GST registration is mandatory for all businesses involved in the supply of goods or services in India with an annual turnover exceeding a specified threshold limit. GST registration is carried out online through the GST portal (www.gst.gov.in). Here’s a look at the types of GST registration, the online process, and the advantages of GST registration.
Types of GST Registration:
- Regular taxpayer: A regular taxpayer is a business that carries out transactions of goods or services within the country and has an annual turnover exceeding Rs. 20 lakhs.
- Composition scheme: Small businesses with an annual turnover of up to Rs. 1.5 crores can opt for the composition scheme. Under this scheme, the taxpayer has to pay a fixed percentage of tax on the turnover, and filing of quarterly returns is mandatory.
- Casual taxable person: A casual taxable person is someone who occasionally supplies goods or services in a taxable territory where they do not have a fixed place of business.
- Non-resident taxable person: A non-resident taxable person is someone who occasionally supplies goods or services in India and does not have a fixed place of business.
- Input service distributor: An Input Service Distributor (ISD) is an office of a supplier of goods or services that receives tax invoices for the supply of input services and issues tax invoices for the distribution of input services to its branches or units.
Online Process of GST Registration:
- Visit the GST portal (www.gst.gov.in) and click on the ‘Services’ tab.
- Click on ‘Registration’ and select ‘New Registration’.
- Choose the ‘Taxpayer’ option and fill in the details of your business, such as the legal name, PAN, email address, and mobile number.
- Enter the OTPs sent to your email and mobile number to complete the verification process.
- You will receive a temporary reference number (TRN) on your registered email and mobile number.
- Use the TRN to log in to the GST portal and fill in the remaining details of your business, including the business address, bank account details, and authorized signatory details.
- Upload the required documents in the prescribed format and submit the application.
- Once the application is verified by the GST officer, you may be required to provide additional information or documents.
- If there are no issues with the application, you will receive the GST registration certificate within a few days.
Advantages of GST Registration:
- Legitimate business: GST registration gives a legal identity to the business, making it more credible and trustworthy.
- Input tax credit: GST registration enables businesses to claim input tax credit on goods and services used in the course of business, reducing the overall tax liability.
- Inter-state sales: GST registration is mandatory for businesses involved in inter-state sales or purchases.
- Compliance with the law: GST registration ensures compliance with the GST law and avoids penalties for non-compliance.
- Competitive advantage: GST registration gives businesses a competitive advantage in the market by ensuring that their products or services are sold at a lower price.
In conclusion, GST registration is mandatory for businesses with an annual turnover exceeding a specified threshold limit. The online process of GST registration is straightforward and can be completed through the GST portal. The advantages of GST registration include input tax credit, compliance with the law, and a competitive advantage in the market.