GST is a product of the biggest tax reform in India that has tremendously improved the ease of doing business and also increased the taxpayer base in India. In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.
GST is a product of the biggest tax reform in India that has tremendously improved the ease of doing business and also increased the taxpayer base in India by including millions of small businesses under one uniform tax system. The tax complexities have reduced considerably due to the introduction of GST in India.
GST is a product of the biggest tax reform in India that has tremendously improved the ease of doing business and also increased the taxpayer base in India by including millions of small businesses under one uniform tax system. The tax complexities have reduced considerably due to the introduction of GST in India.
GST is a product of the biggest tax reform in India that has tremendously improved the ease of doing business and also increased the taxpayer base in India by including millions of small businesses under one uniform tax system. The tax complexities have reduced considerably due to the introduction of GST in India.
The Union Territory Goods and Services Tax (UTGST) is levied by the respective Union Territories. They will be levied on the transactions undertaken by the Union territories of India. The Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Chandigarh, and Daman, and Diu are the Union Territories.
If you are a registered individual or a business, then there will be natural trustworthiness towards you from consumers and suppliers. It shows that you are someone who can be trusted. A company or an individual that has all the legal documents and who are compliant with the rules and regulations create a positive impression.
There could be some hurdles you may face if you are not registered under GST. The way GST regime works is through a chain system. A product can be tracked from manufacturing to supplier to wholesaler to retailer, finally the consumer. Everyone would want to remain GST compliant to avoid any hurdles.
If you are registered under GST and, if a business or an individual, for some reason, takes legal action against you, you will have legal strength to fight back or defend your position. Without the GST registration, you cannot be considered as a legitimate business, and it could work against you in the court of law.
The penalty for someone who is a taxable business or individual and chooses not to register under GST, then according to section 122 of the CGST Act, they can attract a penalty of Rs. 10,000 or the amount equivalent to the tax evaded or the tax liability whichever is higher. It also creates negative impression about your companies trustworthiness.
Authorities can confiscate your Goods if you are not registered under GST. According to Section 130 of the CGST/SGST Act, products become liable to be seized if a taxable business or individual is found to not registered under GST. In a corporation, when Goods are confiscated, then it could be a huge loss because there could be damage to the goods that are seized.
If you are not registered under GST, and if your goods are confiscated, or if there are hefty penalties levied on your business, then there might be the risk of shutting down the business. Because sometimes the seized products cannot be recovered. Sometimes the penalties that are charged might be more than the total value of profits.
~ If Owned Premises – Copy of latest electricity bill OR Property tax paid receipt OR Municipal khata Copy
~ If Rented Premises – Valid Rent Agreement OR Copy of latest electricity bill
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AllIndividuals or entity registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
If turnover by providing of services is crossing Rs. 20 lakh in a year then GST Registration is mandatory. For the Special Category States, the limit is Rs. 10 lakh in a year.
If turnover by supplying of goods is crossing Rs.40 lakh in a year then GST Registration is mandatory. For the Special Category States, the limit is Rs. 20 lakh in a year.
In case of supply of goods or services, in events/exhibitions, and not have a permanent place of doing business, GST is charged on the basis of an estimated turnover of 90 days. The validity of the Registration is also 90 days.
In case of supply of goods or services by NRI, who does not have a place of business in India, GST Registration is mandatory. The validity of the Registration is also 90 days.
All Agents of a supplier & Input service distributor mjust register under GST to earn benefits of Input Tax Credit
Businesses paying tax under the reverse charge mechanism
Entities involving in e-commerce or supply of goods and services via e-commerce operators
Every e-commerce aggregator ( example : Amazon , Flipkart )
Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
Voluntary GST Registration
More than one GSTIN can be taken on a single PAN. For instance, when an entity has business in multiple states, it can take GST registration in each state.
A business may have business verticals i.e. distinguishable components engaged in business activities different from each other. In a single business there can be a manufacturing and trading units which can be considered as business verticals.
In this case, more than one registration can be obtained even when the Head Office and branches are located in the same state.
An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.
The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.
| Type of Business | CGST | SGST | TOTAL |
|---|---|---|---|
| Supplier of Goods | 0.50% | 0.50% | 1.00% |
| Restaurants Not Serving Alcohol | 2.50% | 2.50% | 5.00% |
| Supplier of Service | 3.00% | 3.00% | 6.00% |