1. What is GST Registration?
In the GST Regime, businesses whose turnover is more than Rs. 20 lakhs (Rs 10 lakhs for North East and hill states) are required to register as a normal taxable person.
Registration under GST is mandatory for certain businesses. If the organisation is liable to register under the GST and carries on business without registering under GST, it will be considered as an offence under GST and heavy penalties will be levied.
GST registration will usually take 2-6 working days.
2. Who should register for GST in India?
Under the GST regime, the tax is payable by the registered taxable person on the supply of goods and services.
Here we have mentioned who needs to get registered under GST mandatorily.
- Individuals who are registered under the previous law (Excise, VAT, Service Tax etc.)
- When the businesses or the taxable person crosses the turnover threshold limit of Rs 20 lakhs (Rs 10 lakhs for North East and Hill States)
- Inter-State Suppliers
- Businesses having multiple branches in multiple states
- Casual Taxable Person
- A person who is required to pay tax under Reverse Charge Mechanism (if the supplier is unregistered under GST).
- A person who want to take Input Tax Credit
- E-Commerce operators, supplying goods or services
- Non- Resident Taxable Person.
*Casual taxable person means the person whose place of business is not fixed and undertakes transactions occasionally involving the supply of goods or services or both.
*Non-Resident Taxable Person means the person whose place of business is not fixed or is not the resident of India and undertakes transactions occasionally involving the supply of goods or services or both.
3. What are the Documents required for GST Registration?
The document list varies for every business category. The most important document for GST Registration, Click here.
Different types of business categories under GST are:
- Sole Proprietorship/ Individual
- Private Limited Company/Public Company/One Person Company (OPC)
- Limited Liability Partnerships (LLP)
- Hindu Undivided Family (HUF)
4. What is the process for GST Registration?
- The registration process under GST is explained in the steps below
- To register under GST, go on the GST Portal www.gst.gov.in
- Click the Services > Registration > New Registration option.
- You will be re-directed to Part – A of the registration form. Please fill in all the basic details like is the person a taxpayer, GST Practitioner, Tax Deductor, etc., the State, District, Legal Name of Tax Deductor
- Enter your Email ID and Mobile Number on which OTP will be sent for verification.
- Based on the business entity type you will have to upload the documents.
- Once the Documents are submitted, TRN (Temporary Reference Number) is generated. It will be sent via Email and SMS on the registered mobile number.
- GST Officer will verify and either approve the application or would request to provide more document or details till the authority have all the information to approve.
5. GST Registration for different locations
Registration has to be taken in the state or union territory from where the registered supplier makes a taxable supply of goods & services. Registration is not required in that state where taxable supply is made. Where in case supplies of goods or services are made from different states, a separate registration will be required but there should be a fixed establishment in that other state from where the goods or services are supplied.
6. Time Period to get register under GST
The person is required to get himself registered under GST within 30 days from the date when turnover exceeds Rs.20 Lakhs or Rs. 10 Lakhs(for north east & hill states).
For example: BBC Ltd. is engaged in supplying taxable services in New Delhi. The turnover of BBC Ltd exceeds on 1st October, now BBC Ltd. is requiredto get registered by 1st November in the state of New Delhi.
7. What will be the penalty for not registering under GST?
The penalty of 10% of the taxable amount due, subject to a minimum of Rs.10,000 shall be levied on the person not paying tax or making short payments.
The penalty will at 100% of the tax amount due when the offender has intentionally evaded taxes.
Not registering under GST is an offence under Section 122. The GST Act has listed down 21 offences in section 122.