Good and Service Tax (GST) is the greatest commercial tax reform in India. GST eases the business scenario, increases tax payers by bringing millions of small scale businesses in India. The tax complexity is completely pulled down by abolishing and subsuming multiple stage taxes into a single GST.
All entities involved in buying, selling goods, service providers or both have to register under GST as per the new GST regime. Entities, who have not registered under GST, are not allowed to collect GST from the customers, claim the GST paid for the input tax credit, or would be penalized.
Entities with a yearly turnover of Rs.20 lakhs and above are required to register under GST. Entities not from India and whose annual turnover exceeds Rs.20 lakhs would be required to register for GST. There are other criteria that could make an entity to register under GST irrespective of the annual turnover. The entities required to register under GST within 30 days from the date on which the company turned liable for GST registration.
Minimum 3-5 working days take for GST registration. The person has to file the application with the digital signature. Class 2 digital signature certificate is used for filing online GST application.
How to do GST Registration in India?
GST registration procedure is done through online on the GSTIN website. Once all the required supporting documents should be uploaded on the GSTIN, then the registration will be granted.
First of all the necessary documents for the GST registration should be arranged. Since GST is a new taxation system, it is better to check out the documents by the professional to avoid rejection from the department.
After arranging the required documents, the person should file the documents with the online application on the GSTIN website. Check whether all the files have the appropriate size in order to avoid uploading issues.
If the Government officer finds all papers in place, then he shall issue the GST registration certificate in India. Usually, 3-5 working days will take the GST registration process.
What are the required documents for GST online registration?
- Partnership deed/ Company Incorporation Certificate
- Authorization form
- Bank statement copy
- Passport size photo
- Ownership proof (in case of owning the property; EB bill etc)
- Rental agreement (for the rented property)
An entity has to follow so many compliances under GST. If failed to comply properly, the entity is levied with high penalties. The major three compliances are:
Every invoice shall be uploaded to GSTIN portal to generate reference no. under GST regime before making supply.
- 3 Returns
3 monthly returns are required to be filed on the invoices uploaded basis. (GSTR 1,2, and 3)
There is one annual return which required to be filed.
When does a business need multiple GST registrations?
If a business is operated from more than one state, then each state requires a separate GST registration. If a business has multiple business verticals in one state, then the business may acquire a separate registration for each business vertical.