Home / GST Registration

Updated on : 01-Mar-2021   06:00 AM IST | 4 min read

What is GST Registration?

As per the new GST act, every individual or a company involved in the business of supplying goods & services and having an annual turnover of more than Rs.40 Lakhs required to obtain GST registration.

You can easily register for GST online with the help of FinacBooks. The online procedure started by the government allows the individuals & entities to focus on the key areas of their business without causing any delay. You have to fill a simple registration form for GST and you are done. There is no need to visit our office as the entire process is online. After applying for GST registration online, a unique GSTIN is generated and allocated to the applicant for further future communication. GST registration is a necessary requirement for those who have already registered under the existing laws such as VAT, Service tax, Excise tax etc. Register for the GST now with FinacBooks!

GST Registration Limit for Sale of Goods

The registration limit for almost all the states is Rs.40 Lakhs whereas for the hilly areas & northern states, it is Rs.20 Lakhs.

Category Turnover Applicability
For Normal Category States Exceeds Rs.40 lakh From 1st April 2019
For Special Category States Exceeds Rs.20 lakh From 1st April 2019

GST Registration Limit for Sale of Services

The GST registration limit for individuals & entities for almost all states is Rs.20 Lakhs whereas for the hilly areas & north-eastern states, it is Rs.10 Lakhs.

Category Turnover Applicability
For Normal Category States Exceeds Rs.20 lakh  
For Special Category States Exceeds Rs.10 lakh  

After applying GST registration, you can easily check your status online with the help of FinacBooks by entering an application reference number (ARN)in the required field. Every update will be sent to you by way of calls and e-mails.

Types of GST in India

CGST

CGST stands for central goods & services tax. It is levied on intra-state sales of goods & services (transactions take place within state) and the revenue is collected by the central government whereas the input tax is later utilized by the state government against the CGST payment.

SGST

SGST stands for state goods & sales tax. It is levied on intra-state sale of goods & services (transactions takes place within the state) and the revenue is collected by the state government.

UTGST

UTGST stands for union territory goods & services tax. It is levied on intra-state sales of goods & services (transactions take place within union territory) and the revenue is collected by Union Territory Government.

IGST

IGST stands for integrated goods & services tax. It is levied on inter-state sales of goods & services (transactions taking place in another state) and the revenue is collected by both central & state government.

Who should register for GST?

You will have to meet certain eligibility criteria in order to obtain GST registration online in India. A unique GST registration number is allocated to the individuals & businesses after new registration.

Individuals & businesses who must register for GST are as follows -

  1. Individuals already registered under the existing laws such as VAT, Service tax, Excise tax etc.
  2. Individuals & businesses who are involved in supplying of goods whose turnover exceeds the threshold limit of Rs.20 lakhs (for hilly areas & north-eastern states) and Rs.40 Lakhs (For rest of the states) are entitled to obtain GST registration.
  3. Individuals & businesses who are involved in supplying of services whose turnover exceeds the threshold limit of Rs.10 lakhs (for hilly areas & north-eastern states) and Rs.20 Lakhs (For rest of the states) are entitled to obtain GST registration.
  4. Casual taxable persons/Non-resident taxable persons.
  5. Individuals paying tax under the reverse charge mechanism scheme.
  6. Individuals supplying through E-commerce aggregator.
  7. Agents of supplier & input service distributor.
  8. Every E-commerce aggregator.

Documents Required for GST Registration

Documents for GST registration vary as per the structure of your business. The GST registration documents are the documents needed for new or online GST registration. You just need to upload the documents online and submit the application.

There are different types of documents which you required to submit under new GST registration process –

Individual/Sole proprietorship
  • Photograph of the owner
  • Aadhar card of the owner
  • PAN card of the owner
  • Owners’ address proof
  • Owner’s bank account details
Partnership Firm
  • Photograph of all partners & authorized signatories (JPEG format)
  • Aadhaar card of authorized signatory
  • PAN card of all partners (including both authorized signatory & managing partner)
  • Address proof of all partners (You may submit voter’s identity card, Aadhaar card, driving license, passport etc.)
  • Registration certificate /Board resolution of LLP (In LLP case)
  • Partnership deed copy
  • Appointment proof of authorized signatory
  • Address proof of principal place of business
  • Bank account details
Hindu Undivided Family (HUF)
  • Photograph of the owner (Karta)
  • PAN card of karta
  • Aadhaar card of karta
  • PAN card of HUF
  • Address proof of principal place of business
  • Bank account details
Public & Private Limited Company
  • Company’s memorandum of association/Articles of association
  • PAN card of the company
  • Incorporation certificate issued by the ministry of corporate affairs.
  • Address proof of principal place of business
  • PAN card & address proof of all company directors
  • Bank account details
  • PAN card & Aadhaar card of the authorized signatory (must be an Indian citizen)
  • Photograph of all company’s directors and the authorized signatory (JPEG format)
  • Board resolution copy appointing authorized signatory/Any other appointment proof of authorized signatory (JPEG format)
Society or Club
  • Photograph of the partners or promoters
  • Copy of the club or society’s registration certificate
  • PAN card of the club or society including promoters or associated partners.
  • Letter of authorization signed by authorized signatory/signatories.
  • Registered office address proof (Water bill/Utility bill/rent agreement (if rental premises), Municipal khata copy (If owned by the society or club and NOC from the owner of the premises)
  • Bank account statement, copy of passbook’s first page or a crossed cheque copy
GST Registration

In which circumstances GST Registration is mandatory?

  • Turnover Criteria - All individual & businesses whose turnover exceeds Rs.40 lakh has to mandatorily apply for the GST registration.
  • Causal Taxpayer - In case you are supplying goods or services in events/exhibitions and not have a permanent place of doing business, you should go for the online GST registration before starting a business. In such cases, dealer required to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.
  • NRI Taxpayer - Any NRI individual, who does not have a place of doing business in India and wishes to start a new business, he must apply for GST Registration before starting business operations in India. The validity of Casual GST registration is 90 days.
  • Agents of Supplier & Input Service Distributor - All supplier agents and Input service distributors who want benefit of input tax credit must go for GST registration.
  • Reverse Charge - Businesses who needs to pay taxes under the reverse charge mechanism also required to go for GST registration.
  • E-Commerce Portal - Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendor’s selling their products should be GST registered.

Benefits of GST Registration

GST registration not only helps you in getting your business recognized as legally registered but also opens number of opportunities for your business. Some of the benefits of GST registration are as follows -

  1. GST removes cascading effect of tax – GST stands for goods & sales tax. It is a comprehensive tax which has taken all indirect taxes under one roof. Cascading effect means “Tax on tax” and it helps in removing it. According to the previous system, businesses were paying service tax as well as VAT but as per the new GST system, all indirect taxes are combined and now businesses need to pay only GST.

    For ex – A tax consultant offers his services worth Rs.10000 & charged a service tax of 15% 70000 * 15/100 = Rs.10500

    He buys some office stationery worth Rs.30000 & paid 5% VAT = Rs.30000*5% = Rs.1500

    As per old tax rules, he needs to pay Rs.10500 as service tax without getting any VAT deduction of Rs.1500 (already paid by you on stationery). You need to pay total tax of Rs.12000.

    If you will take the above situation as per the new GST act, you need to pay GST at 18% i.e. 70000*18/100 = Rs.12600

    Not only this, you will also get 30000*5/100 = Rs.1500

    You need to pay only Rs.11100 (Rs.12600 – Rs.1500) as per new GST law.

  2. Higher threshold – Previous threshold limit for VAT was Rs.500000 which varies state-wise whereas service tax is exempted for those service providers who are having a turnover of less than Rs.10 Lakh. As per new GST act, the threshold limit has been increased to Rs.40 Lakhs (Rs.20 Lakhs for hilly areas & northern eastern states) due to which many small traders & service providers are exempted from paying tax.
  3. Composition scheme for small businesses – The other benefit of GST registration is that you can lower down your taxes by availing new composition scheme introduced by GST department. Hence, it lowers down the burden of many small businesses.
  4. Simple & easy online procedure – The GST registration process is now very simple as the entire process is online. Previously, businesses need to do different registrations such as VAT, service tax & excise tax but now businesses need to do only one registration i.e. GST registration. It is mainly benefiting the individuals who have just started their businesses and looking for GST registration.
  5. Reduction in number of returns – Earlier, you need to file VAT return, service tax return, excise tax return differently but after the introduction of GST, you need to file one unified return i.e. GST return. It lowers down the quantity of returns which you need to file to the income tax department every year. Earlier, businesses were filing every return individually to the concerned authorities but now you need to file 4 basic returns which apply to all the taxable persons under GST act. It also lowers down the compliances you need to follow under the new GST act.
  6. Improvement in efficiency of logistics – Earlier, we used to see that there were many restrictions on inter-state movement of goods & also increase in the operating cost because warehouses were forced to operate below their capacity. After the introduction of GST, restriction on inter-state movement of goods are decreased as well as warehouse operators & commerce aggregators are coming forward for setting up of new warehouses. For ex – Warehouse at strategic location like Nagpur. This reduced the unnecessary logistics cost which in turn increase the business profits.
  7. Industries are regulated & organized – Earlier, industries like construction & textile were unorganized & unregulated largely but after the introduction of GST, both these industries are now regulated & organized due to formation of provisions for online compliances and availing of input tax credit only after the amount is accepted by the supplier.
  8. You will receive many benefits under GST registration. Register for GST now with the help of FinacBooks!

Penalty for not Doing GST Registration

There are different penalties imposed by the GST department and it varies as per the type of offense done by an individual.

If you are having an annual turnover above Rs.40 lakhs (In case of goods) & above Rs.20 Lakhs (In case of services), it is mandatory for you to go for registration.

If you will not go for GST registration, you are liable for penalty from GST department. Penalty for not doing GST registration is 100% tax due or Rs.10000 (whichever is higher).

Other GST Services

File your GST return monthly, quarterly or annually with FinacBooks online easily.

Examine your records & other documents by GST audit and remain compliant with FinacBooks.

Easily cancel your GST registration with FinacBooks.

GST Registration FAQ’S

GST registration not only helps you in getting your business recognized as legally registered but also opens number of opportunities for your business. Some of the benefits of GST registration are as follows -

  • Become More Competitive - You will be more competitive in comparison to other unregistered competitors as you are carrying a unique registration number.
  • Expand Your Business Online - You cannot sell products or services on e-commerce platforms without a valid GST registration number. If case you are planning to sell your products on e-commerce platforms like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a valid GSTIN.
  • Claim input Tax Credit - Only Registered GST holders can claim input tax credit of GST paid on purchase of goods & services and save the cost.
  • Sell Goods & Services All Over India Without Any Restriction - Without GSTIN, you cannot trade from one state to another state. It is only possible when you will register your business under GST.
  • Apply Government Tenders - You need a valid GSTIN in order to apply for government tenders. In case you don’t have a valid GSTIN, you may miss a good business opportunity.
  • Open Current Bank Account - Specifically in case of sole proprietorship, Banks & Financial Institutions does not open a current bank account in the name of business unless you are having a valid government proof in the name of your business. GST registration certificate can help you in opening a new current bank account.
  • Dealing with MNCs - Generally, MNC’s does not feel comfortable in dealing with small business entities until they carry valid tax registration proof.
Composition scheme under GST is a scheme offered by the GST department for taxpayers to lower down their GST formalities, tax burden by paying fixed rate of turnover.

GSTIN is a unique good and services tax identification number which is assigned to all businesses under GST.

GST Registration certificate can be cancelled in two situations -

  1. When the taxable person voluntarily cancels his or her GST registration
  2. When the officer uses his power and cancels the registration certificate of the taxable person due to the following reasons –
  3. If the taxable person is not doing business from his or her notified registered place
  4. If the taxable person issues tax invoice without making the supply of goods or services.

The taxable person has to apply on the official GST portal within 30 days. He has to declare some important information in the application such as stock held on a particular date, amount of dues, credit reversal and information about payment made towards discharge of liabilities. The concerned receives the application through the GST portal and start its verification. If the concerned officer is satisfied after verifying the application, the officer will cancel the same within 30 days.

A GST registration certificate can be amended. A taxable person can make amendments in particular information such as mobile number and email etc. on his own on the official GST portal. You must input your correct Mobile number and e-mail address. If there is a change in the legal name of the business or change in the state name or addition of a new business place, he has to apply to the concerned department for changes within 15 days.
No, there is no concept of single central GST registration. Every PAN holder should have one GST per state. Therefore, any person who is having branches of a business in different states needs to apply for a separate goods and service tax registration number for each branch even if he or she is holding a single PAN.

How FinacBooks can help in online GST registration?

FinacBooks is one the leading accounting & financial company in India. Our team helps you in easily submitting your GST registration online without any delay. The tax deadline is a big worry. We always take care of the tax deadline and submit the correct client information to the tax authorities as soon as possible. FinacBooks team is having more than 10 years of experience in the GST registration process and provides the best services to everyone including our valuable clients. FinacBooks not only provide perfect solutions of the tax issues but also give important tips and advices to their clients. We will remain in touch with you and every update will be sent to you by way of calls and e-mails. You don't have to worry about the GST registration fees as it can be discussed and an affordable price will be communicated to you. We are taking very less GST registration fees as compared to our competitors. Kindly call us at 8800221252 or you can also e-mail us at info@finacbooks.com.

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Due Dates

  • Monthly GSTR 8 (Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators) for Feb 2021

    Mar 10th ,2021
  • Monthly GSTR 7 (Summary of Tax Deducted at Source (TDS) and deposited) for Feb 2021

    Mar 10th ,2021
  • GSTR 1 for Feb 2021 (turnover more than INR. 1.50 Crore)

    Mar 11th ,2021
  • GSTR 6 (Details of ITC received and distributed by ISD) Monthly Filing Due Date for Feb 2021

    Mar 13th ,2021
  • Last date of depositing the fourth instalment of advance tax (if liable to pay any) for FY 2020-21 for taxpayers who have opted for Presumptive Taxation Scheme under section 44AD & 44ADA

    Mar 15th ,2021
  • Last date of depositing the fourth instalment of advance tax (if liable to pay any) for FY 2020-21 for individual and corporate taxpayers

    Mar 15th ,2021