Rajat Negi

Registration under GST

3 - Registration under GST

GST registration is not rocket science, but some people try to make it in order to earn money from others. 

Businesses with a revenue of more than Rs. 40 lakhs (or Rs. 20 lakhs in special category states) are eligible. Non-resident taxable persons/casual taxable individuals agents for a supplier and distributors of input services Those who are subject to the reverse charge process. a person who sells through an e-commerce aggregator. e-commerce aggregators in general. A person who provides online information and database access or retrieval services to a person in India from a location outside of India. These individuals and businesses are required to collect and pay GST.

The limit for GST Registration

Every seller who makes taxable supplies is required to register for GST. A small firm with a revenue of less than Rs.40 lakhs (Rs.20 lakhs in special category states) is exempt from GST registration.

Types of Persons under GST registration

  • Casual Taxable Person: A casual taxable person is someone who offers goods or services in a territory on a one-time basis but does not have a permanent location.
  • Non-Resident Taxable Person: A non-resident taxable person is someone who occasionally offers products or services to people in a GST-eligible region but does not have a permanent business or domicile in India.
  • TDS Deductor: When the total consideration under a contract exceeds INR 2.5 lakhs, the government may require an establishment or department of the central or state government, governmental agencies, a local authority, or a group of individuals to withhold 2% as tax from the amount credited to the provider. Such a person must get GST registration as a condition of doing business.
  • Composite Dealer: Small businesses having an aggregate turnover of less than INR 1.5 crores (Rs.75 lakhs in the northeastern and hilly regions) can pay GST at a fixed rate on their turnover and have fewer compliance requirements than regular taxpayers.
  • Input Service Distributor: An input service distributor (ISD) is a company that receives bills for services that its branches have utilized. By sending an ISN invoice, it distributes the tax paid to such branches proportionally.

Process for GST registration

  1. To begin, the applicant must go to www.gst.gov.in and log in.
  2. Then, at the top of the website, select the “services” tab.
  3. 4 choices will be offered under “services”: “Registration,” “Payments,” “User Services,” and “Refunds.”
  4. The applicant must first pick “Registration” and then “New Registration.”
  5. The applicant is then redirected to a new page where he must choose whether he is a GST practitioner or a taxpayer before entering additional information such as the legal name of the business, the Permanent Account Number, the district and state in which the entity is located, email address, and mobile number. This is the registration form’s Part A.
  6. The applicant’s information must be confirmed by the GST site, thus the applicant will receive a one-time password/email for confirmation.
  7. Depending on the type of business, the applicant may be required to upload a few papers.
  8. The applicant will then get an ARN (Application reference number) through email or SMS after filling out part B of the form. Part B has various parts, including information about the promoters, partners, authorized signatory, placer of business, bank account, and so on. 
  9. The application would then be checked by a GST officer, and the applicant would either be authorized or need to provide further information/documents to satisfy the authorities to approve the application.

Cancellation for GST Registration

Registration may need to be canceled on occasion. GST will not be charged to the taxpayer. The following are the most prevalent causes for cancellation:

  • No requirement to collect and pay GST.
  • Closure/Discontinuance of Business. 
  • Change in the constitution of business
  • Transfer of business.
  • No business activity.

Taxpayers would have fewer compliance obligations if they would not have to file GST returns if they did not register for GST.

Procedure for cancelling a GST registration

On the GST common site, fill out the FORM GST REG-16 and submit it with the needed information. After applying for cancellation of registration, a GST officer will review it and issue an order in the FORM GST REG-19 within 30 days of the applicant’s submission date.

Suspension of GST registration

The government has devised a novel notion of suspending GST registration. With this, taxpayers who have filed for GST registration will be able to use the GST return filing options throughout the suspension period, lowering their compliance costs. Since February 1st, 2019, this newly introduced clause has been in force.

Final words

As a result, the company would be able to claim input credit for taxes previously paid on all purchases made, as well as pass on credit for taxes paid on outside supply to its consumers.

I hope, I gave you some insights about GST registration of a business and startup and delivered it in the best possible way. 

If you have any queries related to the same then do leave a comment, and I will respond to it. 

DO SHARE THIS ARTICLE with your friends or family who are not aware of GST registration.  You can tweet out your thoughts by tagging me @rajatinr on Twitter.

To your Success

-Rajat Negi, Logging Out 🤗

IMG 1433 1 225x300 - Registration under GST

Rajat Negi

Compound Investor (Who loves to talk to stock)
Digital Marketer (Who loves to make brands)

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