GST is the product of a major tax reform in India that has greatly improved business facilitation and expanded the base of taxpayers in India by introducing millions of small businesses under a single tax system. Tax cuts have dropped sharply as a result of the introduction of GST in India. As more tax systems are eliminated and integrated into a single, simplified tax system under GST.
The GST government mandates that all businesses involved in purchasing or selling goods or providing services or both must register and receive GSTIN.
What is GSTIN?
GSTIN is a unique 15-digit code that is issued to every taxpayer with a valid GST registration in India. It is a unique code that is distributed to every taxpayer provided on a government and PAN basis. GSTIN is liable to businesses if the annual profit exceeds Rs.20 lakh. If a business creates an e-commerce platform for a business it is necessary to get GSTIN.
GST registration is a liability when a company exceeds a minimum amount of revenue or when a person starts a new business expecting to exceed a fixed profit.
Who is eligible for GST registration?
Businesses need to obtain GST registration if they fall into the categories below.
A service provider that provides services valued at more than Rs.20 Lakhs per annum is required to obtain GST Registration. Although an entity that is exclusively involved in the supply of goods, its combined profit exceeds Rs. 40 lakh is required to obtain GST registration legally.
A business must obtain GST registration in India if it is involved in supplying goods from one region to another.
Any people who provide goods or services through the E-commerce platform must obtain GST registration in India. People will register under GST no matter how much profit. To start with an E-commerce business you need to get a GST registration.
Ordinary people are not taxed
A person who provides goods or services at certain times of the year or at certain times in a store or shop is required to register with GST. No matter how much profit one has to apply for GST registration
An entity may obtain a GST registration voluntarily, prior to which an entity with a voluntary GST registration was unable to provide GST registration for up to a year. After the latest updates, voluntary GST registration can be provided by the applicant at any time.
What are the different types of GST registration?
Listed below are the different types of GST registration:
This section of GST registration in India applies to taxpayers conducting business in India. Taxpayers who register for regular taxpayers do not need to deposit and are given unlimited verification dates.
To register as a Composer for each person you need to register under the GST naming system. Taxpayers registered under the naming scheme may pay a lower GST rate. But taxpayers who choose the naming scheme are not allowed to claim the input tax credit.
Process for obtaining GST registration
How do you get GST registration?
Step 1: When we receive your request our GST expert reaches out to you and understands your business function, the situation in which the business operates.
Step 2: Documents required for GST registration are collected by a GST specialist.
Step 3: Once payment has started we begin the registration process and our advisors will be available for any questions related to GST registration.
Step 4: You receive GST registration within 3 to 7 working days. Everything is completely online you do not need to be literally in the same office.
* As AK Taxes is a cloud-based service provider the required documents must be sent online *
Benefits of GST Registration
What are the benefits of GST registration?
GST registration has various benefits here we have listed some of them:
GST eliminates tax impact: GST is a type of Indirect tax designed to include all indirect taxes under a single umbrella. GST has mitigated the effects of the earlier tax cuts.
Registration limit is higher: Previously under VAT any business had a profit of more than Rs. 5 Lakh was liable to pay VAT. This limit was different for different regions. Also, service providers are exempt from service tax if the profit is less than Rs.10 lakh.
Under GST this limit has been increased to Rs.20 lakh which has liberated many small retailers and service providers.
Small Business Integration Program: Small businesses benefit as they are able to choose to use the integration program. The design process has significantly reduced compliance and tax burden on small businesses.
Simple and easy online process: The GST registration process is completely online and very simple. All you need to do is send the required documents to our specialists.
Few Compliance: Under GST there is only one refund to be included. There are about 11 refunds under GST where all can be posted online. AK taxes can also help you complete your GST returns.
Improved operational efficiency: Under the Goods and Services Tax Act the restrictions on the supply of goods within the regions have been significantly reduced. This reduction in unnecessary transportation costs has resulted in benefits for businesses participating in the supply of goods through transportation.
Informal sector is now authorized under the GST: Prior to the GST period, many industries in India such as construction and textiles were illegal and unregulated. Under GST there are provisions where compliance can be met online. This has brought great accountability and control to these industries.
Composition Scheme under GST
What is the naming system under GST?
The construction process under the GST Act has reduced the compliance burden of small taxpayers. The government has come up with a naming scheme where a taxpayer with a profit of less than Rs.10 million chooses not to register as a regular taxpayer. Instead, the taxpayer may choose to register under the Composition Scheme and pay property taxes on the minimum amount. Under the nomination process the taxpayer is not eligible to issue a tax invoice and is unable to apply for a tax credit input.
Benefits of registering as a Combined Taxpayer
Here are some of the benefits of registering as a Combined Taxpayer under GST:
Limited Compliance: When a taxpayer registers as a joint taxpayer he is required to provide a quarterly refund and should not have to worry about other compliance obligations.
Limited Tax Debt: The main reason for registering as a taxpayer is that it is subject to a tax standard setting such as taxpayer taxes.
GST Return Filing
What is complementary GST return?
A person with a valid GST registration is required to complete GST forms containing taxpayer income details. GST Recovery Installations can be done using our GST Ledgers Software.
Why is Ledgers GST Software GST Restoring Installation?
Ledgers GST software has been around since its launch.
- It helps to convert the rate into Invoice easily.
- The taxpayer can track payments and receivables
- Payment gate integration.
The GST return form must include the following information:
- Output GST (For Sale)
- Input tax credit (GST paid on purchase)
Failure to file GST refunds may result in penalties, benefits, and recent payments.
Fees, Interest and Subsequent Payments
What happens if a taxpayer fails to submit GST forms?
GST Cancellation: In the event that a person fails to file GST refunds it may result in penalties and cancellation of GST registration. And if the taxpayer has not submitted the GST forms for six months the GST registration will be canceled. Here one will not be able to get another GST registration unless payment of the late installment fee. It is therefore always best to file GST returns on time.
Nil GST returns: Even if the person is out of business they still have to fill out the Nil GST forms. And failure to file GST returns could lead to penalties.
Recent GST Payment Interest: And if possible, the taxpayer returning GST payment late to the state then a person must pay interest at the rate of 18%. Once you have subscribed to our services we have a general follow-up, which helps to avoid penalties, interests, and recent payments.
Frequently Asked Questions
An entity that must be registered under the GST must apply for registration within 30 days of meeting the conditions. Occasional taxpayers and non-residents must be registered with the GST before starting a business.
An authorized signatory by a person primarily responsible for performing duties on the GST portal on behalf of the taxpayer. It could be a business promotion or any other trustworthy person nominated by the business developers.
Yes. PAN is required to obtain GST registration. In the ownership case, the owner PAN can be used. In the case of an LLP or a Company or a Trust or other legal entity, the PAN must first be acquired in the business. However, PAN does not require GST registration for outsiders and third-party companies. For non-taxable residents, GSTIN with an expiry date will be provided on the basis of other documents provided to prove its existence.
GST registration has no expiration date. Thus, it will be valid until canceled, granted or suspended. GST registration is for non-taxpayers and temporary taxpayers with a valid verification period determined by the authorities when issuing the GST registration certificate.
No, only people registered under GST are not allowed to collect GST from customers. An unregistered person under the GST cannot even claim tax credit to apply to the GST paid.