GST Registration
Goods and Service tax or GST is the biggest tax reform, trying to regulate tax paying and helping increase it and improving ways of doing business in India. By including multiple taxes under one umbrella of single tax system, complexities would be less and tax base would increase significantly. Under the GST dominion, all establishments involving buying and reselling goods are required to register for GST, any entity not filing GST registration will not be allowed to collect GST from customers and file a claim for tax credit for their paid GST. Furthermore, they could be penalized and GST registration becomes mandatory for an establishment that crosses the threshold of minimum and expected to cross a stipulated turnover.
Turnover Limitations for GST
There are many types of GST registration like casual taxable persons, NRI taxable persons, or persons involved in eCommerce selling are required to obtain GST registration irrespective of their turnover. Service Provider: Any business or person who provides service of more than 20 lakhs total turnover in a year is required to obtain GST registration. In some special category states, turnover limit has been fixed at 10 lakhs rupees.
Goods Supplier: any person or entity involved in exclusive supply of goods whose total turnover crosses Rs.40 lakhs in a year is mandatory to have a GST registration as per notification No. 10/2019. To be eligible under this umbrella of Rs.40 lakhs limit, goods supplier has to satisfy certain conditions of not providing any services, should not be engaged in supplying intra-state supplying in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripur and Uttarakand.
If all these conditions are not met, the goods supplier will be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.
Special Category states: Under the GST regime, the following states are listed under special states, Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,Tripura, Himachal Pradesh and Uttarakhand.
Aggregate Turnover: This is calculated based on the PAN, if one person has multiple places of business, it must be added to calculate the aggregate turnover. Aggregate Turnover is equivalent to: (taxable supplies + exempt supplies + exports+ inter-state supplies)-(taxes + value of inward supplies + value of supplies taxable under reverse charge + value of non-taxable supplies).
Voluntary GST Registration
Any person, or entity can obtain GST registration any time irrespective of their business turnover. Reasons some establishments or individual obtain voluntary GST registration is to get better business credibility, to claim input tax credit benefits and to satisfy requirements of business to business customers.
GST Registration Responsibilities
All entities registered under GST have to comply with certain regulations, if not satisfied they can be penalized and have their GST registration revoked. Some of the responsibilities include
- Collection and remittance of GST amount from customers
- Issuance of a proper GST invoice complying GST rules and regulations
- Filing GST tax returns when it is due based on turnover and or if there is no turnover or business activity
- Filing GST annual tax returns
- Maintaining records pertaining to GST for a minimum period of 8 years
Pan India has been one of the leading business in providing wide range online services in income tax filing, GST returns, filing, new company registrations, trademark filings, individual tax returns. We can do all the filings for GST registration in India and maintain by using GST accounting software.
Average time needed to obtain GST certification is about 10 working days depending on government processing time and submission of documents by the applicants.
For a free consultation with Pan India, please schedule an appointment.