What is GST Registration?
GST Registration is the process by which a business becomes recognized under the Goods and Services Tax (GST) law in India. Once registered, the business receives a unique GSTIN (Goods and Services Tax Identification Number), which allows them to collect GST from customers, claim input tax credits, and file GST returns.
Why is GST Registration Important?
- Legal Recognition: It provides legal authority to collect taxes from customers.
- Input Tax Credit: Businesses can claim credit for the taxes paid on purchases.
- Business Expansion: GSTIN boosts credibility, helping businesses expand their operations.
- Compliance: Avoid penalties for non-registration.
Who Needs GST Registration?
Mandatory GST registration is required for:
- Businesses with an annual turnover exceeding ₹40 lakhs (₹10 lakhs for northeastern states and hill states).
- Inter-state suppliers.
- E-commerce operators.
- Casual taxable persons and non-resident taxable persons.
- Agents of a supplier.
Types of GST Registration
- Normal Registration: For businesses operating within India.
- Composition Scheme Registration: For small taxpayers with turnover below ₹1.5 crore.
- Casual Taxable Person Registration: For businesses with seasonal or occasional operations.
- Non-Resident Taxable Person Registration: For foreigners supplying goods or services in India.
How to Register for GST?
Follow these simple steps:
- Visit the GST portal (https://www.gst.gov.in).
- Click on ‘Register Now’ under ‘Taxpayers (Normal)’.
- Fill in the details such as PAN, mobile number, and email.
- Verify OTP sent to your mobile and email.
- Submit business details like trade name, address, and bank details.
- Upload required documents — PAN, Aadhaar, proof of business registration, bank statements, and photographs.
- Receive your ARN (Application Reference Number).
- Track your application status and receive your GSTIN upon approval.
Documents Required for GST Registration
- PAN Card of the business owner.
- Aadhaar Card.
- Proof of business address (Electricity bill, rent agreement, etc.).
- Bank account details.
- Digital signature (if applicable).
GST Registration Fees
GST registration is free of cost through the government portal. However, professional service providers may charge a fee for assistance.
Penalties for Not Registering Under GST
- A 10% penalty (minimum ₹10,000) for genuine errors.
- A 100% penalty for deliberate tax evasion.
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