GST Registration is mandatory for those businesses having a turnover exceeding Rs. 40 Lakhs per annum. Henceforth, businesses not having a GST Registration are liable for a penalty prescribed by relevant laws. Furthermore, let’s learn more GST and GST Returns in this article.
Introduction to GST registration
The GST or Good and Services Tax was introduced with an intention to help businesses grow effectively and effortlessly. Also, the purpose of GST was to remove the complexity of the older taxation system, which was imposed on products and services. Furthermore, under the GST Regime, businesses having turnover more than Rs. 40 lakh need to obtain GST Registration mandatorily.
Who should obtain GST registration
The following people or entity ought to obtain GST Registration;
- People who were filing tax under the Pre-GST laws such as VAT, Service Tax, etc.
- Entities with turnover above Rs. 40 Lakhs
- Individuals involved in distribution and supply to manufacturers
- People looking for Tax Refund under double taxation mechanism
- Manufacturer of Goods
- People providing materials through e-commerce aggregator
- All kind of e-commerce aggregator
Benefits of obtaining GST Registration
The advantages of obtaining GST Registration are as follows;
- Relief from the double taxation system
- Pan India Business operations
- Higher threshold for GST Registration
- Eligible for acquiring government tenders
- Increased chances of business expansion with International Companies
- Chances to avail input tax credit on purchases
- Lesser tax rates under composition scheme (For Annual turnover up to Rs 1.5 Cr)
- Easy and online return filing
- Improved logistics by Introduction of E-way Bill
- Reduction of Compliance Costs
The procedure of GST Registration
Follow the given steps to obtain GST Registration;
- Step 1: Create a user ID on the GST Portal
- Step 2: Fill the Part A of GST Registration Form-1
- Step 3: A reference number will be provided via registered mobile number and email id
- Step 4: Fill up the 2nd Form of GST Registration Process and upload the required documents
- Step 5: A Certificate of Registration will be issued after the completion of the registration process
You would need the following documents to obtain GST Registration;
- Identity and address proofs of all the promoters of the business
- Pan Card of the Applicant taxpayer
- Photographs of Directors / Partners / Owners
- Proof of registration of the business, or Partnership Deed in case of partnership and other registration certificates
- Address proof of the location of the business
- Bank account details of the entity
- Digital Signature
- Letter of Authorization from Partners or from the Board of Directors
GST Return filing
The business registered under GST needs to file GST returns within the specified due dates. However, the requirement of GST Returns is based on the annual turnover of a taxable person.
Furthermore, in case the annual turnover is less than Rs 1.5 Crore, then one needs to submit the GST returns quarterly basis. On the other hand,
Also, One need to provide details of purchase and sale in GST returns filing and failing to file GST Returns can lead to a penalty.
Penalties of not registering under Goods and Services Tax
Every defaulting person or entity is liable for paying a fine as prescribed by relevant laws. Let’s learn about them in detail.
Consequences of not filing for a GST identification number
Any defaulter not paying his tax is liable to pay a penalty of 10% of the tax amount. Additionally, this amount can not be less than Rs 10,000.
Furthermore, In the case of short payment of tax, a minimum penalty of Rs 10,000 needs to be paid. Otherwise, the maximum amount can be the amount equivalent to 10% of the unpaid tax.
Penalty for non-filing of GST Returns before the due date
In the case of non-filling of unpaid Tax, there is a penalty of Rs 50 per day. The maximum amount must not exceed 5000 rs.
There is also the provision of penalty by a jail term for offenders with the intention to commit fraud.
Every business having turnover more than Rs. 40 Lakhs must obtain GST Registration. However, this limit is set to Rs. 20 lakhs for Northeastern states of India. You can take help of a consultant to get GST Registration. Corpbiz is a leading consultant that consists of a team of experts that helps people easily obtain GST Registration.