GST Registration Online - An Overview

Goods and service Tax is destination-based consumption tax from manufacturer to consumer in the same pattern and same rate. It has replaced many indirect taxes in Indian and the government has successfully achieved the “One Nation One Tax” Agenda.

Launched on July 1 2017, the Goods & Services Tax (GST) applies to all Indian specialist co-ops (including freelancers, consultants), traders and manufacturers. A variety of Central taxes like Service Tax, Excise Duty, CST and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are absorbed in one tax – GST, implemented on 01.07.2017. GST is to be charged at every step of the supply chain, with full set-off benefits available. The methodology for GST is altogether on the web and requires no manual intervention.

GST Registration can be done on following basis:

• Previous law converted tax payer: - If any individual or a company is registered under previous tax law like VAT, service tax etc then it is compulsory to get registered and get a new GST Registration.
• Non-Resident Indian (NRI): - A non- resident person or a person who is handling business of NRI in India then it’s compulsory to get New GST Registration.
• On the basis of Turnover: - If the turnover is exceeding 40 lakh rupees in a financial year (10 lakh for north eastern Hill stated) as per the amendment from 1st April 2019. It is compulsory for getting GST Registration.
• Reverse charge Mechanism (RCM): - If an individual or company fall under the category of RCM then it is required for GST Registration.
• E-commerce sellers: - If an individual is selling online through flip kart amazon etc then it is required to get GST registration.
• E-commerce Aggregator portal: - If anybody want to start own E-commerce business then for E-commerce Registration GST Registration is required.

Also, taxpayers with a turnover of less than Rs.1.5 crore can opt composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.

What are the components of GST?

• CGST (Central Goods and Service Tax): - CGST Is to be paid to the Central Government on sale of goods and services within the State.
• SGST (State Goods and Service Tax): - SGST Is to be paid to the State Government on sale of goods and services within the State.
• IGST (Integrated Goods and Services Tax): - IGST Is to be paid in case of inter-state sale to the Government on sale of goods and services. IGST is also charged on imports into India. IGST shall be distributed between the Union and the States as per the IGST Act.

What is the input tax credit?

The input tax credit means that it lets the taxpayer reduce the tax that the taxpayer has paid on inputs or purchases and the amount left can be paid in cash.

The taxpayer pays taxes on the purchase when a product is purchased from a registered seller, and when the taxpayer sells the product, you too collect the tax. Thus, the collected tax can be adjusted while paying the tax return, which helps to reduce the burden of taxpayers.

Who needs a GST Registration?

The businesses carrying out business transactions i.e. buying and selling of goods and services have to get registered for GST. The threshold limit of getting registered is the businesses of turnover more than 20 lakhs (for services) and 40 lakh (for sale of goods) are mandatory to get registered.

All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.

Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are less than Rs.20 lakhs.

What are the GST tax rates?

• No Tax: Items that are considered basic necessities come under exempt list.
• 5%: Household necessities and life-saving drugs etc.
• 12%: Products like computers and processed food etc.
• 18%: Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services.
• 28%: Luxury items etc.

Detailed list of taxes for all the products: https://cbec-gst.gov.in/gst-goods-services-rates.html

What is a GST Return?

A GST Return is a record containing details of income that is needed to be documented according to the law with the tax authorities. Under the GST law, a citizen needs to submit two returns on a monthly basis and one such return annually. All returns have to be filled online. If it's not too much trouble, note that there is no arrangement for revising the returns. All invoices for the past year that went unreported must be included in the current month.

Under GST, a registered dealer has to file GST returns that include: Purchases, Sales, Output, GST (On sales) and Input tax credit (GST paid on purchases).

What is GSTIN?

GSTIN full form is Good & Service Tax Indentification Number, which is 15 digit, unique identification number given to each GST taxpayer registered under GST. To verify a GSTIN number, 1: Through GST portal. 2: Via GST Seva Kendra authorised by the Government.

What is the GSTN (Goods and Service Tax Network)?

GSTN is often confused with GSTIN. GSTIN is the unique code given to dealer/ supplier by the GSTN (GST Network). The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTN is responsible for maintaining Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.

What is the GSTIN Format?

Every taxpayer under GST is provided with a State + PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). It is a GST Identification Number or a GST Number.

what is the breakdown of GSTIN?

The general structure of GSTIN be broken down into 3 parts, as given below.

00 PANNUMBERS 1Z0

• State code: The first two digits of the GSTIN consist of the state code (assigned to every state as per Indian Census 2011).
• Taxpayer’s Pan: The second part of the GSTIN consist of 10 digits of the taxpayer’s PAN number.
• Registration based: the remaining 3 numbers are provided by the GSTN as follows:
  • The 13th digit is assigned on the number of registration within the state
  • The 14th digit is Z by default
  • The 15th digit is a check code. It can be an alphabet or a number.

Mandatory documents for Online GST registration

The list of documents required for registration of GST for various business are as follows:

LLP

• PAN Card of LLP
• LLP Agreement
• Partners’ names and address proof

Proprietorship

• PAN Card and address proof of proprietor

Private Limited Company

• Certificate of Incorporation
• PAN Card of Company
• Articles of Association, AOA
• Memorandum of Association, MOA
• Resolution signed by board members
• Identity and address proof of directors
• Digital Signature

The following can be shown as proof of address of a director:-

• Passport
• Voter Identity Card
• Aadhar Card
• Ration Card
• Telephone or Electricity Bill
• Driving License
• Bank Account Statement

Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone bill.

Preparation of GST application

One of our GST representatives will collect all the required documents and process the GST application through the iCFO platform.

Application Filing

Once all the documents are collected, the application will be processed and filed. Then immediately the ARN number will be issued.

GST Registration Certificate

The GST registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST registration certificate can be downloaded from the GST Portal.

Penalties For Failure To GST Registration

As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST.

Voluntary Registration Under GST (for Companies With A Turnover Below Rs.20 Lakhs)

Any small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration has its own advantages and some of them are:

• Take input credit: In GST, there is a flow of input credit right from manufacturers of the goods till the consumers, across the country. Input credit means a taxpayer while paying tax on output can deduct the tax that has already been paid on inputs and pay only the remaining amount. Voluntarily registered businesses can increase their margins and profits through this.
• Do inter-state selling with no restrictions: SMEs can increase the scope of their businesses and find prospective customers and explore online platforms
• Register on e-commerce websites: SMEs can widen their market by registering through e-commerce sites.
• Have a competitive advantage compared to other businesses.

GST Return Filing

A GST Return Filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.

• Output GST (On sales)
• Sales
• Input tax credit (GST paid on purchases)
• Purchases

For filing a GST Return, you need to have GST compliant sales and purchase invoices attached.

FAQs on Hassle-Free GST with MyLegalTax

How can we help you? - Why MyLegalTax?

Some of the best reasons to choose us are:

• Easy to get GST registration and GST Identification Number online.
• No hassle compliances as we completely take control of them.
• All your returns will be filed duly

Our legal representatives are available to explain the whole process and clear any queries you may have.

Although the GST portal has a user-friendly interface, the GST Forms have a lot of complex fields. Hence, it is highly recommended that you seek the help of a professional for submitting the application, the required procedures, filing your returns and completing other formalities in the portal.