A simple answer to what is Goods and Services Tax is that it is a destination based indirect tax levied at every stage, on the value added, right from manufacture up to the final consumption upon the consumption of goods and services. The burden of GST falls on the final consumer. GST was introduced as an endeavor to remove all indirect taxes on goods and services imposed by state and central, which made the taxation a complex procedure. In short, Goods and Services Tax is a comprehensive, multi-stage, destination-based consumption tax on the value added with the object to create a single market. For Online GST Registration procedure contact us anytime. Our experienced CA/agents assist you in best available way.
Why Online GST Registration in India Mandatory?
The GST Act is clear upon who has to obtain online GST registration in India. The provisions state that getting GST registered is mandatory for all the individuals and entities who are engaged in the supply of goods or services across the state. One can apply for new GST registration online as a normal taxpayer or under GST composition scheme.
Section 22 of the CGST/SGST Act 2017 provides that each supplier (including the agents) with an aggregate turnover for a financial year is more than Rs. 20 lakh, who makes a taxable supply of goods/ services, shall be liable to obtain online GST registration in the State or the Union territory, in which the supply has been made.
Limit for New GST Registration State Wise
*For the states of, Assam, Nagaland, Sikkim, Tripura, Jammu and Kashmir, Arunachal Pradesh, Manipur, Himachal Pradesh, Meghalaya, Mizoram, and Uttarakhand, the limit is Rs. 10 lakh.
As per Section 24 of the Act, there are some categories of suppliers that have to be compulsorily new GST Registration without factoring their aggregate turnover. Those are:
casual taxable persons undertaking a taxable supply; those undertaking any inter-State taxable supply; a non-resident taxable person who makes a taxable supply of goods and services; persons who are required to deduct tax under section 51, whether or not separately has GST registration under this Act; those who have to pay tax under reverse charge; those making taxable supply of goods and services, on behalf of other taxable persons; Those who supply goods and services through such e-commerce operator; every e-commerce operator; Those supplying database access and online information or any retrieval services from outside India to a person in India; and Input Service Distributor.
Section 23 of the Act provides that the two categories below require no New GST Registration in India:
An agriculturist for his agricultural produce and those solely involved in the supply of non-taxable or wholly exempted goods/services.
Some products do not fall within the purview of the GST scheme as of now and do not require online GST Registration in India. Example: Alcoholic liquor, Tobacco products, Petroleum crude, High-speed diesel, Aviation turbine fuel, Motor spirit (petrol) etc.
The newly introduced law has excluded few businesses from getting new GST registration online. Here comes the provision of Voluntary online GST Registration scheme, according to which the businesses/ entities which have either been exempted or do not legally require obtaining new GST Registration in India, by their own accord, may apply for New GST Registration online.
This Voluntary GST registration procedure scheme has benefits, some of which are: Input Tax Credit can be claimed; Tax can be collected from customers by issuing taxable invoices; B2B customers prefer to buy from registered taxable suppliers etc; Easy inter-state sales with very few restrictions; Better standing and good ratings.
GST Registration Procedure
One must be aware of the online GST Registration procedure. Below are the steps which are followed in Online GST registration procedure:
- The first step is to log on to gst.gov.in
- The ‘Services’ provides the option of ‘Registration’. Under it choose ‘New registration’.
- The applicant shall be redirected to a new page for filling up of the basic details for New GST registration Online.
- The applicant shall be asked their category, options being: Taxpayer, GST practitioner, Consulate or Embassy of Foreign Country, Tax Collector, Tax Deductor, United Nations body, Non-resident Tax Payer, Non-Resident online Service Provider, Other Notified Persons
- The other information to input shall be shall include: State/ UT, District, Legal Name of business, PAN, Email Address & Mobile Number
- The email ID and mobile number will be verified through an OTP and a verification mail.
- The documents to be submitted shall depend on the category and type of business.
- The applicant shall then receive the ‘Application Reference Number’ via Text Message and email upon successful submission of completed forms.
- After the authorized GST officer, scans of the application, it shall either be approved or additional documents/ information may be asked to be furnished before final approval for New GST registration.
- The procedure starting with the making of the application until the procurement of online GST Registration takes about 5-7 days of time.
- There is no government fee for online GST Registration procedure in India. Though you shall need a consultant to assist you with the documents, process and compliance.
There are stringent laws against non-registration of those who are liable to be registered under the Act.