GST Registration Online
Goods and Services Tax (GST) is an indirect tax levied on certain products used for consumption in India. It came into effect on July 1, 2017, and has made the taxation process easier for businesses. In this article, we'll look at how you can get your business registered with GST in India.
Who can be taxed under GST?
Any individual, such as a person, company, LLP, HUF, any government company, or any company registered under foreign law, co-operative society, etc., who carries out economic activity in India, such as trade, and is registered under the GST Act, is liable to pay tax under GST.
Advantages of GST Registration
GST has reduced the burden of multiple taxes by implementing one indirect taxation. It has also extended the threshold limit for small businesses up to Rs. 20 lakhs. Before GST, the service tax payable was exempted up to Rs. 10 lakhs for small trades, and VAT was only applicable to those with a turnover of more than Rs. 5 lakhs.
Moreover, GST has introduced a composition scheme, which is beneficial for small businesses as they are exempted from paying taxes from Rs. 20 lakhs to Rs. 75 lakhs. The taxation process is now more straightforward, saving time for the company. The compliance and GST Return Filing process is also simplified, with only 11 returns, out of which 4 are basic returns.
GST has reduced the complications for e-commerce firms like Amazon, Flipkart, etc., which previously had lengthy procedures for the transportation of goods. GST is applicable across India, which has now been eased. This helped to reduce transaction costs from one state to another, which improves competition in trade and commerce.
As central and state taxes are now one, set-off in input goods reduces the cost of local products and services, encouraging Indian business.
Disadvantages of GST Registration
However, there are also disadvantages to GST registration. For example, it increases the cost of purchasing software, as companies must either upgrade their existing software or buy a new one, which can be costly. Non-compliance with GST will lead to penalties, and businesses will need to hire a trained GST compliance filer or train existing employees, which will be an additional cost for small-scale businesses. Even though small-scale businesses can choose a composition scheme to reduce their tax burden, they won't be eligible to claim any input tax credit.
Documents Required for GTS Registration
To register for GST (Goods and Services Tax) in India, the following documents are generally required:
1. PAN (Permanent Account Number) card of the applicant
2. Aadhaar card of the applicant
3. Business registration document (like Incorporation Certificate or Partnership Deed)
4. Proof of place of business (like rent agreement or electricity bill)
5. Bank account details of the business
6. Digital signature
7. Authorized signatory's photograph
8. Letter of authorization or board resolution for authorized signatory
9. Details of goods and services to be supplied
The specific documents required may vary based on the type of business and other factors, so it's best to check with the GST registration portal or a qualified professional for guidance on the exact requirements.
Process of GST Registration?
The process of GST registration in India can be done online through the GST Portal. Here are the steps involved in the process:
1. Visit the GST Portal website and click on the " Register Now" button under the " Taxpayers (Normal)" section.
2. Fill out the necessary details such as name, PAN number, email address, and mobile number.
3. After submitting the details, you will receive an OTP on your mobile and email for authentication.
4. Once the authentication is completed, you will receive a Temporary Reference Number (TRN) on your registered mobile number and email address.
5. Use the TRN to log in to the GST Portal and complete the rest of the registration process by filling out the GST registration application form.
6. Upload the necessary documents such as PAN card, Aadhaar card, bank account details, and proof of business premises.
7. After submitting the application and documents, you will receive an Application Reference Number (ARN) on your registered email and mobile number.
8. The GST officer will verify your application and may ask for additional information or documents if required.
9. Once the verification is completed, your GST registration certificate will be issued to you, and you can start using the GSTIN for your business transactions.
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