GST Registration: Eligibility & Process

GST Registration

What is GST Registration

All entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover Businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person.

GST registration is mandatory for certain business mandatory. The organization which carry on business without registering under GST, will be an offence under GST and heavy penalties will apply. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalised.

CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs with effect from 1st April 2019.

Who Should Register under GST?

  • Individuals registered under the Pre-GST law i.e., Excise, VAT, Service Tax etc.
  • Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
  • Casual taxable person / Non-Resident taxable person
  • Agents of a supplier & Input service distributor
  • Those paying tax under the reverse charge mechanism
  • Person who supplies via e-commerce aggregator
  • Every e-commerce aggregator
  • Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

Type of GST Registration

  • Normal Taxpayer
  • Composition Taxpayer
  • Casual Taxable Person
  • Input Service Distributor
  • Non Resident Taxable Person
  • Non-Resident Online Services Provider
  • UN Body/ Embassy/ Other Notified Persons
  • SEZ developer or SEZ unit
  • Tax Deductor at Source (TDS)/ Tax Collector at Source (TCS)

Documents Required for GST Registration

For Sole Proprietorship / Individual

  • Aadhaar card, PAN card, and a photograph of the sole proprietor
  • Bank statement or a canceled cheque
  • Office address proof:
    • Own office – Copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.

For Partnership/LLP

  • Aadhaar card, PAN card, Photograph of all partners.
  • Bank statement or a canceled cheque
  • Address proof of Principal/additional place of business :
    • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal Khata/property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • For LLP- Registration Certificate of the LLP, Copy of board resolution
    Appointment Proof of authorized signatory- letter of authorization

For Private limited/Public limited/One person company

  • PAN card of company
  • Certificate of Registration
  • MOA /AOA
  • Aadhar card, PAN card, a photograph of all Directors
  • Bank statement or a canceled cheque
  • Address proof of Principal/additional place of business:-
    • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal khata/ property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • Letter of authorization of Authorized Signatory

For Hindu Undivided Family (HUF)

  • PAN card of HUF
  • Aadhar card of Karta
  • Photograph of Karta
  • Address proof of Principal/additional place of business:
    • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal khata/ property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • Bank statement or a canceled cheque

For Society or Trust or Club

  • Pan Card of society/Club/Trust
  • Certificate of Registration
  • PAN Card and Photo of Promotor/ Partners
  • Bank statement or a canceled cheque
  • Address proof of registered office:
    • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal khata/ property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.
  • Letter of authorization of Authorized Signatory

Penalty for non-registration under GST

Penalty for non payment of tax or making of a payment that is lesser than the amount that must be paid (due to genuine errors), is 10% of the tax amount that is due. However, the minimum penalty that must be paid is Rs.10,000. 

Penalty for non registration with intent to evade tax, is 100% of the tax amount that is due. 

Main Responsibilities of a person registered under GST

  • Collecting and remitting GST from customers
  • Issuing proper GST invoice
  • GST returns filing, even if there is no turnover or business activity
  • Annual GST return filing
  • Maintenance of all records pertaining to GST for a period of 8 years

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