GST Registration

What is GST Registration?

GST refers to Goods and Services Tax which subsumes all taxes such as Sales tax, Service tax, Excise duty etc. into GST. GST registration is required primarily if your annual sales are more than Rs. 20 Lakh. Even if your sales are less than Rs. 20 Lakh, we suggest that you voluntarily opt for GST registration because:

  • You will not get any tax refunds on purchases (e.g. if you buy goods worth Rs 1 lakh in a year, and tax rate is 28% – you will lose tax refund of Rs. 28,000).
  • You cannot sell outside your state

GST registration typically takes between 2-6 working days. You need to file your application with the department and sign it with your digital signature. GST Registration can be done through Financial Tax Help in Bhopal

Who all need GST Registration?

The registration in GST is PAN based and State specific. Supplier has to register in each such State or Union territory from where he effects supply if he fulfills any of the following conditions:

  • Having an annual aggregate turnover from all-India operations which is above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States).
  • Currently registered under any of the earlier indirect tax regimes (VAT, Excise Laws, Service Tax Laws) irrespective of the threshold limit.
    Having branches in multiple states or multiple business verticals in one state.
  • Making any supply to other states.
  • Required to pay tax under Reverse Charge (In case your supplier is not registered under GST).
  • Required to deduct tax at source or an Input Service Distributor.
  • Agents of a supplier.
  • Supplying goods or services through E-commerce Operator.
  • E-commerce Operator / Aggregator who supplies goods or services under his brand name (e.g. Flipkart, Amazon, Ola).
  • 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.
Financial tax help

Documents for Registration

  1. PAN Card of owner/ directors/ partners.
  2. Bill of Electricity/ Telephone, Rent Agreement  or Letter of Consent (NOC).
  3. MOA/ AOA or Partnership Deed
  4. Letter of Authorisation for signatory.
  5. Bank statement/ Cancelled Cheque.
  6. Aadhaar Card of owners/ directors/ partners.

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Benefits of Registration under GST

GST Registration will give the following advantages to a taxpayer.

  1. He is authorized to collect taxes from his customers and pass on the credit of the taxes paid to them.
  2. He can claim Input Tax Credit of taxes paid to his suppliers and can utilize the same for payment of taxes due
  3. Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
financial tax help

What is GSTIN?

  • The first 2 digits of the 15 digit GSTIN will represent the state code. For example 01 for Jammu and Kashmir, 02 for Himachal Pradesh, 03 for Punjab, etc.
  • The next 10 digits will be the PAN for person or entity engaged in Business.