GST Registration in Maharashtra
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 an 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 Maharashtra.
Benefits of GST RegistrationIf 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 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 the 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 themselves under the Maharashtra 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.
Turnover for Service Provider – If your turnover crosses Rs. 20 lakh in a year as a goods or service supplier then GST registration is compulsory. The limit is Rs. 10 lakh per year for special category states. Goods Provider Annual Turnover – If your annual turnover crosses Rs. 40 lakh, 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.)
Checklist eligibility for GST Registration
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 do online GST registration in Maharashtra. The GST registration fees in Maharashtra is different from that of the other states.
The businesses shall obtain details such as Maharashtra GST state code, rules, etc through the portal for online GST registration in Maharashtra. The Maharashtra GST state code is unique and does not resemble that of the other states.
Features of GST
The following are some of the salient features of the GST model:There are two components CGST and SGST. The state of Maharashtra will collect SGST from the consumers. The CGST and SGST will apply to all goods and services transactions made for a consideration except the goods and services exempted. The CGST and SGST are to be paid individually to the centre's and states' accounts respectively. Since the CGST and SGST are to be dealt with individually, the CGST taxes payable may be taken for CGST as an input tax credit ( ITC) and may be used only against the CGST payment. Cross-use of ITC will not be permitted between the CGST and the SGST except perhaps in the case of an inter-State supply of goods and services. Preferably, both the centre and the states should avoid the problem of credit accumulation due to GST refund except in cases such as the purchase of capital goods, exports, when the input tax at a rate higher than output tax, etc. To the extent viable, the CGST and SGST collection procedures would be prescribed uniformly in the respective CGST and SGST legislation. The states are also of the opinion that for GST purposes the composition or the compounding scheme will have an upper limit on gross annual turnover and a floor tax rate on gross annual turnover. The taxpayer will be expected to send periodic returns, to both the concerned GST authorities of the centre and the state. A PAN-linked taxpayer identification number with a total of 14/15 digits would be allocated for each taxpayer. This will put the GST PAN-linked program into line with the existing PAN-based Income Tax structure, enabling data sharing and taxpayer enforcement.
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 Maharashtra online portal.
Once the documents are submitted, the registration process begins. The applicant is then provided with a GSTIN number which is a combination of their PAN, Maharashtra GST code, etc.
The Maharashtra GST code is MH and its TIN is 27.
There are various penalties imposed on the taxpayers depending on the offence. The different penalties are as follows:
Late filing entails a penalty known as a late fee. The CGTS, SGST has a similar late fee. In the case of delayed filing, there is no late charge on IGST. The interest must be paid at 18 percent per annum along with the late fee. It must be based on the tax owed by the taxpayer. The period will begin from the next day of filing to the payment date.For late filing of tax return
If one doesn't file any return for GST then they cannot file any subsequent returns. Late filing of GST returns will, therefore, have a cascading effect which leads to big penalties and fines.For not filing the tax return
An offender who does not pay tax or make short payments must pay a penalty of 10 % of the tax amount due subject to at least Rs. 10,000.For the 21 offences with no fraud or tax evasion
An offender must pay a penalty amount of tax evaded or short deducted etc., They need to pay a penalty of 100 percent, subject to a minimum of Rs. 10,000.For the 21 offences for fraud or tax evasion
FAQs on GST Registration in Maharashtra
The registration formalities of an unregistered person must be completed 30 days from the date of the registration liability.
Workers who generate taxable products above the minimum turnover threshold must register. They are not supplied with the composition scheme. However, they can obtain the benefits of section 143 of the CGST Act.
Tax is levied in the state from which the service is supplied. The supplier will obtain IGST, and whereas the recipient will obtain the IGST credit.
Usually, you don't need to upload the details except in the case of inter-state supplies with invoice value greater than Rs 2.5 Lakhs required.
GST will only be imposed on the price paid for the delivery.
An intermediary could be a broker, an agent, or any person, under whatever name, arranging or facilitating the provision of goods, services, or securities, between 2 or more persons, but not a person supplying those goods, services, or securities, on his or her behalf.
The location for the service provider will be the place of supply for the intermediary services. This rule only applies when either the supplier or recipient is located outside India.
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.