Last Updated on March 3, 2023
If you’re a taxable person under the GST law, yes, it is mandatory for you to register.
The Goods And Service Tax came into effect in India on July 1st, 2017. The new tax system required eligible persons under the law to register online on gst.gov.in.
Once registration has been completed, the eligible person is expected to follow the rules of the GST system when it comes to filing compliance and returns. They also have the privilege of taking some benefits from the government such as the GST Composition Scheme, if they fit the criteria.
We will further discuss GST registration today.
1. What Do We Mean By GST Registration?
Under the GST reign, if your annual business turnover surpasses Rs. 40 lakhs for Indian states and Rs 10 lakhs in case of NE and hill states, you shall have to register under GST. You will be considered a normal taxable person and the process we follow to do so is dubbed GST registration.
There are businesses that must register under GST. If these organizations continue to do business without completing their GST registration, under the GST rule, it shall count as an offense. A heavy penalty usually follows as punishment.
Usually, the registration process takes 2 to 6 days for completion.
2. Who Are The Persons Eligible To Register Under GST?
There are certain people who have to register under GST. Of these, individuals who had businesses that fell under previous Indirect tax laws such as VAT, Excise are eligible. This is because these indirect taxes were all subsumed under GST.
We have already mentioned eligibility in case of a turnover of Rs. 40 lakhs. Other than that, casual taxable person or Non-Resident taxable person. Service distributors, people who have to pay tax under the reverse charge mechanism, e-commerce aggregators and individuals who provide supply with the help of e-commerce aggregators- all have to register.
Other than an already registered taxable person, if a person is supplying online information to India from outside India, they have eligibility as well.
3. What Are The Documents One Shall Need For GST Registration?
For GST registration, the PAN of the applicant is a must. Along with it, people should keep their Aadhaar card, Address proof of the place of business, Digital Signature, Bank Account statement, Board Resolution for Authorized Signatory and all such business-related documents handy.
4. What Is The Registration Fee For GST?
The Goods And Service Tax Registration is absolutely free. Though there are some documents required and a tedious 11 steps process one has to follow, the government takes no extra cost from the taxpayer.
However, there are many people who don’t understand the registration method. Often, they end up hiring tax experts or other outside help. Individuals may have to pay a hefty sum in this case as a price for getting their tax in order.
5. What Is The Penalty For Not Registering Under GST?
If a taxpayer who is registered under GST in time or continues to make mistakes, they do have to pay the price. Not paying the tax due to genuine error in calculation or paying shorter than the actual amount requires the offender to pay 10% of the actual tax amount that is due. The minimum amount due in this case has to be Rs.10,000.
When the offender deliberately tries to pay shorter amount of tax or altogether forgoes paying the right amount of tax, then 100% of the tax amount the person has failed to pay shall be counted as a penalty. This means the taxpayer has to pay double the tax amount due.
6. What Is GSTIN?
GSTIN or The Goods And Service Tax Identification Number is a number allotted by the government to the taxpayers registered under GST. The number assists the taxpayer when they’re filing for compliance and returns or when they’re applying for the GST Composition Scheme.
From the government’s side, it helps the authorities keep track of all the taxpayers and check on whether they’re filing their taxes on time. The number allows the authority to keep a check on all transactions made by the taxpayers. In the event any of them tries to evade taxes, the authorities have the means to do a quick check on them.
7. When Is Multiple Registration Necessary Under GST?
If the business has operations in more than one state, then it is important to register for GST individually for each state. If the business verticals are in a state, then separate registration should be made for each vertical.
Goods And Service Tax has only been implemented in India for two years. It is understandable that there are still people who don’t understand how GST works or even understands whether they’re eligible for registration under it. We will recommend taking expert help before doing anything.
