GST Registration

Goods and Service Tax

GST is an indirect tax System that has replaced many other indirect taxes in India, such as excise duty, VAT, and services tax. GST has been in force from 1st July, 2017 based on the Goods and Service Tax Act passed by the Indian Parliament on March 29, 2017.

Persons liable for registration

Every supplier shall be liable to be registered under this Act in the State or Union territory from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds beyond a certain turnover.

Supplier of Goods – If any person engaged in the supply of goods whose aggregate turnover exceeds Rs.40 lakhs in a year is required to obtain GST registration.

Service Provider–If any person engaged in the supply of Service whose aggregate turnover exceeds Rs.20 lakhs in a year is required to obtain GST registration.

Types of registration

Normal taxpayers:

Most businesses in India fall under this category. Businesses whose turnover exceeds Rs 40 lakh in a financial year are required to register as normal taxable people. However, the threshold limit is Rs 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.

Casual Taxable Persons: The GST Act defines as a casual taxable person as a person who occasionally supplies goods or services in a State or a Union territory where the entity has no fixed place of business. Hence, persons running temporary businesses in fairs or exhibitions or seasonal businesses would fall under casual taxable person under GST.

Non-resident Taxable Persons: Non-resident taxable person (NRI) under GST is any person or business or not-for-profit supplying goods or services but have no fixed place of business or residence in India. Thus, any foreign person or foreign business or organisation supplying goods or services to India would be a non-resident taxable person – requiring compliance with all GST regulations in India.

E-Commerce Operators: Electronic commerce operator is every person who, owns, operates or manages digital or electronic facility or platform for electronic commerce. Thus, any person selling through the internet can be termed as an ecommerce Operator requiring GST registration irrespective of business turnover.

Advantages of GST registration

1. Easy to start a business
2. Legal recognition of a business
3. Uniform accounting of taxes
4. Businesses will be eligible to avail of several benefits under the GST regime
5. Legal authorisation of collecting tax from sales made
6. You can easily apply for various states and Central Government tenders if you have GSTN.
7. Expand your business through various channels like Online, Import-Exports
8. To start payment gateways and use mobile wallets GST number is used.

Penalty for not registering under GST

Not having GST Registration: 100% tax Due or Rs10,000. Whichever is higher

Not giving GST invoice: 100% tax due or Rs10,000. Whichever is higher

Incorrect Invoicing: Rs 25,000

Not filing GST Tax Returns: For Nil Return its Rs 20 Per Day, Regular Returns Rs 50 Per Day.

Choosing Composition Scheme even if not eligible: 100% tax due or Rs 10,000. Whichever is higher