GST
REGISTRATION
Some important facts…
- Registration of any business entity under the GST Act means obtaining a unique number from the relevant tax authorities for tax collection on behalf of the Government and obtaining Input Tax Credit (ITC) for taxes paid for his inward supplies.
- Without registration, an individual cannot collect taxes from customers or claim credit for the taxes he pays.
- Entities with turnover exceeds of Rs.40 lakhs (supply of goods in normal state), Rs.20 lakhs (supply of goods/services in normal state). From 1st April, 2019 entities with turnover exceeds Rs.20 lakhs (supply of goods in normal state) or Rs. 10 Lakhs (Supply of goods/services specific state) and above would be required to register under GST.
- The eligible entities must file GST application within 30 days from the date on which the entity became liable for registration under GST law.
- Note Specific state for GST registration is, (Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, and Uttarakhand.)
Persons required to register under GST
- The person who is dedicated to the interstate supply of goods or services, or both;
- An eventual taxable person making a delivery subject to tax;
- Persons subject to the payment of taxes under the investment mechanism of the taxpayer;
- A non-resident taxable person engaged in the provision of taxable services;
- A person obliged to pay taxes under article 9 (5) of the Law;
- The person obliged to deduct the tax at origin (TDS);
- Input service distributor;
- E-commerce operator;
- A person engaged in the supply of goods or services or both through an electronic commerce operator who must collect taxes at the source (TCS);
- The person who is engaged in providing online information and access to databases or retrieval services from a location outside of India to an unregistered person;
- Persons who are engaged in the taxable delivery of goods or services, or both, on behalf of another registered taxpayer, whether as an agent or not.
Mandatory registration
- Taxpayers under the reverse charge mechanism (RCM)
- 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
- persons making any inter-State taxable supply
- casual taxable persons making taxable supply
- person who are required to pay tax under sub-section (5) of section 9
- non-resident taxable persons making taxable supply
- persons who are required to deduct tax under section 51, whether or not separately registered under this Act
- persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
- Input Service Distributor, whether or not separately registered under this Act
- persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52
- every electronic commerce operator
Penalty for not registering under GST
According to section 122 (1) (xi) of the CGST Act, 2017, any taxable person who does not register under GST, even if legally obligated under the GST Act, must pay the following amount of fine:
- Under section 122 (2) (a) for any reason other than fraud or any willful misrepresentation or suppression of facts to evade tax, you will be subject to a fine of ten thousand rupees or ten percent of the tax owed by said person, whichever is greater;
- Otherwise, under section 122 (2) (b) it is INR 10,000 or the amount of tax evaded, whichever is greater.
Documents Required for GST Registration
The main documents for GST registration includes:
- PAN card of business
- Proof of business registration or incorporation certificate
- Identity and Address proof of Promoters/Director/person in charge with photographs
- Address proof of the business
- Bank account statements/cancelled cheque/first page of bank passbook
- Aadhar card, if applicable
- Digital Signature
- Letter of Authorization/Board Resolution for Authorized Signature