GST Registration | Importance, Benefits, Applicability & Registration Procedure

Previously, a person or corporation doing business in India could register for TIN, Service Tax, and other indirect taxes, collect the taxes from their customers/clients, and deposit the money with the state/central government. India’s indirect tax paying population is estimated to be over 8 million people. All of these companies are now required to use the GST system.  

Also Read: GST Consultancy Services

What Is GST and How Does It Work?

The new GST tax framework requires every business with taxable supplies and inputs to register. Because this is a novel policy that benefits taxpayers in a variety of ways, registration is essential. It is necessary to register for GST in order to reap the full benefits of tax inputs in a commercial transaction. Online registration is available, as well as registration at one of the GST board’s certified facilitation centres.

Importance of GST Registration

  • A business owner is only required to collect GST on each supply and sale after registering for GST.
  • After completing the registration process and claiming input credits, one can take advantage of the majority of the tax benefits.
  • Reversed tax returns are also possible.

The Advantages of GST Registration

  • Because GST is a digital taxing system, it is possible to track the taxes process at any moment.
  • With this registration, claiming and paying taxes will be more convenient.
  • It is possible to retain transparency.
  • GST software can be used to automate invoicing and accounting, resulting in more efficient business operations.

GST applicability

Only businesses that meet the following requirements must register for GST.

  • Businesses in North East India with a turnover of RS.9 lakh should register for GST, but they would have to pay tax if their turnover exceeds RS.10 lakh.
  • Businesses having a turnover of RS.19 lakh or less must register in the rest of the states, but only pay tax if their revenue reaches RS.20 lakh.

Who is obligated to register for GST?

  • Individuals who previously registered under a separate tax system (Central Excise/Service Tax) must now register under the GST.
  • A casual taxable person is someone who provides products or services on a regular basis.
  • Reverse charge mechanism for those who pay taxes.
  • Those who must deduct and collect tax at the point of sale
  • GST registration is essential for input service distributors and e-commerce companies.

What exactly is GSTIN?

The taxpayer was granted two identifying numbers in the previous tax system. One is provided by the state, while the other is provided by the federal government. Following the implementation of GST, each business is given a GSTIN, which is a one-of-a-kind identification number.

It is a one-of-a-kind identifying number assigned to all tax-paying businesses. The taxpayer’s state and PAN number combine to form a fifteen-digit number. There are both alphabets and numerals in it.

Documents Required for GST Registration

  • PAN Card
  • Proof of business location
  • IFSC and MICR codes on a canceled cheque leaf from the bank
  • Business associates Proof of identification and proof of address
  • Incorporation certificate

Multiple GST registrations are allowed

Under GST, only one registration is possible. For a corporation with several enterprises, multiple registrations are permitted, but they must all be filed under the same PAN.

If a corporation has two business units, for example, a manufacturing unit and a trade unit, it can choose between two registrations. However, in this scenario, taxation is based on total revenue.

Penalty for Failure to Register for GST

There are four different types of penalties:

  1. During registration, incorrect information and fraudulent documentation were provided.
  2. Taxes are either not paid or not paid in a timely manner.
  3. Records that were not filed on time or were not filed at all.
  4. Providing false information.

For frauds such as using another’s identity number, transferring confiscated products, failing to give a bill or invoice over a supply, and transporting commodities without legal documents, fines will be enforced during tax evasion.

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