As we all are aware of the fact that GST has taken over the market and the Indian Government is determined to enhance the economy of the country via new taxation regime. The entire GST process of getting registered, filing taxes and claiming returns is online and needs to be adopted by every one of us. Majorly, GST is for those who are dealing with the supplies of goods and services irrespective of the place of supply: interstate or intrastate. One of the major benefits of getting enrolled under the GST regime is that whosoever is in the supply chain will be benefited in the form of Input Tax Credit accept the end-consumer.
The law has subsumed all the indirect taxes including VAT, Service Tax, Octroi, Entertainment tax and so on and have reduced their complexity by replacing it with a single taxation system. In this post, we discuss everything related to the complete GST registration process including its benefits and penalties levied on taxpayers for not getting registered into the scheme. Take a look.
GST Registration Eligibility
Any taxable person who is dealing with the supplies of goods and services within the same state or from one state to another has to get registered under the scheme. However, still, there are certain terms and conditions following which the eligibility criteria fulfill such as the person is eligible only if he or she is earning an annual turnover of more than 20 lakhs. One can also get registered for the GST voluntarily to avail the benefits of the new taxation regime. The GST registration can be done for proprietorship, Hindu Undivided Family, Society, LLP, partnership firms and any other legal entity.
GST Registration Number
GST registration number is a number that you’ll be allotted after the successful registration of your business under the GST. The major advantage of this GST registration number is that you can use it anywhere across the country. That’s the reason, GST has simplified the previous indirect taxation system. All you need to do is you have to submit a valid PAN card for the same and go through the entire registration criteria. Once, your approval is received by the officer, you’ll be successfully registered under the GST.
Documents Needed For GST Registration
In order to get successfully registered under the GST regime, one need to provide all these documents mentioned below:
- Must submit a proper and valid Pan Card
- Proof and details of the electricity bill, rental agreement, or a Property Tax Receipt
- Bank Account Details
- Copy of Aadhaar Card
Steps for GST Registration
The GST registration process is simple and easy. All you need to do is follow few liabilities followed by registration. Following are the simple steps for getting registered under the new taxation regime:
- Search any simple website which you think is appropriate, authentic and easy to use
- Click on the GST registration page
- Fill the part An of the form by giving each detail that has been asked such as PAN card, mobile number, name and a valid e-mail ID
- After the verification of PAN, Mobile number and e-mail ID, you’ll be given an OTP that you have to enter to verify your account
- Once you’ve provided each detail, you’ll be allocated an application reference number on your mobile or email
- Next, you have to fill the Part B of the form GST REG-01 and enter your reference number
- Attach all the required documents for which you have been asked for
Benefits of Registering under GST
Benefits of getting registered under GST are several such as you don’t have to get confused for multiple taxes, the entire process is online. You’ll be legally recognized as a supplier of goods and services, can legally collect tax from your purchasers, and can do the proper accounting of GST for payments of goods and services.
Penalties for Not Registering Under GST
If an eligible taxpayer des do not register his own business under the GST despite exceeding the annual turnover limit, he or she will have to pay the penalty against not getting registered under the process. In case there is some error in the processor they are unable to [pay the GST for the last few months, they will be charged a penalty of 10% of the tax rate or else 100% penalty will be levied on their tax amount.
Therefore, it’s advisable for everyone involved in goods and supplies businesses, register themselves under the process so that you are able to avail the enormous benefits.