WHAT IS REGISTRATION UNDER GST?
GST Registration is a PAN based Registration for all entities. Registration under GST law is the most fundamental requirement for identification of tax payers ensuring the tax compliance in the economy. Registration of any business entity under the GST Law implies:
- obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government;
- to avail Input tax credit for the taxes on his inward supplies.
Need and Following advantages of GST Registration to a taxpayer:
- He is legally recognized as supplier of goods or services.
- He is legally authorized to collect tax from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/ recipients.
- He can claim input tax credit of taxes paid and can utilize the same for payment of taxes due on supply of goods or services.
- Seamless flow of Input Tax Credit from suppliers to recipients at the national level. Liability to register GST being a tax on the event of “supply”, every supplier needs to get registered.
When the GST Registration is Mandatory/Required:
Generally, the liability to register under GST arises when you are a supplier within the meaning of the term, and also if your aggregate turnover in the financial year is above the exemption threshold of 40 lakh rupees (20 lakh rupees in special category states except J & K).
However, small businesses having all India aggregate turnover below Rupees 40 lakh (20 lakh if business is in Assam, Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland or Tripura) need not register. The small businesses, having turnover below the threshold limit can, however, voluntarily opt to register.
Aggregate Turnover:
The aggregate turnover includes supplies made by him on behalf of his principals, but excludes the value of job-worked goods if he is a job worker. But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST. Also, if all the supplies being made by a supplier are taxable under reverse charge, there is no requirement for such a supplier to register in light of Notification No. 5/2017-Central Tax dated 19.06.2017. Nature of Registration The registration in GST is PAN based and State specific.
Supplier has to register in each of such State or Union territory from where he effects supply. In GST registration, the supplier is allotted a 15-digit GST identification number called “GSTIN” and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal.
Understand your GSTIN ?
The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number. Registration under GST is not tax specific which means that there is single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses. A given PAN based legal entity would have one GSTIN per State, that means a business entity having its branches in multiple States will have to take separate State wise registration for the branches in different States. But within a State an entity with different branches would have single registration wherein it can declare one place as principal place of business and other branches as additional place of business. However, a business entity having separate business verticals (as defined in section 2 (18) of the CGST Act, 2017) in a state may obtain separate registration for each of its business verticals. Further a unit in SEZ or a SEZ developer needs to necessarily obtain separate registration.
Documents Required for GST Registration:
For Proprietorship Business:
Copy of Aadhar
Trade Name (Name of the Firm)
Copy of PAN
Nature of Goods Supply and services rendered
Mobile Number
Email ID of all promoters and directors
Passport Size Photograph of all promoters and directors
Address Proof for Registered Office (Electricity Bill not more than 1 month)
For Partnership:
Copy of deed of Partnership Firm
Copy of PAN of Firm
Copy of Aadhaar of all Partners (both side)
Copy of PAN of all Partners
Authorisation Letter for GST Compliance
Email ID of all promoters and directors
One Photograph of each Partners (Selfie/Passport size)
Proof of Business Place (Rent Agreement & Electricity Bill with same address, Consent Letter)
Trade Name (Name of the Firm)
Nature of Goods Supply and services rendered
For Company:
Copy of Aadhaar of all Directors (both side)
Trade Name (Name of the Firm)
Copy of PAN of the Company
Copy of deed of Certificate of Incorporation (COI)
Email ID of all promoters and directors
Nature of Goods Supply and services rendered
Authorisation Letter for GST Compliance
Copy of PAN of all Directors
Proof of Business Place (Rent Agreement & Electricity Bill with same address, Consent Letter)
One Photograph of each Partners (Selfie/Passport size)
Consent Letter of Director, who authorised
For Trust :
Copy of Aadhaar of all Trusty Members (both side)
Copy of deed of the Trust
Trade Name (Name of the Firm)
Copy of PAN of Trust
Nature of Goods Supply and services rendered
Authorisation Letter for GST Compliance
One Photograph of each Trusty Member (Selfie/Passport size)
Copy of PAN of all Trusty Members
Proof of Business Place (Rent Agreement & Electricity Bill with same address, Consent Letter)
Nature of Goods Supply and services rendered
For Society:
Copy of Aadhaar of all Governing Members (both side)
Registration Certificate of Society
Copy of PAN of Society
Nature of Goods Supply and services rendered
Authorisation Letter for GST Compliance
One Photograph of each Governing Member (Selfie/Passport size)
Trade Name (Name of the Firm)
Copy of PAN of all Governing Members