GST Registration in India

GST Registration in India

What is GST?

GST was introduced in 2017; the Goods and Services Tax (GST) is a unified tax system in India. It replaced several indirect taxes, streamlining the process and reducing the burden on businesses.

Who Needs to Register for GST?

·       Businesses with an annual turnover exceeding Rs. 40 lakh (Rs. 10 lakh for some north eastern and hilly states) must register for GST.

·       Even if your turnover is below the limit, registration might be necessary:

o   Interstate supplies (selling across states)

o   Selling through e-commerce platforms

o   Opting for the composition scheme (a simplified GST compliance method)

o   Having a branch in another state

Types of GST:

·       SGST (State GST): Tax on intra-state (within the state) supplies of goods and services.

·       CGST (Central GST): Tax levied by the central government on intra-state supplies.

·       IGST (Integrated GST): Tax applicable on interstate supplies of goods and services.

·       UTGST (Union Territory GST): Tax levied on supplies in Union Territories.

Benefits of GST Registration:

·       Legality: Avoid penalties for non-compliance.

·       Input Tax Credit (ITC): Claim credit for GST paid on purchases, reducing your overall tax liability.

·       Wider Market Access: Easier to deal with other GST-registered businesses.

·       Credibility: Improves your business image and attracts potential customers.

Documents Required for GST Registration:

The documents needed vary depending on the business type (sole proprietorship, company, etc.).

·       PAN card

·       Aadhaar card

·       Address proof

·       Bank account details

·       Business details (proof of registration, etc.)

How to Register for GST?

The registration process is mostly online through the GST portal. You need to fill out forms and submit the required documents.

Deregistration of GST:

Businesses can deregister under certain circumstances

·       Turnover falling below a threshold

·       Discontinued business operations

·       A Change in the business structure

How to Apply for Deregistration?

Use Form GST REG-29 to apply for cancellation. It involves details about your inventory and liabilities. An officer will check your application and issue a cancellation order within a month.

Important Points:

·       GST registration is compulsory for businesses exceeding the turnover limit or involved in interstate supplies.

·       Make an Estimate of the benefits and likely impact on your business before registering.

·       Consult a tax advisor 

GST registration can be beneficial for businesses, offering tax benefits and compliance.