Manufacturers are eligible for composition under Section 10 of the CGST Act. Furthermore, manufacturers are subject to a composition rate of 2.5%. In this article, we’ll dwell on GST registration for a manufacturing unit.
A manufacturer is a person who not only utilises hired labour in the production or manufacturing of excisable commodities but also anybody who produces or manufactures them on his own account. As a result, a person may be considered as a manufacturer if he is engaged in the production or manufacturing of things, either through hired labour or through himself.
In Terms of Section 2(72), the CGST Act Defines the Term ‘Manufacture’ as Follows:
‘Manufacture’ means the processing of raw material or inputs in any manner that results in the emergence of a new product having a distinct name, character and use and the term ‘manufacturer’ shall be construed accordingly.
The World Bank feels that the adoption of the Goods and Service Tax (GST), together with the removal of inter-state checkpoints, is the most important reform that can boost India’s manufacturing sector’s competitiveness.
GST Registration for Manufacturing Unit:
As a manufacturing unit, it is essential to register for GST to comply with the law and avoid any penalties. In this article, we will guide you through the process of GST registration for manufacturing unit.
Step 1: Determine if you are eligible for GST registration
As per the GST law, any business with an annual turnover of more than Rs. 40 lakhs (Rs. 10 lakhs for northeastern states) is required to register for GST. Therefore, the first step is to check if your manufacturing unit meets this threshold.
Step 2: Gather the required documents
To register for GST, you will need to have the following documents:
- PAN card
- Aadhaar card or passport size photograph
- Proof of business registration such as a partnership deed, certificate of incorporation, etc.
- Bank account details including IFSC code and branch address
- Address proof of the manufacturing unit such as rent agreement, electricity bill, etc.
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Step 3: Register on the GST portal
Once you have the required documents, the next step is to register on the GST portal. Follow these steps:
- Visit the GST portal at https://www.gst.gov.in/
- Click on the “Register Now” button under “Taxpayers (Normal)”
- Fill in the necessary details such as PAN, email address, and mobile number
- Enter the OTP received on your mobile number and email address
- Complete the registration form by providing all the required details such as business name, address, and bank account details
- Upload the necessary documents
- Submit the application
Step 4: Verification and approval
After submitting the application, your manufacturing unit will undergo a verification process. The GST department may ask for additional documents or information during this stage. Once the verification is complete, you will receive an approval or rejection of your application.
Step 5: Start filing GST returns
Once your manufacturing unit is registered for GST, you will need to start filing GST returns. This involves reporting the details of your sales and purchases to the GST department. You can do this online on the GST portal or through GST-compliant accounting software.
In conclusion, registering for GST is essential for any manufacturing unit to comply with the law and avoid penalties. Follow these steps to register your manufacturing unit for GST and start enjoying the benefits of a streamlined tax system.
GST Registration for Manufacturing Unit – Advantages
GST Registration for Manufacturing Unit is a mandatory requirement under the GST regime for businesses engaged in the manufacturing of goods. This registration provides numerous advantages to manufacturers, making it essential for them to register themselves under the GST system.
One of the primary benefits of GST registration for manufacturing units is the ability to claim input tax credit (ITC) on purchases made for business purposes. This credit can be utilized to offset the GST liability on the output supply of goods, resulting in reduced costs and increased profitability for manufacturers.
GST registration also provides manufacturers with a wider market reach by enabling them to sell their products throughout India without any state-wise restrictions. This promotes business expansion and growth, allowing manufacturers to tap into new markets and increase their customer base.
Moreover, GST registration for manufacturing units helps to streamline the tax compliance process, reducing the burden of multiple taxes and paperwork. It also facilitates easy online filing of returns, making the process more efficient and less time-consuming.
Overall, GST registration online for manufacturing units offers numerous advantages, including increased profitability, wider market reach, and streamlined tax compliance, making it a crucial requirement for all manufacturers operating in India.
Looking for GST registration for manufacturing unit? Visit https://www.gst.gov.in/ and consider engaging the services of Vakilsearch’s GST professionals for a swift and efficient registration process. Our experts can act as trustees to handle all the tedious registration responsibilities on your behalf and ensure that you receive your GSTIN promptly. Contact Vakilsearch now to make GST registration hassle-free for your manufacturing firm!
