GST Registration
Goods & Service Tax was introduced and notified on 01st Day of July, 2017 through the implementation of 101th Amendment of the Constitution of India. GST is applicable for Manufacturers, Traders, Service Providers, retailer, wholesaler and other service providers.
Goods and Service Tax (popularly known as GST) is the biggest tax reforms that has happened in Independent India and it has helped immensely the intent of the Government to ensure “Ease of Doing Business”. GST registration is mandatory for all entities involved in the buying or selling or providing of services in India after crossing a fixed threshold.
Goods & Service Tax (GST) is governed by GST Council which is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India. The GST council is responsible for any revision or enactment of rule or any rate changes of the goods and services in India. It consists of following members:
- Union Finance Minister (as chairperson)
- Union Minister of States in charge of revenue or finance (as member)
- The ministers of states in charge of finance or taxation or other ministers as nominated by each state’s government (as member)
On successful registration an identification number is being issued to all the entities which is known as Goods & Service Tax Identification Number (GSTIN).
GST Registration is an online process at www.gst.gov.in which involves submission of all the business details pertaining to the tax payer and scanned documents. Although the process is online, it requires due consideration of a Professional to go while getting GST Registration hassle free.
You can opt for Compliance Calendar LLP Goods and Services Tax (GST) Registration services where a GST Expert will assist you with end to end with GST Registration Process.
Features and Benefits of GST Registration
With the introduction of GST (Goods and Service Tax), it has eliminated multiple indirect taxes like Excise, Octroi, Sales tax, Service tax, CENVAT, Turnover tax etc. and has resulted in the elimination of double charging in the system for a common man.
Completely Online System
The application for GST Registration is completely online which has resulted in “Ease of Doing Business”. Any person willing to get GST Registration now does not have to run after the Govt. Offices which otherwise took much time and money expenses.
One Nation, One Taxation
GST has brought the concept of “one country one tax”. It will prevent unhealthy competition among states and will be beneficial to do inter-state business anywhere in India including Jammu & Kashmir. 17 indirect taxes have been replaced with a single tax. It helps in regularization of unorganized sector.
Reduction in Tax Evasion
Goods and Services Tax is a single tax structure which includes in itself various taxes to make the indirect taxation system efficient and effective with lesser chances of Corruption and Tax Evasion.
More Competitive Product
It will make manufacturing more competitive as GST will address the cascading effect of the tax, inter-state tax and high logistics cost. This will be very beneficial to the businessman as well as consumer and products coming in the market would be viable. Your business will be more competitive as compare to non-registered business, being Tax credit available for all tax payment made for purchases
Mandatory for E-commerce
If you are having an existing business and want expansion of business through E-Commerce, it is must to get GST Registration. Non-registered firms are not eligible to for business through popular E-Commerce websites like Flipkart, Amazon, Paytm etc.
Government Tender Participation
GSTIN is compulsory for participation in maximum Government tenders. In the absence of GST registration, your business will not be able to participate in the tenders.
Eligibility for GST Registration
Every Business and profession related to any activity whether Purchase, Sale, Import, Export, Trade or Service are eligible for GST Registration.
If your business turnover exceeds Rs. 40 lakhs (Rs 10 lakhs for North-East states, J&K, Himachal Pradesh, and Uttarakhand), the business needs to register under the GST Regime. For service sector, it continues to be Rs. 20 lakhs.
Earlier the threshold of Rs. 40 lakhs used to be Rs. 20 lakhs when GST came into role in India from July 1, 2017. CBIC notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification has come into effect from April 1, 2019.
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 July 1, 2017
For certain business types, registration under GST Law is compulsory:
- 1. Persons making any inter-State taxable supply
- 2. Casual taxable persons making taxable supply
- 3. Persons who are required to pay tax under reverse charge
- 4. Person who are required to pay tax under sub-section (5) of section 9
- 5. Non-resident taxable persons making taxable supply
- 6. Persons who are required to deduct tax under section 51, whether or not separately registered under this Act
- 7. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
- 8. Input Service Distributor, whether or not separately registered under this Act
- 9. Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52
- 10. Every electronic commerce operator
- 11. Every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person
- 12. Such other person or class of persons as may be notified by the Government on the recommendations of the Council
If the organization carries on its business operations without GSTIN, the business will be under default and it will cause an offence under GST Regime and heavy penalties will apply.
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