What Is GST Registration?

In the GST Regime, businesses whose aggregate 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.

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification was in effect from 1st April 2019.

WHO SHOULD REGISTER UNDER GST?

  1. Persons in states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand with aggregate Turnover of more than Rs. 10 lakhs.
  2. Persons in any other state with aggregate Turnover of more than Rs. 40 lakhs*.
  3. Persons making any inter-State taxable supply.
  4. Casual taxable persons
  5. Persons who are required to pay tax under reverse charge
  6. Non-resident taxable persons
  7. Persons who are required to deduct tax under section 51
  8. Persons who supply goods or services on behalf of other registered taxable persons whether as an agent or otherwise
  9. Input service distributor
  10. Persons who supply goods or services, other than branded services, through electronic commerce operator
  11. Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person
  12. An aggregator who supplies services under his brand name or his trade name

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification was in effect from 1st April 2019.

Other Points:-

  • A farmer shall not be considered as a taxable person and shall not be liable to take registration.
  • The supplier shall not be liable to registration if his aggregate turnover consists of only goods and services which are not liable to tax or wholly exempt under this Act even if the turnover exceeds the threshold limit of Rs. 10 or Rs. 40 lakhs.
  • Persons who are supplying only goods or services on which tax is payable on reverse charge are exempted from taking registration. For eg, In case of Ola, Uber drivers, the tax is collectable and payable by Ola or Uber and not by taxi drivers. Notification No. 5/2017
  • A person doing more than one business in a state may obtain a separate registration for each business. However, he is not compulsorily required to do so.
  • There is no option for centralized registration; registration needs to be done state wise. In other words, if a person operates in more than one state, then such a person is required to register separately in every such state.

 WHAT IS THE TIME LIMIT FOR REGISTRATION?

A person has to apply for registration within 30 days from the date on which he becomes liable to registration. A person can register voluntarily at any time.

  WHAT IS THE EFFECTIVE DATE OF REGISTRATION?

Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be the date on which he becomes liable for registration.

Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration. In the case of voluntary registration, while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of the order of registration.

CAN PERSON TAKE MORE THEN ONE REGISTRATION?

A person is required to take separate GSTIN for every state or union territory in which he wants to do business.

A person can also take more than one GSTIN in one state/union territory for multiple business verticals within a State or Union territory. For example – If a person does business of food as well as business of computer then he can take separate registrations for both business but it’s not compulsory. He can do both businesses with same GSTIN.

More than one GSTIN cannot be obtained in single state/union territory in same business vertical.

“Business vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which are subject to risks and returns that are different from those of the other business verticals.

DOCUMENT REQUIRED FOR REGISTRATION?

By Individual (Sole Proprietor firm)

  1.  PAN of Proprietor
  2.  Address proof (Aadhar card or Passport or Driving License etc.)
  3.  Passport Size Photo
  4.  Cross bank cheque having a name and account number or passbook front page along with  few latest transactions page 
  5.  Address details of the registered address
    – Rental Property – Rent/Lease agreement in case of rental properties
    – Owned Property – Electricity bill must be in name of the applicant.
    – Other Cases – No Objection Certificate/Consent Letter from the owner of the property    along with the electricity bill in such cases where the property owned by the applicant family member etc.

By Businesses other than Individual

  1. PAN of Business (Partnership firm, LLP, Company etc.)
  2.  Identity and address proof of the partners/directors/CEO (Aadhar card or Passport or Driving License etc.)
  3.  Passport Size Photo of the partners/directors/CEO
  4.  Cross bank cheque of the business or bank statement with few latest transactions page
  5.  Business registration document (partnership deed or certificate of incorporation for companies or LLP or trust deed etc.)
  6.  DSC of director/partner (Only in case of Company and LLP)
  7.  Address details of the registered address
    – Rental Property – Rent/Lease agreement in case of rental properties
    – Owned Property – Electricity bill must be in name of the applicant.
    – Other Cases – No Objection Certificate/Consent Letter from the owner of the property along with the electricity bill in such cases where the property owned by the applicant family member etc.

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