GST Registration

 GST registration is a process by which businesses in many countries, including India, register themselves with the tax authorities to comply with the GST law and collect, pay, and claim input tax credit on the supply of goods and services. The GST system aims to streamline the taxation process by replacing multiple indirect taxes levied by the central and state governments.

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

Advantages of GST

GST has mainly removed the cascading effect on the sale of goods and services. Removal of the cascading effect has impacted the cost of goods. Since the GST regime eliminates the tax on tax, the cost of goods decreases.

Also, GST is mainly technologically driven. All the activities like registration, return filing, application for refund and response to notice needs to be done online on the GST portal, which accelerates the processes.

Components of GST

There are three taxes applicable under this system: CGST,SGST and IGST.

• CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Maharashtra)
• SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction happening within Maharashtra)
• IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra to Tamil Nadu).

In most cases, the tax structure under the new regime will be as follows:

Illustration:

• Let us assume that a dealer in Gujarat had sold the goods to a dealer in Punjab worth Rs. 50,000. The tax rate is 18% comprising of only IGST.

In such a case, the dealer has to charge IGST of Rs.9,000. This revenue will go to Central Government.

• The same dealer sells goods to a consumer in Gujarat worth Rs. 50,000. The GST rate on goods is 12%. This rate comprises CGST at 6% and SGST at 6%.

The dealer has to collect Rs.6,000 as Goods and Service Tax, Rs.3,000 will go to the Central Government and Rs.3,000 will go to the Gujarat government since the sale is within the state.

Documents require for GST Registration are as follow.

Sole Proprietorship / Individual

(1) Name of Business
(2) Nature of Business
(3) PAN card
(4) Aadhaar card
(5) Photograph
(6) Bank statement or cancelled cheque
(7) Office address proof :

~ If Owned Premises – Copy of latest electricity bill OR Property tax paid receipt OR Municipal khata Copy
~ If Rented Premises – Valid Rent Agreement

– Copy of latest electricity bill

Partnership Firm

(1) Name of Business
(2) Nature of Business
(3) PAN card of Firm
(4) Partnership Deed
(5) Authorization Letter for Appointment of Authorized Signatory
(6) Pan Card of All Partners
(7) Aadhaar card of All Partners
(8) Photograph of All Partners
(9) Bank statement or a cancelled cheque
(10) Office address proof :

~ Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
~ Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the owner    copy of latest electricity bill

Private Limited Company / One Person Company / Limited Liability Partnership

(1) Name of Business
(2) Nature of Business
(3) PAN card of Company
(4) Certificate of Incorporation
(5) MOA and AOA of Company / LLP Deed
(6) Authorization Letter ( Board Resolution ) for Appointment of Authorized Signatory
(7) Pan Card of All Directors
(8) Aadhaar card of All Directors
(9) Photograph of All Directors
(10) Digital Signature of Authorized Signatory
(11) Bank statement or a cancelled cheque
(12) Office address proof :

~ Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
~ Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the owner    copy of latest electricity bill

SOCIETY OR CLUB OR TRUST

(1) Name of Business
(2) Nature of Business
(3) PAN card of Society / Club / Trust
(4) Registration Certificate of Society / Club / Trust
(5) Authorization Letter for Appointment of Authorized Signatory
(6) Pan Card of All Members / Trustee
(7) Aadhaar card of All Members / Trustee
(8) Photograph of All Members / Trustee
(9) Bank statement or a cancelled cheque
(10) Office address proof :

~ Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
~ Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the    ownercopy of latest electricity bill

HUF

(1) Name of Business
(2) Nature of Business
(3) PAN card of HUF
(4) HUF Deed
(5) Pan Card of Karta
(6) Aadhaar card of Karta
(7) Photograph of Karta
(8) Bank statement or a cancelled cheque
(9) Office address proof :

~ Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
~ Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the owner    copy of latest electricity bill

MULTIPLE GST REGISTRATIONS

More than one GSTIN can be taken on a single PAN. For instance, when an entity has business in multiple states, it can take GST registration in each state.

A business may have business verticals i.e. distinguishable components engaged in business activities different from each other. In a single business there can be a manufacturing and trading units which can be considered as business verticals.

In this case, more than one registration can be obtained even when the Head Office and branches are located in the same state.

Penalty For Non-Registration ?

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.

The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.