Goods and Services Tax (GST): Registration Guide

Goods and Services Tax is one of the biggest tax reforms India ever witnessed that has upgraded the ease of doing business tremendously & has also increased the taxpayer base in the country by adding multiple small businesses. The complexities involved in the earlier tax regime have been diminished due to the elimination as well as subsuming of several taxes into one simple & single system.

The latest tax regime makes it mandatory for each and every business entity which is involved in the process of purchasing or selling goods as well as providing services required to register for GST and obtain Goods & Services Taxpayer Identification Number (GSTIN). As per GST return services providers, GST registration is mandatory once the business crosses the minimum threshold or when any person commences a new business that is likely to cross the prescribed minimum threshold turnover.

In the new or latest tax regime, businesses whose sale of goods are more than Indian Rupee 40 lakhs (INR 20 Lakhs for Special category states) & sale of services are more than INR 20 lakhs (INR 10 Lakhs for special category states) are needed to register themselves as a taxable person. This complete process of registration is known as GST registration. Special category states are Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Assam, Jammu and Kashmir, Tripura, Himachal Pradesh, and Uttarakhand.

For specific businesses, GST registration is compulsory irrespective of the threshold. If a company carries on its business without getting registered under the GST regime or violates the provisions laid down under the governing GST laws, it will be construed as an offense under the GST law & heavy penalties would apply.

Who Should Mandatory Register for GST?

  • Businesses that were registered under Pre-GST law such as Service Tax, VAT, Excise, etc.
  • People with turnover exceeding the threshold limit of INR 40 Lakhs (INR 10 Lakhs for North East States, Himachal Pradesh, J&K, and Uttarakhand)
  • Non-Resident taxable person Casual taxable person
  • Agents of a supplier Input service distributor
  • Under the reverse charge mechanism, businesses paying the tax
  • Person supplying via e-commerce aggregator
  • An e-commerce aggregator
  • People who are supplying any database access, online information, and retrieval services from any place outside of India to any individual in India, other than any registered taxable person

Documents Required for GST Registration

As per companies of GST services in India, there are some documents that are required for GST Registration.

  • PAN of the applicant as an ID along with photographs
  • Aadhaar card as address proof of promoter
  • Business registration proof – Proof of business registration should be submitted.
  • There’s no requirement to submit this document in case of a proprietorship business as the entity and the proprietor are considered the same.
  • Address & ID of the promoters as well as director – Documents such as passport, aadhaar card, driving license, ration card, and voter’s ID could be submitted as address proof.
  • Place of business’s address proof – Address proof should be provided for all the places of businesses that are mentioned in the application for GST registration.
  • Bank Account details – Scanned copy of the first page of the passbook of the bank or the bank statement or a scanned copy of canceled cheque which contains the name of the person or the business entity, bank account no., bank branch, IFSC, MICR, bank code needs to be provided.

Taxpayers are required to be GST compliant & be able to make sure that they manage all the changes in the GST law in time. Based on operating geographies, size, and sectors, the changes in the GST regime would be considerable and might need planning in advance.