Any business operations with an annual turnover of more than Rs 40 lakhs must register as a distinct taxable provision under the GST jurisdiction. GST registration is the name given to this process. In India, getting a GST registration online takes about 2-6 working days. It is a violation in the GST jurisdiction to conduct any business without first obtaining a GST registration.
GST Registration Online in India, also known as Goods and Service Tax (GST), is a tax imposed on all citizens of India.
GST, India’s largest tax reform, is levied on goods and services and comprises both central and state taxes (CST, Service Tax, Excise Duty) (VAT, Entertainment Tax, Luxury Tax, Octroi). This will allow the consumer to pay only the GST levied by the last dealer in the trade and supply chain.
According to the GST regime, every firm with an annual turnover of more than Rs.40 lakh must register as a typical taxable individual. However, hill states and the North East are exempt because their yearly revenue is greater than Rs.20 lakh. Any business with a revenue that matches the above-mentioned criteria must register for GST online in India. It is a criminal offence for a business entity to participate in any business activity without first registering for GST, and the business and its owner may face serious penalties and legal consequences.
Who is eligible for GST registration?
GST registration is required for both individuals and businesses in the following ways:
- Individuals who registered for tax services before the GST law went into effect.
- Non-Resident Taxable Person and Casual Taxable Person.
- Individuals that use the reverse charge mechanism to pay their taxes
- Each and every e-commerce aggregator
- Distributors and agents of a supplier’s input service
- Individuals that work for an e-commerce aggregator and supply goods.
- Individuals who provide database access and online information to non-registered taxable persons from outside India who live in India.
GST Registration Types
The GST Act allows for a variety of GST registration options. You should be aware of the many possibilities before deciding on the finest type of GST Registration. The following are the many forms of GST registrations:
Ordinary Taxpayer
The great majority of Indian businesses are in this situation. You do not need to make a deposit to become a regular taxpayer. This type of taxpayers likewise does not have an expiration date.
Taxable Person on the Side
This category is for persons who want to start a seasonal business or sell their wares at a market. During the time the stall or seasonal shop is open, you must deposit an advance amount equivalent to the projected GST liability. This category’s GST registration is valid for three months and can be extended or renewed.
Taxpayer Composition
If you want to get the GST Composition Scheme, you must apply for it. This is the category in which you must place a flat. Input tax credit eligibility is not available in this category.
Taxable Person Who Isn’t a Resident
If you live outside of India but sell to Indian citizens, this is the GST Registration to choose. Similar to the Casual Taxable Person category, you must pay a deposit equivalent to the projected GST liability while the GST registration is active.
The Benefits of GST Registration
The following are the key advantages of GST registration:
- Multinational Corporations may accept large projects (MNCs).
- Online sales are possible.
- GST registration acts as legitimate proof because it is a legal entity registration.
- When purchasing any goods or services, you can claim an input tax credit.
- With the use of a GSTIN, you can open a current bank account.
- The GSTIN aids in the enhancement of a company’s brand value.
Exemption from GST registration
GST registration is not required for the individuals and organisations listed below:
- Businesses that produce supplies that are subject to a reverse charge.
- Activities that are not related to the provision of products or services. The sale of a building or property, burial services, and employee services are all examples of such activities.
- Businesses that provide non-GST/non-taxable goods and services. Aviation turbine fuel, electricity, natural gas, high-speed diesel, and petrol are all examples.
- Manufacturers of exempt/nil-rated supplies.
- Businesses that fall beneath the exemption criteria.
- Agriculturists.