how to register for gst? commonly referred to as GST Registration Any business must take the critical step of registering with the Goods and Services Taxes (GST) Department. It is what guarantees that the business may sell its goods to clients while abiding by the nation’s tax regulations. The GST regulations provide that a company must register as a regular taxable entity if its annual revenue exceeds RS.40 lakh.
However, enterprises in hilly or North-Eastern states receive a rebate of RS.30 lakh, meaning their turnover is actually RS.10 lakh. Online GST registration might be a laborious process. However, it is worthwhile because it makes a business more competitive than others. As a result, people who qualify for GST Registration must finish the process as quickly as feasible. Non-registered firms face severe penalties from the government depending on how long they have been evading taxes.
Why do you need to register for GST?
A registration process known as GST, or the Goods and Services Tax, is designed to bring in money for the government. It is an indirect tax that customers must pay when they purchase goods or services from various businesses. In other words, organizations who charge a higher tax rate on their goods must register with the GST policy.
A 15-digit Goods and Service Tax Identification Number is given to any business that registers for GST (GSTIN). A GST-registered business’s liability will be established by this. With the help of the central government, these organisations can now register for GST in just six working days, which was previously unheard of!
Is GST Registration for Everyone?
A large amount of information is provided by the Central Goods and Services Tax (CGST) Act 2017 of the government regarding which categories are subject to GST. A brief overview follows:
Amount of turnover aggregated
It is required that you submit an online application for GST registration if your total annual revenue exceeds Rs. 20 lakhs and you operate a service-providing business. Additionally, it becomes mandatory to pay this tax duty if your goods are worth at more than Rs. 40 lakhs.
Business between states
To sell goods from one state to another in India, a registered business organization must be registered for GST. This will prevent tax evasion from happening as frequently and allow the government to easily collect the tax.
Website platform for e-commerce
Obtaining GST registration in India is crucial if you are a business owner who runs your own e-commerce platform. No matter how much revenue is generated, one must register under GST in order to launch an online business.
Person who is normally taxed
Vendors who are selling seasonal products must register for GST. This category of business owners should not assume they will be exempt from the requirement because it doesn’t matter what their initial turnover is.
Registering voluntarily
For those organizations that have it, voluntarily registering for GST is a dream come true. A lot of those annoying extra taxes you might not want to pay can be eliminated thanks to the most recent changes to the laws, which allow them to renounce their voluntary status at any moment.
An exception is:
If you cultivate or engage in the supply of agricultural products under reverse turnover, you are exempt from the burden of GST registration.
Is GST registration required for certain types of businesses?
In accordance with the GST Act 2017, there are several categories under which registrations can be made. The GST registration process is divided into multiple categories according to the types of business entities in the states, which are as follows:
In the case of a normal tax payer:
Normal taxpayers in India include the largest corporations. Their fines do not have expiration dates or deposit fees, which makes paying taxes easier and simpler for them. In addition, they enjoy unlimited validity for input tax credits from the central government.
Persons who are casually taxable:
The Casual Taxable Person registration is your best bet for seasonal small companies. Businesses that are registered for GST under this category are required to pay an advance equal to their expected GST liability while they are present. But these categories are only good for three months and can be extended if needed.
Those who pay composition taxes are:
By choosing not to participate in the Composition Scheme, taxpayers can avoid cumbersome GST regulations. They won’t be able to submit an input tax credit, though. Small taxpayers can decide that this trade-off is worthwhile and opt to pay a defined rate of turnover in its place.
Those who are non-residents are taxed as follows:
The term “non-resident taxable person” refers to individuals who do not reside in India but nonetheless provide products or services there. These companies must pay advanced GST tax rates in accordance with the GST rules in order to activate their GST registration. With the opportunity to extend it if necessary, the registration is only valid for 3 months. Here are a few instances of non-resident companies covered under the GST Act.
Online services provided by non-residents
GST TDS Deductors – Government Entities
Developed the Special Economic Zone
Units designated for special economic zones
UN Embassy/Bodies/Other individuals who have been notified
A company that collects GST TDS in the form of an e-commerce company