Every business enterprise carrying out the business of taxable goods and services, whose turnover exceed INR 20 lakhs are required to register as a taxable individual. The process is termed as Goods and Services Tax (GST) registration.
There are a number of rules and documentation which need to be followed for the registration.
Goods and Services Tax (GST) Registration and Rules
Below are the GST rules that are to be followed.
There are a number of businesses that need to register under GST irrespective of the GST threshold of 20 lakhs, such as:
- Every individual registered under pre-GST law
- If the business has been transferred, the transferee has to register
- Businesses or an individual performing inter-state goods transfer
- Casual taxable individual
- Non-resident Indians who plan to set up a business in India
- Supplier agents
- Individuals under reverse charge
- Input service distributors
- E-commerce business enterprise
- Individual supplying online information outside India
Documents required for registration
Following documentation is required for the GST registration.
- Permanent Account Number (PAN)
- Jurisdiction details
- Valid Indian mobile number
- Valid Indian bank account
- Valid email address
- IFSC code
- Place of business
- Authorized signatory details
GST registration online is a simplified process through the online portal or through GST Seva Kendra set up by the Government of India.
Following are the eight simple steps for the registration.
- Logon to the GST portal.
- Fill up the registration Form A.
- Portal verifies your details by OTP or email.
- Upload the required documentation.
- Fill Form B with the received registration number.
- The application reference number will be received via email or SMS.
- Verification would be done by the authorized personnel. After three working days, if the officer approves the application, you will receive the registration number. However, if the officer asks for more documentation, post its review, you will receive the registration number within seven working days.
- If the documentation requirement is not fulfilled within the stipulated time period and the assessing officer is not convinced with the documentation, the application for GST registration will be rejected.
GST application is free of cost.
- The penalty of 10% on the amount due with the minimum amount being INR 10,000.
- The penalty can be 100% of the tax amount if the individual is deliberately evading tax.
Government is severe on the tax evaders and those who deliberately disguise service tax registration. It is important for the business enterprises to follow the guidelines and register under the GST rule.
The important pointers from the perspective of registration are as follows:
- If the business is operating from more than one state, multiple GST registration is required for each state.
- A business with multiple vertical can opt for multiple registrations with respect to each vertical.
With the onset of GST regime, the process of registering has become hassle-free. Moreover, the government is taking measures to simplify the process in order to avoid tax leakages.