GST Registration

Eligibility Criteria For Businesses

GST registration is mandatory for :

1. Manufacturers that earn an annual revenue over INR 40 lakhs,
2. Service providers that generate more than INR 20 lakh/year (also the e-commerce platforms and vendors),
3. Hill-area operations with a minimum annual turnover of INR 10 lakh.

Importance & Benefits

• Less Monetary Pressure:

  The GST was imposed with the objective of removing additional and unwarranted state or central taxes (like service tax, excise duty, VAT, etc.). It resulted in more savings for business owners.

• Cost Benefits:

  Small-scale ventures meeting specific GST requirements and having an annual profit capital of over INR 75 lakhs need to pay a flat rate of 1-5% as tax.

• Easier Loan Application:

  All GSTIN holders are entitled to acquire collateral-free loans after the evaluation of their business's financial output potential.

• Greater Credibility In The Market:

  Getting a business registered for the GST makes it more legitimate and credible in the eyes of the government, customers, and other companies. Businesses are spared from unnecessary compliances, people trust them for partnerships or mergers, and they file income tax returns on a quarterly basis.

• Affordable Transport For Interstate Deliveries:

  Business owners with GST registration get the opportunity to expand their footprint on a national and international scale without having to pay heavy sums for the delivery of goods and services across borders. The tax is charged at the selling location of goods and services, not at the manufacturing location.

• Higher Market Value of the Final Product/Service:

  Because the GST is a value-added tax, the same product that goes through different stages of production is taxed multiple times. E.g., purchase of raw materials, product designing, production, packaging, marketing, distribution, and sale. It increases the market value and selling price of goods and services.

GST Registration Process: Steps & Documents Required

1. Business owners willing to register for the GST must log in to the official portal (www.gst.gov.in) and fill out a form that includes their personal and business details, bank account details, nature of services or goods, SAC, HSN, etc.
2. It is followed by the submission of important documents required for GST registration. Personal ID proof (Aadhar, voter ID, etc.), business address proof (land or shop registry, rent agreement, etc.), income proof (PAN card and bank account statement), and business registration certificates (such as a partnership agreement, company registration number, etc.) are examples of acceptable documentation.
3. Following the verification of the application and documents, the authorities allot the GSTIN.

Types Of GST Registration

1. Normal Taxpayer:

   No initial deposit requirement or the expiry date is imposed on most regular businesses that belong to this category.

2. Composition Taxpayer:

   This category is exempt from the input tax credit, and business owners have to deposit a flat rate if their business falls under the GST Composition Scheme.

3. Casual Taxpayer:

   Seasonal businesses (like summer/winter food stalls, marriage planners, etc.) are casual taxpayers that must deposit an advance tax equivalent to their expected GST liability at the time of operation of their business. The GST registration granted to them is renewed every three months.

4. Non-Resident Taxpayer:

   All foreign businesses offering their products and services in India apply for registration under this category. The laws are similar to the "casual category," where owners need to deposit an amount equivalent to their GST liability; however, the registration is granted only for a period of 3 months. It can be renewed or extended later.

5. Multiple Registrations:

   Some businesses need to have multiple registrations under the same GSTIN and PAN if they're manufacturing, distributing, and selling goods at multiple locations. During GST registration, they must provide information such as the nature and manufacturing process of the goods, the various processes used for distribution and supply, environmental compliances, insurance, and the types of customers served, among other things.

What After GST Registration?

Following the registration, it is important that you update your business details from time-to-time, maintain all sale/purchase invoices and records, comply with tax laws, file GST returns on the scheduled date, and stay up to date with the amended GST laws. It's beneficial to hire a GST expert for managing such tasks.

If you're searching for an expert in GST audit, income tax consultancy, transfer pricing, CFO outsourced services, etc., then BC Shetty & Co. is the suitable option for you. Click here to discover how we can help you with GST registration and other associated services!