Goods & Service Tax Registration
Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for businesses whose turnover is more than Rs. 20 lakhs annually to register for a GST. For the North East states, the prescribed amount is Rs.10 lakhs.
All persons who make interstate outward supplies of goods have to register for a GST too. The same applies to people making taxable supplies on behalf of other taxable persons, example Agents and Brokers.
GST Registration Process?
- The person who is registering first has to submit his email address, his PAN card details and, mobile phone number in Part A of the Form which is labelled GST REG–01 on the GSTN portal or through a Facilitation centre (to be notified by the commissioner or the board).
- The GST portal verifies the submitted details like the PAN, mobile phone number and the E-mail address, the latter of which are verified using the One Time Passwords (OTPs). After completion of the verification process, yan application reference number is sent to the registered phone number and Email address. You are expected to acknowledge the same through the GST REG-02 form on the portal.
- Next step is to fill up Part- B of the GST REG-01 form and mention the application reference number which has been received. This is to be submitted the after attaching all the necessary documents.
- In case any information is missing or any other extra information is needed then the GST REG-03 will be sent. One has to reply to this through the GST REG-04 form with all the additional information within seven working days of receiving the GST REG-03.
- After all the required data has been provided through the above mentioned forms, then the GST REG-06 is sent, this contains the registration certificate made for the principal place of business and other additional places of business will be sent. If there are several different business verticals within a single state, then, one has to file different and separate applications under GST REG-01 for each individual vertical.
- In case the details provided are considered to be unsatisfactory, the GST registration process application is denied/rejected through GST REG-05.If you are required to collect TCS or deduct TDS, you are required to submit an application through GST REG – 07 for the same. If the tax is no longer being deducted /collected tax at source then that registration may be cancelled.
Eligibility for GST Registration
- Persons who are required to pay tax under Reverse Charge.
- Persons who are required to deduct tax at source.
- Non-resident Taxable person (No fixed place in India).
- Casual Taxable person (No fixed place where GST is applicable).
- All E-commerce Operator (e.g. Flipkart, Amazon).
- All Agents of a supplier.
- Persons who supply goods or services through E-commerce Operator.
- Input Service Distributor.
- An aggregator who supplies services under his brand name.
- Any Specialized Agency of the UN or any Multilateral Financial Institution.
- Persons making any Inter-State taxable supply (e.g. from Delhi to Maharashtra).
Features of GST Registration
The GST will consolidate Central Excise Duty, Service Tax, VAT, Central Sales Tax, Customs Duty, Central Surcharge & Cess, Octroi, Luxury Tax, Entertainment Tax, Purchase Tax and a few other indirect taxes. The GST will apply on all goods and services. Even petrol and petroleum products will eventually be subject to it.
The GST council has decided on a four-tier structure. The GST rate will depend on the type of goods and services. Currently, the slab rates are 5%, 12%, 18% and 28%. The rate for gold is yet to be decided, and will likely to be the lowest of all.
CGST & SGST
GST will have a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST). Therefore, centre and state will levy GST on all entities. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre.
Businesses with a supply turnover of over Rs. 20 lakh must register for GST. The key word here is supply, which takes into consideration any turnover, including stock-taking, discounts and freebies. In fact, even those supplying non-taxable goods must register for GST. Business making sales to other states must register for GST, regardless of turnover.