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The Goods and Services Tax (GST) is one of the most significant tax reforms in India’s history. Introduced in 2017, it replaced multiple indirect taxes with a single tax system, bringing uniformity and transparency to the tax structure. For business owners, getting GST registered has become essential, especially if your business reaches a certain turnover threshold. If you’re just starting your entrepreneurial journey or expanding your existing business, understanding online GST registration in India can save you time and effort.
GST, or Goods and Services Tax, is a single tax system that replaces multiple indirect taxes like VAT, service tax, and excise duty. It’s applied to goods and services at each stage of production and distribution, with businesses being able to claim credits for taxes paid on their inputs. This makes the system transparent and streamlined. The main goal of GST is to create a unified tax structure across the country, making it easier for businesses to operate and reducing tax evasion. Consumers benefit too, as it helps in lowering overall prices and creating a more efficient economy.
GST registration is required for businesses that exceed a certain turnover limit, but even if you fall below this limit, registering for GST offers several benefits:
GST registration provides legal recognition to your business, making it legitimate and trustworthy in the eyes of customers and suppliers.
Registered businesses can claim the input tax credit on purchase, allowing them to reduce the tax burden on purchases made for their business
GST registration allows you to sell goo ds and services across India and on e commerce portal without worrying about multiple state taxes.
Being GST registered can enhance your business’s credibility, especially when dealing with large corporations or government contracts.
While GST registration is mandatory for businesses with a turnover above the specified limit (currently ₹20 lakhs for most businesses), there are several other instances when registration is required:
After filing your GST application, you’ll receive an Application Reference Number (ARN) instantly. This ARN can be used to track the status of your application.
As for the actual GST number, the GST officer typically takes Minimum 6 to 7 working days to process the application and to issue GST Certificate. However, this timeline can vary based on the complexity of the application and whether any additional documents or clarifications are required.
After Getting GST Certificate, Its mandatory to update Bank Account detail in GST within 45 day. Non-Compliance may result into GST Cancellation at Govt end.
After getting GST number, Its mandatory under gst law to update gst number on board and display gst certificate at business address. Non-Compliance may result of penaty of Rs25000/-
One of the most important compliances after GST registration is the timely filing of GST returns on monthly, quarterly, and annual basis before due date to avoid penalty
Businesses need to issue GST-compliant invoices to their customers for all taxable supplies made. Invoices should contain all the necessary information such as GSTIN, customer details, invoice number, taxable value, and tax amount.
It is essential for businesses to maintain accurate and up-to-date books of accounts as per the GST law. This includes keeping records of all invoices, expenses, input tax credit availed, and other financial transactions.
Businesses need to generate e-way bills for the movement of goods exceeding specified values as per the GST rules. Failure to comply with e-way bill regulations can lead to penalties.
Businesses are required to make timely payment of GST taxes to the government. Payment should be done online through the GST portal using the appropriate challans.
Businesses with a turnover above a certain threshold are required to undergo a GST audit by a chartered accountant. The audit aims to ensure compliance with GST laws and regulations.
Under the RCM, the recipient of goods or services is liable to pay GST instead of the supplier. Businesses need to comply with reverse charge provisions when applicable.
| Criteria | State |
| State with Threshold Limit of 10 Lac for Supplier of Goods and/or Services: | Manipur, Mizoram, Nagaland and Tripura |
| State/UTs with threshold limit of Rs.20 Lac for supplier of goods and/or services: | Arunachal Pradesh, Meghalaya Sikkim, Uttarakhand, Punducherry and Telangana. |
| State/UTs with threshold limit of Rs.20 Lac for supplier of Services/ both goods and services and Rs.40 lac for supplier of Goods (Intra-State): | Jammu and Kashmir, Assam, Himachal Pradesh , All other States |
Registered businesses can claim a credit for the GST paid on Purchase of goods & services, which helps in decreasing their tax liability.
After Getting GST registration Certificate, businesses can easily sell goods and services across states, broadening their market reach.
Businesses registered under GST are often perceived as more reputable and reliable, providing them with a competitive advantage
GST registration provides legal protection to businesses, and operating without it can lead to legal implications.
GST registration can improve a business’s credibility with customers and suppliers.
Businesses with GST registration could gain eligibility for participation in government contracts, unlocking growth opportunities.
Penalties for not obtaining GSTIN registration in India can be significant and are imposed on businesses that fail to comply with the registration requirements. According to Section 122 of the CGST Act, a penalty of 100% of the tax due or ₹10,000, whichever is higher, is levied on businesses that fail to obtain GST registration when required to do so.
Some of the key penalties for not obtaining GST registration or committing other offenses under GST include:
Penalty for not registering under GST:
These penalties are applicable to businesses that commit offenses under the GST Act, such as failing to register, providing false information, or not collecting Tax Collected at Source (TCS) when required. . It is essential for businesses to understand and comply with their GST registration and filing obligations to avoid these penalties and maintain compliance with the tax laws.
GST registration is the process of obtaining a unique identification number for a business that is liable to pay Goods and Services Tax (GST). This registration is mandatory for businesses whose annual turnover exceeds specific thresholds, ensuring compliance with tax regulations.
Businesses must register for GST if:
The following documents are typically required:
The entire process usually takes about 7 to 10 working days, provided all documents are in order and there are no discrepancies in the application.
No fees are required for obtaining GST registration through the official portal. However, if you hire a professional for assistance, there may be associated costs.
Failing to register when required can lead to severe penalties, including:
After submitting your application, you will receive an Application Reference Number (ARN). You can check your registration status on the GST portal by entering this ARN.
Yes, after obtaining GST registration, you can update certain details like the address of your business or bank account information through the GST portal.
