GST Registration in Karnataka
The Goods and Services Tax seeks to diminish the number of indirect taxes and unify the Indian market. In every tax system, registration is the most important prerequisite for taxpayer recognition and for ensuring fiscal compliance in the economy. GST Registration of a business entity to comply with the GST law means obtaining a unique identity number for two purposes. They are to collect tax on the government’s behalf and to keep hold of the Input tax credit for taxes on all inward supplies. The unique number is obtained from the concerned tax authorities. Not having a registration means a person cannot collect taxes from his customers. It also means they can’t claim any input tax credit on the tax amount which they paid to the government. Let us learn more about the importance and process involved in GST registration in Karnataka.
Benefits of GST in Karnataka
In any tax system, the registration process is the most essential. Below is the checklist eligibility for people who can apply for GST registration.If it’s a normal registered business, then the benefits are:
If the applicants are composition dealers, then the benefits are:
- a. The business can take the input tax credit,
- b. It can do interstate sales with no restrictions,
If the business has an opt-in for GST registration voluntarily and has an annual turnover below Rs. 20 lakhs, then the benefits are:
- a. The business has limited compliance
- b. They have less tax liability
- c. Also, they will have high working capital
For all other general types of business,
- a. The business can take an input tax credit,
- b. It can do interstate sales with no restrictions,
- c. It can register on e-commerce websites
- d. The business also holds a competitive advantage compared to others in the market.
- a. When a person registers himself/herself under the Karnataka GST Act, the government legally recognizes the person as a supplier of goods and services.
- b. It allows proper financial reporting of the taxes paid on goods or services to be used for the GST payment owed for the business' supply of goods or services.
- c. The registered person is legally entitled to collect tax from its buyers and to transfer to purchasers the credits for the taxes payable on the goods or services provided.
- d. They are also entitled to different benefits and privileges by the GST legislation.
Checklist eligibility for GST in Karnataka
All companies that buy or sell goods or services should register for GST. However, GST registration is compulsory for the people mentioned below.
These businesses shall also execute online GST registration in Karnataka. The GST registration fees in Karnataka is different from that of the other states.Turnover for Service Provider: If your turnover crosses Rs. 20 lakhs in a year as a goods or service supplier then GST registration is compulsory. The limit is Rs. 10 lakhs per year for special category states. Goods Provider Annual Turnover: If your annual turnover crosses Rs. 40 lakhs, it is then mandatory to register GST. The limit is Rs. 20 lakh per year for the special category states. Previous law Converted taxpayer: All individuals or entities listed under the Pre-GST tax law, such as the Service Tax or the VAT, or Excise, etc. Supplier’s Agents or Input Service Distributor (ISD): Every supplier agent and ISD must do the GST Registration to obtain the input tax credit benefits. Casual Taxpayer: When people supply goods or services, in exhibitions or shows, and do not have a permanent location to do business. In these cases, GST would be paid based on an average 90-day turnover. The registration is valid only for 90 days. Reverse Charge Mechanism (RCM): Enterprises that are obliged to pay taxes under the RCM must also be registered with GST. NRI Taxable Person: Whether you are an NRI or managing an NRI business in India. Outside India Online Portal: For online information and database access or retrieval services providers to Indian residents from a location outside India. E-Commerce Portals & Sellers: Any e-commerce portal (such as Amazon or Flipkart) that sells its products from multiple vendors. Both the portal owner and the vendors need to register with GST. Brands: Aggregators providing service under their brand name or trade name. Voluntary GST Registration: Any entity may at any time get GST registration. Even if the mandatory conditions set out above do not apply to them. Inter-State Operations: Individuals who supply interstate services irrespective of the turnaround. Inter-State Registration: You need GST Registration in all the states to which your goods or services are provided if you are a supplier in more than one state. Transferee: When the business was transferred. Other Taxation: Persons obliged to deduct tax u / s 37 (TDS) based on the Income Tax Act. Branches: If your business has several branches in several states, register a certain branch as its headquarters along with the others as additional branches. (Note that this doesn't apply to companies that have vertical components as referred to in Article 2(18) of the CGST Act, 2017.)
The businesses shall access their Karnataka GST rules and the Karnataka GST code through the portal for online GST registration in Karnataka. The Karnataka GST state code is unique and does not resemble that of the other states.
What are the steps involved in GST registration through Vakilsearch?
Below are the steps involved in GST registration through Vakilsearch: Step 1: We help you get a Secure GST Identification Number. Step 2: We make it easy for you to get your GST from the comfort of your own home. Step 3: We will file your returns and complete all other compliances as and when required.
Documents required for the GST registration process
Depending on the different types of business, different sets of documents are required during the GST registration process.
Sole Proprietorship and IndividualsPAN card of the individual or owner Owner's photograph proof Evidence of address Information about the bank's account Aadhaar card of the individual or owner
LLPs and Partnership:Address evidence of partners Details of their bank account PAN card details of the partners Deed of partnership declaration Photograph proof of partners Evidence of LLP registration Main address evidence for the company Proof of the signatories' appointment Aadhaar card of the authorized signatory
Hindu Undivided FamiliesDetails of bank account Photograph proof of the owner Proof of address of the company PAN card details of HUF PAN card details of the Family Patriarch
CompaniesPAN card of the business All business executives' PAN card details Primary address proof of the company Bank account details of the company Evidence of appointment of the signatory PAN card of the signator MoA and AoA Aadhaar card of the signatory Certificate of incorporation from the Ministry of Corporate Affairs. Proof of address of all managers
When required one can update these details later through the GST Karnataka online GST portal.
Once the documents are submitted, the registration process is commenced. The applicant is then provided with a GSTIN number which is a combination of their PAN, Karnataka GST code, etc.
The Karnataka GST state code is KA and its TIN is 29.
FAQs on GST Registration in Karnataka
You will be allowed to secure transitional credit, as per section 140 of the CGST Act, 2017, per the rule 117 of the CGST rules, when you have referred to your previous central excise or service tax registration number in the new application.
You need to submit an online application to opt for a composition scheme to the tax authorities in order to make use of this scheme. Taxpayers who may choose the scheme can be divided into the following;
- Migrated taxpayers: any taxpayer migrated from the previous laws and was granted provisional registration would apply for membership before, but not later than, 30 days after, the day of the appointment.
- New taxpayers: Anyone who is liable to register in compliance with the Karnataka GST Act after the specified date shall file in the new registration application to pay the composition amount.
- Existing taxpayers: A taxpayer enrolled in the GST scheme shall apply for a composition scheme before the beginning of the financial year in which tax is exercised.
The full transition duty credit shall be accessible to the stock in hand where you are subject to conditions laid down in paragraph 140(3) of the CGST Act.
The place of supply of goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient.
Yes, regarding unregistered recipients, the normal place of supply is the recipient's house, where the address exists on documents. Nevertheless, in several cases, the recipient's addresses may not be available. During such situations, the service provider's position is used as a proxy for the place of supply.
Vakilsearch is India’s largest professional platform of lawyers, chartered accountants, and company secretaries-with years of experience behind. We execute legal work for over 1000 companies and LLPs every month, by leveraging our tech capabilities, and the expertise of our team of legal professionals.
9.1 Customer Score
We make your interaction with the government as smooth as possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
With a team of over 300 experienced business advisors and legal professionals, you are just a phone call away from the best in legal services.
Access To Experts
We provide access to reliable professionals and coordinate with them to fulfil all your legal requirements. You can also track the progress on our online platform, at all times.
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.