Registration under GST, Who is Eligible, Process And Conclusion.
Registration under GST Section 68: How to Register for GST
GST Registration is a mandatory requirement for every business that is carrying out any kind of business activity in India. Registration Under GST helps in eliminating tax fraud and helps in providing a single point of taxation. GST registration is the process of doing the same and in this article, we will tell you about the how's and why's of GST registration.GST (Goods and Services Tax) is the biggest tax reform that has ever happened in India. It is a comprehensive tax that has replaced all indirect taxes levied on goods and services by the Central and State Governments.GST registration under section 68 of the IT Act is mandatory for businesses with an annual turnover of INR20 lakhs or more. If you're new to GST, this article will help you know what you need to do to register for GST.A detailed guide on understanding GST registration. Registering for GST will help you to understand the GST system, the registration process, and how to claim the input tax credit.
What Is The GST Full Form?
GST Stands For Goods and service tax.
What is GST?
GST is the Indian Government's comprehensive tax reform of the era that will replace all indirect taxes levied on goods and services by the Central and State Governments.
This is India's biggest tax reform and will unify the way business is done in India.
Understanding Section 68 of the IT Act.
Sections 68 to 69 of the IT Act govern GST Registration. Section 68 of the IT Act provides a single window for registration under GST to businesses.
There is no specific requirement for business establishments but a business establishment is an entity with a turnover of more than INR20 lakhs.
Who is Eligible for GST?
If the business Owner Sells and punches the product in under their state and their tone over is around 200000 Rupees so for this business owner not will have to register under GST. But Business Owner Out of their state Provides products and services. so in this situation, GST is mandatory.
Who needs to register for GST?
Any business that is carrying out any kind of business activity in India is required to register for GST. But the bigger question is - Who should register for GST?
Yes, you read that right! A company that deals in custom clearance, receiving goods from a business partner and passing these items on to another business partner in the supply chain, or a business that buys goods, carries them on its own, and sells them to third-party customers or purchases services from a business partner should register for GST. All of the above businesses are required to register for GST under section 68 of the IT Act.
How to register for GST?
GST registration is done online, through a Portal which is also called the registration application. It is a 6-step registration process that needs to be completed. However, there are some common mistakes that you need to avoid to be eligible for GST registration. G1 (GST Registration In place): You should keep your full GST registration number handy, just in case you need to transfer your GST registration. The first step to go through the registration process is to find your GST registration number. Registration no. is automatically sent to your registered mobile number or registered e-mail id. You can retrieve it by accessing the GST registration link available on the Income-tax e-filing website.
Understanding GST Registration Under Section 68
You are required to register for GST if you are
- Businesses such as a company, proprietorship, partnership, sole proprietorship, trust, and other similar entities
- Self-employed persons and those providing services such as architects, engineers, accountants, bankers, lawyers, doctors, etc
You can start preparing for GST registration by calling your accountant, registration officer, or Companify. Here are a few common mistakes made by businesses when registering for GST.
GST Registration Under Section 68 Part 1: What do you need to do first?
Register your business and confirm your GST number
With this step, you can start your registration and understand the different sections. After completing your GST registration, you need to verify your details by filling out the GSTR-1.
What you need to know about registering for GST under section 68
Every business has to register under section 68 of the IT Act because GST requires that businesses deal with the ultimate consumer of their goods or services, which means that you have to register with the Central or State Government. This is one of the basic steps in getting an actual Registration Under GST. This will make sure that all the information about your business activity is up to date, and that it will continue to operate and comply with the new law that GST. This is the most important thing that you need to keep in mind when registering for GST. Registration must be done before your GST begins. You will also be able to continue doing your business activities and making sales after getting your GST registration.
The procedures involved in registering for GST
The processes involved in registering under GST are quite simple. You will need to submit a completed form which will be passed on to the concerned authorities. The registration form will contain all the required information and documentation including the PAN and bank details. You will also need to fill up the goods and services of your business. We will be discussing each of these processes in detail below. The time frame for GST registration has been reduced. Now there is only a 4-month window for doing so. If you fail to register for GST within the given timeframe, you will be penalized with a fine of Rs 5000. We recommend that you do not hesitate in registering your business for GST as it will help you in the long run.
How to claim an Input Tax Credit
Input tax credit (ITC) is an accounting tool that allows a manufacturer to claim an input tax credit on the value of his raw material and the value of his product minus the GST charged on the supply of these two. This tool will help you claim the full amount of input tax credit while claiming your tax liability under GST.
GST is an E-commerce tax; therefore, you cannot get ITC on the sale of any product through an e-commerce portal. However, input tax credit (ITC) is not limited to the sale of goods or services from an e-commerce website. You can claim ITC on the sale of goods or services of any other merchant (seller) either on the internet or offline.
You must first register your business under GST.
GST is a new tax system that has finally come into existence for India. Though it has taken a lot of time to roll out, it has made a lot of difference. With GST coming into effect, it will be a lot easier for businesses to deal with their taxation. All you need to know is about the GST registration process, eligibility, and all the prerequisites that one needs to be eligible to register for GST so that you can benefit from GST laws in the long run.