Online GST Registration

Launched on 1 July 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers.

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GST Registration Online - An Overview

Launched on July 1 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers. A variety of Central taxes like Service Tax, Excise Duty, CST and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are absorbed in one tax – GST, implemented on 01.07.2017. GST is to be charged at every step of the supply chain, with full set-off benefits available. The procedure for GST is entirely online and requires no manual intervention.

Every product goes through multiple stages along the supply chain, which includes the purchasing of raw materials, manufacturing, sale to the wholesaler, selling to the retailer and then the final sale to the consumer. Interestingly, GST will be levied on all of these 3 stages. Let’s say if a product is produced in West Bengal but is being consumed in Uttar Pradesh, the entire revenue will go to Uttar Pradesh.

Also, taxpayers with a turnover of less than Rs.1.5 crore can choose composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.

 

What are the components of GST?

GST will have 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e. when a transaction happens one state to another.

 

What is the input tax credit?

Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax.

You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e. tax on sale minus tax on the purchase.

 

Who needs a GST Registration?

Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for companies whose turnover is more than Rs.20 lakhs (for supply of services) and Rs. 40 lakhs ( for supply of goods) yearly to register for a GST.

All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.

Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are less than Rs.20 lakhs.

 

What are the GST tax rates?

  • Items that are considered basic necessities come under exempt list i.e. they are not taxed.
  • Household necessities and life-saving drugs etc. are taxed at 5%.
  • Products like computers and processed food are taxed at 12%.
  • Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%.
  • Luxury items are taxed at 28%.

You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html

 

What is a GST Return?

A GST returns is a document containing details of income that is required to be filed as per the law with the tax authorities. Under the GST law, a taxpayer has to submit two returns on a monthly basis and one such return annually. All returns have to be filed online. Please note that there is no provision for revising the returns. All invoices for the previous tax period that went unreported must be included in the current month.

Under GST, a registered dealer has to file GST returns that include: Purchases, Sales, Output, GST (On sales) and Input tax credit (GST paid on purchases).

 

What is GSTIN?

GSTIN is a unique identification number given to each GST taxpayer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.

 

What is the GSTN (Goods and Service Tax Network)?

The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTN is responsible for maintaining Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.

 

Mandatory documents for Online GST registration

The list of documents required for registration of GST for various business are as follows:

Proprietorship

  • PAN Card and address proof of proprietor

Limited Liability Partnership (LLP)

  • PAN Card of LLP
  • LLP Agreement
  • Partners’ names and address proof

Private Limited Company

  • Certificate of Incorporation
  • PAN Card of Company
  • Articles of Association (AOA)
  • Memorandum of Association (MOA)
  • Resolution signed by board members
  • Identity and address proof of directors
  • Digital Signature

The following can be shown as proof of address of a director:-

  • Passport;
  • Voter Identity Card;
  • Aadhar Card;
  • Ration Card;
  • Telephone or Electricity Bill;
  • Driving License;
  • Bank Account Statement.

 

Preparation of GST application

One of our GST representatives will collect all the required documents and process the GST application.

Application Filing

Once all the documents are collected, the application will be processed and filed. Then immediately the ARN number will be issued.

GST Registration Certificate

The GST registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST registration certificate can be downloaded from the GST Portal.

Penalties For Failure To GST Registration

As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST.

Voluntary Registration Under GST (for Companies With A Turnover Below Rs.20 Lakhs)

Any small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration has its own advantages and some of them are:

  • Take input credit: In GST, there is a flow of input credit right from manufacturers of the goods till the consumers, across the country. Input credit means a taxpayer while paying tax on output can deduct the tax that has already been paid on inputs and pay only the remaining amount. Voluntarily registered businesses can increase their margins and profits through this.
  • Do inter-state selling with no restrictions: SMEs can increase the scope of their businesses and find prospective customers and explore online platforms
  • Register on e-commerce websites: SMEs can widen their market by registering through e-commerce sites.
  • Have a competitive advantage compared to other businesses.

 

GST Return Filing

A GST Return Filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.

  • Output GST (On sales)
  • Sales
  • Input tax credit (GST paid on purchases)
  • Purchases

Who Needs a GST Registration Service?

  • Any individual or business entity that carries out taxable supplies of goods or services
  • Annual turnover of the business exceeds the prescribed threshold limit (currently ₹20 lakhs for most businesses)
  • E-commerce operators that facilitate the supply of goods and services through their platform
  • Non-resident taxable persons who occasionally supply goods or services in India
  • Businesses that are involved in inter-state supply of goods or services
  • Input service distributors who distribute input tax credit to their branches or units
  • Casual taxable persons who supply goods or services occasionally in India
  • Businesses that were previously registered under the old tax regime (VAT, Service Tax, etc.) and have migrated to GST.

How Can We Help You - Why Barrister Babu?

Some of the best reasons to choose us are:

  • Easy to get GST registration service and GST Identification Number online.
  • No hassle compliances as we completely take control of them.
  • All your returns will be filed duly

Our legal representatives are available to explain the whole gst registration process and clear any queries you may have.

Although the GST Portal has a user-friendly interface, the GST Forms have a lot of complex fields. Hence, it is highly recommended that you seek the help of a professional for submitting the application, the required procedures, filing your returns and completing other formalities in the portal.

The GST Glossary

GST

GST Stands for Goods and Services Tax

TRN

Temporary Registration Number - It is a unique 15-digit reference number generated when you have finished filling Part-A of the GST application and have validated your mobile number & email id.

ARN

Application Reference Number - It is the number you get after filing the GST application and you can use it to check your application details.

DSC

Digital Signature Certificate - It is a certificate that acts as proof of the identity of individuals in digital space and protects data.

SGST

State Goods and Services Tax - A part of GST which is levied by the State Government.

CGST

Central Goods and Services Tax - A part of GST which is levied by the Central Government.

IGST

Integrated Goods and Services Tax - It is a type of GST paid in the case of interstate supply of goods and services.

UGST

Union Territory Goods and Services Tax - A part of GST which is levied by the Union Government.

GSTIN

Goods and Services Tax Identification Number/GST registration number is a unique 15-character identity number given to the businesses that register for GST.

GSTR

GST Return (GSTR) is a document capturing the details of the income, which a taxpayer is supposed to file with the authorities to calculate his tax liability. There is a total of 11 types of GST returns.

GSTN

Goods and Services Tax Network (GSTN) is a non-profit, public-private partnership company that provides IT infrastructure and services for the implementation of GST.

ITC

Input tax credit [ITC] is the credit a taxable person receives for paying input taxes towards inputs used for his business.

HSN Code

HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. HSN stands for Harmonized System of Nomenclature.

SAC Code

Services Accounting Code (SAC) is a code used to classify services under GST. Each service has a unique SAC code.

Reverse Charge

Reverse charge is when the liability to pay tax is on the recipient of goods instead of the supplier (which is the norm). However, this only applies to special categories of supply.

Aggregate turnover

Aggregate turnover is the total value of all taxable supplies and it is used to determine the threshold for GST.

Taxable person

A taxable person is any individual engaged in economic activity in India and who is required to be registered under GST.

Mixed Supply

Mixed supply is when two or more individual supplies of goods and/or services made together by a taxable person for a single price (when it does not form a composite supply).

Composite Supply

Composite supply is when a supply consists of two or more goods and/or services, which are naturally bundled and provided together, where one is the principal supply.

Continuous Supply

Continuous supply is when the supply is provided at a specific interval (eg. weekly & monthly) and the payments are made accordingly.

GST Compliance Rating

GST Compliance Rating is a score between [0 -10] assigned to all the taxpayers, that depicts their GST compliance.

Assessment

Assessment is the process to determine the tax liability. There are 6 types of assessment in GST.

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