Goods & Services Tax (GST) Registration Process in India

A business will need to get registered as a normal taxable person if the turnover exceeds Rupees twenty lakh/ ten lakh (as applicable) and is involved in taxable supply of goods or services under GST, and the process of registration is called GST registration. Here at loanbaba, we tell you all about GST registration.

Why is GST registration important?

To avail various benefits under the GST regime, the process of goods and services tax registration is required by the persons, for example, availing of seamless input tax credit. To eradicate multiple taxes and reduce the cascading effect in taxation, GST registration is required. It has been made mandatory and hence timely registration will ease up individual process.

GSTIN

After migration to GST from various platforms, 8 million tax payers of the country will be provided with a unique PAN based GSTIN (GST Identification Number).

Casual Goods and Services Tax Registration Process

A Casual Taxable Person who supplies goods or services occasionally in a territory where GST is applicable and has no fixed place of business needs to get registered under Casual Registration.

Composition Dealer

Small businesses and taxpayers where annual turnover is less than Rupees fifty lakh can opt for the enrollment of GST for its composition scheme where they will be taxed at a nominal rate of just 1% or 2.5% (manufacturers) under CGST and SGST each. Such persons and dealers will be required to maintain lesser detailed records and they also need to file just one quarterly return in place of 2 monthly returns.

They cannot collect taxes i.e. taxable invoices cannot be issued by them and are required to pay taxes from themselves. No input tax credit can be claimed by them. This scheme is just for small businessmen and not for operators, e-commerce traders and interstate sellers.

Applicability

GST will be applicable for businesses with turnover more than 20 lakh (10 lakh in case of North Eastern states).

Migration to GST

All dealers currently under VAT and Central Excise and Service Tax need to migrate to GST. To start the process of migration, the persons will be provided with provisional ID and password by the State/ CBEC commercial Tax departments.

PAN is mandatory in the process hence provisional IDs will be issued to the persons who will furnish a valid PAN in the process of registration. A provisional ID may not be provided to a person if:

  • An invalid PAN is furnished during registration
  • The PAN is registered under State Tax Authority and allotment of provisional ID is done by State Tax Authority.
  • For the cases where there are multiple CE/ST registrations on the same PAN, if any of the two conditions above are not met, only 1 provisional ID may be issued that too in alphabetical order and for first time registration.

This provisional Id and password will be required by the person to login to the GST Common Portal in which they need to fill/ submit the form 20 with supporting documents.

Penalties for non registration under GST

With a minimum of Rs. 10,000, a penalty of 10% of the tax amount will be levied to an offender making short payments or not paying tax. In case of deliberate continuous fraud, penalty can be as high as 100%. It is essential to follow new GST registration process for relevant persons.

Multiple registrations under GST India

Separate registrations can be obtained for each business vertical for the cases where a business has multiple business verticals.

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