Apply GST Registration Online, Turnover limits for GST Registration

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GST Registration

How to Apply for GST Registration Online in India

Goods and Services Tax (GST) registration is mandatory for businesses whose turnover exceeds the prescribed limit or those engaged in inter-state supply of goods and services. The process for GST registration in India is entirely online, making it convenient for applicants. Here’s a step-by-step guide to apply for GST registration online:

Step 1: Visit the GST Portal

  1. Go to the official GST portal at https://www.gst.gov.in.
  2. On the homepage, click on ‘Services’ > ‘Registration’ > ‘New Registration’.

Step 2: Select the Type of Registration

  1. Select ‘New Registration’.
  2. Fill in the following details:
  • Taxpayer Type: Choose whether you are a taxpayer, GST practitioner, or any other type.
  • State and District: Select your state and district.
  • Legal Name of the Business: Enter the name as per your PAN.
  • Permanent Account Number (PAN): Enter the PAN of the business or the applicant.
  • Email Address and Mobile Number: Provide valid and active contact details as OTPs will be sent for verification.
  1. Enter the captcha code and click on ‘Proceed’.

Step 3: Verify OTP

  1. You will receive two OTPs, one on your registered email address and another on your mobile number.
  2. Enter both OTPs in the required fields and click on ‘Continue’.

Step 4: Temporary Reference Number (TRN)

  1. After successful verification, you will receive a Temporary Reference Number (TRN).
  2. Note down the TRN as it will be required to complete the application.

Step 5: Log in Using TRN

  1. Return to the GST portal’s homepage and select ‘Services’ > ‘Registration’ > ‘New Registration’.
  2. Click on ‘Temporary Reference Number (TRN)’ and enter the TRN you received.
  3. Complete the captcha and click on ‘Proceed’.
  4. Enter the OTP received on your registered email or mobile to log in.

Step 6: Complete the GST Application

  1. After logging in, you will see the saved application under ‘My Saved Applications’. Click on the ‘Edit’ icon to proceed.
  2. Fill in the following details:
  • Business Details:
      • Legal name of the business.
      • Trade name (if applicable).
      • Constitution of the business (e.g., Proprietorship, Partnership, Company).
      • PAN of the business.
      • Date of commencement of business.
      • Select whether you want to opt for a Composition Scheme.
  • Promoters/Partners Information:
      • Details of promoters/partners, including personal information, designation, and photographs.
  • Authorized Signatory:
      • Assign an authorized signatory who will manage GST compliance on behalf of the business.
  • Principal Place of Business:
      • Provide the address of the main place of business and upload address proof (e.g., electricity bill, rent agreement).
  • Additional Places of Business (if applicable).
  • Goods and Services:
      • Specify the HSN (Harmonized System of Nomenclature) codes for goods and SAC (Services Accounting Codes) for services provided.
  • Bank Account Details:
      • Provide the account number, IFSC code, and upload a copy of the bank statement or a canceled cheque.
  • State-Specific Information (if applicable).

Step 7: Upload Required Documents

Ensure you upload the scanned copies of the required documents in the specified formats. Common documents include:

  1. PAN card of the business or applicant.
  2. Aadhaar card.
  3. Proof of business registration or incorporation certificate.
  4. Address proof of the business location.
  5. Bank account statement or canceled cheque.
  6. Digital Signature Certificate (DSC) for companies or LLPs.
  7. Authorization letter or board resolution for the authorized signatory.

Step 8: Submit Application

  1. After filling in all the details and uploading the documents, click on ‘Save and Continue’.
  2. Proceed to the ‘Verification’ tab. Choose the verification method:
  • Electronic Verification Code (EVC) using the registered mobile number.
  • Digital Signature Certificate (DSC) for companies.
  • Aadhaar-based OTP for individuals.
  1. Submit the application by clicking on ‘Submit with EVC’ or ‘Submit with DSC’.

Step 9: ARN Generation

  1. Upon successful submission, an Application Reference Number (ARN) will be generated.
  2. Note down the ARN for tracking the status of your application.

Step 10: GST Registration Certificate

  1. The application will be processed by the GST authorities, and if all information and documents are correct, your GST registration will be approved.
  2. You will receive the GSTIN (GST Identification Number) and the GST Registration Certificate within 7 working days.
  3. The certificate can be downloaded from the GST portal under ‘Services’ > ‘User Services’ > ‘View/Download Certificates’.

Important Points to Remember

  1. GST registration is mandatory for businesses with an annual turnover exceeding ₹20 lakhs (₹10 lakhs for special category states).
  2. Registration is also required for specific businesses such as inter-state suppliers, e-commerce operators, and input service distributors.
  3. Ensure that all documents are correct and up to date to avoid delays or rejections.
  4. Composition Scheme is available for small businesses with a turnover of up to ₹1.5 crore, offering a simplified tax filing process.

By following these steps, you can complete your GST registration online seamlessly and comply with tax regulations.

Turnover Limits for GST Registration: A Complete Guide

GST (Goods and Services Tax) is a unified indirect tax system in India that replaced multiple taxes like VAT, Service Tax, and Excise Duty. One of the key factors determining whether a business needs to register under GST is its annual turnover. Here’s a comprehensive guide to understanding the turnover limits for GST registration and the related provisions.

What is Turnover Under GST?

Turnover under GST refers to the aggregate value of taxable supplies, exempt supplies, exports of goods or services, and inter-state supplies of a person having the same PAN. It excludes the value of inward supplies on which tax is payable under reverse charge and taxes like GST itself.

Turnover Limits for GST Registration

The turnover threshold for GST registration depends on the type of business, the location of the business (special category states or others), and the type of supply (goods or services). Below are the detailed limits:

1. For Regular Taxpayers

  • Businesses supplying goods:
  • ₹40 Lakhs: Applicable to most states in India.
  • ₹20 Lakhs: Applicable to special category states such as Arunachal Pradesh, Uttarakhand, Meghalaya, Sikkim, Mizoram, Manipur, Nagaland, and Tripura.
  • Businesses supplying services:
  • ₹20 Lakhs: Applicable to most states in India.
  • ₹10 Lakhs: Applicable to special category states.
  • 2. For Composition Scheme

The Composition Scheme is designed for small taxpayers to reduce their compliance burden. The turnover limits for opting into the Composition Scheme are:

  • ₹1.5 Crores: For businesses supplying goods in most states.
  • ₹75 Lakhs: For businesses in special category states.
  • ₹50 Lakhs: For service providers or mixed supply providers under the Composition Scheme (introduced for services in 2019).

Turnover Calculation for GST Registration

Turnover for GST includes:

  1. Taxable supplies (including zero-rated supplies like exports).
  2. Exempt supplies (e.g., unprocessed agricultural produce).
  3. Inter-state supplies (even if exempt from GST).
  4. Supplies made on behalf of principals by agents.

It does not include:

  1. GST (CGST, SGST, or IGST) collected from customers.
  2. Inward supplies on which tax is paid under the reverse charge mechanism.
  3. Non-GST supplies such as alcohol for human consumption.

Compulsory GST Registration Irrespective of Turnover

Certain businesses must register for GST, regardless of their annual turnover. These include:

  1. Inter-state suppliers: Businesses supplying goods or services across state borders.
  2. E-commerce operators: Platforms facilitating online sales of goods or services.
  3. Casual taxable persons: Individuals occasionally supplying goods or services without a fixed business location.
  4. Non-resident taxable persons: Individuals or entities supplying goods or services from outside India.
  5. Agents: Persons supplying goods on behalf of others.
  6. Input service distributors (ISD): Businesses distributing input tax credit to branches.
  7. Reverse charge mechanism (RCM): Persons required to pay tax under RCM.

Special Cases for GST Registration

1. Voluntary Registration

Businesses with turnover below the prescribed limit can voluntarily register for GST. Voluntary registration allows:

  • Claiming input tax credit.
  • Expanding market reach by dealing with GST-registered entities.
  • Enhancing business credibility.

2. Reverse Charge Mechanism (RCM)

Even if a supplier is not liable for registration due to turnover, the recipient of goods or services may have to pay GST under RCM.

3. Exports and Zero-rated Supplies

Businesses engaged in export or supply to Special Economic Zones (SEZs) must register for GST to claim input tax credit and refunds.

Exemptions from GST Registration

Certain categories of businesses are exempt from GST registration, even if their turnover exceeds the prescribed limit:

  1. Agriculturists supplying produce cultivated on their land.
  2. Businesses exclusively dealing in exempt goods or services.
  3. Services by individuals earning through platforms like Uber or Ola (covered under e-commerce operator liability).

Turnover Limits for GST Filing

Once registered under GST, businesses need to file GST returns based on their turnover:

1Turnover up to ₹5 Crores:
  • Quarterly filing of GSTR-1 and monthly payment through PMT-06 under the QRMP (Quarterly Return Monthly Payment) scheme.
  • Annual GSTR-9 filing (optional for businesses with turnover up to ₹2 crores).
  • Turnover above ₹5 Crores:
  • Monthly filing of GSTR-1 and GSTR-3B.
  • Annual filing of GSTR-9 (mandatory).
2.Benefits of GST Registration
  1. Legal Compliance: Avoid penalties and stay legally compliant.
  2. Input Tax Credit: Claim tax credits for GST paid on purchases.
  3. Inter-State Operations: Conduct business seamlessly across states.
  4. Increased Credibility: Build trust with larger businesses and customers.
  5. Eligibility for Government Tenders: Many government contracts require GST registration.

Penalties for Non-Compliance

Failure to register for GST when required can result in penalties:

  1. For Not Registering: Penalty of 10% of the tax due, subject to a minimum of ₹10,000.
  2. For Wilful Evasion: Penalty of 100% of the tax due.

Steps to Register for GST

To register for GST, follow these steps:

  1. Visit the official GST portal (https://www.gst.gov.in).
  2. Select “New Registration” under the “Services” tab.
  3. Complete the application by providing business details, uploading required documents, and submitting the application using an OTP or DSC (Digital Signature Certificate).
  4. Obtain the GSTIN (GST Identification Number) after verification.

Conclusion

Understanding the turnover limits for GST registration is essential for businesses to determine their compliance obligations. Whether you’re a small trader, a service provider, or a large corporation, adhering to GST rules helps avoid penalties, ensures smoother operations, and enhances your business’s credibility. Always stay updated with the latest GST notifications and amendments to ensure compliance with the tax laws.

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