When is GST Registration Mandatory in India?

  • Criteria for Turnover: All taxpayers with an annual revenue of more than 40 lakhs must register for GST for the first time.
  • Causal taxpayer: You must register for GST online before launching a business if you supply goods or services at events or exhibitions where you do not have a fixed location. A dealer in this situation must pay GST based on a 90-day anticipated turnover. A casual GST registration is valid for 90 days.
  • NRI taxpayer: If an NRI taxpayer who does not have a place of business in India wants to start a business, he must first register for GST in India before starting operations. A new GST registration is valid for 90 days.
  • Agents of a provider and distributors of input services: GST registration is required for any input service distributors who want to carry forward the benefit of the input tax credit.
  • Reverse Charge: GST Registration is required for any firm that is required to pay tax via the reverse charge process.

Why do I need to register for GST?

GST registration not only allows you to be recognised as a legal registrant, but it also offers up a slew of new prospects for your company. At a glance, the following are the advantages of having a GST registered business:-

  • Increase your competitiveness: Because you have a legal tax registration, you will be more competitive than your unregistered competitors.
  • Expand your company’s online presence: You can’t sell goods or services on an e-commerce site until you’ve registered for GST. You’ll need a GSTIN if you want to sell on an e-commerce platform like Flipkart, Amazon, Paytm, Shopify, or your own website.
  • Can claim a tax credit for inputs: Only registered GST holders can use the GST tax paid on their purchases as an input and save money.
  • Can sell all over India without any restrictions: You can’t trade between states unless you have a GSTIN. This is only feasible if your company is GST registered.
  • Tenders from the government are available: GSTIN is required to apply for various government tenders. You can miss out on a business opportunity if you don’t have it.
  • Open Current Bank Account: Banks and financial institutions, particularly in the case of sole proprietorship businesses, will not open a current bank account in the name of the business trade name unless you have government proof in the name of your firm. A current bank account can be opened with the use of a GST registration certificate.

What is GSTIN?

Goods and Service Tax Identification Number (GSTIN) is an abbreviation for Goods and Service Tax Identification Number. It is made up of 15 alphanumeric digits. This is generated by the government when you have completed your GST registration successfully.

What is the GST Composition Scheme, and how does it work?

The GST Composition Scheme is designed to make tax compliance easier for small taxpayers. Small taxpayers are exempt from filing monthly GST reports and are only required to pay a minimal GST rate based on their annual turnover. Any business with an annual turnover of up to 1.5 crore rupees can register for GST under the composition scheme.

Documents Needed to Register for GST

  1. Business or Applicant’s PAN Card: The GSTIN is related to the business’s PAN. As a result, obtaining a GST certificate necessitates the use of a PAN.
  1. Promoters’ Proof of Identity and Address: All promoters must produce documents such as their PAN, passport, driver’s license, aadhaar card, or voter’s identity card.
  1. Proof of Address for a Business: Documents such as a rental agreement or a sale deed, as well as copies of an electricity bill, a recent property tax receipt, or a municipal khata copy, must be submitted to the GST application’s address.
  1. Proof of Bank Account: For the bank account stated in the registration application, a scanned copy of the first page of the bank passbook indicating a few transactions and the business address must be given.