GST Registration rule in India

Who required to get GST registration and what is GST registration threshold?

Any person (individual or entity) that fulfills any of the following conditions needs to get GST Registration compulsorily:

  1. Every business carrying out a taxable supply of goods or services under GST regime and whose turnover exceeds the threshold limit of Rs. 20 lakh (Rs. 10 Lakhs for the North Eastern States including Sikkim).
  2. Currently registered under any of the existing indirect tax regimes (VAT, Excise Laws, Service Tax Laws) irrespective of the threshold limit.
  3. Having operations in multiple states (irrespective of the Rs.10/20 lakhs limit mentioned in Point # 1).
  4. Having multiple business verticals in one state (irrespective of the Rs.10/20 lakhs limit mentioned in Point # 1).
  5. Making any Inter-State supply of goods and/or services. If you are required to pay tax under reverse charge.
  6. If you are non-resident taxable person (irrespective of the Rs.10/20 lakhs limit mentioned in Point # 1)
  7. Input Service Distributor
  8. An aggregator who supplier services under his brand name or his trade name (irrespective of the Rs.10/20 lakhs limit mentioned in Point # 1).
  9. Every electronic Commerce operator like Flipkart, Amazon, etc., (irrespective of the Rs.10/20 lakhs limit mentioned in Point # 1)
  10. A person who supplies goods and services through electronic commerce. In other words, if you want to sell on Flipkart, Amazon, then you will need to register yourself first (irrespective of the Rs.10/20 lakhs limit mentioned in Point # 1)
  11. Any person who is required to deduct TDS under GST (not under Income Tax Act, 1961).

What is the GST registration process in India?

GST registration process will be online through a portal maintained by Central Government of India. Govt. will also appoint GSPs (GST Suvidha Providers) to help businesses with the registration process.

Based on the information provided by GSTn, below is the registration process:

  1. The applicant will need to submit his PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal or through Facilitation Center (notified by board or commissioner).
  2. The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP). Once the verification is complete, the applicant will receive an application reference number on the registered mobile number and via E-mail. An acknowledgment should be issued to the applicant in FORM GST REG-02 electronically.
  3. Applicant needs to fill Part- B of Form GST REG-01 and specify the application reference number. Then the form can be submitted after attaching required documents.
  4. If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
  5. If you have provided all required information via Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the principal place of business as well as for every additional place of business will be issued to the applicant. If the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals.If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG – 07 for registration. If he is no longer liable to deduct or collect tax at source then the officer may cancel and communicate the cancel of registration.

Documents required for GST registration:

  1. PAN card of the Company
  2. Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation.
  3. Details and proof of place of business like rent agreement or electricity bill
  4. Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch details
  5. Authorized signatory like List of partners with their identity and address proof in case of partnership firm or List of directors with their identity and address proof in case of company.

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