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.
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.
FAQs:
What is GST registration?
GST registration is the process of obtaining a unique Goods and Services Tax Identification Number (GSTIN) that allows a business to collect and remit GST.
Is GST registration mandatory for private ltd. companies?
Yes, GST registration is mandatory for private ltd. companies whose turnover exceeds the prescribed limit (currently ₹20 lakhs for most states in India).
How do I apply for GST registration?
You can apply for GST registration online through the GST portal by filling out Form GST REG-01 and submitting the require documents.
What documents are needed for GST registration?
Required documents typically include PAN card, proof of business registration.
Identity and address proof of directors, bank account statement, and a business address proof.
What is the processing time for GST registration?
The processing time for GST registration is usually 3-7 working days, provide all documents are correctly submit.
Can a private limited company get GST registration without PAN?
No, a PAN is mandatory for GST registration, as the GSTIN is link to the PAN of the company.
What is the validity of GST registration?
GST registration is valid as long as the business is operational and complies with GST regulations; it does not have a fixed expiry.
Can I cancel my GST registration?
Yes, a private limited company can cancel its GST registration by filing an application in Form GST REG-16 on the GST portal.
Are there any fees for GST registration?
No, there are no fees for obtaining GST registration, but professional fees may apply if you hire a consultant.
What are the consequences of not registering for GST?
Failing to register for GST when required can lead to penalties, legal action, and the inability to claim input tax credit on business expenses.
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