Overview of GST Registration

Following are the merits of opting for GST registration in India:

•  Simplified Taxation Services

GST has helped to integrate the Indian market by bringing together numerous indirect taxes under a single regulator.

• Lower Prices for Goods and Services

The cascading impact of numerous taxes and VATs was eliminated with the implementation of GST, which decreased the cost of goods and services.

• Assists in preventing time-consuming tax services

Small businesses benefit from GST registration since it lets them avoid time-consuming tax services as service providers and products suppliers with annual sales value below the threshold of Rs. 20 lakh and Rs. 40 lakh respectively are exempt under GST.

• Trying to Cut Down on Corruption and Sales Without Receipts

GST was implemented in order to eliminate fraud and unreceipted sales. As an added benefit, it assists in lowering the amount of indirect taxes that small businesses must pay.

• Process of Taxation is uniform

GST registration provides for centralised registration and brings uniformity to the taxes process, thereby facilitating online filing of tax returns by businesses.

• Limit for Registration is higher

A business in India that had a revenue of more than Rs 5 lakh was formerly required to pay VAT. Also, service providers with turnover below Rs 10 lakh were excused from the ambit of service tax. Contrarily, under the GST regime, this barrier has been raised to Rs 20 lakh, exempting many small business owners and service providers.

• Small Business Composition Scheme

Small businesses with a revenue between Rs 20 lakh and Rs 75 lakh significantly gain from GST as it offers an opportunity to reduce taxes by using the scheme of composition. As a result, the tax and compliance burden for many small firms has come down.

• Lesser compliances

Prior to this, there were separate returns and compliances for the VAT and service tax. On the other side, under GST, only one consolidated return needs to be submitted.

• Helpful for unorganised sector

Prior to GST, certain industries in India, such as textile and building construction, were mostly unorganised and uncontrolled. However, since the introduction of GST, certain provisions for electronic filing and payment, claiming single input credit have been made possible.

What are the Various Types of GST?

The following GST classifications are commonly observed in India:

Central GST (CGST):

CGST is the term used for Central Goods and Services Tax, which is levied by the central government on intrastate sales of goods.

State GST (SGST):

SGST i.e. State Goods and Services Tax is collected by the State Government and imposed on transactions occurring within the state's administrative boundaries. Although the specific characteristics of SGST may vary from state to state due to individual state laws, the classification of products and services, valuation and taxable events are standardised nationwide.

Union Territory GST (UTGST):
UTGST i.e. Union Territory Goods and Services Tax  applies to business transactions in Union Territories for both goods and services, in addition to CGST. In Union Territories such as Andaman and Nicobar Islands, Lakshadweep, Daman Diu, Chandigarh and Dadra & Nagar Haveli, IGST is imposed on the supply of goods.

Interstate GST(IGST):

The GST levied on transactions between two states, including exports, imports and interstate supply of goods and services, is known as interstate GST or integrated goods and services tax (IGST). The collection of IGST is done by the central government in India.

What are the Eligibility Criteria for GST Registration?

The following below mentioned person/entities are required to get registered with GST:

• Aggregate turnover exceeding Rs 40 lakhs (the threshold is Rs 20 lakhs for states coming under special category status) in a financial year
• Entities registered under earlier taxation laws (Excise, VAT, Service Tax, etc.) must register with GST
• Inter-state suppliers of goods
• Casual taxable persons
• Taxpayers under reverse charge mechanism
• Input service distributor and its agent
• E-commerce operators or aggregators
• Non-resident taxable persons
• Agents of a supplier
• Persons supplying through e-commerce aggregators
• Entities providing online information, acquiring database or retrieval services from outside India to a person in India (excluding registered taxable persons).

For registering with GST, the following documents are must:

For a Public/Private Limited Company:

• PAN card
• Company's Certificate of Incorporation
• MoA and AoA of the company
• proof as well as address proof of directors and the authorised signatory of the company.
• Passport-sized photographs of the directors and authorised signatory.
• Copy of the Board resolution passed for appointing the authorised signatory.
• Information in context of opening of a bank account.
• Address proof of the business location.

For a Sole Proprietorship Business:

• PAN card of the owner
• Aadhar card of the owner
• Photograph of the owner
• Bank account details
• Address proof

For a Partnership Firm:

• PAN card of all partners (including managing partner and authorised signatory)
• Copy of partnership deed
• Photograph of all partners and authorised signatories
• Address proof of partners (Aadhar card, Passport, driving license, Voters identity card, etc.)
• Aadhar card of authorised signatory
• Proof of appointment of authorised signatory
• In the case of LLP, registration certificate / Board resolution of LLP
• Bank account details
• Address proof of principal place of business

For a HUF:

• PAN Card of HUF and the Passport size Photograph of the Karta.
• ID and Address Proof of Karta and Address proof of the place of business.
• Bank Account Details.

What is the Cost of GST Registration?

 The filing of numerous business details and scanned documents is a laborious part of the GST Registration procedure. Even though there are no fees specified by the GST law for self-registering for GST on the GST portal, using StartupFino to buy your GST registration plan will save you a ton of time and hassle.

 You can use StartupFino's GST Registration services, where a trained professional will help you through the entire process.

For registering with GST in India, the following steps must be followed:

1. Begin the GST Registration process by visiting the GST portal www.gst.gov.in and filling out the online application. Create a username and password on the portal.
2. Click on the 'New User Login' link on the GST portal and accept the displayed declaration form. Proceed to register for GST Registration.
3. Fill in the required details on the GST portal and verify with OTP(received on e-mail id and mobile no.)
4. The Temporary Reference Number (TRN) will display on the screen. Save it for future references i.e. for Part B of the registration.
5. Return to the GST portal and then click 'Register' under the 'Taxpayers' menu.
6. Enter the selected TRN and Captcha details and validate again with OTP received.
7. Next the application status will be displayed. Click the Edit option on the right end of the page and fill in the relevant details and provide necessary documents in the sections on the next page.
8. Before submitting the application, verify the declaration on the 'Verification' page. 
9. Finally, on completion, the Application Reference Number (ARN) will be sent on the e-mail ID as well as the registered mobile number, which can be checked on the GST portal.

How to Check GST Registration Status?

To check the status under the official GST portal, the following process must be followed:

• Go to the official GST website.
• Click on the Services tab and select registration.
• Look for the option to track application status.
• Enter the ARN and follow instructions on the screen.
• Discover the status of your application on the screen, which could be one of the following:

• Provisional status
• Pending for verification
• Validation against error
• Migrated
• Cancelled.

How Long does the GST Registration Certificate Remain in Force?

The validity of a GST registration certificate varies depending on the type of taxpayer. For regular taxpayers, the certificate is considered valid until and unless voluntarily surrendered by the taxpayer or cancelled by the GST authority.

However, for certificates issued to casual taxpayers or NRI taxpayers, the validity is limited to ninety(90) days from the date of registration or the period specified in the registration application, whichever comes earlier. Furthermore, the appropriate authorities have the power to extend the validity period under Section 27(1) of the GST Act.

Failure to file GST returns by an entity can result in severe penalties for the defaulter, including the attachment of their bank accounts, which makes it essential for the applicant to submit their GST returns online using the appropriate form.

Under the rules, the penalty for non-compliance comes to Rs. 100 per day, with an additional penalty of Rs. 200 for any delayed payment with the maximum penalty amount capped at a sum of Rs. 5000.

Further, in addition to the late fee, an interest at the rate of 18% shall also be charged, which shall be calculated by the taxpayer on the tax amount which is due. Non-compliance with the rules pertaining to GST registration, as specified in section 122 of the CGST Act, can attract stringent penalties.

GST registration offers various benefits, including the ability to claim input tax credit, easy compliance with tax regulations and seamless inter-state trade. It also provides legitimacy to the business and facilitates participation in the formal economy.

Startupfino is a company that specialises in offering complete services for GST registration. We can aid you with everything from providing advice in the initial phase to ensuring that you meet all the necessary requirements and follow all the tedious processes for registering with GST.

Our GST registration services include the following:

• Assisting with online application submission on the GST portal.
• Providing guidance on the required details and documents for registration.
• Assisting with the registration process for different types of entities, such as sole proprietorships, partnership firms, public or private limited companies and HUFs.
• Assisting with post-registration activities, such as filing tax returns and maintaining compliance with GST regulations.
• Facilitating the registration process for special schemes like the Small Business Composition Scheme.
• Ensuring compliance with document requirements, such as PAN card, Aadhar card, bank account details, address proof, partnership deed and company incorporation documents.

By availing our services, entrepreneurs can avoid the negative outcomes of non-followance of rules and compliances. StartupFino works hard to provide services that are prompt and effective, so you can manage your enterprise without any issues and without facing penalties or problems.