Registering a firm or company for GST (Goods and Services Tax) in India involves several steps and procedures to ensure compliance with tax regulations. Here’s a comprehensive guide to the process:
Eligibility Criteria
Any business entity engaged in supplying goods or services with a turnover exceeding the threshold limits specified by GST laws must register for GST.
Types of GST Registration
Normal Registration: For businesses with a turnover exceeding the threshold limit (Rs. 40 lakhs for goods and Rs. 20 lakhs for services, as of current thresholds).
Composition Scheme Registration: Available for eligible small businesses with turnover up to Rs. 1.5 crores (Rs. 75 lakhs for special category states) opting for lower compliance requirements and tax rates.
Documents Required
PAN Card of the business or applicant. Proof of Constitution (e.g., Partnership Deed, Certificate of Incorporation, etc.). Identity and Address Proof of promoters/partners/directors. Address Proof of the business premises (e.g., electricity bill, rent agreement). Bank Account Details (including a canceled cheque).
Registration Process
Online Application: Register through the GST portal (https://www.gst.gov.in) by filling out Form GST REG-01.
Verification: After submitting the application, a verification process is initiated, which may involve scrutiny of submitted documents..
GSTIN (GST Identification Number): Upon successful verification, a unique 15-digit GSTIN is issued to the applicant.
Post Registration Steps
Display of GSTIN: Display the GSTIN at the place of business and on official documents, invoices, and correspondence.
Filing of Returns: Start filing GST returns (GSTR-1, GSTR-3B, etc.) as per the prescribed due dates based on turnover and registration type.
Compliance: Maintain books of accounts and records in accordance with GST laws and comply with other statutory requirements.
Special Cases
Inter-State Supplies: If the business operates in multiple states, obtain separate GST registration for each state (except under certain specified conditions).
Casual Taxable Person: Non-residents or entities making occasional taxable supplies in India need to apply for registration as a casual taxable person..
Amendment and Cancellation
Amendment: Update changes in business details (e.g., address, partners/directors) through Form GST REG-14 within prescribed timelines.
Cancellation: Apply for cancellation of GST registration (Form GST REG-16) in case of closure, transfer of business, or any other reasons for ceasing operations.
Penalties and Consequences
Non-compliance with GST registration requirements or late filing of returns can attract penalties and interest charges.
Professional Assistance
Seek guidance from GST consultants or experts for navigating complex registration processes, understanding compliance requirements, and resolving queries.
By following these steps and ensuring timely compliance with GST regulations, businesses can successfully register for GST in India and operate in accordance with the law, contributing to a transparent and efficient tax system.