Why GST Registration is Required: The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services across the country. Any business entity involved in the supply of goods or services with an annual turnover exceeding the specified threshold is required to register for GST. The introduction of GST has brought about significant changes in the taxation system, replacing multiple indirect taxes levied by the central and state governments. GST registration provides several benefits, such as seamless input tax credit, legal recognition, access to the GST network, and compliance with the tax laws. It also allows businesses to collect GST from their customers and remit it to the government, ensuring transparency and accountability.
In our today’s blog, we’re going to discuss why there is a need of GST Number or GST registration. Also, we will take you through the chain of questions and answers for the same.
GST Registration Process and Why GST Number is Required?
1. In the era of Goods and Service Tax, one must be aware that businesses whose turnover exceeds Rs. 40 lakhs, is required to register as a normal taxable person.
2. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory. For certain businesses, registration under GST is mandatory.
3. One must be aware that if the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.
5. Also very important to note that Central Board Indirect taxes and Customs (CBIC) has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs and the notification had came into effect from 1st April 2019.
What is GSTIN?
Kindly note that all businesses that successfully register under GST are assigned a unique Goods and Services Tax Identification Number which is also known as GSTIN.
Before we move ahead, we should make our readers aware and they would be that where there is a law there is a penalty too.
What is the Penalty for not registering under GST, if applicable?
1. An individual who is not paying tax or making short payments, where the offender has committed a genuine error, he has to pay a penalty of 10% of the tax amount due
Kindly note that the above penalty is subject to a minimum of Rs.10,000/-
2. The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes
Are there any GST Registration Fees involved?
GST Registration is a lengthy 11-step process that involves submission of many business details and scanned documents.
You can opt for any Chartered Accountant services where a GST Expert will assist you in completing the GST Registration process.
What are the Documents Required for GST Registration?
• PAN of the Applicant
• Aadhaar card
• Proof of business registration or Incorporation certificate
• Identity and Address proof of Promoters/Director with Photographs
• Address proof of the place of business
• Bank Account statement/Cancelled cheque
• Digital Signature
• Letter of Authorization/Board Resolution for Authorized Signatory
Who Should Register for GST?
1. Individuals registered under the Pre-GST law, for example, Excise, VAT, Service Tax etc.
2. Businesses with turnover above the threshold limit of Rs. 40 Lakhs* and the same threshold limit changes to Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh, and Uttarakhand.
3. Casual taxable person / Non-Resident taxable person.
4. Agents of a supplier & Input service distributor.
5. Those paying tax under the reverse charge mechanism.
6. Person who supplies via an e-commerce aggregator.
7. Every e-commerce aggregator.
8. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.
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