Nature of GST Registration
GST registration is PAN-based and state-specific.
When registering for GST, the supplier is given a 15-digit GST identification number, or “GSTIN,” and a certificate of registration with this GSTIN is made available to the applicant on the GSTN common portal.
GST registration is not tax-specific, hence CGST, SGST/UTGST, IGST, and cesses all require a single registration.
Since that a PAN-based legal entity has one GSTIN per state, a company with branches in many states must take separate state-by-state registrations for each branch.
A business entity with distinct business verticals (as defined in Section 2 (18) of the CGST Act, 2017) in a state, on the other hand, may seek a separate registration for each of its business verticals.
Furthermore, a unit in a SEZ or a SEZ developer must obtain separate registration.
Advantages Of GST registration
The cascading effect of tax is eliminated by GST
GST may be a systematic revenue enhancement intended to put indirect taxes under one umbrella. Moreover, it is important to remove the cascading effect of the tax that was noticeable earlier.
Higher threshold for registration
Earlier, under the VAT scheme, any enterprise with a turnover above Rs 5 lakh (in most states) was liable to pay VAT. Please note that this limit varies between states. Service tax has also been exempted for service suppliers with a turnover of less than Rs 10 lakh.
Composition Scheme for small Industries
Earlier, any company with a turnover of over Rs five large integers (in most states) was prone to pay VAT within the VAT structure. Please notice that this cap was different in terms of state. For service providers with a turnover of just Rs ten big integer, service tax was also exempted.
Quick and clear online method
The entire process of GST (from registration to filing returns) is made online, and it is super simple. This has been beneficial for start-ups especially, as they do not have to run from pillar to post to get different gst registrations such as VAT, excise, and service tax.
The improved potency of supply
: Earlier, the supply trade-in Bharat had to take care of multiple warehouses across states to avoid this standard time and state entry taxes on inter-state movement. These warehouses were forced to control below their capability, giving space to exaggerated operational prices.
Documents required for GST registration
For Sole Proprietor / Individual
- Aadhar Card and Pan card
- Bank statement or a cancelled cheque
- Copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
- Registered rent agreement with Index – II and NOC (no objection certificate) from the owner
For Partnership deed/LLP Agreement
- Aadhar Card and Pan card Photographs of all partners.
- Bank statement or a cancelled cheque
- In the case of LLP- Registration Certificate of the LLP and letter of authorization
- In the case of Partnership – Partnership Agreement and letter of authorization
For Private limited/Public limited/One person company
- Company’s PAN card
- Certificate of Registration
- MOA (Memorandum of Association) /AOA (Articles of Association)
- Aadhar card, PAN card, of all Directors
- Bank statement or a cancelled cheque
- Copy of electricity bill/water bill/landline bill/ a copy of municipal khata/ property tax receipt
- Registered rent agreement with Index – II and NOC (No objection certificate) from the owner.
- Letter of Authorization
eligibility for GST
Any company or organization engaging in the purchasing and sale of services and products must be registered for GST Mandatory:
- Companies whose revenue reaches 40 lakhs (Rs. 10 lakh for Specified States)
- Both firms that manufacture products on behalf of the other taxable persons shall register with the GST, which has extended similarly to companies that make taxable services, for example, agents and brokers.
- If overall transactions are lower than RS 20 lakhs, the e-commerce seller/aggregator shall not register.
