GST Registration is a process by which a taxpayer gets himself registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration.
Please note – If you are operating from more than one state, then you will have to take separate registration for each state you are operating from.
Now, you must be wondering if every business is required to register under GST? Let’s understand GST registration and its procedure in detail.
Who is eligible to register under GST?
All the businesses supplying goods whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand.
The turnover limit is Rs 20 lakh, and in case of special category States, Rs 10 lakh, for the service providers.
Also, here is the list of certain businesses for which GST registration is mandatory irrespective of their turnover:
- Casual taxable person / Input Service Distributor (ISD)
- Non-resident taxable person
- Inter-state supplier of goods and services
- Supplier of goods through an e-commerce portal
- Any service provider
- Liable to pay tax under the reverse charge mechanism
- TDS/TCS deductor
- Online data access or retrieval service provider
What are the documents required for GST registration?
Take a look at the list of documents that you will need for registering your business under GST-
- Permanent Account Number (PAN) of the applicant
- Copy of your aadhaar card
- Proof of business registration or incorporation certificate
- Identity and address proof of promoters/directors with a photograph
- Bank account statement/cancelled cheque
- Authorisation letter/board resolution for authorized signatory
- Digital signature
Procedure for GST registration
The procedure to obtain a GST registration is easy and free. A taxpayer seeking a normal registration can visit the GST portal and fill the registration Form GST REG-01.
Click here to know the steps to register under GST.
Penalty for not registering under GST
All the businesses that are required to mandatorily register under GST will be required to pay a penalty of 10% of the tax amount payable up to a maximum of Rs 10,000.
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