GST Registration in India – How to Get Your Small Business GST Ready
GST stands for Goods and service tax. It is compulsory registration for all the business owners whose business exceed a total of Rs 40 Lakhs in turn over. For some of the North Eastern and hull states, the turnover is Rs 10 Lakh. So, if your business has more than the given turnover, you will have to apply for the GST process. Although, for some of the industry, it is mandatory to Register for GST number. If your business is carrying any of the transaction and if the company is running without proper GST, it will be against the law, and you will have to pay hefty penalties in such a case.
Which business needs GST?
Every business that falls under the following category needs to get the GST. If you do not get the GST registration for new business that is mentioned in the following category, then chances are very high that you might require to pay substantial penalties.
- Businesses and individuals that are already registered under Pre-GST law such as VAT, service tax, Excise, etc.
- It is mandatory for all the companies whose turnover exceeds 40 lakh and 10 lakh for Nort eastern states, Jammu and Kashmir, Himachal Pradesh and Uttarakhand.
- Casual Taxable person or someone who is a Non-Resident Taxable person
- Agent off a supplier
- Input service Distributor
- Individuals paying taxes under the reverse charge mechanism
- Every e-commerce aggregator and supplier e-commerce aggregator
- People who are supplying information or having database access outside India, other than the registered taxable person
Documents to keep ready
Before getting your business ready for GST, certain documents are required to obtain a GST number. The papers are:
- PAN card of the applicant
- Aadhar card is necessary for identity proof
- You will need an incorporate certificate or any evidence of business registration
- You will need identity and address proof of all the promoters and director along with the photographs
- Address proof of the business place
- A cancelled cheque of your current account or you can also provide the bank account statement here.
- A digital signature is also needed
- Letter of Authorization/Board Resolution
GST registration for new business is an easy process, and it doesn’t consume much of your time. You can register for GST number online without having to go at the offices and wait in the large queue. The process is simple can be completed in easy steps.
There are two methods by which you can make your business GST ready. One is the manual method in which you will have to do all steps yourself. You can go to the official website of GST. There you will find a GST online registration form. Once you fill up the details, they will guide the further process where you will have to add all the documents. It is a very lengthy and time-consuming process if you do it in this particular way.
If you want to make things more comfortable and more convenient, you can only find an agent who will complete and handle the process. Here the entire process is handled by them starting from filling the GST online registration form to uploading all the documents. Here, you will have to fill the form and just add the documents that are required. In just a few days you will have a GST registered a business.
The critical aspect to note is that the procedure remains the same in both cases, although there is a very minute difference. You must note that in the second method everything is managed by the agent on your behalf. Whereas on the first one, you will have to do all the things by yourself and would require to wait until the GST is approved. Consequently, it is because of this reason, people often select the second method as it is more convenient and helps in getting the GST as soon as possible.
Once you have completed the registration process using any of the methods. You will get an Application Receipt Number called ARN before you get the actual GST number and the GST certificate. This number will be sent to you in your registered email ID that you entered when you were filling the GST Form. Please note this number down until the GST process is fully completed. It may be asked in the future just in case something goes wrong.
The GST certificate is in the verification stage as of now. Once it is verified, you will have GST registered business. You can download the GST certificate from the official website of GST or if you did the whole process using any of the other online services. You will be able to download the GST certificate from their dashboard. It might take some time. So, don’t worry. In most of the cases, the GST registration is done within a week. Although, it might take some time. If it takes more time than usual, you can check the status in the dashboard, or you can contact the online service that you used.
Some benefits of GST
When your business is GST ready, you will get the following benefits:
- Take input tax credits for normal business
- Make interstate sales without any kind of restrictions
- For composite dealers, you will have limited compliance
- High work capital
- Less tax liability
Some Key things to keep in Mind
- The minimum turnover for GST was 20 Lakh before and it has been updated recently, it will be in force from 1stApril 2019
- If your business operates in different states, you will have to get the GST registration for each state separately. You can apply for multiple GST registration by using the same process
The penalty for not registering
If you are not paying tax or making genuine errors, you will be subjected 10% of the tax amount and minimum of Rs 10,000. Whereas if you have deliberately evaded taxes, you will have to pay 100% of the tax amount.
So, to conclude, this is the whole process of GST registration. Once you have completed every step as mentioned, you will be able to get your GST certificate. Please note that, when you get the GST, you will have to file the GST.