The procedure of GST registration is entirely an online process and requires no manual intervention. The process of GST registration is important to avail the taxation benefits. Legal Dekho will help you to solve your GST related queries. Choose us to complete your GST Registration and will ensure you that your communication with professionals is seamless.

Overview of GST Registration

GST is an indirect tax that was introduced to abolish several other indirect taxes in India, to create a single taxation system for the ease of collection and to enhance the efficiency of the process. According to the GST Regimes, businesses whose turnover gets over Rs. 40 lakhs* (Rs 10 lakhs for North Eastern – All hilly states) is required to obtain the GST Registration as a“Normal taxable person”.

However, for certain businesses, GST registration is compulsory and if the organization or a person carries on business without GST Registration, it will be treated as an offence under GST and heavy penalties will apply. It takes 2-6 working days to get the GST registration done.

What is GST (Goods and Service Tax)?

GST is the biggest tax reform in India levied on the goods and services which subsumes both the State (VAT, Entertainment Tax, Luxury Tax, Octroi) and Central taxes (CST, Service Tax, Excise Duty). This will help the end consumer like us to bear only GST charged by the last dealer in the supply chain. After all, One Nation One tax is the slogan of our PM Sri Narendra Modi.

On 1st July 2017, The GST was introduced with certain rules and regulations, and a lot many modifications have been implemented since then. Due to a large number of amendments in the Act, people still have perplexed thoughts as regards to threshold limit for registration and implementation under the Act.The procedure for GST is online and requires no physical medelling and to set off all the available benefits, GST is imposed at every step of the supply network.

Need for GST Registration in India

The Goods and Services Tax (GST) was implemented in Indiato improve the process of collecting the tax. Moreover, the main reason for implementing the GST in India is to reduce the tax burden that comes on both the entity and consumers. There were numerous taxes included at each phase of the production with the previous tax system, without mentioning that tax has been paid at earlier stages. Consequently, the end cost of the item doesn’t obviously show the item’s genuine price and how much tax was made upon. It is noteworthy that this cascading effect is excessively unbelievable and unproductive, which sometimes garnered a lot of confusion and repeatedly led to double taxation.

Taking into consideration the above reasons, a wise initiative was taken by the government to assimilate whole India at one central point through the uniform taxation system instrument in the form of GST (Goods and Service Tax).

  • It helps in developing the common national market.
  • Helps in distinguishing between Goods and services no longer required.
  • Increasing the employment opportunities.
  • Build a transparency in taxation system.

Elucidate the Eligibility Criteria for GST Registration?

The below mention person/entities are required to get registered under GST-

  • Any business entity whose aggregate turnover in a financial yearexceeds Rs 20 lakhs (Rs 10 lakhs for special category states in GST).
  • Every entity who is registered under an earlier law of taxation (i.e., Excise, VAT, Service Tax, etc.)needs to get register under Goods and Service Tax.
  • Any entity or supplier dealing in inter-state supply of goods.
  • Casual taxable person
  • A tax payerunder the reverse charge mechanism
  • Input service distributor and its agent
  • E-Commerce operator or aggregator*
  • Non-Resident taxable person
  • Agents of a supplier
  • A Person who supplies through E-commerce aggregator.
  • Entities who are providing online information, acquiring database, or retrieval services from a place located outside India to a person in India, other than a registered taxable person.

Modes of GST

To administer GST in India, a model was designed where both the Central and States government have powers to impose and collect taxes through their respective legislations. The Modes of GST are:

Central GST-

CGST is the tax imposed on the Intra State supplies of goods and services by the Central Government. When the place of the seller and the buyer is in the same state it is termed as an Intra-state supply of goods or services. Here, a seller has to collect both CGST and SGST in which CGST remains with the Central government while the SGST is collected by the State government.

State GST-

SGST is the tax levied on the Intra State supplies of goods and services by the State Government.

Integrated GST-

Integrated GST is governed by the IGST Act, where the seller has to collect IGST from the buyer, and the tax collected will be divided between the Central and State Governments.Note-When the location of the supplier and the buyer are in different states,the Inter-state supply of goods or services takes place.

Union Territory GST-

Union Territory GST is applicable when any goods and services are used in the Union territories (UTs) of India and the revenue is collected by the government of union territory.