GST Registration

GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.

Why should I register for GST?

  • Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  • Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
  • Casual taxable person / Non-Resident taxable person
  • Agents of a supplier & Input service distributor
  • Those paying tax under the reverse charge mechanism
  • Person who supplies via e-commerce aggregator
  • Every e-commerce aggregator
  • 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
  • *CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.

  • Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It is a destination-based tax that replaced various indirect taxes like VAT, service tax, excise duty, etc.

  • Any person or business involved in the supply of goods or services with an  aggregate turnover exceeding the prescribed threshold limit must register for GST. The threshold limit may vary for different states and Union Territories.

As of my knowledge cutoff in January 2022, the threshold limit for GST registration is Rs. 20 lakhs of aggregate turnover for businesses supplying goods and Rs. 10 lakhs for special category states. However, these limits may change, and it is advisable to check the latest updates.

GST registration can be done online through the GST Common Portal (https://www.gst.gov.in/). The applicant needs to fill the GST registration form and submit the required documents.

The documents required for GST registration include PAN card, Aadhar card, proof of business registration, bank statements, and address proof of the place of business.

As of my knowledge cutoff in January 2022, there is no fee for GST registration. However, this may change, and it is recommended to check the latest fee structure.

Yes, a person or business with a turnover below the threshold limit can voluntarily register for GST. This is known as voluntary registration.

Input Tax Credit allows businesses to claim credit for the taxes paid on their purchases. It helps avoid the cascading effect of taxes and promotes the seamless flow of credit throughout the supply chain.

GST returns are filed on a monthly, quarterly, or annual basis, depending on the type of taxpayer and their turnover. Regular taxpayers usually file monthly returns.

Penalties for non-compliance with GST regulations include fines and imprisonment. The severity of penalties depends on the nature and extent of the violation.

Taxpayers can check the status online on the official Income Tax e-filing website.

Non-filing or delayed filing may attract penalties, interest, and legal consequences. It can also affect loan approvals and visa applications.

It’s important to note that GST rules and regulations may change, and it's advisable to
consult with a Webetax professional or refer to the latest official notifications for the
most up-to-date information.

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