Get Your Business
Get Your Business
Registered Under GST
Registered Under GST
GST REGISTRATION
What is GST?
It is an indirect tax levied on sale of every goods and services except such goods/services which are notified by the government as exempted. GST was made applicable on 1st July 2017, by eliminating various indirect taxes and levying only one single tax on outward supply (sales).
When should your business register for GST?
You should get your business registered under GST if you fulfill any one of the following conditions:
- If your estimated annual turnover exceeds Rs. 40 lakhs (For sale of goods) / 20 lakhs (For sale of services); or
- If you sell goods from one state to another; or
- If you have liability under reverse charge mechanism; or
- If you are selling through an e-commerce platform such as Amazon, Flipkart, etc.
- If you are an ecommerce operator (i.e. if you are running an e-commerce platform which allows other sellers to sell on your platform.)
- If you are engaged in providing OIDAR services from a place outside India to an unregistered person in India.
Note:
- If you deal in goods & services both, then limit of Rs. 20 lakhs shall apply
- If you are providing services outside your state, then also GST registration is not required as the threshold limit of Rs. 20 Lakhs shall be applicable.
What does aggregate turnover mean?
It means total turnover of your business which includes:
- Taxable turnover;
- Exempt turnover;
- Export turnover; and
- Inter State supplies to persons having Same PAN number.
So, when you calculate turnover for checking the threshold limit for registration, you need to consider all types of turnover as mentioned above.
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Documents Required for GST Registration:
Following are the documents required for GST Registration –
ID Proof:
- Copy of Pan Card & Aadhar Card;
- Photograph of Owner;
Address Proof for Principal Place of Business:
- Copy of latest Electricity Bill/Landline Bill;
- Copy of Municipal Tax Receipt/Index copy recieved upon Registration of Property;
- Notarized Rent Agreement (If Rented)/Notarized Consent Letter.
ID Proof:
- Copy of Pan Card of Firm;
- Partnership Deed;
- Registration Certificate from Registrar of Firms;
- Copy of Pan Card & Aadhar Card of all partners;
- Photograph of all partners;
- Authorisation Letter for Authorised Signatory;
Address Proof for Principal Place of Business:
- Copy of latest Electricity Bill/Landline Bill;
- Copy of Municipal Tax Receipt/Index copy recieved upon Registration of Property;
- Notarized Rent Agreement (If Rented)/Notarized Consent Letter.
ID Proof:
- Copy of Pan Card of the Company;
- Certificate of Incorporation;
- Copy of Pan Card & Aadhar Card of all Promoters;
- Photo of all Promoters;
- Board Resolution for Authorised Signatory;
Address Proof for Principal Place of Business:
- Copy of latest Electricity Bill/Landline Bill;
- Copy of Municipal Tax Receipt/Index copy recieved upon Registration of Property;
- Notarized Rent Agreement (If Rented)/Notarized Consent Letter.
Which Scheme you Choose – Regular or Composition?
In GST, there are two schemes under which you can obtain registration:
- Under Regular Scheme, you have to issue Tax Invoice and charge GST in invoice and you can claim Input Tax Credit of GST paid on purchases made.
- Whereas under Composition Scheme you cannot issue Tax Invoice or charge GST on invoice. You have to pay GST @ 1% flat on your turnover of goods (in case of services rate is 6%), and you cannot claim any ITC!
So, which scheme should you choose?
- If your estimated annual turnover is less than Rs. 1.50 Crores & if you have mostly B2C sales then you can opt for composition scheme. Where the normal tax rate is 1% on sales (for services rate is 6%), but you cannot make inter-state sales.
- If you have mostly B2B sales, then you should opt for Regular Scheme so as to pass on the GST credit to your business customers.
Our Experts can help you to choose the right scheme!
GST Returns to be Filed in Regular Scheme:
Every registered person has to file GST returns as per their respective scheme, even if there are no sales or purchases in a particular month/quarter. For businesses registered under regular scheme following returns are required to be filed:
GSTR1 (Sales Return):
In this return, we have to show details of Sales, Debit/Credit Notes, etc. Filing Frequency: If annual turnover is more than Rs. 1.5 crore – to be filed monthly, if less than Rs. 1.5 crore need to be filed quarterly. Only by filing this return can your customer get GST credit for the purchases done from you, if they are registered in GST.
GSTR 3B:
This return is for payment of tax on sales and for claiming Input Tax Credit of GST paid on purchases. Filing Frequency: Monthly for all/Quarterly for taxpayers having annual turnover upto Rs. 5 crore under QRMP Scheme – applicable from 1st January 2021.
GSTR 9/9C:
This is Annual GST Return. It is mandatory to file Annual Return GSTR 9 if your annual turnover is more than Rs. 2 crore. If your annual turnover is more than Rs. 5 crore – it is mandatory to file the Reconciliation Return GSTR 9C along with GSTR 9.
Is it Mandatory to File GST Returns Even if there is no Sales or Purchases?
Yes, it is mandatory to file monthly/quarterly GST Returns. Even if there is no sales or purchases carried out in a month or quarter. Late fee of Rs. 50/- per day shall be applicable, if not filed before due date!
GST Returns to be Filed under Composition Scheme:
There are only two types of returns to be filed under composition scheme:
CMP 08:
CMP 08 is a Challan Form, where you have to show details of sales made during the quarter and pay tax on it.
GSTR 4:
Details pertaining to Sales, Purchases and RCM (if applicable) for the whole year needs to be shown in this Return.
Late Fees for Filing GST Returns:
Late fee for all returns except Annual Returns is Rs. 50/- per day – Maximum upto Rs. 2000/5000/10000 for turnovers of previous year upto Rs. 1.5 CR/5 CR/above 5 CR respectively per return. For NIL Returns Rs. 20/- per day – Max upto Rs. 500 per return. For Annual Returns Rs. 200/- per day – Max upto 0.50% of Annual Turnover.
Do you want to get your business registered in GST? Or want to file your GST returns?
Our experts will:
- Guide you through the whole process of GST Registration;
- Help you in preparation of the documents required;
- Advice you on which scheme to select based on your business;
- Help you in Preparing your GST Returns and Filing them on time;
- Provide Consultation as and when required.
Get GST Registration at best price!
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