Entrepreneurship is well-acknowledged among people of society. As a profession, it is something that brings you both money and recognition, that too, in a short time sometimes. Running a large scale business, however, is by no means an easy task.
Only a person involved running a large business knows how much of a hefty deal that is and the amount of dedication and hard work it takes to be successful in this field.
In this article, we will cover the registration and filing of GST, which is considered as one of the several must-dos in a large scale business.
What Is GST?
The Goods and Services Tax, abbreviated as GST, is a value-added tax implemented to establish a destination-based taxation system. This is an indirect tax levied on manufacture, sell, and consumption of both goods and services all over India.
The GST regime is inclusive of services tax levied by the Central Government, VAT implemented by each of the State Governments and additionally Central Sales Tax, Purchase Tax, Customs duty, Excise duty, Luxury Tax, etc.
Objective Of GST And The Real Picture
Owing to the addition of GST, the Indian economic scenario has seen drastic changes. It has been significantly able to improve tax compliance, and that, in turn, has resulted in enhancing the ease of doing business.
But people are still struggling to grasp the entire deal of the GST, starting from the process of registration and filling, to the integral implication of this new system of taxation.
Now without any further introduction, let’s dive into the discussion of the promised topic.
According to the new GST regime, your business must register for GST and receive GSTIN when it complies with at least one of the following norms.
- Any business is eligible for GST registration when it surpasses a threshold turnover or when an entity comes into existence that is expected to exceed the turnover prescribed. Although this amount was 20 lakhs before, as per last year’s CBIC notice, the threshold turnover is increased and the current gst registration limit 40 lakhs. For special states of NE India, this amount is Rs. 10 lakhs.
- It is compulsory for an entity that supplies goods to have a GST registration in case of an inter-state operation, regardless of its cumulative turnover. For inter-state service providers, though, GST registration is necessary when the yearly turnover crosses 20 lakhs and in case of states belonging to special category this limit is 10 lakhs.
- Providing services and supplying goods using an e-commerce platform also calls for a GST registration. Irrespective of the turnover amount, an online business needs to be registered.
- If you are someone who uses a temporary shop or a stall to handle distribution of goods and services seasonally, you need to obtain a GST registration, regardless of the yearly aggregate turnover.
- You can also get a GST registration voluntarily. Previously you wouldn’t have been able to surrender voluntary GST up to one year. This norm has been reviewed, and now you can surrender your voluntarily registered GST whenever you need to.
Different GST Schemes
The GST registration categories differ, depending upon the type of dealings and operation location of the business you own.
- Normal scheme: This is applicable when you are operating your business in India. Enrolling under the normal scheme gives you the advantage of not depositing any amount. It also avails you unlimited validity date.
- Scheme for non-resident taxpayers: This applies when you reside outside India, but provide services or supply goods to the residents of India. This scheme remains valid for 3 years.
- Scheme for casual taxpayers: Having a seasonal stall or a temporary shop requires a GST registration in this category. To apply as a casual taxpayer, you need to pay a deposit of the same amount as the GST liability. The validity period of this scheme is 3 months.
- Composition scheme: For this scheme, your turnover must be below the bar of Rs. 1.5 crore. Under this facility, you can pay a flat rate of GST. However, you will not have the advantage of claiming the input tax credit.
The documents you need to possess to complete your GST registration process are listed below:
- PAN of your business
- Your Aadhaar Card
- Incorporation Certificate or the registration proof of your business
- Address proof of your business location
- Promoter/proprietor/director’s photograph, ID proof, and address proof
- Digital signature
- Statement of bank account along with a cancelled cheque
- Letter of Authorisation or Board Resolution from Authorised Signatory
You can enrol yourself in the GST regime by visiting the online GST portal. During the registration process, you need to carefully fill all the relevant details.
Your email ID and mobile number should always be accessible right at the time of registration. OTPs are sent to your email iD and cell phone, without which you cannot proceed any further into the process. Then you will be given a Temporary Reference Number (TRN) on your screen which you need to note.
- Go to the GST portal again and click on ‘Register’.
- After selecting ‘Temporary Reference Number (TRN)’ enter your TRN and captcha.
- When you click on ‘Proceed’ you receive another OTP on your registered email ID and mobile number.
- The next page on the right side will show you the application status after receiving your OTP.
- Click on the ‘Edit’ icon of this page, and you will be given 10 sections asking for relevant information. This is also the part where you need to submit the required documents.
- After successful completion of this stage, you need to check the declaration by visiting the verification page. With the Digital Signature Certificate (DSC) method, you can submit the application. The screen will show a success message after that.
You’ll get your Application Reference Number (ARN) on both your registered email iD and mobile number, and later you can check its status by visiting the GST portal.
GST Rules Specific To Maharashtra
If you are a taxpayer from Maharashtra, make sure you complete your GST registration through mahagst login. The need for a separate online portal for Maharashtra is due to the State Government’s announcement of a settlement scheme to clear the dues under several acts administered by the GST Department of Maharashtra.
This portal contains useful features like GST registration and tracking of a GSTIN. MahaGST also gives you up-to-date circulars and news regarding the GST regime.