What is registration for GST?

As a regular taxable entity, enterprises whose revenue exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) must register under the GST Regime. This registration process is called GST registration.

Registration under GST is mandatory for some companies. It will be an offense under GST if the company goes on business without reporting under GST, and heavy penalties will apply.

Usually, GST registration takes from 2-6 working days. In 3 easy steps, we’ll help you to register for GST.

Mandatory Registration

  • There are some groups of individuals obliged to register under the GST. The categories are specified in section 24 of the CGST Act, 2017. Therefore:
  • Persons providing taxable inter-state supplies
  • Informal taxable individuals
  • Individuals who are eligible to pay tax under the reverse charge
  • Individuals who are eligible under subsection (5) of section 9 to pay tax
  • Taxable non-resident nationals
  • Persons who are allowed under section 51 to pay Tax Deducted at Source (TDS). This is unrelated to whether or not they are individually recorded under the Act.
  • Input Service Distributor, whether registered separately or not under the Act.
  • Persons who supply services or goods other than the supplies listed in section 9 of subsection (5). Such supplies are rendered through an operator of electronic commerce under section 52 to collect tax at source.
  • Every operator of electronic commerce
  • On behalf of other taxable persons, individuals make taxable supplies of goods or services as agents or otherwise.
  • Any other person who is informed of the Council’s recommendations by the government.
  • Persons who provide access or retrieval services for online information and database services from a location outside India. Such services are provided in India to a person other than a registered person.

Registration Cap for Products

In the case of a regular taxpayer,

Under the government’s original GST system in July 2017, the GST turnover cap for suppliers of products alone was Rs. 20 lakhs. This was except for the particular states of the group.

In other words, in the previous financial year, suppliers of products with an aggregate annual turnover of up to 20 lakhs were not required to register under the GST Act.

Thus, the supplier of products with an aggregate annual turnover of Rs 20 Lakhs and above must be obliged to register under GST in the preceding financial year.

However, the GST Council’s exemption cap was doubled at the 32nd GST Council meeting from Rs. 20 lakhs to 40 lakhs.

Also, this exemption cap of up to Rs 40 Lakhs does not extend to individuals who are:

Required under Section 24 of the CGST Act for compulsory registration

Interested in the distribution of goods, such as:

Ice cream and other edible ice, cocoa-containing or not, Masala pan Manufactured cigarettes and tobacco substitutes In the case of states with special categories, For north-eastern and hilly regions, the GST registration limit was Rs. 10 lakhs in the initial GST regime.

This was also increased from Rs. 10 lakhs to Rs. 20 lakhs for the supply of goods as per the 32nd meeting of the GST Council.

The hilly and north-eastern states were, however, given a choice. In the case of a supplier of products, they could either pick Rs. 20 lakhs or Rs. 40 lakhs as the turnover cap for the GST exemption.

Service providers Cap on Registration

In the case of a regular taxpayer, Except individual category states under the original GST system rolled out by the government in July 2017, the GST turnover cap for service providers was Rs. 20 lakhs. This exemption cap remains, however, unchanged for service providers, i.e., Rs. 20 lakhs, as declared at the meeting of the 32nd GST Council.  In the case of states with special categories,  In the original GST regime, the GST registration cap for service providers in North Eastern and hilly states was Rs. 10 lakhs. This exemption cap remains unchanged, i.e., Rs 10 lakhs as per the 32nd session of the GST Board.

Composition Scheme Cap for Registration

For taxpayers enrolled under the Composition Scheme, the GST Registration Cap varies by taxpayer group. As follows, these were: In the case of traders and manufacturers, All traders and producers with an aggregate annual turnover of up to Rs 1 Crore in the previous financial year could register under the GST Act as composition dealers. The GST rate applicable to such traders and manufacturers was 1%. However, the GST Registration Cap for manufacturers and traders registered as composition dealers have increased, as per the 32nd GST Council Meeting. Traders and producers with an aggregate annual turnover of up to Rs 1.5 Crores in the preceding financial year can now register under GST as composition dealers. However, the GST rate applicable to such traders and producers remains unchanged, i.e., 1%.  Only in the case of restaurant service.

As for composition dealers under the GST law, service providers providing restaurant services with an aggregate yearly turnover of up to Rs one Crore in the last financial year must register as composition dealers. Also, the GST rate applicable to such service providers was 5%.

However, the GST Registration Cap for restaurant service providers registered as composition dealers have also been raised, as per the 32nd GST Council Meeting. Restaurant service providers with an aggregate annual turnover of up to Rs 1.5 Crores in the previous financial year can now register as GST composition dealers. But the GST rate applicable to such providers of restaurant services remains unchanged, i.e., 5 percent.

Other service providers in the event of Under the original GST system, service providers, other than restaurant-related services, did not opt for the Composition Scheme. However, as of the 32nd GST Council meeting, a new Composition Scheme is now available for service suppliers or mixed suppliers with a tax rate of 6 percent (3 percent CGST + 3 percent SGST). And the annual turnover threshold for these service providers must be up to Rs 50 lakhs in the preceding financial year.

Documents Needed to Register for GST

  • The Applicant PAN
  • Aadhaar card
  • Evidence of company registration or Certificate of incorporation
  • Identity and Address Evidence of Promoters/Photographs Manager
  • Address evidence of the place of service
  • Statement of Bank Account/Cancelled Cheque
  • Digital Signature
  • Authorization Letter/Board Resolution for Approved Signatory

Infractions & Penalties

Infractions

Under GST, there are 21 offenses. Here we’ve mentioned a few.

Under GST, the significant offenses are: Not registering, even if required by law, under GST.

Provision without invoice of any goods/services or issuance of a false invoice

  • Issuing invoices by a taxable person using another bona fide taxpayer’s GSTIN

Submission of false data while registering under GST Fake financial records/documents or files submitted or fake returns to prevent taxation.

Obtaining refunds through fraud Deliberate sales suppression to avoid taxation Opting for a composition system even if a taxpayer is not eligible

Sanction A tax would have to be charged under GST if any of the offenses are committed. Also referred to by statute are the values on which these sanctions are based. For late filing of submissions Late filing draws a penalty known as a late charge. The late fee for the Act is Rs. 100 per day. So under CGST, it is 100 & under SGST, it is 100. The sum is going to be Rs. 200/day*. Rs. 5,000 is the limit. In the event of a delayed filing, there is no late charge on IGST. Interest has to be charged at 18 percent per annum, along with late fees. It must be determined by the taxpayer concerning the Tax to be paid. The period will run from the next day of filing until the date of payment.

*Subject to changes announced via Notifications.

For not filing If you don’t file any GST return, then subsequent returns cannot be filed. For example, if the GSTR-2 return of August is not filed, then the next return GSTR-3 and subsequent September returns cannot be filed. Hence, late filing of GST return would have a cascading impact leading to hefty fines and penalties. The penalty levied is 10% of the due amount if you do not pay Tax or pay a lower amount than what is due (in case of genuine errors). The minimal penalty, however, is Rs.10,000.

The penalty levied is 100 percent of the due tax sum if you have not enrolled for GST and are purposely attempting to evade Tax.

 

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What is registration for GST?

As a regular taxable entity, enterprises whose revenue exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) must register under the GST Regime. This registration process is called GST registration.

Registration under GST is mandatory for some companies. It will be an offense under GST if the company goes on business without reporting under GST, and heavy penalties will apply.

Usually, GST registration takes from 2-6 working days. In 3 easy steps, we’ll help you to register for GST.

Mandatory Registration

  • There are some groups of individuals obliged to register under the GST. The categories are specified in section 24 of the CGST Act, 2017. Therefore:
  • Persons providing taxable inter-state supplies
  • Informal taxable individuals
  • Individuals who are eligible to pay tax under the reverse charge
  • Individuals who are eligible under subsection (5) of section 9 to pay tax
  • Taxable non-resident nationals
  • Persons who are allowed under section 51 to pay Tax Deducted at Source (TDS). This is unrelated to whether or not they are individually recorded under the Act.
  • Input Service Distributor, whether registered separately or not under the Act.
  • Persons who supply services or goods other than the supplies listed in section 9 of subsection (5). Such supplies are rendered through an operator of electronic commerce under section 52 to collect tax at source.
  • Every operator of electronic commerce
  • On behalf of other taxable persons, individuals make taxable supplies of goods or services as agents or otherwise.
  • Any other person who is informed of the Council’s recommendations by the government.
  • Persons who provide access or retrieval services for online information and database services from a location outside India. Such services are provided in India to a person other than a registered person.

Registration Cap for Products

In the case of a regular taxpayer,

Under the government’s original GST system in July 2017, the GST turnover cap for suppliers of products alone was Rs. 20 lakhs. This was except for the particular states of the group.

In other words, in the previous financial year, suppliers of products with an aggregate annual turnover of up to 20 lakhs were not required to register under the GST Act.

Thus, the supplier of products with an aggregate annual turnover of Rs 20 Lakhs and above must be obliged to register under GST in the preceding financial year.

However, the GST Council’s exemption cap was doubled at the 32nd GST Council meeting from Rs. 20 lakhs to 40 lakhs.

Also, this exemption cap of up to Rs 40 Lakhs does not extend to individuals who are:

Required under Section 24 of the CGST Act for compulsory registration

Interested in the distribution of goods, such as:

Ice cream and other edible ice, cocoa-containing or not, Masala pan Manufactured cigarettes and tobacco substitutes In the case of states with special categories, For north-eastern and hilly regions, the GST registration limit was Rs. 10 lakhs in the initial GST regime.

This was also increased from Rs. 10 lakhs to Rs. 20 lakhs for the supply of goods as per the 32nd meeting of the GST Council.

The hilly and north-eastern states were, however, given a choice. In the case of a supplier of products, they could either pick Rs. 20 lakhs or Rs. 40 lakhs as the turnover cap for the GST exemption.

Service providers Cap on Registration

In the case of a regular taxpayer, Except individual category states under the original GST system rolled out by the government in July 2017, the GST turnover cap for service providers was Rs. 20 lakhs. This exemption cap remains, however, unchanged for service providers, i.e., Rs. 20 lakhs, as declared at the meeting of the 32nd GST Council.  In the case of states with special categories,  In the original GST regime, the GST registration cap for service providers in North Eastern and hilly states was Rs. 10 lakhs. This exemption cap remains unchanged, i.e., Rs 10 lakhs as per the 32nd session of the GST Board.

Composition Scheme Cap for Registration

For taxpayers enrolled under the Composition Scheme, the GST Registration Cap varies by taxpayer group. As follows, these were: In the case of traders and manufacturers, All traders and producers with an aggregate annual turnover of up to Rs 1 Crore in the previous financial year could register under the GST Act as composition dealers. The GST rate applicable to such traders and manufacturers was 1%. However, the GST Registration Cap for manufacturers and traders registered as composition dealers have increased, as per the 32nd GST Council Meeting. Traders and producers with an aggregate annual turnover of up to Rs 1.5 Crores in the preceding financial year can now register under GST as composition dealers. However, the GST rate applicable to such traders and producers remains unchanged, i.e., 1%.  Only in the case of restaurant service.

As for composition dealers under the GST law, service providers providing restaurant services with an aggregate yearly turnover of up to Rs one Crore in the last financial year must register as composition dealers. Also, the GST rate applicable to such service providers was 5%.

However, the GST Registration Cap for restaurant service providers registered as composition dealers have also been raised, as per the 32nd GST Council Meeting. Restaurant service providers with an aggregate annual turnover of up to Rs 1.5 Crores in the previous financial year can now register as GST composition dealers. But the GST rate applicable to such providers of restaurant services remains unchanged, i.e., 5 percent.

Other service providers in the event of Under the original GST system, service providers, other than restaurant-related services, did not opt for the Composition Scheme. However, as of the 32nd GST Council meeting, a new Composition Scheme is now available for service suppliers or mixed suppliers with a tax rate of 6 percent (3 percent CGST + 3 percent SGST). And the annual turnover threshold for these service providers must be up to Rs 50 lakhs in the preceding financial year.

Documents Needed to Register for GST

  • The Applicant PAN
  • Aadhaar card
  • Evidence of company registration or Certificate of incorporation
  • Identity and Address Evidence of Promoters/Photographs Manager
  • Address evidence of the place of service
  • Statement of Bank Account/Cancelled Cheque
  • Digital Signature
  • Authorization Letter/Board Resolution for Approved Signatory

Infractions & Penalties

Infractions

Under GST, there are 21 offenses. Here we’ve mentioned a few.

Under GST, the significant offenses are: Not registering, even if required by law, under GST.

Provision without invoice of any goods/services or issuance of a false invoice

  • Issuing invoices by a taxable person using another bona fide taxpayer’s GSTIN

Submission of false data while registering under GST Fake financial records/documents or files submitted or fake returns to prevent taxation.

Obtaining refunds through fraud Deliberate sales suppression to avoid taxation Opting for a composition system even if a taxpayer is not eligible

Sanction A tax would have to be charged under GST if any of the offenses are committed. Also referred to by statute are the values on which these sanctions are based. For late filing of submissions Late filing draws a penalty known as a late charge. The late fee for the Act is Rs. 100 per day. So under CGST, it is 100 & under SGST, it is 100. The sum is going to be Rs. 200/day*. Rs. 5,000 is the limit. In the event of a delayed filing, there is no late charge on IGST. Interest has to be charged at 18 percent per annum, along with late fees. It must be determined by the taxpayer concerning the Tax to be paid. The period will run from the next day of filing until the date of payment.

*Subject to changes announced via Notifications.

For not filing If you don’t file any GST return, then subsequent returns cannot be filed. For example, if the GSTR-2 return of August is not filed, then the next return GSTR-3 and subsequent September returns cannot be filed. Hence, late filing of GST return would have a cascading impact leading to hefty fines and penalties. The penalty levied is 10% of the due amount if you do not pay Tax or pay a lower amount than what is due (in case of genuine errors). The minimal penalty, however, is Rs.10,000.

The penalty levied is 100 percent of the due tax sum if you have not enrolled for GST and are purposely attempting to evade Tax.

 

REQUEST A CALL BACK


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We will be sending you reminders before due date to avoid unnecessary late fee and penalties.



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MONTHLY PACK

Rs.599


It includes GST Return filing (GSTR-3B and GSTR-1) and Reconciliation of ITC.

3 MONTHS PACK

Rs.1699


It includes GST Return filing (GSTR-3B and GSTR-1) and Reconciliation of ITC.

6 MONTHS PACK

Rs.2999


It includes GST Return filing (GSTR-3B and GSTR-1) and Reconciliation of ITC and free registration under MSME if any.

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Rs.4999


It includes GST Return filing (GSTR-3B and GSTR-1) and Reconciliation of ITC and free registration under MSME if any.

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