What is GST Registration?
GST Registration is mandatory for businesses whose turnover exceeds the threshold limit set by the government. It’s a process through which a taxpayer gets registered under Goods and Services Tax (GST) and receives a unique GST Identification Number (GSTIN).
Who Should Obtain GST Registration?
- Individuals Registered Under Pre-GST Law: Includes those registered under Excise, VAT, Service Tax, etc.
- Businesses with Turnover Above Threshold: Businesses whose turnover exceeds the prescribed limit, which is currently set at Rs. 40 lakh for normal states and Rs. 20 lakh for special category states.
- Casual Taxable Person/Non-Resident Taxable Person: Those who occasionally undertake transactions involving taxable goods or services.
- Agents, Input Service Distributors, and Reverse Charge Mechanism (RCM) Payers: Including e-commerce aggregators and those supplying online information/services from outside India to customers in India.
- E-commerce Aggregators: Entities that facilitate supply of goods or services between sellers and customers.
- Others: Any person or entity as mandated by the government.
GST Registration Process:
- Application Submission: Apply for GST registration on the GST portal using Form REG-01.
- Verification: The application is verified by the GST department.
- Documentation: Submit required documents along with the application.
- Processing: The application is processed, and GSTIN is issued upon approval.
- Finalization: Once approved, GST registration certificate is issued.
Documents Required for GST Registration:
- PAN of the Applicant: Permanent Account Number of the business or individual.
- Aadhaar Card: For identity verification.
- Proof of Business Registration: Incorporation certificate or relevant business registration document.
- Promoters/Directors’ Identity and Address Proof: With photographs.
- Address Proof of Business Premises: Such as rent agreement, utility bills, etc.
- Bank Account Statement/Cancelled Cheque: Proof of bank account.
- Digital Signature: For authentication of documents.
- Letter of Authorization/Board Resolution: If an authorized signatory is appointed.
GST Registration Fees:
- There are no prescribed fees under GST law for self-registration on the GST portal.
- However, opting for professional services like ClearTax’s GST Registration Plan may involve service charges. This can save time and effort.
Penalty for Not Obtaining GST Registration:
- Non-payment or Short Payments: 10% of the tax amount due, with a minimum of Rs. 10,000.
- Deliberate Tax Evasion: Penalty of 100% of the tax amount due.
Ensuring timely GST registration and compliance is crucial for businesses to avoid penalties and operate smoothly under the GST regime.
