A tax on products and services used in India is known as the Goods and Service Tax (GST). In India, the service tax, VAT, and excise duty have all been replaced with the GST, an indirect tax. Based on the Goods and Service Tax Act, which was approved by the Indian Parliament on March 29, 2017, GST became effective on July 1st, 2017.
The Goods and Services Tax (GST) has three tax components: the Central Component (CGST), which is the Goods and Service Tax, and the State Component (SGST), which is the State Goods and Service Tax. Both the Center and the State will levy GST on all entities when a transaction takes place within a state. When a transaction occurs from one state to another across state lines, the Integrated Goods and Service Tax (IGST), which will be imposed by the centre, will apply.
In accordance with GST regulations, businesses that sell goods and generate revenues of INR 10 lakhs or more in Manipur, Mizoram, Tripura, and Nagaland; INR 20 lakhs or more in Arunachal Pradesh, Meghalaya, Sikkim, Telangana, Uttarakhand, and UT Puducherry; and INR 40 lakhs or more in the remaining 21 states and 5 Union Territories (aside from UT Puducherry) are required to register as regular taxable persons.
The revenue cap is INR 20 lakhs for enterprises operating in Arunachal Pradesh, Meghalaya, Sikkim, Telangana, Uttarakhand, Puducherry, and the other 21 states and 5 UT. The revenue cap is INR 10 lakhs for companies operating in Mizoram, Tripura, Manipur, and Nagaland.
Different methods of GST registration are permitted by the GST Act. Before choosing the right GST registration, you must be aware of the various types available. The various GST registration types include
The majority of companies in India fall under this category. To become a regular taxpayer, you are not required to make any kind of deposit. Additionally, there is no limitation for taxpayers who fit under this category.
A casual taxable person is one who occasionally provides goods and services in a State or Union Territory where the entity does not have a fixed place of business, according to the GST Act. As a result, individuals operating transient businesses at fairs and exhibitions or seasonal enterprises would be considered casual taxable persons under the GST.
This sort of GST registration should be chosen by people who reside outside of India although supply commodities to people who reside in India. Similar to the Casual Taxable Person category, an individual is required to make a deposit during the time that the GST registration is active which is equal to the anticipated GST liability. Normally, this kind of GST registration lasts for three months, however at the time of expiration, it can be renewed or extended.
An electronic commerce operator is a person who owns, manages, or maintains a digital or electronic facility or platform for electronic customers. Therefore, regardless of business revenue, anyone selling online can be considered an E-commerce Operator and must register for GST.
The following people and organizations are exempt from registering for GST
Following are some benefits of GST registration.
Each tax had its separate returns and compliances in the past. Since the implementation of the GST, compliance has dropped. Only a single unified return needs to be submitted.
The burden of taxes and compliance is now lighter for many small firms. Composition plans may also be advantageous for small businesses, which are classified as those with annual turnover between INR 20 lakhs and INR 75 lakhs.
For registered retailers, the GST provides an open and transparent tax system with no additional charges or taxes. As a result, business expenses are reduced.
When a customer makes a supply, an entity that has registered for GST is allowed to charge them GST, which they can then use to offset any taxes they owe on products and services they have already purchased. Therefore, GST registration lowers taxes and increases profit margins.
Online sales require GST registration, which is also frequently required for the supplier onboarding procedure. As a result, registering for GST can help you expand your business.
Implementation of GST, will automatically move small businesses into the organized sector with correct and regular income declaration. Hence, it will boost the creditworthiness of the business.
GST registration can easily be completed via the online GST Registration Portal. In order to register their business, the owners can fill out an application on the GST portal by providing the required paperwork.
The Goods and Service Tax Identification Number (GSTIN) is given following the completion of the registration process. The Central Government provides the 15-digit GSTIN, which aids in determining if a business is required to pay GST.
Here’s the step-by-step process for GST registration:
By following this online GST registration process, you can ensure a smooth and hassle-free registration for your business
Note: The process for registering for GST for businesses should be completed by qualifying businesses. Carrying out operations without registering for GST is against the law, and there are severe consequences for non-registration.
The process is explained below to download the GST registration certificate.
This will download the GST certificate which contains all the transaction details.
An official document known as a GST return contains information on all purchases, sales, taxes paid on purchases, and taxes collected on sales. After filing the GST returns, the tax payer is next needed to settle their tax debt.
The information on each GSTR form will automatically populate when GST returns are filed online using the software or apps offered by the GSTN. The steps for submitting a GST return online are listed below.
| Sr. No. | Return Form | Description | Frequency | Due Date |
| 1 | GSTR -1 | Information on taxable items and/or services affected by outward supplies | Monthly | 11th of the next month |
| Quarterly (If chosen under the QRMP scheme) | 13th of the following month after the quarter | |||
| QRMP – Quarterly Returns with Monthly Payments | ||||
| 2 | IFF (Optional by taxpayers under the QRMP scheme) | Information on affected B2B supplies of taxable products and/or services. | Monthly (For the first two months of the quarter) | 13th of the upcoming month. |
| 3 | GSTR – 3B | With the payment of tax by the taxpayer, a summary return of outgoing supplies and claimed input tax credits are submitted. | Monthly | 20th of the upcoming month. |
| Quarterly (For taxpayers under the QRMP scheme) | 22nd or 24th of the upcoming month. | |||
| 4 | CMP – 08 | According to Section 10 of the CGST Act, a taxpayer registered under the composition scheme must submit a statement-cum-challan in order to pay taxes. | Quarterly | the 18th of the following month after the quarter. |
| 5 | GSTR – 4 | Return for a taxpayer who registered under Section 10 of the CGST Act’s composition system. | Annually | 30th of the month succeeding the financial year. |
| 6 | GSTR – 5 | Return to be submitted by a non-resident taxpayer. | Monthly | 20th of the upcoming month. |
| 7 | GSTR – 5A | Return to be filed by non-resident OIDAR service providers. *OIDAR- Online Information Database Access and Retrieval | Monthly | 20th of the upcoming month. |
| 8 | GSTR – 6 | Return for an input service distributor to give its branches the eligible input tax credit. | Monthly | 13th of the upcoming month. |
| 9 | GSTR – 7 | Return to be filed by persons registered and deducting tax at source (TDS). *TDS – Tax Deducted at Source | Monthly | 10th of the upcoming month. |
| 10 | GSTR – 8 | Return that e-commerce operators must provide with details about the relevant supplies and the amount of tax they have collected at source. | Monthly | 10th of the upcoming month. |
| 11 | GSTR – 9 | Regular taxpayer’s annual return | Annually | 31st December of the next financial year. |
| 12 | GSTR – 9C | Self-certified declaration of reconciliation. | Annually | 31st December of the next financial year. |
| 13 | GSTR – 10 | The taxpayer whose GST registration is cancelled must submit their final return. | Once, upon cancellation or surrender of the GST registration. | three months after the cancellation date or the date of the cancellation order, whichever comes later. |
| 14 | GSTR – 11 | A person with a UIN who is requesting a refund must provide information regarding inside supplies. *UIN – Unique Identification Number | Monthly | 28th of the month following the month for which the statement is filed. |
| 15 | ITC – 04 | A principal or job worker must make a statement on the specifics of any products sent to or received by a job worker. | Annually (For AATO up to INR 5 crores) | 25th April |
| Half-yearly (For AATO > INR 5 crores) | 25th October and 25th April | |||
| AATO – Annual Aggregate Turnover |
Owners of Micro Small and Medium Enterprises (MSMEs) who used to individually pay VAT and service tax are now simply required to pay GST. This simplifies invoicing and removes the need to keep track of taxation variations between various commodities and services since everything can be grouped into a few general categories. For MSMEs, the GST rate has represented a significant reduction in transportation expenses, this is due to the fewer border inspections, which also makes transportation more efficiently possible.
You may quickly determine your GST liability with the use of a GST calculator! To calculate the amount of GST you owe, just input the specifics of your business and its annual revenue in the GST Calculator available on Kinara Capital’s website.
Kinara Capital, one of the top NBFCs in India, aims to aid MSME entrepreneurs in their quest for success by offering unsecured business loans. Examine the services offered by Kinara Capital and submit an application for a small business loan that can be disbursed quickly. Small business owners can download the myKinara app from the Google Playstore and apply for a loan without laying up any collateral.
Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.
Yes, each and every qualifying firm must register for GST. The GoI introduced the necessity for business registration in India. Even companies that used the previous indirect taxation system must register for GST.
Businesses that sell goods and generate more than INR 10 lakhs in revenue in Manipur, Mizoram, Tripura and Nagaland; INR 20 lakhs in Arunachal Pradesh, Meghalaya, Sikkim, Telangana, Uttarakhand, and UT Puducherry; and revenue of INR 40 lakhs in the remaining 21 states and 5 Union Territories (except UT Puducherry) are required to register as regular taxable persons.
GST registration never expires. It will, therefore, remain in effect until it is revoked, returned, or suspended. The only GST that has a validity period is for non-resident taxable people and casual taxpayers, and it is set by the authorities when the GST registration certificate is issued.
Yes, it is possible to obtain several GST certifications within the state. For a company with various business sectors and products, this would be feasible.
The acronym GSTN stands for Goods and Service Tax Network. It is a type of section 8 corporation that was created with a non-profit purpose.
For the GSTN’s indirect tax requirements, these organisations offer innovative solutions.
Reverse charge is a technique where the person who receives the products is responsible for paying GST. When the receiver is not a registered user under the GST system, this is generally the case.
After the GST registration process is finished, you will be given a certificate of GST registration as well as a valid GSTIN. You are now qualified to submit GST returns and make an input tax credit claim.
A Goods and Service Tax Identification Number (GSTIN) is an identification number given after GST registration. For purposes of verification, such a number is regarded as an exclusive identifying number. The applicant is given access to this number so they can use it in the portal.
No, only those who have registered for GST are permitted to collect GST. A person can only receive an input tax credit for GST paid if they are registered for GST.
10. What is GST registration via authentication of Aadhaar?
GST registration via authentication of Aadhaar involves verifying your identity through your Aadhaar number, simplifying the registration process and reducing the need for extensive documentation.
11. What is the penalty for not obtaining GST registration?
The penalty for not obtaining GST registration can be up to 10% of the tax due, subject to a minimum of Rs. 10,000, and can go up to 100% in cases of deliberate evasion.
12. Is GST registration free?
Yes, GST registration is free of cost; there are no government fees for the registration process.
