GST Registration

At valcus we understand the value of time of our clients. we ensure we will provide all the Tax and Accounting services under one roof. We believe in transparency in business, so we want our clients to be educated with the services we provide.

Why is it required for a business to register for GST?

It is very important for any goods or service provider to have GST registration, if you fail to register for GST, you can incur heavy fines and penalties that can go up to 100% of your owed tax amount. Registering for GST means you can also collect GST from your customers. Thus, in order to avoid any conflict with the law, it is essential that you register for GST.

You should learn here all you need to know about GST registration to make this process easier for yourself and your company.

Requirement for GST registration for a business?

It is mandatory for you to register for GST and have a GSTIN if:

1. If your annual turnover limit above Rs.20 lakh for your intrastate business.
2. If your business located in any of the listed special states (such as Assam, Jammu & Kashmir, Himachal Pradesh, etc.) has an annual turnover of over Rs.10 lakh
3. If you own an e-commerce website business
4. If you own an interstate business
5. If you are required to pay tax under reverse charge
6. If you are required to pay tax under Section 9, sub-section (5)
7. You are a non-resident liable to pay taxes producing taxable supply

What all documents Do you need for GST registration?

1. Certificate of Incorporation
2. Authorised signatory’s photo
3. Stakeholder’s photo (Promoter / Partner)
4. Proof of business address which includes electricity bill or property tax receipt or Municipal Khata Copy or legal ownership document
5. Copy of Resolution passed by BoD/ Managing Committee and Acceptance letter or letter of Authorisation
6. Proof bank accounts details which include a copy of your bank statement, cancelled cheque, or the first page of your Pass Book

Facts about GST registration

1. Business with an annual aggregate of over Rs.20 lakhs is required to register for GST.
2. 11 special states that require GST registration, if you have half the turnover, which is Rs.10 lakh. states like Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand.
3. If you are a supplier in more than one state you will need to register for GST in all the states that you supply goods in.
4. In the case of multiple branches in multiple states, you can register one branch as main and the remaining as additional. This is not applicable if your business has separate business verticals as listed in Section 2 (18) of the CGST Act, 2017
5. Failing to register for GST can result in a penalty of a minimum of Rs.10,000 or 10% of the amount due. In the case of intentional tax evasion, the penalty can be 100% of the owed taxes.

Use the above information to remain informed and register for GST with ease.

DIFFERENCE BETWEEN CGST VS SGST VS IGST

Central GST (CGST)

When the supply of goods and services takes place WITHIN the State (Intra-state), that is when the Supplier and the Consumer both are in the same state, two taxes will be levied. One part is levied by the State Government and the other is by Central Government. Hence the tax levied by the central government is known as Central GST.

State GST (SGST)

State GST is the component of GST that will be collected by the state government on all items, both goods, and services on intra-state trade.

Integrated GST (IGST)

When the supply of goods and services takes place BETWEEN two States (Inter-state), that is when the place of Supplier and the Consumer are in different states, Integrated GST is levied by the central government. In the case of Inter-State supply of Goods and Services, only IGST will be applicable.