Taxation can be a complex issue for small business owners across India. GST has set to replace almost all indirect taxes all around the country. Since it is still new to most business owners, it is important to know all about GST and exemptions in GST to be able to run the business smoothly.
Here are some important facts all small and large business owners in India must know:
Registering a Business under GST – The Benefits
GST is an acronym to Goods and Service Tax (GST). Registration your business under this tax administration will offer the following advantages to your business:
– Your business will be legally recognized as an authentic supplier of goods or services.
– This regime will ensure proper accounting of taxes paid on the input goods or services. The tax can be used GST payment due on the supply of goods or services or both by a business.
– A business registered under GST will be legally authorized to collect tax from his buyers. He/she can pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
GST Registration in India – The Liability
Here is the collective turnover obligation for GST registration is as stated below:
1. North East India is liable to register INR 9 Lakhs. It is liable to pay INR 10 Lakhs as tax.
2. The Rest of India is liable to register INR 19 Lakhs. It is liable to pay INR 10 Lakhs as tax.
GST in India – The Registration Process
The registration process is online. One can use online portal maintained by Central Government of India. GSPs (GST Suvidha Providers) are also appointed officially by the government to help businesses with the registration process.
The process includes:
Step 1: Submitting PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal. You can also complete this process through Facilitation centre.
Step 2: This step involves verification of PAN on the GST Portal. The authorities will verify your mobile number and e-mail address with a one-time password (OTP).
Step 3: After verification, the applicant will receive an application reference number on the registered mobile number and through e-mail.
Step 4: The applicant must fill Part- B of Form GST REG-01. It is crucial to specify the application reference number. Thereafter, the form needs to be submitted with documents attached. Form GST REG-03 will be issued in case of requirement for additional information.
Step 5: It is compulsory for applicant to respond in Form GST REG-04 with requisite information within 7 working days from the date of receipt of Form GST REG-03.
Step 6: Once you have provided all requisite information via Form GST REG-01 or Form GST REG-04, you will be issued the registration certificate in Form GST REG –06 for the principal place of business.
Note: For multiple business verticals within a state, one can file a separate application for the registration in Form GST REG-01 for each business verticals.
GST Registration – Documents
– PAN card of the Company
– Proof of constitution such as Memorandum of Association (MOA) /Articles of Association (AOA), partnership deed, certificate of incorporation.
– Details and proof of place of business such as electricity bill or rent agreement.
– A cancelled cheque of your bank account showing the name of account holder, MICR code, IFSC code and bank branch details
– Authorized signatory such as list of partners combined with their identity and address proof in case of partnership firm. A list of directors with their identity and address proof in case of company can also be submitted.