GST Registration popularly known as GST Registration is the process of Registering with the Goods and Services Taxes (GST) Department is a crucial step for any business. It's what ensures that the company can offer its products to customers complying the tax laws of the country According to the GST rules, a business with above RS.40 lakh turnover shall register itself as a normal taxable entity.
Howbeit, for the businesses in the hill or North-Eastern states, get a rebate off RS.30 lakh, which concludes the turnover amount is RS.10 lakh. Online GST registration can be a tedious process. But it is worth the effort as it makes a business competitive than other ones. Thus, those who fall under the GST Registration eligibility must complete the process as soon as possible. The government takes non-registered businesses seriously and levies heavy penalties based on their tax evasion period!
GST, the Goods and Service Tax, is a registration process meant to generate government revenue. It's an indirect tax levied filled by consumers for buying goods/services from different companies. In other words, businesses selling their products with an additional tax rate are registered under the GST policy.
All the businesses registered under GST receive a 15-digit Goods and Service Tax Identification Number (GSTIN). This is intended to determine the liability of a GST registered business. The central government now makes it easier for these entities to complete the GST registration process within 6 working days--a time frame previously unheard of!
The CGST Act 2017 of the central government provides plenty of information on which categories are applicable to pay GST. Here is an overview:
If you're in the services-providing business and your aggregated turnover is more than Rs. 20 lakhs, it's mandatory for you to apply for GST registration Online . On top of that, if your goods are valued at over Rs. 40 Lakhs, it becomes a compulsory step to take up this tax liability.
In India, a registered business entity must have GST registration to sell goods from one state to another. This is so that government can collect the tax efficiently, and tax evasion will not occur as often.
If you are an entrepreneur who operates your own E-commerce platform, it is essential to obtain GST registration in India. To start with a business on the internet, one must register under GST regardless of any turnover.
Normal Taxable Person
The GST registration is required for all seasonal vendors. Business owners in this category should not assume their initial state will be exempt from the requirement, as it does not matter what your turnover is.
Voluntary GST registration is a dream come true for entities that have it. The recent revisions to the rules allow them to surrender their voluntary status at any time, eliminating all of those pesky extra taxes you might not want!
You don't have to go through the hassle of GST registration if you're a cultivator or someone involved in agricultural products' suppliance under reverse turnover.
According to the GST Act 2017, the registration process has several categories to fall under. Depending on the several kinds of business entities in the states, the GST registration process is divided into multiple categories, which are given as follows,
The largest businesses in India are considered normal taxpayers. It is easier and simpler for them to pay taxes as they do not have any deposit fees or expiration dates on their fines. Additionally, the central government allows them access to unlimited validity of input tax credit.
Casual Taxable Person:
The best option for small businesses that are more seasonal is the Casual Taxable Person registration. Companies who fall under this category of GST Registration must pay an advance amount equivalent to their anticipated GST liability during the time they're present. Howbeit, these categories are valid for three months only and can be increased if desired.
Taxpayers can save themselves from tedious GST rules by opting out of the Composition Scheme. However, they will not be able to claim an input tax credit. Small taxpayers may find this trade-off worth it and pay a set rate of turnover instead.
Non-Resident Taxable Person:
The non-resident taxable person applies to those living outside India yet supplying goods/services to the country. According to the GST law, such businesses are obliged to pay advanced GST tax rates for activating their GST registration. However, the registration is only effective for 3 months, with the option to extend it if necessary. Below are some examples of non-resident businesses that fall under this GST act,
• Non-Resident Online Service Provider
• Government Entities-GST TDS Deductor
• Developer of the Special Economic Zone
• Special Economic Zone Unit
• Individuals notified by the UN Embassy/ Body/ Other
• E-commerce Companies-GST TDS Collector
GST Registration is not compulsory for agriculturists who involved in the cultivation and supply of agricultural products, making supplies that are fully covered under reverse charge or making only exempt supplies of goods and services. Small taxpayers benefit a lot by registering under the GST composition scheme because it lessens their tax burden. Although, the below-mentioned individuals and businesses must complete GST Registration:
GST registration Fees is dependent on the type of business one falls under and ranges from RS1199-RS3000. It's a one-time fee, yet the process takes time.
For the regular GST registration certificate, it takes around 3-6 working days. However, if you need any further modification, it may take around 15-20 working days.