Do you run a business in Hyderabad and hoping to complete your GST registration? Do you have no idea where to begin? Relax! We've got you covered!
The Goods and Services Tax (GST) regime is an indirect tax levied at the point of sale. Since its inception in 2017, it has been able to eliminate the ‘tax on tax’ or cascading effect of indirect tax, ushering in significant tax reform in India. In this blog, we will discuss the GST registration process and the required documents for Hyderabad GST registration. We will also discuss other important points 36 gst state code and you should keep in mind if you want to undergo GST registration.
The Goods and Services Tax (GST) is a unified tax system implemented in India in 2017. Under this system, businesses need to obtain GST registration to conduct business activities involving the supply of goods and services. In this article, we will discuss the process of registering for GST in Hyderabad, the capital city of the Indian state of Telangana.
Step-by-Step Guide for Registering for GST in Hyderabad
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Step 1: Obtain a PAN Card
Before applying for GST registration, the first step is to obtain a Permanent Account Number (PAN) card. PAN is a unique 10-digit alphanumeric code issued by the Income Tax Department of India. PAN is mandatory for GST registration.
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Step 2: Gather Required Documents
The next step is to gather the required documents for GST registration. The following documents are required for GST registration:
- The PAN Card of the applicant
- The Aadhaar Card of the applicant
- Proof of business address (Electricity Bill, Rent Agreement, etc.)
- Bank Account Statement of the business
- Digital Signature Certificate (DSC) of the applicant
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Step 3: Visit the GST Portal
After gathering the required documents, visit the GST portal at www.gst.gov.in. Click on the ‘Services’ tab and select ‘Registration’. Then click on ‘New Registration’.
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Step 4: Fill the Application Form
The next step is to fill out the GST registration application form. The form has two parts: Part A and Part B.
In Part A, you need to provide your PAN, email address, and mobile number. After entering these details, you will receive an OTP on your registered mobile number and email address. Enter the OTP to complete Part A.
In Part B, you need to provide your personal details, business details, and upload the required documents. You also need to select the type of business and the nature of the transaction. After filling in all the details, submit the application.
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Step 5: Verification
After applying, the application will be verified by a GST officer. The officer may ask for additional documents or information if required.
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Step 6: GST Registration Certificate
Once the application is verified, you will receive a GST new registration certificate. The certificate contains the GSTIN, which is a unique identification number assigned to the business. The certificate should be downloaded and printed for future reference.
Documents Required for Hydrabad GST Registration
You should keep the following documents ready while applying for GST registration:
- PAN card in the name of the business
- Identity and address proof for each of the promoters/directors, along with their photographs (passport size)
- Proof of business address (any utility bill, rent/lease agreement etc.). Also, a NOC from the owner is mandatory if your business address is on a rented premise
- Proof of business constitution (such as partnership deed, certificate of incorporation, memorandum of association (MOA), articles of association (AOA), and so on)
- Authorization details (such as, a letter of authorization, copy of the resolution passed by the managing committee/board of directors to specify the authorized signatory)
- Bank details (bank statement, a cancelled cheque of the bank account bearing the name of the account holder, the first page of bank passbook)
Threshold Limit for Hyderabad GST Registration
When GST was introduced in 2017, an annual turnover of ₹ 20 lakhs was earmarked as the threshold limit for taxpayers for GST Registration. However, in the 32nd GST Council Meeting held in January 2019, states were given the option to either go for new limits or to continue with the existing ones. Telangana was the only normal category state that opted for the status quo. This means ₹ 20 lakhs remained as the threshold limit for both goods and services in the state of Telangana.
GST State Code Used in Hyderabad
The GST state code assists in determining the location of a taxpayer or business entity. Every state in India has a GST state code, which is a fixed two-digit number. Telangana’s GST state code must appear on all GST invoices for businesses operating in Hyderabad or the state of Telangana. Furthermore, the first two digits of a GSTIN represent the GST state code.
As per the GST state code list, 36 is the GST state code for Telangana. For example, in the GSTIN 36BBENP0752C6Z7, the first 2 digits (36) specify the GST state code for the state of Telangana. Furthermore, the GST state code indicates that the company is based in Telangana, Moreover,, no business can operate without a GST state code.
The GST state code assists the government in determining whether an individual should be charged IGST, SGST, or CGST. Furthermore, if both the supplier’s and the buyer’s State Codes are the same, both CGST and SGST will be levied. If they differ, IGST will be added to the invoice.
The GST state code for Telangana can be obtained from the buyer’s GSTIN. It is mentioned in the GST invoice’s ‘Place of Supply’ section.
Who Should Register for GST In Hyderabad?
The following entities should mandatorily register for GST in Hyderabad by submitting the GST registration required documents
- Individuals/businesses registered under the tax services in the pre-GST regime (VAT, excise, service tax, etc.)
- Non-resident taxable person
- 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
- Persons needed to deduct TDS and TCS under GST
- Casual taxable person
- Input service distributors
- A person/business that supplies items through an e-commerce aggregator
- Additionally, persons selling on behalf of someone else, either as a principal or as an agent
- All e-commerce aggregators that facilitate supply through their platform
- Any other person/business as notified by the central government/state government of Telangana
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The Takeaway
If you are looking to apply for GST registration: https://www.gst.gov.in/, the information provided above will be extremely useful. A GST-registered business can claw back numerous benefits. In fact, GST registration assists a business in becoming a legal entity. Further, it also allows the suppliers to determine whether they are transacting with a registered business and whether the details of the business is correct or not. Hence, this would go a long way towards increasing the credibility of stakeholders in a business.