GST Registration

GST Registration in India

GST registration is mandatory for businesses with an annual turnover exceeding Rs. 20 lakh (Rs. 10 lakh for North-Eastern states). It is a simple and online process that can be completed on the GST portal. The applicant needs to provide basic information such as PAN, Aadhaar, bank details, and business address. After verification of the documents, the GST registration certificate is issued within 3-7 working days.

It is essential to obtain GST registration to avail of input tax credits, claim refunds, and conduct inter-state trade. Failure to register can result in penalties and legal consequences. Hence, businesses must ensure timely GST registration to comply with the law. Valcus can assist you with GST registration for proprietorship and other needs.

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

A GST number, or Goods and Services Tax identification number, is a unique 15-digit identification number that businesses operating in India need to obtain. It is a crucial requirement for businesses, as it enables them to register under the GST regime and comply with tax laws. The GST number is necessary for businesses engaged in the supply of goods and services to register for GST and pay taxes. It also allows businesses to claim the input tax credits on purchases made for business purposes. Business can also choose online application for GST number to save time.

Any goods or service provider needs 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, to avoid any conflict with the law, you can register for GST online as soon as possible.

Requirement for GST registration for a business

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

1. If your annual turnover limit is 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 are the Benefits to Businesses of a GST Number?

A Goods and Services Tax (GST) number is a unique identification number that businesses operating in India must obtain to register under the GST regime and comply with tax laws. Having a GST number can provide businesses with multiple benefits, including reduced tax liability, increased efficiency, wider market access, and legal compliance.

Below are the five benefits to businesses of having a GST number:

1. Legitimate business operations: A GST number indicates that a business is operating legally and complying with tax laws. This can enhance the credibility of the business and help build trust with customers, suppliers, and stakeholders.
2. Input tax credit: Businesses with a GST number can claim the input tax credit on purchases made for business purposes. This allows businesses to reduce their tax liability by claiming credit for the tax paid on inputs, such as raw materials and services used in production.
3. Increased efficiency: The GST system is digitized, making it easier for businesses to comply with tax laws and avoid paperwork. This can result in increased efficiency and cost savings for businesses.
4. Wider market access: Businesses with a GST number can participate in e-commerce platforms and online marketplaces. This can increase their market reach and enable them to access customers across the country.
5. Legal compliance: Failure to obtain a GST number can result in penalties and legal consequences. Having a GST number ensures that a business is legally compliant and avoids any legal or financial repercussions.

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

The Facts Related to GST Registration

1. Business with an annual aggregate of over Rs.20 lakh 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, and 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.

Advantages of GST Filing for Businesses

Goods and Services Tax (GST) filing is a mandatory requirement for businesses operating in India to comply with tax laws. GST filing provides businesses multiple advantages including increased compliance, input tax credit, improved efficiency, access to credit, and increased transparency. By complying with GST filing requirements, businesses can strengthen their financial position and build a stronger reputation in the market.

Let us below understand the five key advantages of GST Filing for Businesses in India.

Here are five advantages of GST filing for businesses:

1. Increased compliance: GST filing ensures that businesses comply with tax laws and regulations. This helps them avoid legal and financial penalties and strengthens their reputation in the market.
2. Improved efficiency: GST filing is a digitized process that minimizes paperwork and makes it easier for businesses to file their returns. This can result in improved efficiency and reduced costs for businesses.
3. Input tax credit: GST filing enables businesses to claim an input tax credit on purchases made for business purposes. This can help them reduce their tax liability and improve cash flow management.
4. Access to credit: GST filing helps businesses establish a credit history, which can be beneficial when applying for loans and other forms of credit. It also enables businesses to participate in government tenders and contracts.
5. Increased transparency: GST filing ensures that businesses maintain accurate records of their transactions, making them more transparent and accountable. This can improve trust and confidence among customers, suppliers, and stakeholders. We at Valcus offer company registration and GST registration services.

When the supply of goods and services takes place BETWEEN two States (Inter-state), that is when the place of the 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.

What are the Consequences of Not Applying for a Business GST Number?

Applying for a Goods and Services Tax (GST) number is mandatory for businesses operating in India. Advantages and consequences go hand in hand. It is essential to consider the potential consequences along with the benefits for a successful business operation.

Failing to apply for a GST number can result in below consequences for businesses:

• Legal penalties: Under the GST regime, businesses that fail to apply for a GST number can be penalized by the government. The penalty for not obtaining a GST number can be up to 10% of the tax due, subject to a minimum of Rs. 10,000.
• Inability to claim input tax credit: Businesses without a GST number cannot claim the input tax credit on purchases made for business purposes. This can result in higher tax liability and reduced cash flow, which can negatively impact the financial health of the business.
• Limited access to the market: Businesses without a GST number cannot participate in e-commerce platforms and online marketplaces. This can limit their market access and reduce their ability to reach customers across the country.
• Loss of credibility: Failing to apply for a GST number can damage the credibility and reputation of the business. It can create an impression that the business is not compliant with tax laws, which can lead to a loss of customers and suppliers.
• Loss of business opportunities: Businesses without a GST number cannot participate in government tenders and contracts. This can result in a loss of business opportunities, which can negatively impact the growth and profitability of the business.

It is, therefore, crucial for businesses to apply for a GST number and comply with GST filing requirements to avoid the above-discussed and other possible consequences.

Choosing Valcus for GST Registration and Other Services in India

If you are looking for a reliable and trustworthy partner for GST registration and other related services in India, Valcus is your one-stop solution. The company registration with GST is vital for every legal business structure. With years of experience and a deep understanding of the complex Indian taxation system, we can help you navigate the complex world of GST and ensure that your business is compliant with all the relevant regulations.

Below are some reasons to choose Valcus for your GST registration and other services:

• Expertise and Knowledge - At Valcus, we have a team of highly skilled professionals with deep expertise and knowledge of GST and other taxation laws in India. We stay up-to-date with the latest changes in the regulations and ensure that our clients are always fully compliant with the law.
• Comprehensive Services - Valcus offers a wide range of services related to GST, including registration, filing of returns, compliance management, and more. We can provide you with end-to-end solutions that cater to your unique business needs.
• Personalized Attention - We believe that every client is unique, and we provide personalized attention to each of our clients. Our team works closely with you to understand your business and its specific requirements, and we tailor our services accordingly.
• Timely and Efficient Service - We understand that time is of the essence in business, and we ensure that all our services are provided in a timely and efficient manner. We strive to deliver high-quality services that meet our client's expectations and exceed them wherever possible.
• Competitive Pricing - We offer our services at competitive prices, without compromising on quality. Our goal is to provide our clients with cost-effective solutions that add value to their business.

At Valcus we understand the value of time of our clients. We ensure to provide all the Tax and Accounting services under one roof. We assist our clients with GST registration online and more business needs. We believe in transparency in business, so we want our clients to be educated about the services we provide.

With our expertise, comprehensive services, personalized attention, timely and efficient service, and competitive pricing, we can help you take your business to the next level. Contact us for new GST apply online today!