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GST Registration - Online Goods and Service Tax Registration

Goods and services tax is an indirect tax used in India. It is applied on goods and services both. GST registration is mandatory when you want to get your business online or your annual turnover should exceed the limit of 40 lakh/20 lakh in case of goods and services vice-versa.

Charges(All Inclusive)900/-

Other GST Services

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GST RETURNS(3000)

A GST Return is a document containing details of income that is required to be filed as per the law with the tax authorities

one person company registration

GST CLAIMING(free)

GST-registered businesses can claim back the GST they pay on business expenses. And in some cases, you can claim back GST that you’ve already paid.

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GST RENEWAL(get a quote)

Bright Start Solutions is India's most trusted accounting firm for your GST renewal.

GST Registration Online-An Overview

What is GST Registration?

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.

For certain businesses, registration under GST is mandatory. 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 3 easy steps.

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.

Why We Need GST Registration?

Online trading is impossible without a GST number. It is only possible when you have registered your firm/company under a GST registration. In case you want to deal with big brands of e-commerce like amazon, flip cards. You also required a GST number.

Components of GST

GST is a major tax reform in India’s indirect tax structure. It is a consumption-based tax levied on the supply of goods and services.

The essence of such a tax is to integrate a host of indirect taxes into a comprehensive single tax both at the Central and State level. Accordingly, GST has subsumed an array of indirect tax levies that resulted in a cascading effect in the previous indirect tax regime. Moreover, the implementation of such a tax was introduced as a set-off relief mechanism for the seamless flow of input credit across the chain.

But, to administer GST in a country like India, a model had to be designed involving both Centre and States in its implementation. This is because India is a federal country. Here, both Centre and States have powers to levy and collect taxes through their respective legislations.

Accordingly, a Dual GST Model has implemented distributed powers to both Centre and States to levy the tax concurrently.

The following are the Main components of GST:
  • Central GST (CGST)
  • State GST (SGST)
  • Union Territory GST (UTGST)
  • Integrated GST (IGST)

Hence, to understand each of the above mentioned GST components, we first need to look at

  • previous indirect tax structure in India,
  • levy and collection of taxes under such a structure and
  • the reasons for implementing GST.

Tax Rates

GST has been structured in a way that essential services and food items are placed in the lower tax brackets, while luxury services and products have been placed in the higher tax bracket.

The GST council has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%, 18% and 28% under GST. This is aside the tax on gold that is kept at 3% and rough precious and semi-precious stones that are placed at a special rate of 0.25% under GST.

A total of 81% of all the goods and services fall below or in the 18% tax slab. This means 7 % of the items come under the exempted list, 14% of the items attract a 5% tax, 17% of the items attract a 12% tax, and 43% of the items attract an 18 % tax slab, while only 19% of the items fall under the highest slab of 28% in the new regime.

Importance of GST Return

Talking about its long-term impact, GST marked a positive influence on most sectors. So, let’s get to know about GST Return. According to the GST Registration Service Provider, a return is a document containing details of income which a taxpayer is needed to file with the tax administrative authorities to calculate tax liability. Under GST, an inscribed dealer has to file GST returns that include:

  • Purchases
  • Sales
  • Output GST (On sales)
  • Input tax credit (GST paid on purchases)
  • To file GST returns, GST compliant sales and purchase bills are required.

Document for Online GST Registration?

The main documents for GST registration include a PAN card, proof of business registration, identity, photographs and address proof of persons in charge, the business’ address proof and bank account statements.

You can prove your bank details by means of a bank statement, cancelled cheque or an extract from your passbook. Similarly, an address proof can take the form of an electricity bill, rent agreement, ownership documents, property tax statement and so on.

GST Registration Documents for Individuals and Sole Proprietors
  • Owner’s PAN card
  • Owner’s Aadhaar card
  • Owner’s photograph
  • Proof of address
  • Bank account details
GST Registration Documents for Partnerships and LLPs
  • HUF’s PAN card
  • Karta’s (patriarch of family) PAN card
  • Owner’s photograph
  • Bank detail
  • Business’ principal address proof
GST Registration Documents for Companies
  • Company PAN card
  • The Ministry of Corporate Affairs incorporation certificate
  • Memorandum/ Articles of Association
  • Signatory’s appointment proof
  • Signatory’s PAN card
  • Signatory’s Aadhaar card
  • PAN card of all directors
  • Address proof of all directors
  • Bank details
  • Business’ principal address proof
GST Registration Documents for Society or Club

A society or club needs to provide the following GST registration documents to complete the process and obtain GSTIN.

  • I. A copy of the club or society’s registration certificate.
  • II. A copy of the PAN card of the club or society along with that of associated partners or promoters.
  • III. Photograph of partners or promoters.
  • IV. A copy of the bank account statement/crossed cheque/passbook’s first page.
  • V. Proof of registered office’s address, that can include utility bills, documents of legal ownership/municipal khata copy for premises owned by the society or club. In the case of rented premises, a rent agreement as well as NOC from the premise’s owner.
  • VI. Authorisation letter signed by authorised signatory/signatories.

GST RETURN FILING

A GST Return is a document that mentions all details related to GST invoices, payments, and receipts for a specific period. A taxpayer is liable to declare all transactions related to the revenue of the business based on which the authorities will calculate the amount of tax to be paid by the business.

Business owners can file GST online on the official portal provided by GSTN.

While filing GST returns, the registered dealer requires the following details for the concerned period.

  • Total sales.
  • Total purchases.
  • Output GST (GST paid by customers.)
  • ITC or Input Tax Credit (GST paid by the business for purchases.

Once filed, a registered dealer can check GST Return filing status online and comply with necessary requirements accordingly.

FAQ

Who is required to apply for a GST number?

Following are the general criteria of mandatory registration:

  • If the total business turnover exceeds ₹ 40 Lakh/₹20 Lakh in case of business of goods/providing service respectively in the concerned financial year (Threshold for North-eastern States is ₹ 20 Lakh/ ₹ 10 Lakh in case of business of goods/providing service respectively)
  • Casual taxable person / Non-Resident taxable person
  • Agents of a supplier & Input Service Distributor (ISD)
  • Electronic Commerce Aggregator
  • Person supplying through an E-commerce platform

In addition to above, there are certain other criteria when registration is mandatory. Apart from compulsory registration, one can also apply for GST registration voluntarily.

At which place, should I obtain registration for GST?

The supplier of Goods and Services is required to apply for GST registration in the state from where the taxable goods or services are supplied, mentioning the place(s) of business. When the places of Business are situated in more than one state, application of GST shall be made from more than one place.

How is the tax to be collected at the source for e-commerce operators?

Every e-commerce operator engaged in facilitating the supply of taxable goods/services shall collect the tax at source at the time of credit or at the time of payment, whichever is earlier.

Can a person apply for single GST Registration for all the businesses, in case if the
business is established in different States of the country?

No, a person cannot apply for a single GST Registration. A person has to apply for separate GST Registration for every state from which he/she is carrying out the operations, whether under the same name or different. The same applies to a person having the same PAN and operating business from different states.

What is the proof of registration under GST?

Once the application is made for registration under Goods & Service Tax Act, the competent officer shall verify the application submitted and on his/her satisfaction, the officer issues the Certificate of Registration under GST in soft copy. The Certificate issued also mentions the GSTIN allotted to the applicant.

Who is exempted for GST Registration in India?

Following are the exclusions from the GST Registration:

  • An agriculturist – for the purpose of agriculture
  • Person exclusively supplying goods/ services not liable to tax or wholly exempted from Tax
  • Services by any Court or Tribunal established under the law
  • Services by an employee
  • Services of funeral, burial, crematorium or mortuary, including transportation of the deceased
  • Sale of land subject to Schedule 5 (ii)(b), sale of building
  • Actionable claims, other than lottery, betting and gambling
  • Person falling below threshold exemption limit prescribed

What are taxable events under the GST Act?

The event of supply of Goods and/or Services i.e. transactions such as the sale, transfer, barter, exchange, license, rental, lease or disposal made, or agreed to be made for a consideration of taxable goods or services, is to be considered a taxable event under the GST Act.

Which date is considered as the date of Supply for GST?

The time of supply of goods shall be earlier of the following:

  • (a) Date of issuing an invoice by the supplier or;
  • (b) Last Date by which s/he is required to issue invoice as per the prescribed time period or;
  • (c) Date on which the supplier enters a payment in his/her books of account or;
  • (d) Date on which the payment is credited to his/her bank account

The time of supply of services shall be earliest of the following:

Case:1 Where an invoice is issued within the prescribed period

  • (a) Date of issue of invoice by supplier or;
  • (b) Date on which the supplier enters a payment in his/her books of account or;
  • (c) Date on which the payment is credited to his bank account

Case:2 Where an invoice is not issued within the prescribed period

  • (a) Date on which the service is provided or;
  • (b) Date on which the supplier enters a payment in his/her books of account or;
  • (c) Date on which the payment is credited to his/her bank account

In case of supplies of goods or services under reverse charge, the time of supply shall be earliest of the following:

  • (a) Date of receipt of goods (This applies only for supply of goods and not services) or;
  • (b) Date on which the payment is entered in the books of accounts of a recipient or;
  • (c) Date immediately following 30 days from the date of issue of invoice by the supplier.(In case of supply of service date immediately following 60 days from date of issue of invoice shall be considered.

What is the Government fee for online GST Registration in India?

There are no government fees for GST registration.

When the returns have to be filed after GST Registration?

Registered dealers shall be required to file the following returns:

  • Monthly Return: Every registered taxable person shall be required to e-file a monthly return for inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars within the due date prescribed for the respected month.
  • Return for composition scheme: Dealers paying tax under the composition scheme shall have to file a return for each quarter or part, thereof, electronically within 18 days after the end of such quarter.
  • TDS return: Every dealer who is required to deduct tax at source shall file a return electronically within 10 days after the end of the month in which the said deduction is made.
  • Return for input service distributor: Every input service distributor shall file an e-return for every calendar month or part thereof, within the 13 days after the end of the particular month
  • First Return: Every registered taxable person paying the CGST/SGST on all intra-state supplies of goods and/or services shall have to file the first return from the date on which he/she became liable for registration till the end of the month in which the registration has been granted
  • Annual return: An annual return will have to be filed for each financial year by every registered taxable person. This needs to be done on or before the 31st day of December, following the end of the particular financial year.
  • Final return: Every registered taxable person who applies for a cancellation of his/her registration shall have to file a final return within 3 months of the date of cancellation or the date of cancellation order, whichever is later, in a prescribed form.
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Do I need to file GST Returns, if I have applied for GST Registration Voluntarily?

Every person registered under GST, whether mandatorily or voluntarily, shall file the requisite GST Returns in the manner prescribed and within the time limit prescribed for same.

What are the modes of payment for GST?

Payment for the tax or any penalty, fees, etc. shall be made via any of these payment modes:

  • Internet Banking
  • NEFT or RTGS

This amount shall be credited to the electronic cash ledger of the registered dealer.

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