GST Registration- Definition, Advantages, Eligibility, and Penalty:
GST (Goods and Service Tax) registration is India’s most essential tax reform. It is the government's initiative to boost business facility in India. The introduction of the GST registration not only regulated unorganized economic sectors, but also facilitated the flow of foreign investment in India.
Under the GST regime it is mandatory to register as a regular taxpayer for a business whose estimated annual turnover exceeds INR 40 Lacs (INR 20 Lakhs for Northeast States). GST registration is compulsory for specific businesses such as Export-Import, E-Commerce, Casual Dealer, and Market Place Aggregator. These business units need a GSTIN regardless of annual business turnover.
If a business unit that applies to GST delivers goods or services without a GST number, it is considered an offense. Such an offense entails a liability under the GST Act to pay a heavy penalty.
It usually takes 3-6 working days to register for GST.
Following needs to apply for GST Registration:
- Individuals who filed tax under the Pre-GST legislation, such as VAT, Service Tax, etc.
- Businesses having turnover that exceeds the prescribed limit INR 40 Lakhs
- People engaged in Manufacturing, Distribution and Supply
- People demanding Tax Refund under double taxation system
- Goods Manufacturer
- People who provide materials through e-commerce aggregator
- Each type of e-commerce aggregator
Benefits of a new GST Registration:
- Pan India Business activities
- Relief from the System of Double Taxation
- Higher GST registration threshold
- Eligible to obtain government tenders
- Opportunities for business expansion with international companies
- Ability to use an input tax credit on purchases
- (For Annual turnover up to Rs 1.5 Cr) Lower taxation rates under composition scheme
- Filing returns becomes simple and online
- Upgraded logistics by Initiation of E-way Bill
- Reduction of Costs of Compliance
Online GST Registration Process
Official GST Registration Process
- First you need to create a USER ID on the GST Portal (https://www.gst.gov.in/)
- Then fill information in Part A of GST Registration Form-1
- A reference number will be given via your registered mobile number and email ID
- Then you need to fill the second form of GST registration process and upload the required documents
- Lastly, a Registration Certificate will be issued after the registration process ends.
India Financial Consultancy Corporation Pvt Ltd will help you in GST Registration in the following ways:
We are the highest rated GST Registration service provider in India. We are quick in our services and deliver GSTIN within 3 to 6 working days. The GST India Financial Consultancy Corporation Pvt Ltd experts will provide guidance on applicability, registration and help you meet the compliance requirements of the GST Act.
- A Chartered Accountant will be appointed to you on your order.
- You need to upload your document files through mobile or website.
- Then after doing deep scrutiny of documents, our Specialist will submit the files.
- After Filing on GST Portal, ARN number will be generated and shared with you for future purposes.
- Goods and Services Tax Identification Number (GSTIN) will be issued by the GST Department by issuing a certificate in 2-3 working days.
Documents needed for GST Registration
- PAN of the Applicant taxpayer
- ID proof and Address proofs of all the business’s promoters
- Photos of Directors / Partners / Owners
- Proof of business registration, or in case of partnership, a proof of Partnership Deed is required, and registration certificates
- Proof of Address of the business
- Business’s Bank Account details
- Digital Signature
- Letter of Authorization from Partners / Board of Directors of the business
Revised GST Registration Fees
The procedure of registration under GST includes many steps and documentation work. One gets an option to choose the Harmonized System of Nomenclature code (HSN code) or Services Accounting Code (SAC code) at the registration time. This procedure needs complete understanding of the Goods and Services Tax laws. It is, therefore, prescribed to take professional advice for the same. Our team at India Financial Consultancy Corporation Pvt Ltd delivers complete service for GST registration.
Important GST Return Filing Dates
After going through the online GST Registration process, the business entity needs to file the GST returns on due dates. Requirement of GST Returns depends on the annual turnover of the taxable person.
One needs to submit the returns on quarterly basis if the annual turnover is less than INR 1.5 Crore. Information needs to be provided regarding purchase and sale on the due dates of GST returns. Failure of which will lead to heavy penalties.
Penalties for Not Registering under GST
There are rigid laws under the GST Act for non-compliance of the GST regulations.
Penalty for not filing for a GSTIN
Any defaulter who failed to pay his due tax is obliged to pay a penalty of 10% of the taxable amount, which has to be more than INR 10,000.
A minimum of INR 10,000 penalty is to be paid in case of short payment of tax. The maximum amount can be equivalent to 10% of the unpaid tax.
Penalty for failure in filing of GST Returns on due date
There is a penalty of INR 50 per day in case of non filling of unpaid Tax. The maximum amount must not exceed INR 5000.
There is also a clause of penalty of jail for defaulters with the purpose to commit fraud.