance.
- Market Reputation: The certificate enhances a business’s standing in the market, showcasing its dedication to adhering to national tax regulations.
GSTIN
GSTIN, which stands for Goods and Services Tax Identification Number, is a special 15-digit alphanumeric code assigned to every taxpayer registered under India’s GST system. It acts as the main identifier for both businesses and individuals in GST-related transactions and compliance. Once you successfully submit your application through the GST apply online portal, you will receive your unique GSTIN.
Voluntary GST Registration for Businesses
Benefits of Voluntary GST Registration: Businesses with a turnover of less than Rs.20 lakhs can voluntarily register for GST online. This decision offers several advantages, including the ability to claim input tax credits, conduct unrestricted inter-state sales, become eligible for listing on e-commerce platforms, and gain a competitive edge over non-registered businesses. While not mandatory, this voluntary registration can lead to enhanced growth opportunities and potentially higher profits.
GST Return Filing:
GST return filing is a formal process where taxpayers provide the government with details about their sales, purchases, and tax transactions. In India, every GST-registered taxpayer must consistently submit these returns, even if there were no sales or purchases in a specific period. Although there are no registration fees for GST, ensuring accurate and compliant registration is crucial to avoid penalties.
If you require guidance with the GST return filing process, our team of experts is ready to assist you. Feel free to reach out for personalized support and ensure a smooth filing experience.
Documents Required for GST Registration
Here is a list of documents required for GST registration, which you can use as a checklist.
| Type of Entity | Required Documents |
|---|---|
| Sole Proprietor/Individual | – Owner’s PAN card – Owner’s Aadhar card – Owner’s photograph (JPEG format, max size – 100 KB) – Bank account details* – Address proof** |
| LLP and Partnership Firms | – PAN cards of all partners (including managing partner and authorized signatory) – Partnership deed copy – Photographs of all partners and authorized signatories (JPEG format, max size – 100 KB) – Address proofs of partners (Passport, driving license, Voters identity card, Aadhar card, etc.) – Aadhar card of authorized signatory – Proof of appointment of authorized signatory – LLP registration certificate/Board resolution (for LLP) – Bank account details* – Address proof of principal place of business |
| HUF | – HUF’s PAN card – PAN card and Aadhar card of Karta – Owner’s photograph (JPEG format, max size – 100 KB) – Bank account details – Address proof of principal place of business |
| Company (Public and Private) (Indian and Foreign) | – Company’s PAN card – Certificate of incorporation issued by Ministry of Corporate Affairs – Memorandum of Association/Articles of Association – PAN card and Aadhar card of authorized signatory (Indian, even for foreign companies/branch registration) – PAN cards and address proofs of all directors of the Company – Photographs of all directors and authorized signatory (JPEG format, max size – 100 KB) – Board resolution appointing authorized signatory/Any other proof of appointment of authorized signatory (JPEG/PDF format, max size – 100 KB) – Bank account details* |
Consequences of Failing to Obtain GST Registration
Non-Payment or Underpayments:
- Neglecting to pay the required tax or underpaying results in a penalty of 10% of the outstanding tax amount.
- While there are no GST registration fees, penalties for non-compliance can be substantial.
Intentional Tax Evasion:
- Willfully avoiding payment of due taxes incurs a penalty equal to 100% of the evaded tax amount.
Obtaining GST Registration Online with Accounts Profession
You can sign up for GST online with Accounts Profession. Just share your name, phone number, and email to get started.
Once we receive your request, a GST expert will get in touch to understand your business and help with any questions you have. They’ll also check your GST registration documents to make sure everything is correct. After you make the payment, we’ll begin the online GST registration process and submit your application to the GST Portal.
You’ll receive your GST registration within 3 to 7 working days. Everything is handled online, so you don’t need to visit our office. Plus, you’ll get access to the LEDGERS Platform for GST invoicing and return filing.
Go to the Accounts Profession Homepage for the Latest Information.
Frequently Asked Question (FAQ’s)
What is a GST Certificate?
A Goods and Services Tax (GST) certificate is an official document issued by the Indian government. It confirms that a business is registered under the GST system. This certificate provides a unique identification number for taxation purposes in India.
Who Needs a GST Certificate?
Any business registered for GST with the Indian government requires a GST certificate. This includes both online and offline businesses.
Is GST Certificate Compulsory?
Yes, in India, businesses must have a GST certificate to be registered for GST. Without it, they cannot charge GST on their goods and services.
Minimum Turnover for GST Registration
Businesses with an annual turnover exceeding Rs. 40 lakhs (or lower in special category states) must register for GST. Different rules apply to e-commerce businesses.
Understanding E-Way Bill
An E-way bill is an electronic document for goods valued over Rs. 50,000. It records the movement of goods and contains details like GSTIN, value of goods, and transport information.
Benefits of E-Way Bill
E-way bills streamline the movement of goods, reducing turnaround time and costs for suppliers. It eliminates the need for state boundary checks.
When to Generate E-Way Bill
As per CGST Rules, 2017, an e-way bill must be generated before transporting goods.
Is E-Way Bill Mandatory?
It’s mandatory for goods worth over Rs. 50,000. However, exemptions apply for specific types of transportation.
Penalties for Non-Compliance
Transporting goods without an e-way bill can result in penalties of Rs. 10,000 or higher, as per GST rules. It’s crucial to comply with regulations to avoid penalties, even though there are no GST registration charges.
About the Author
Vijaykumar S. Pal(Content Writer)
As a Accountant, I’m deeply immersed in the intricacies of income tax, GST, and maintaining financial records. Numbers are my forte, and I excel in deciphering complex financial statements and tax regulations. However, there’s another side of me that revels in the realm of words rather than figures. Writing has always ignited a passion within me. Whether it’s simplifying intricate financial concepts for broader comprehension or weaving captivating narratives, I find joy in crafting articles and blog posts that demystify the intimidating world of finance for everyday individuals.