GST Registration

About GST Registration

# Concept:- Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST, Service Tax, Central Excise duty, Entertainment Tax, etc and is valid all over India with effect from 1st July 2017.

# When to register for GST:- Mandatory to get GST Registration when annual turnover exceeds INR 40/20 lakh or supply goods and services inter-state or through E-commerce platform.

# What are the GST tax rates:- Tax rates vary from 0% to 28% depending on the type of goods & nature of the services you are selling.

# Input Tax Credit Availment:- Only business units registered under GST can avail credit of tax paid at the time of purchase while filing GST returns.

# Return Filing & Payment:- Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month.

# Composition Scheme:- Business units having an annual turnover less than INR 1.5 crore may opt the scheme. Requires to pay subsidize tax ranges from 1% to 5% & file quarterly returns.

When is GST Registration Mandatory in India?

#Turnover Criteria:- All taxpayers who have an annual turnover above ₹40 lakhs are required to get new GST registration. For Service supply, Turnover limit is ₹20 lakhs.

#Causal taxpayer:- If you supply goods or services in events/exhibitions where you do not have a permanent place of business, you need to get online registration for GST before starting a business. Such a dealer has to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.

#NRI taxpayer:- NRI taxpayer, who does not have a place of business in India, wishes to start a business, then he has to apply for GST Registration in India before beginning operations in India. The validity of a new registration under GST is 90 days.

#Agents of a supplier & Input service distributor:- All Input service distributor who wants carry-forward benefit of input tax credit requires gst registration.

#Reverse Charge:- A business who requires to pay tax under the reverse charge mechanism must also get registered under GST.

#E-Commerce portal:- Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendors selling their product requires to be enrolled under GST.

#Inter state supply:- Businesses who engage in supply of goods or services outside its state boundaries must get registered with the GST Department. Such businesses are subject to Integrated Goods and Services Tax (IGST), which is charged on the supply of goods or services from one state to another.

#Export:- Exports are Zero Rated Supply in India and therefore, businesses engaged in export must get registered under GST in India.

Why I need GST Registration?

GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business. Benefits to GST registered business at glance are as follows:-

#Become more competitive:- You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.

#Expand your business Online:- You cannot sell products or services on E-commerce platform without GST registration. If you’re planning to give a blow on E-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.

#Can take input tax credit:- Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.

#Can sell all over India without any restrictions:- Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.

#Apply Government Tenders:- Various government tenders requires GSTIN to apply tender. If you don’t have, you may miss the business opportunity.

#Open Current Bank Account:- Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.

#Dealing with MNCs:- Generally, MNC’s does not get comfortable to deal with small business entities until they carry valid tax registration proof.