Any business offering sale of goods with annual turn over of 40 lacs or service with annual
turn over of 20 lacs would require the registration for GST and have a valid GST Number.
Launched on July 1 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers. The GST is an all-in-one tax that subsumes a variety of state (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty). GST is to be charged at every step of the supply chain, with full set-off benefits available. The procedure for GST is entirely online and requires no manual intervention.
GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
Every product goes through multiple stages along the supply chain, which includes the purchasing of raw materials, manufacturing, sale to the wholesaler, selling to the retailer and then the final sale to the consumer. GST will be levied on each of these stages (including value addition) and at the point of consumption, rather than the origin of the product. For example, if the product is produced in Tamil Nadu but consumed in Karnataka, then the entire tax revenue will go to Karnataka instead of Tamil Nadu.
Also, taxpayers with a turnover of less than Rs.1.5 crore can opt for composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
GST will have 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e. when a transaction happens one state to another.
Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax.
You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e. tax on sale minus tax on the purchase.
Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for companies whose turnover is more than Rs.20 lakhs (for supply of services) and Rs. 40 lakhs ( for supply of goods) yearly to register for a GST.
All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.
Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are less than Rs.20 lakhs.
You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html
A GST Return is a document containing details of income that is required to be filed as per the law with the tax authorities. Under the GST law, a taxpayer has to submit two returns on a monthly basis and one such return annually. All returns have to be filed online. Please note that there is no provision for revising the returns. All invoices for the previous tax period that went unreported must be included in the current month.
Under GST, a registered dealer has to file GST returns that include: Purchases, Sales, Output, GST (On sales) and Input tax credit (GST paid on purchases).
GSTIN is a unique identification number given to each GST taxpayer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.
The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTN is responsible for maintaining Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.
The list of documents required for registration of GST for various business are as follows:
The following can be shown as proof of address of a director:-
Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone bill.
One of our GST representatives will collect all the required documents and process the GST application through the iCFO platform.
Once all the documents are collected, the application will be processed and filed. Then immediately the ARN number will be issued.
The GST registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST registration certificate can be downloaded from the GST Portal.
As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST.
Any small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration has its own advantages and some of them are:
A GST Return Filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.
For filing a GST Return, you need to have GST compliant sales and purchase invoices attached.
Some of the best reasons to choose us are:
Our legal representatives are available to explain the whole process and clear any queries you may have.
Although the GST portal has a user-friendly interface, the GST Forms have a lot of complex fields. Hence, it is highly recommended that you seek the help of a professional for submitting the application, the required procedures, filing your returns and completing other formalities in the portal.
Yes, you can apply for GST Registration online. You can simply register your business on the official GST portal and then scan and upload all the required documents. You will then receive an acknowledgement. A GSTIN will be generated on acceptance of the application and a temporary password and login will be sent. GSTIN is a unique 15-digit ID.
A GSTIN Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura must get a GST registration if their supply turnover exceeds Rs. 10 lakh. As mentioned above, this threshold limit applies only to businesses that operate within their home state. A business that conducts trade with another state must seek registration regardless of turnover.
The exemption limit is a supply turnover of Rs. 20 lakh for businesses in all except for the Indian states in the northeast region. Businesses in Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, and Tripura must get a GST registration if their supply turnover exceeds Rs. 10 lakh. As mentioned above, this threshold limit applies only to businesses that operate within their home state. A business that conducts trade with another state must seek registration regardless of turnover.
The composition scheme under GST would be applicable to businesses with a turnover of up to Rs. 50 lakh. Small businesses with turnover less than Rs. 1 crore* (Rs. 75 Lakhs for Northeastern states) can opt for composition scheme. Such taxpayers would pay a fixed percentage of its turnover and cannot avail of the benefits of input tax credit. Such businesses cannot collect tax from its customers. The floor rate of tax cannot be less than 1%.
*GST Council has decided to increase the limit to Rs. 1.5 crores but official notification is awaited.
Composition dealers are required to pay tax based on their business types.
Persons who are not eligible for GST composition scheme include:
Yes, GST applies to all service providers, manufacturers, and traders. It extends to any dealers, bloggers, and writers, earnings from Google AdWords through PayPal, import-export businesses, all kinds of startups and companies, whether they are LLPs, proprietorships, partnerships or private limited companies. It also applies, regardless of the threshold limit,
For a complete list of FAQs on GST Registration, please click here.
ARN which stands for Application Reference Number is generated
ARN stands for Application Reference Number. It is the conclusive proof of successful submission of the application to the GST servers. It is generated after the TRN (Temporary Reference Number) & uploading of requisite documents.
“Vakilsearch made my GST registration very seamless and simple. I got quick responses from their sales representatives and also valid information and inputs from them. They took full charge and got my GST registration done effortlessly. I really didn’t have to do much other than give them the necessary documents for the process. Extremely happy with their services. My good wishes to the Vakilsearch team to continue changing legal services and trends in India.”
“I was honestly lost when GST filing was announced as mandatory by the government of India. In order to find answers to the questions I had on my mind, I searched the internet and came across Vakilsearch and their services. True to their promise, they really made legal simple for me. Their staff explained each and every nuance of GST so well and also made me realise the importance of registering for the same. Thanks to Vakilsearch my returns are duly filed by them.”
“Online registration of GST on the GST portal seems simple. But I found the application forms to be quite complex. A businessman like me who hardly has time but to drive business goals and close deals definitely needed the help of a professional. This is when Vakilsearch stepped in and made my life stress-free. I got myself registered online and got my GST identification number with their help in no time. Very impressed by their services and strongly recommend.”
“I never thought filing my GST returns would be this easy. Vakilsearch practically did all the work for me in regards to collecting my documents, calculating my GST returns and input credit tax and also filing my GST returns promptly. I couldn’t have asked for anything more. Every step was well calculated and well organised by their team. Very well done Vakilsearch. I’ll keep coming back for more services.”
“My experience with Vakilsearch has been pleasant. I reached out to them for multiple GST registrations returns on my behalf. Their approach was thoroughly professional. There was absolutely no delay from their end. I really appreciate the on-time delivery and the quick responses I received from their staff who were extremely polite and well-mannered. I have already referred two of my friends to avail services with Vakilsearch. Highly recommend!”
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