GST registration for private limited company
Yes, GST (Goods and Services Tax) registration is mandatory for a private limited company in India under certain circumstances.
Here are the general criteria for GST registration:
Threshold Turnover:
If your company’s annual turnover exceeds the specified threshold, GST registration is mandatory. The threshold limits vary based on the type of business and the state in which the company operates. For most states, the threshold limit is INR 40 lakhs (INR 20 lakhs for some special category states). However, for businesses engaged in the supply of goods or certain specified services, the threshold limit is INR 20 lakhs (INR 10 lakhs for special category states).
To visit https://www.gst.gov.in/
Inter-State Supply:
If your company engages in inter-state supply of goods or services, GST registration is mandatory regardless of the turnover. Inter-state supply refers to the movement of goods or services from one state to another.
Input Tax Credit:
If your company wants to claim input tax credit for the taxes paid on purchases, GST registration is required. Input tax credit allows businesses to claim credit for the taxes they have paid on inputs (purchases) against the taxes they collect on outputs (sales).
It’s important to note that even if your company does not meet the above criteria, voluntary GST registration is also possible. Voluntary registration can be beneficial if your company deals with other registered GST entities, as it allows you to avail input tax credit and enhances your business’s credibility.
To register for GST, you need to submit an online application through the GST portal (www.gst.gov.in) and provide the required information and documents. It is recommended to consult with a professional, such as a chartered accountant or a GST practitioner, to ensure proper compliance with GST laws and regulations specific to your business.
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