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.
~ 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% |