What is GST and GST Registration? (Overview)
GST has replaced many indirect taxes such as VAT, service tax, CST, excise duty, and so on. To introduce GST as a comprehensive indirect tax, the Government introduced the GST Act with effect from 1st July 2017.
Initially, the GST Act stated that businesses exceeding an annual turnover of Rs 20 lakhs needed to register themselves as a taxable entity. But, the 32nd GST Council Meeting in January 2019 decided to give options to the states to either opt for new threshold limits or to continue with the previous ones. Chandigarh opted to increase this limit to Rs 40 lakhs for sale of goods with effect from 1st April 2019 onwards. However, the threshold limits for service providers doing GST registration in Chandigarh stayed at Rs 20 lakhs.
It can be done only easily on the GST Portal Chandigarh. The Government has not described any fees for doing GST registration. But, you may need to bear a professional fee, if you hire the services of a consultant or CA for GST registration.
For certain businesses, it is a criminal offense to operate without doing GST registration. An offender making short payments or no payments (due to genuine errors) at all will be levied a penalty of 10% of the tax due, with a minimum limit of Rs 10,000. However, if he proves that he is evading payment of GST willfully, the penalty will go up to 100% of the amount due.
What are the benefits of GST registration?
Registration under the GST umbrella can bring the below-mentioned benefits to the taxpayers-
- GST is designed to bring all indirect taxes under one umbrella. It has eliminated the cascading effect of taxes (also known as the ‘tax on tax’).
- GST registration helps a business to improve the efficiency of logistics, at reduced costs.
- The GST regime has been able to regulate the unorganized business sector.
- GST registration authorizes a business to collect tax from its purchasers or recipients and to pass on the credit against the taxes paid to them.
- Small businesses having a turnover up to Rs 1.5 crore (Rs 75 lakhs for Himachal Pradesh & the North-Eastern States) can lower taxes by utilizing the composition scheme provided by the GST regime. This can also reduce their compliance burden significantly.
- GST has been extremely beneficial to the MSMEs. Because of the simplified return filing system, MSMEs are less dependent on the GST regime on tax professionals as compared to the previous tax regime.
Who should register for GST? (Checklist)
The following entities should mandatorily do GST registration in Chandigarh
- Taxpayers registered under tax services before GST came into force (Excise, Service Tax, VAT, etc.)
- Casual taxable person
- Persons/businesses doing inter-state supply of goods & services
- A person/business that supplies online information, database access and/or retrieval services from outside the country to a person/business in India (other than a registered taxable entity)
- Non-Resident taxable person
- Input service distributors
- All e-commerce aggregators
- A person/business that supplies through an e-commerce aggregator
- Agents of a supplier
- Any other person/business as notified by the Central/State Government, as per recommendations of the GST Council
How to do Online GST registration in Chandigarh
The process of GST registration is very simple, and if you have complete documents with you, the process will be hassle-free. Register with Vakilsearch in 3 simple steps –
- We help you get a secure GST identification number
- We make it easy for you to get your GST from the comfort of your own home
- We will file your returns and complete all other compliances as and when required
You can also register for the GST in the following way
- Visit the online portal
- Click “Services”>“Registration” > “New Registration”
- On the resultant page, fill in the following details-
- Select “Taxpayer” in the ‘I am a’ drop-down menu
- Select ‘Chandigarh’ in the ‘State/UT’ drop-down menu
- Select the name of your district in the ‘District’ drop-down menu
- Enter the name of your business, as per PAN card
- Fill in your PAN number
- Enter your E-mail ID and valid mobile number in appropriate boxes. OTPs will be sent to them.
- Click “Proceed”
- On the next page, enter the OTPs received in the space provided and click “Proceed”
- A Temporary Reference Number (TRN) will appear on your screen. Note it for future use.
- Now, visit the GST again, go to Services>Registration> New Registration and fill in the following details-
- Select the button named ‘Temporary Reference Number (TRN)’
- Enter the TRN and fill in the CAPTCHA image in the space provided
- Click “Proceed”. You will receive OTPs on your E-mail ID and valid mobile number
- Enter the OTPs you have received on the resultant page and click “Proceed”.
- The next page will show the status of your application. Click the “Edit” icon on the right side
- On the next page, you will see 10 sections. Enter all the required details in each of these sections.
- Upload scanned copies of the relevant documents ( refer to the next section to know more about the documents required)
- Next, visit the “verification” page and check the declaration box.
- Apply by any of the following methods-
- By EVC- You will receive an Electronic Verification Code on your registered mobile number
- By e-Sign methods- You will receive an OTP on the mobile number linked to your Aadhaar card
- If you are registering as a company, apply with a Digital Signature Certificate (DSC).
- After you apply, a message confirming the successful submission will appear on the screen.
- An Application Reference Number (ARN) will be sent to your Email ID and the registered mobile number. You can check the status of your application on the GST portal with the help of the ARN.
You will receive your permanent GST number within 7 working days of filing for GST registration, 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.
To know where a business entity or taxpayer is from, every state in India has been given a State Code, which is a fixed two-digit number. The first 2 digits of a GSTIN signify the GST State Code.
The Chandigarh GST Code is ‘04’, as per the GST State Code List. For example, in GSTIN 04AAEPM0142C1Z8, the first 2 digits (04) denote the Chandigarh GST Code. The Chandigarh GST Code specifies that the business is located in Chandigarh.
The Chandigarh GST State Code can be obtained from the GSTIN of the buyer, mentioned in the “Place of Supply” section of a GST invoice. The GST state code helps the Government to assess whether to charge SGST, IGST or CGST on a taxpayer. 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, CGST and SGST will be charged.
What are the documents required for GST registration in Chandigarh?
You need to submit the following documents to complete the GST registration process in Chandigarh-
- PAN card of the applicant
- Identity and address proof for each of the directors/promoters with photographs
- Proof of business address (anyone from rent/lease agreement, electricity bill, owner NOC and so on)
- Proof of constitution of business (anyone from partnership deed, Memorandum of Association (MOA), certificate of incorporation, registration certificate, Articles of Association (AOA), Society by-laws and so on)
- Authorization details (anyone from letter of authorization, copy of the resolution passed by the managing committee/BoD specifying the authorized signatory
- Bank details ( First page of bank passbook, a canceled cheque of the bank account showing the name of the account holder, bank statement)
Frequently Asked Questions
The composition scheme cannot be availed by-
- Inter-state sellers
- Service providers
- Manufacturer of notified goods
- Supplier of non-taxable goods
- E-commerce sellers
The composition dealers can avail the following benefits if they register for GST-
- Reduced tax liability
- Reduced compliance burden
- Can file only 1 quarterly return by availing the composition scheme (instead of 3 monthly returns by normal taxpayers)
- Can get more working capital
An input service distributor is an office of the supplier of services or goods who receives tax invoices upon receipt of input services. He also issues tax invoices while distributing the credit of SGST, CGST or IGST paid on those services. He must be a supplier of services or goods having the same PAN as that of the particular office mentioned above.
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