All goods and services are currently subject to GST registration, with the exception of petroleum products. Since the Goods & Service Tax (GST) is a consolidated tax, the State and Central Indirect Taxes have virtually been combined. A single tax system currently governs the entire nation. Service tax, excise, VAT, entertainment tax, luxury tax, octroi, CST, and other taxes have been replaced by it.

In India, the entire GST registration process is conducted online. There is no need for manual work or actual paper submissions. The process for registering for GST is extremely straightforward.

Prior to 2018, all businesses and services were only eligible for a 20 lakh rupee GST exemption. However, thanks to a recent modification, businesses with yearly revenue of up to Rs 40 lakh are now free from GST. A person can choose the Composition Scheme and pay only 1% tax if their annual revenue is up to Rs 1.5 crore. The exemption threshold for services is still set at Rs. 20 lakhs. Additionally, service providers with up to 50 lakhs in annual revenue can choose the composition plan for services and pay only 6% tax.

Therefore, only dealers, manufacturers, businesses, individuals, professionals, etc. whose turnover (sales) surpass INR 40 Lakh will be required to register for GST. If you want to benefit from Input Tax Credit but your sales are less than INR 40 lakh, you might voluntarily choose to register for GST. Additionally, everyone who transacts in interstate sales or purchases of goods or services must register for GST. They are exempt from the above restrictions.

Aadhar Card is mandatory to get GST registration

The Aadhar card is now required for GST registration under a new system that will be in effect starting on August 21st, 2020. In other words, applicants for GST registration will now have the choice of opting for physical verification or authenticating their Aadhaar numbers. The applicant would receive their GST registration in just three days if they choose to use Aadhaar authentication for their GST registration.

Need and Advantages of GST Registration

The benefits listed below will be granted to a taxpayer by the GST Registration:

• The Taxpayer will be acknowledged as a legitimate provider of goods or services.
• He would have the legal right to charge his clients taxes and provide the recipients/purchasers a tax credit for the goods or services they received.
• He is entitled to an input tax credit for taxes he paid on purchases or procurements, which he can use to reimburse taxes owed on the delivery of goods or services.
• Nationally consistent distribution of input tax credit from suppliers to recipients

Points to make your decision easy

GSTIN

When a GST registration in India is completed, the GST authorities will issue a unique PAN-based GST Identification Number (GSTIN). It is required to submit an input credit claim and is used to log into the GST portal.

GST Rates

The six-tier pricing structure for GST. The type of goods or services will affect the GST rate. These charges apply to all goods and services. The main tax rates at the moment are 5%, 12%, 18%, and 28%. At the moment, it is 3% for gold. Some goods have 0% taxation.

SGST, CGST & IGST

State GST is referred to as SGST, Central GST as CGST, and Integrated GST as IGST. Both the SGST and the CGST are assessed equally on intrastate (inside state) sales and purchases. The IGST is applicable to transactions conducted between states that are interstate.

GST registration limit

A person must register for GST if their annual revenue exceeds INR 40 lakh. If you want to take advantage of ITCs but your sales are under INR 40 lakh, you can voluntarily register for GST. The cap in the northeastern states is INR 10 Lakh. Additionally, it is necessary for interstate sales or purchases of goods or services.

Exemptions

Small firms with a turnover of up to INR 1.50 Crore are eligible for the composition scheme. This indicates that these companies are exempt from charging and paying ordinary tax rates. Instead, they are free to discharge their GST obligations at 1% for manufacturers and traders and 5% for restaurants.

Benefits

People who willingly register have many benefits. They are eligible for an input tax credit. They are unrestricted in their ability to conduct interstate business. They may sign up on e-commerce websites and expand their business. Overall, they will be more competitive than unregistered enterprises.

Documents Required for GST Registration

• PAN of applicant
• Aadhar Card
• Address Proof of business
• Proof of business or registration
• Identity and Address Proof of Directors with photographs
• Bank Account Statement or cancelled Cheque
• Authority Letter
• Digital Signature (not required in proprietorship firm)