GST Registration - An Overview

GST, or Goods and Services Tax, is an indirect tax in India that replaced various taxes like excise duty, VAT, and service tax, etc. Launched on July 1, 2017, it aims to streamline tax collection, establishing a unified system for efficiency and simplicity. GST registration mandatory for businesses with annual turnover above Rs. 40 lakhs (Rs. 20 lakhs in North East and hill states). Also, Businesses with turnover under ₹1.5 crore can opt for the composition scheme, simplifying GST formalities and paying tax at a fixed turnover-based rate.

What Are the Components of GST?

GST has three tax components, namely:

  • Central Goods and Services Tax or CGST, it is a central government
  • State Goods and Services Tax or SGST which is a state component. Where centre and state will levy GST on all entities for all the transaction in the state
  • The Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e. when a transaction happens from one state to another.

 

Who Is Eligible for GST Registration?

  • Any individual or business entity that carries out taxable supplies of goods or services
  • Annual turnover of the business exceeds the prescribed threshold limit (currently ₹20 lakhs for most businesses)
  • E-commerce operators that facilitate the supply of goods and services through their platform
  • Non-resident taxable persons who occasionally supply goods or services in India
  • Businesses that are involved in inter-state supply of goods or services
  • Input service distributors who distribute input tax credit to their branches or units
  • Casual taxable persons who supply goods or services occasionally in India
  • Businesses that were previously registered under the old tax regime (VAT, Service Tax, etc.) and have migrated to GST.

What is a GST Certificate?

A GST Certificate is a document issued by the Indian government to businesses registered under the Goods and Services Tax (GST) system. It serves as proof of the business’s registration under GST and includes details such as the business’s GST identification number, name, and address. Businesses are required to have a GST Certificate to be able to charge and collect GST from customers. It is also used for various other purposes such as availing input tax credits, applying for loans and participating in tenders.

Types of GST Registration:

  • GST Registration in Regular Scheme for proprietor
  • GST Registration For Pvt Ltd/LLP / Partnership
  • GST Registration in Composition Scheme for Proprietor / Partnership

You are required to register for GST if your annual turnover exceeds Rs.40 lakh (Rs.20 lakh for special category states).

Differences between the types of GST registration

The main difference between them is the type of business entity. Proprietorship is a business entity owned and managed by a single individual. A Pvt Ltd is a separate legal entity from its owners and directors. An LLP is a business entity that combines the features of a company and a partnership. A Partnership Firm is a business entity formed by two or more people who agree to share the profits and losses of the business.

Which type of GST registration is right for you?

The type of GST registration that is right for you will depend on the structure of your business and your annual turnover. If you are a sole proprietor or a Partnership Firm with an annual turnover below the threshold limit, you may not be required to register for GST. However, you may still want to opt for GST registration voluntarily to avail the benefits of GST registration.

If you are a Pvt Ltd or an LLP, you are required to register for GST if your annual turnover exceeds the threshold limit. You can also opt for GST registration voluntarily, even if your turnover is below the threshold limit.

If you are not sure which type of GST registration is right for you, you should seek professional advice from a GST expert.

Document Required

  1. Mention nature of business with product and service description.
  2. Business Address Proof Latest Electricity bill + Rent Agreement with witness details (Name, Mobile no., Father name, Address) If Office is Rented & Rs. 100 stamp paper with notary and proper stamp duty as  per  circle rate) + NOC from landlord
  3. Certificate of Incorporation(COI)
  4. Board Resolution from Authorised Signatory For GST Registration on letterhead of the Company
  5. Passport Size Photograph of all the Directors/ Partners
  6. Pan Card and Aadhar Card of Directors/ Partners
  7. Mobile Number and Email Id of all Directors/ Partners
  1. Passport Size Photograph
  2. Trade Name and product & Service Description
  3. Pan Card and Aadhar Card
  4. Mobile No. and Email Id
  5. Latest Electricity bill + Rent Agreement with witness details (Name, Mobile no., Father name, Address) If Office is Rented & Rs. 100 stamp paper with notary and proper stamp duty as per circle rate) + NOC from landlord (Rented)
  6. Latest Electricity Bill or Latest Property Tax Receipt (Owned)
  7. Latest Electricity Bill + NOC (In case of only blood relation and it should be on Rs. 100 stamp paper with notary) (Consent)
  1. Passport Size Photograph
  2. Trade Name and product & Service Description
  3. Pan Card and Aadhar Card
  4. Mobile No. and Email Id
  5. Latest Electricity bill + Rent Agreement with witness details (Name, Mobile no., Father name, Address) If Office is Rented & Rs. 100 stamp paper with notary and proper stamp duty as per circle rate) + NOC from landlord (Rented)
  6. Latest Electricity Bill or Latest Property Tax Receipt (Owned)
  7. Latest Electricity Bill + NOC (In case of only blood relation and it should be on Rs. 100 stamp paper with notary) (Consent)
  1. Mobile no and email Id of the Partners
  2. PAN card and Aadhar card of all Partners
  3. Passport size photo of all Partner
  4. Mention nature of business with product and service description.
  5. Pan Card and Partnership deed of the firm
  6. Letter of Authorization for GST Registration.
  7. Business Address Proof Latest Electricity bill + Rent Agreement with witness details (Name, Mobile no., Father name, Address) If Office is Rented & Rs. 100 stamp paper with notary and proper stamp duty as  per  circle rate) + NOC from landlord

 

  1. Passport Size Photograph
  2. Trade Name and product & Service Description
  3. Pan Card and Aadhar Card
  4. Mobile No. and Email Id
  5. Latest Electricity bill + Rent Agreement with witness details (Name, Mobile no., Father name, Address) If Office is Rented & Rs. 100 stamp paper with notary and proper stamp duty as per circle rate) + NOC from landlord (Rented)
  6. Latest Electricity Bill or Latest Property Tax Receipt (Owned)
  7. Latest Electricity Bill + NOC (In case of only blood relation and it should be on Rs. 100 stamp paper with notary) (Consent)
  1. GST login credentials (User id, password)
  1. GST login credentials (User id, password)