GST or Goods and Services Tax was introduced by the Indian Government to regulate prices throughout the country and remove all state or central Government imposed indirect taxes on goods and services by initiating GST registration in India. As per the recently amended notification in 2019, businesses whose turnover exceeds Rs.40 lakhs (Rs. 20 lakhs for North East and hill states) is required to get their GST as a normal taxable person and hence needs to mandatorily apply for GST Registration. Apart from the above turnover bracket, there are certain instances where GST registration is mandatory for those individuals or entities who are engaged in the supply of goods or services across the state. You can apply for online GST Registration either as a normal taxpayer or under the GST composition scheme. Taxpayers with a turnover of less than Rs.1.5 crore can opt for composition scheme to get rid of monotonous GST formalities and pay GST at a fixed rate of turnover.The procedure for GST is entirely online and requires no manual interference.Once the registration is done under GST, you will get a unique GSTIN (Goods and Service Tax Identification Number). The Central Government issues a state-wise, 15-digit number to you once the registration is done. There are several advantages of GST registration including the fact that you will get a legal identity as a supplier. Furthermore, you can also getan input tax credit and collect GST from the final recipients of goods and services.
One of the major benefits of GST is the elimination of numerous indirect taxes that existed earlier. Now, many taxes have been replaced. Taxes including excise, octroi, sales tax, Service tax, CENVAT, turnover tax etc. are no more applicable and all those have come under common tax called GST.
GST took the thought of “One Nation One Tax”. The unhealthy competition that existed earlier among the States has benefited businesses wishing to do interstate business.
Application of GST has resulted in the elimination of double charging in the system for a common man. Due to GST, the price of goods and services has reduced & ultimately helping the common man saving more money.
GST is applicable at all stages, right from manufacturing to consumption, it is providing tax credit benefits at every stage in the chain. In the earlier scenario, at every stage, the margin used to get added and tax was paid on the whole amount. Under GST the businesses are taking benefit of Input Tax Credit and tax is being paid on the amount of value addition only. GST has reduced the cascading effect of tax thereby reducing the cost of the product.
Since GST has reduced the cost of products, the demand, for some – if not all, products have increased. With the increase in demand, to meet the increase in supply, the employment opportunitieshave started showing positive graph.
Higher the demand, higher will be the production. This ultimately results in a higher Gross Domestic Product (GDP).
Goods and services tax is a single tax that includes various earlier taxes and has made the system efficient with fewer chances of corruption and Tax Evasion.
For many capital goods, input tax credit is not available. Full input tax credit under GST will mean a 12-14% drop in the cost of capital goods.
In case of Proprietorship
In case of LLP
In case of Private Limited Company
The following can be shown as proof of a director
1. Visit the GST portal (https://www.gst.gov.in/).
2. Click on the ‘Register Now’ link which can be found under the ‘Taxpayers’ tab and Select ‘New Registration’.
3. Fill the below-mentioned details:
4. On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes.Once the details have been entered, click on ‘Proceed’.
5. You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.
6. Visit the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.
7. Select ‘Temporary Reference Number (TRN)’.Enter the TRN and the captcha details. After this, Click on ‘Proceed’.
8. You will receive an OTP on your email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’.
9. The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it.
10. There will be 10 sections on the next page. All the relevant details must be filled, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below:
11. Visit the ‘Verification’ page and check the declaration, then submit the application by using one of the below mentioned methods:
12. Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.
13. You can check the status of the ARN on the GST portal.
Penalty for not completing GST Registration
If you do not pay tax or pay a lesser amount than what is due, the penalty that is levied is 10% of the due amount (in case of genuine errors). However, the minimum penalty is Rs. 10,000.
If you have not registered for GST and are deliberately trying to evade tax, the penalty levied is 100% of the due tax amount.
It provides creditability to business in the eyes of financial institutions, suppliers and potential clients. As it makes easier for companies to get loans at favorable terms from banks or convincing potential clients while entering into deals.