What is GST and GST Registration? (Overview)
GST has replaced many indirect taxes such as the service tax, VAT, central sales tax, excise duty and so on. To introduce GST as a comprehensive indirect tax across India, the Government passed the GST Act with effect from 1st July 2017. This day is celebrated as ‘GST Day’ every year.
Initially, the GST Act mandated that businesses having an annual turnover of over Rs 20 lakhs should register themselves as a taxable entity. But the 32nd GST Council Meeting in January 2019 revised the threshold limits for registration. It gave options to the States to either opt for the revised limit of 40 lakhs or to continue with the previous limit. Chhattisgarh opted to implement the increased threshold limit for the sale of goods with effect from 1st April 2019. However, the threshold limits for service providers stayed at Rs 20 lakhs.
This process of registration is known as GST registration. For certain businesses, it is a criminal offense to operate without having GST registration.
The Government has not described any fee as such for GST registration. But, you may need to bear a professional fee if you hire the services of a consultant or CA for doing GST registration on your behalf.
What are the benefits of GST registration?
The benefits of registering under the GST regime are mentioned below-
- GST has removed the cascading effect of taxes and eliminated the ‘tax on tax’ that prevailed in the pre-GST regime
- GST registration makes a business legally authorized to collect tax from its purchasers or recipients
- GST helps a business to consolidate its warehousing facilities and to improve the efficiency of logistics, at reduced costs.
- Small businesses can utilize the composition scheme provided by the GST regime to lower taxes. Thereby, they can also reduce their compliance burden significantly.
- Because of the simplified return filing system in the GST regime, MSMEs are less dependent now on tax professionals as compared to the previous tax regime.
Who should register for GST? (Checklist)
The following entities should register mandatorily for GST-
- Taxpayers registered under tax services of the previous regime (VAT, Excise, Service Tax, etc.)
- Persons/businesses involved in inter-state supply of goods & services
- Non-Resident taxable person
- A person/business that supplies database access, online information and other retrieval services from outside the country to a person/business operating in India (other than a registered taxable entity)
- Casual taxable person
- All e-commerce aggregators
- A person/business that supplies through an e-commerce aggregator
- Agents of a supplier & Input service distributor
- Any other person/business as notified by the Central/State Govt. , as and when recommended by the GST Council
How to do Online GST registration in Chhattisgarh
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 go step-by-step procedure for doing GST registration in Chhattisgarh in the following ways-
- Visit the GST registration web portal https://www.gst.gov.in
- Click “Services”>“Registration”
- Go to “New Registration”
- On the next page, submit the following details-
- Select your type as “Taxpayer” from the ‘I am a’ drop-down menu
- Select ‘Chhattisgarh’ in the ‘State/UT’ drop-down menu
- Select your district from the ‘District’ drop-down menu
- Enter the name of your business, as appears on your PAN card
- Enter your PAN number
- Enter your E-mail ID and valid mobile number. OTPs will be sent to them.
- Click “Proceed”
- On the resultant page, enter the OTPs received in the space provided and click “Proceed”
- A system-generated Temporary Reference Number (TRN) will appear on your screen. Note it for future reference.
- Now, visit the GST site homepage again and log in using the TRN and Captcha code.
- The ‘My Saved Application’ page will be displayed. Click the ‘Edit’ icon at the top
- The next page will show your Registration Application Form
- You will see 10 sections on top of the page. Enter all the required details in each of these sections.
- Fill the details of ‘principal place of business’ and ‘commodity details’.
- Click ‘Save & continue’
- Fill in your Bank account details
- 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.
- Submit your application by any of the following methods-
- By EVC- With an Electronic Verification Code received on your registered mobile number
- By e-Sign methods- With an OTP received on the mobile number linked to your Aadhaar card
- If you are registering as a company, you must apply with a Digital Signature Certificate (DSC).
- After the application is submitted, a message confirming successful submission will appear on the screen.
- An Application Reference Number (ARN) will be sent to your Email ID and the registered mobile number. With this ARN, you can check the status of your application on the GST portal.
You will receive your permanent GST number within 7 working days, subject to the submission of proper documents. This number (called the GSTIN or GST Identification Number) will appear henceforth on all the invoices you submit or receive.
To know where a business entity or taxpayer is from, every state in India has been given a two-digit State Code. The first 2 digits of a GSTIN specify the GST State Code. The Chhattisgarh GST State Code needs to be present in any GST invoice for businesses operating in Chhattisgarh.
The Chhattisgarh GST State Code is 22, as per the GST State Code List. For example, in GSTIN 22BBEPM0162C1Z9, the first 2 digits (22) denote the Chhattisgarh GST State Code. This Chhattisgarh GST Number denotes that the business is from Chhattisgarh.
The Chhattisgarh GST Number can be obtained from the GSTIN of the buyer, mentioned in the “Place of Supply” section of a GST invoice. The Chhattisgarh GST Code helps the Government to determine whether to charge SGST, IGST or CGST on a taxpayer or a business entity. If the State Code for both the buyer and the supplier is different, IGST will be charged on the invoice. If these two State codes are the same, SGST and CGST will be charged.
What are the documents required for GST registration in Chhattisgarh?
You will need to submit the following documents to complete the GST registration process-
If you are a single owner/proprietor:
- PAN & Aadhaar card of the applicant
- Passport-sized photograph of the applicant
- Proof of business address (anyone from rent/lease agreement, electricity bill, owner NOC and so on)
- Bank details (anyone from a canceled cheque of the bank account showing the name of the account holder, the first page of the bank passbook, bank statement)
In case of the partnership business
- PAN in the name of the partnership firm
- Identity proofs (PAN & Aadhaar) for each of the partners 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, certificate of incorporation, registration certificate and so on)
- Bank details (anyone from the first page of bank passbook, bank statement, a canceled cheque of the bank account showing the name of the account holder)
In case of a private limited company
- PAN in the name of the company
- Identity and address proof for each of the directors/promoters with photographs
- Proof of business address (anyone from electricity bill, rent/lease agreement, owner NOC and so on)
- Proof of constitution of business (anyone from certificate of incorporation, registration certificate and so on)
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Authorization details (anyone from letter of authorization, copy of the resolution passed by the managing committee/Board of Directors 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)
In the case of Trust
- PAN in the name of the Trust
- Identity proofs (PAN & Aadhaar) for each of the trustees with photographs
- Certificate of incorporation
- Proof of address (anyone from electricity bill, rent/lease agreement, owner NOC and so on)
- Bank details (a canceled cheque of the bank account showing the name of the account holder or bank statement)
Frequently Asked Questions
There are 3 components of GST. These are-
- SGST (State GST)
- CGST (central GST)
- IGST (Integrated GST)
IGST or Integrated GST is an indirect tax levied on inter-state supplies of goods and services. It is also applicable in cases of export from and import into India.
No, you are not allowed to collect GST from your customers if you do not have a GST registration. Also, you can’t claim any Income Tax Credit against the GST paid by your customers.
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