GST or Goods & Services Tax is a destination-based tax, charged on the supply of goods and services. It is levied at every stage or change of hand an item moves through, along its supply chain. It has replaced and absorbed many indirect taxes such as the service tax, central sales tax, Value Added Tax (VAT), excise duty, and so on. The Indian Parliament passed the Goods & Services Act to introduce GST as a comprehensive indirect tax across the country. This Act came into effect from 1st July 2017.
The process of registration of an entity in the GST regime is known as GST registration. There are 3 components of GST. These are as follows-
Now that you have got an overview of GST, we will discuss GST registration for the individual people. As per the GST Act, any individual who carries out a business activity anywhere in India, needs to have GST individual registration. This means, if you are engaged in any economic activity in an individual capacity that generates income, you are treated as a taxable person in the GST regime. For example, if you operate as a tax consultant and offer services in an individual capacity, you need to have GST for individual consultants.
Registration under the GST regime can bring the below-mentioned benefits to the Government and the individuals/businesses-
Please note the following points while applying for GST for individual person-
Initially, the GST Act mandated that any individual or business with aggregated turnover of over Rs 20 lakhs must have GST registration. This threshold was kept at Rs 10 lakhs for the special category states. However, w.e.f. 1st April 2019 onwards, this limit was increased to Rs 40 Lakhs for the sale of goods. No changes were made to the limits for service providers. The states were given options to either opt for new limits or to continue with the previous ones. Thus, while applying for GST for individual consultants, take note of the aggregate turnover criteria.
Even if you do not qualify based on the above-mentioned aggregate turnover criteria, you should mandatorily have GST registration if you fall into any of the following groups-
If you do not have a fixed place to do business but occasionally supply services/ goods, you will fall into this category. For example, if you decide to sell fireworks temporarily during Diwali, you will be a casual taxable person. In this case, you need to have GST for individuals, irrespective of your aggregate income.
If you occasionally supply services/ goods to recipients with no fixed business place/ residence in India, you will fall into this category. In this case, you need to have individual GST registration, irrespective of your aggregate income.
You will fall into this category if you make a taxable supply of services/goods on behalf of another person/business.
With Vakilsearch, you can do your GST registration online with a few simple steps. Our dedicated GST representatives will be in constant touch with you right from the word go and will help you obtain the GST individual registration in a smooth and hassle-free manner.
We will send your GST certificate to you on your email ID. This certificate will have your 15 digit GSTIN.
The first 2 digits of a GSTIN signify the GST State Code of the state in which you have done the GST registration. Every state in India has been given a GST State Code, which is a fixed two-digit number. This Code helps the destination state to know where a business entity or taxpayer is from.
For example, if your GSTIN is 21BBEPM0192C1Z8, the first 2 digits (21) denote the GST State Code for the state of Odisha. Thus, this GSTIN specifies that the business is located in Odisha. It also allows the Odisha State Government to assess whether to charge IGST, SGST or CGST on a particular invoice. If the State Code for both the buyer and the supplier is different, IGST will be charged. If these two State codes are the same, SGST and CGST will be charged.
You will receive your permanent GST number within 7 working days of applying, subject to the submission of proper documents. This number (called the GSTIN or GST Identification Number) will appear on all the invoices submitted or received by you.
The following documents should accompany your application -
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