GST Registration Certificate

GST Registration is a mandatory procedure under the GST regime which was introduced by the Indian Government on July 1, 2017 governed under the CGST Act, 2017. According to the section 22 of CGST Act, if any business turnover exceeds ₹40 lakh for goods and ₹20 lakh for Service must go for the GST Registration otherwise it may cause hefty penalty. Nearly 1.4 Crore business has been registered under the GST as per the government report that shows the necessity of this registration. In GST Registration, the authority will provide a 15 digit unique code known as GSTIN that shows the business is legally GST registered. This GSTIN helps businesses to collect tax legally, claim ITC and comply with the GST regulations.

Benefits of GST Registration

1. Easy to start a business

A GST registration makes starting a business easier as you don't need to deal with different rules in different states. A business can also operate across state borders without having to comply with different laws and regulations.

2. Composition scheme

The government introduced the tax composition scheme for businesses with an annual turnover rate of Rs. 20 lakhs. This scheme is beneficial for small businesses.

3. Simplified the process

GST makes the business easy as now calculating tax takes less time and experience a smooth tax-paying process.

Eligibility for GST Registration

The GST registration is crucial for certain individuals and businesses according to their turnover, nature and other factors. The eligibility for GST registration is as listed below:

• According to the Turnover:

If any business crosses the annual turnover ₹40 Lakh (₹20 Lakh in special category states) for Business selling goods and ₹20 Lakh (₹10 Lakh for special category states) for Service providers are mandated to get GST certification.

• Compulsory GST Registration:

In many cases certain businesses must get GST certification, regardless of turnover. Interstate suppliers, E-commerce Operators & Sellers, Casual Taxable persons, Non-Resident Taxable Persons, ISD (Input Service Distributors), Agents & Brokers and Tax Deductors (TDS/TDS under GST) are some individual and business which must register for the GST.

• Voluntary GST Registration:

Businesses with a turnover below the threshold can voluntarily register to take advantage of the Input Tax Credit (ITC) and expand their market reach.

List of Product and Services need GST Registration

Below is the list of products and services which need GST Registration:

Documents required for GST Registration

The document list for GST Registration is mentioned below:

• Applicant PAN card
• Passport Sized Photograph
• Aadhar Card of Directors or Partners or Proprietor (it depends on the type of business)
• Address Proof of Business (In this proof the applicant can provide Rent Agreement, NOC from the owner or Electricity Bill)
• Cancelled Cheque or Bank Statement
• Digital Signature (It is required for companies and LLPs)
• MoA (For Companies and LLPs)
• AoA (For Companies and LLPs)
• Incorporation Certificate (For Companies and LLPs)
• Partnership Deed (For Partnership company)
• Nature of HSN Code or SAC Code
• Mobile number
• Email-Id

How to Apply for GST Registration?

Here are some simple steps given below by following these steps you can apply for the GST Registration:

The first step is to file an application for the GST registration. In this step, the applicant has to visit the GST official portal - https://reg.gst.gov.in/registration/ and generate TRN number by filing some details which are required there.

When the TRN has been generated, the applicant will login and fill up the GST registration form which is mainly known as “GST REG-01”. Aadhar Authentication is needed to verify the identity of the applicant during this step. Here, the applicant receives an OTP on their mobile number which is linked with the Aadhar which is an essential step for successful authentication.

Once the Aadhar authentication and required document submission, an ARN (Application Reference Number) is generated. This ARN helps in monitoring ID that aids applicants to track the status of their GST registration application.

After the application submission, the authority checks the documents and other details. If the officer finds any issue and discrepancies, a show cause notice is issued under the Form REG-03. The applicant has to respond to this notice within 7 days from the notice. In this notice reply, the applicant has to submit all the necessary clarification and documents.
Note: The notice from GST authority is not mandatory if the officer doesn't find any discrepancies; they will notify otherwise it will proceed for the next step.

The GST department issues a GSTIN (Goods and Services Tax Identification Number) along with a GST Registration Certificate (Form GST REG-06) if the application is approved. The GST portal allows the applicant to download the certificate.

Fees For GST Registration

Legal Fees - There are no government charges for GST Registration.

Professional Charges - Professional charges for GST Registration can vary according to the professional experience. Bizfoc offers affordable GST Registration fees with an expert team. Our professional charges is just ₹1,499/-

Validity of GST Registration

There is no validity for GST, it remains for lifetime. But the GST can be suspended, surrendered and revoked. Get a gist here-

GST Suspension is a temporary halt on GST Registration, preventing ITC claims, return filing, tax collection. It happens when a taxpayer applies for Cancellation due to issues related to compliances. GST related activities cannot be conducted until final cancellation.

GST surrender is a voluntary GST registration cancelling if it is no longer required for longer due to business closure or turnover falls below and many other circumstances. For GST Surrender, the Form GST REG-16 is used to stop GST Collection, ITC Claims and Return filings.

GST revocation refers to the process of restoring a canceled GST registration that has been canceled because of non-compliance. Once compliance issues, such as pending returns, have been resolved, the taxpayer must apply within 30 days using Form GST REG-21.

Penalty for not Compliance with GST

If any individual or business does not comply with the GST compliances, it may lead to the penalty. The penalty can be ₹50/per day for late return, 10% interest on unpaid tax and other fines for incorrect filing. It may also lead to legal notice, legal action or GST registration cancellation that may affect the business operations and credibility.

Mandatory Compliances of GST

There are some mandatory compliances of GST that must be done by the GST holders. The compliances are as listed below:

• Timely GST return Filing is a primary compliance of GST. In this filing of GSTR-1, GSTR-3b, GSTR-9 and other required returns will be there.
• When a business with turnover exceeding ₹5 crore annually requires GST Audit.
• Issuing tax invoices with GSTIN, HSN/SAC Code and other tax details.
• E-way Bill generation is compulsory for transporting any goods which are worth over ₹50,000.
• If any notices come from the GST authority, addressing queries, audits and compliance notices is the duty of the GST holder and it's a part of the compliance as well.

Frequently Asked Questions