GST Registration in Mumbai

Last Updated at: Feb 26, 2021
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GST Registration in Mumbai

The Goods and Service Tax (GST) has ushered in big tax reforms in India. It has been able to eliminate the tax on tax’, or the cascading effect of taxes, since its inception in the year 2017. GST is levied at every change of hand an item moves through along its supply chain. In this blog, we will discuss who should do GST registration in Mumbai and what the documentation criteria are for GST registration in Mumbai.

 What Is the Threshold Limit for GST Registration in Mumbai?

At the time of inception, an annual turnover of Rs 20 lakhs was kept as the threshold limit for taxpayers to do GST registration. However, in the 32nd GST Council Meeting in January 2019, states were given options to either opt for new limits or to continue with the existing ones. Maharashtra opted to raise this limit to Rs 40 lakhs for the sale of goods with effect from 1 April 2019 onwards. However, no changes to the threshold limits for service providers in the state of Maharashtra.

Who Should Register for GST in Mumbai?

The following entities should mandatorily register for GST in Mumbai:

  • Individuals/businesses registered under tax services of the pre-GST regime (VAT, Excise, Service Tax, etc.)
  • Persons needed to deduct TDS and TCS under GST
  • Inter-state suppliers of goods & services
  • A person/business that supplies online information, database access, and/or retrieval services from outside the country to a person/business in India
  • Non-Resident taxable persons
  • All e-commerce aggregators  who facilitate supply through their platform
  • A person/business that supplies items through an e-commerce aggregator
  • Persons selling on behalf of someone else, either as the principal or as an agent
  • Input service distributors
  • Any other person/business as notified by the Central/State Govt
  • Casual taxable persons

register for GST online

What Are the Documents Required for GST Registration in Mumbai?

One should submit the following documents while applying for GST registration in Mumbai:

  • PAN card of the applicant
  • Proof of business address (anyone from electricity bill, owner NOC, rent/lease agreement and so on)
  • Identity and address proof for each of the promoters/directors, along with photographs
  • Bank details (bank statement, the first page of bank passbook, a cancelled cheque of the bank account bearing the name of the account holder)
  • Authorization details (anyone from letter of authorization, copy of the resolution passed by the managing committee/BoD specifying the authorized signatory)
  • Proof of business constitution (partnership deed, registration certificate, Memorandum of Association (MOA), certificate of incorporation, Articles of Association (AOA) and so on)

How to Check the GST Registration Status After Applying Online

After you submit the GST registration online, you can check the GST registration status from wherever you are.  Here is how you can check the GST registration status-

  1. After you submit the online application, a message confirming successful submission will appear on the screen.
  2. An Application Reference Number (ARN) will be sent to your email ID and the registered mobile number.
  3. With this ARN, you can check the  GST registration status on the GST portal.

 On submission of valid documents, you will get your permanent GST number within 7 working days of application. This number (called the GSTIN or GST Identification Number) needs to be mentioned on all the invoices submitted or received by you. 

What Is the GST State Code Used in Mumbai?

Every state in India assigns a two-digit number in the GST state code. This code helps to know where a business entity or taxpayer is from. The first 2 digits of a GSTIN signify the GST state code. The GST state code needs to be present in any GST invoice for businesses operating in Mumbai or in the state of Maharashtra, for that matter.

The GST state code for Maharashtra is 27 as per the GST state code list. For example, in the GSTIN 27BBEMP0162C3Z6, the first 2 digits (27) denote the GST state code for the state of Maharashtra. The GST state code specifies that the business is located in Maharashtra. No business can operate in Maharashtra without having the state GST code.

The GST state code for Maharashtra can be from the GSTIN of the buyer, that mentions in the ‘Place of Supply’ section of a GST invoice. The GST state code helps the government to assess whether to charge IGST, SGST, or CGST on a taxpayer or a business entity. If the state code for the buyer and the supplier are different, IGST will be charged. If these two codes are the same, both the SGST and CGST will be charged.