Goods and Service Tax (GST) is an indirect tax in India imposed when a customer buys a good. GST is regarded as an indirect tax imposed on the sale, manufacture, buying of goods. The aim of GST is to remove all the indirect taxes imposed on goods by the Indian Central governments and State governments.
Registration of GST is compulsory for every business in India having an annual turnover of more than Rs. 20 lakhs. Registration of GST is compulsory for the following categories, irrespective of their income and they are:
- Distributor of Input Service.
- Agents supplying on behalf of a taxable person.
- Taxable person carrying on interstate supplies.
- E-commerce operators and sellers on e-commerce platforms.
- Persons responsible to deduct TDS.
- Businesses who have to pay tax under reverse charge.
- Non-resident taxable persons etc.
GST Registration is a long 11 step process that includes submission of business details and scanned documents. On the other hand, one can go for Clear Tax Goods and Service Tax registration services. However, the government of India does not charge any fees for doing GST Registration in India under the GST.
The following documents needed for the registration of GST in India and they are:
- PAN of the applicant.
- Aadhar Card.
- Incorporation certificate and business registration proof.
- Address proof of Promoters/ Director with photographs.
- Bank account statement.
- Cancelled cheque.
- Digital Signature.
- Authorisation Letter.
- Board Resolution for Authorised Signatory.
Different types of GST Registration in India:
- Composition Taxpayer.
- Non-Resident Taxable Person.
- Casual Taxable Person and
- Normal Taxpayer.
According to the rules and regulations made in GST, it is compulsory for a business to register as a normal taxable entity which has an annual income of more than Rs. 40 lakh and it is regarded as the GST registration process. Moreover, within 6 working days the GST registration must be completed. Besides, if a business has an annual income of Rs. 10 lakhs have also to be registered as a normal taxable entity that are present in hill states and North Eastern states.
One who is not paying tax or fails to complete the full payment have to give penalty of 10% of the tax amount that is due. The minimum penalty will be Rs. 10,000 if the 10% to a lesser figure.