The GST(Goods and services tax) is a value-added tax imposed on most of the goods and services for consumption. Those businesses who sell goods and services remit the GST to the government which is paid by the consumers. Indirectly, GST provides direct revenue to the government.
In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
Registration under GST is mandatory for certain businesses. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.GST registration usually takes between 2-6 working days. We’ll help you to register for GST in these easy steps.The Goods And Services Tax (GST) Registration at Leom International helps you to get your business GST registered and obtain your GSTIN. We will guide you on the applicability and compliance under GST for your business and get your business registered under GST. CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification came into effect from 1st April 2019.
BENEFITS OF GST REGISTRATION
- GST eliminates the cascading effect of tax
- Higher threshold for registration
- Composition scheme for small businesses
- Simple and easy online procedure
- Lesser compliances
- Defined treatment for E-commerce operators
- Improved efficiency of logistics
- GST also regulates an Unorganized sector
DIFFERENT TYPES OF GST REGISTRATION?
- Regular Scheme ( Take Input Tax Credit)
- Composition Scheme
- Foreign Now Resident taxpayer
- Input Service Distributor
- E-mail commerce Operator
- Government Department & UN bodies
WHAT ARE THE RATES UNDER GST COMPOSITION SCHEME?
GST rates have been classified into 6 categories ranging from 0% to 28%, depending upon the nature of goods and services. The rate of interest under GST Composition Scheme are very low, i.e. 1% & 5%.
Manufacturers- 2% of turnover ( 1% CGST plus 1% SGST)
Restaurant Services- 5% of turnover ( 2.5% CGST plus 2.5% SGST)
Trader, Resaler, Wholesaler etc- 1% of turnover ( 0.5% CGST plus 0.5% SGST)
Besides, there’s a separate composition scheme for service providers and dealers of mixed supplies as shown below in the table.The GST Council in its 32nd meeting had introduced a new composition scheme for service providers as well as mixed supplies of goods & services. Under this composition scheme,Threshold limit for GST Registration shall be ₹50 lakhs.The GST tariff rate shall be 6%, i.e. 3% CGST + 3% SGST.The suppliers under this scheme would require to file only annual GST return GSTR-9A and no need to file GSTR-4.
WHO NEEDS GST REGISTRATION NUMBER?
- Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
- Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
- Casual taxable person / Non-Resident taxable person
- Agents of a supplier & Input service distributor
- Those paying tax under the reverse charge mechanism
- Person who supplies via e-commerce aggregator
- Every e-commerce aggregator
- Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
Process Of GST Registration On Govt.Portal
GST Registration Steps are as follows:
- To register under GST, click on the Govt. GST Portal www.gst.gov.in
- Click on Service tab on the Menu
- You will have four options: Registration, Payments, User Services and Refunds
- Click on Registration and then on New Registration
- You will be directed to Part – A of the form to 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 (According to PAN), PAN.
- Enter the Email ID and Mobile No. on which OTP could be sent.
- A One Time Password (OTP) would be sent to verify by the GST Portal.
- Based on the business you will have to upload few documents.
- After the Documents are submitted, the Application Reference Number (ARN) is generated and is sent to you 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.
Documents for GST Registration
- PAN of the Applicant
- Aadhaar card
- Proof of business registration or Incorporation certificate
- Identity and Address proof of Promoters/Director with Photographs
- Address proof of the place of business
- Bank Account statement/Cancelled cheque
- Digital Signature
- Letter of Authorization/Board Resolution for Authorized Signatory