The Goods and Services Tax (GST) is a comprehensive indirect tax that was introduced in India on July 1, 2017, replacing multiple taxes that were levied by the state and central governments. GST is a destination-based tax, which means that it is levied on the consumption of goods and services. It is a unified tax system that has simplified the taxation process and reduced the burden of compliance for taxpayers. In this article, we will discuss the process of GST registration in Delhi.

Who Needs to Register for GST in Delhi?

Under the GST Act, any person who supplies goods or services with a turnover of more than Rs. 20 lakhs per annum (Rs. 10 lakhs for special category states) is required to register for GST. In addition to this, the following persons are also required to register for GST, irrespective of their turnover:

1. Persons making inter-state taxable supply
2. Casual taxable persons making taxable supply
3. Persons who are required to pay tax under reverse charge mechanism
4. Non-resident taxable persons making taxable supply
5. Agents of a supplier
6. Input service distributor
7. Persons supplying goods or services through e-commerce operators
8. Every person who is liable to pay tax under the GST Act

Process of GST Registration in Delhi

The process of GST registration in Delhi is a simple and straightforward process that can be completed online. The following steps need to be followed for GST registration in Delhi:

Step 1: Visit the GST portal at https://www.gst.gov.in/

Step 2: Click on the ‘Register Now’ button under the ‘Taxpayers (Normal/TDS/TCS)’ tab

Step 3: Fill in the required details such as the legal name of the business, PAN, email address, mobile number, state, and district

Step 4: Once the details are filled, an OTP will be sent to the mobile number and email address provided. Enter the OTP and click on ‘Proceed’

Step 5: You will receive a Temporary Reference Number (TRN) on your mobile and email. Save the TRN for future reference.

Step 6: Visit the GST portal again and click on the ‘Register Now’ button under the ‘Taxpayers (Normal/TDS/TCS)’ tab

Step 7: Select the ‘Temporary Reference Number (TRN)’ option and enter the TRN that you received earlier. Enter the captcha code and click on ‘Proceed’

Step 8: Once the TRN is validated, fill in the remaining details such as business details, partner details, bank account details, and authorized signatory details

Step 9: Upload the required documents such as PAN card, identity proof, address proof, bank statement, and photograph

Step 10: Submit the application using the Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)

Step 11: On successful submission of the application, an Application Reference Number (ARN) will be generated and sent to your registered email and mobile number.

Documents Required for GST Registration in Delhi

The following documents are required for GST registration in Delhi:

1. PAN card of the business
2. Identity proof of the authorized signatory such as Aadhaar card or voter ID card
3. Address proof of the business such as electricity bill, rent agreement, or property tax receipt
4. Bank statement of the business
5. Photograph of the authorized signatory
6. Proof of business registration such as partnership deed, memorandum of association, or certificate of incorporation
7. Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)

Advantages of GST Registration in Delhi

1. Legally Compliant: GST registration in Delhi makes a business legally compliant with the GST laws and regulations. It is mandatory for businesses with a turnover of more than Rs. 20 lakhs per annum to register for GST. Failure to do so can attract penalties and legal action.

2. Input Tax Credit: One of the major advantages of GST registration is that businesses can claim input tax credit for the GST paid on their purchases. Input tax credit is the tax paid on the purchase of goods or services, which can be set off against the tax liability on the sale of goods or services.
3. Increased Credibility: GST registration adds credibility to a business as it reflects that the business is following the laws and regulations set by the government. It also gives a sense of professionalism to the business.
4. Expansion Opportunities: GST registration in Delhi makes it easier for businesses to expand their operations across the country as they can supply goods or services across state borders without any hassle. This has led to the creation of a unified market, which has increased business opportunities for businesses.
5. Simplified Taxation: GST has simplified the taxation process for businesses by replacing multiple taxes that were levied by the state and central governments with a single tax. This has reduced the burden of compliance for taxpayers and made the taxation process more efficient.

GST Returns Filing in Delhi

Once a business is registered for GST, it is required to file GST returns on a regular basis. GST returns are statements that contain details of the business’s sales, purchases, and tax liability for a specific period. The following are the types of GST returns that need to be filed in Delhi:

1. GSTR-1: GSTR-1 is a monthly or quarterly return that contains details of the business’s outward supplies or sales. It needs to be filed by the 11th of the following month.
2. GSTR-2: GSTR-2 is a monthly or quarterly return that contains details of the business’s inward supplies or purchases. It needs to be filed by the 15th of the following month.
3. GSTR-3: GSTR-3 is a monthly return that contains the summary of the business’s sales and purchases for the month. It needs to be filed by the 20th of the following month.
4. GSTR-9: GSTR-9 is an annual return that contains the summary of the business’s sales and purchases for the financial year. It needs to be filed by the 31st of December of the following financial year.

Penalties for Non-Compliance

Non-compliance with the GST laws and regulations can attract penalties and legal action. The following are the penalties for non-compliance:

1. Late filing of returns: A penalty of Rs. 50 per day is levied for late filing of GST returns subject to a maximum of Rs. 5,000.
2. Non-filing of returns: A penalty of Rs. 100 per day is levied for non-filing of GST returns subject to a maximum of 25% of the business’s turnover.
3. Non-registration: A penalty of Rs. 10,000 or 10% of the tax due, whichever is higher, is levied for non-registration under GST.

Conclusion

GST registration in Delhi is a simple and straightforward process that can be completed online. It is mandatory for businesses with a turnover of more than Rs. 20 lakhs per annum to register for GST. GST registration offers several advantages such as input tax credit, increased credibility, expansion opportunities, and simplified taxation. Businesses that are registered for GST need to file GST returns on a regular basis, failure to do so can attract penalties and legal action. It is important for businesses to comply with the GST laws and regulations to avoid any legal and financial repercussions.