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Is It Mandatory to Proceed for GST Registration?
Check whether your Business Need GST Registration or Not
GST registration is mandatory for businesses whose annual turnover exceeds Rs. 40 lakhs for goods suppliers (₹20 Lakh in special category states like Telangana, Puducherry, etc.,) and Rs. 20 lakhs for service providers (₹10 Lakh for special category states) However, for businesses operating in the northeastern states of India, including Sikkim, the threshold for GST registration is Rs. 10 lakhs for both goods and services.
This article can be successful in answering all your questions about GST Registration, the Documents Required & to check the mandatory Criteria to register for GST in India.
What is Goods & Service Tax (GST)?
The Goods and Services Tax (GST) is a comprehensive indirect tax levied on India’s supply of goods and services. It replaced multiple indirect taxes levied by the central and state governments. GST was implemented on July 1, 2017, and GST registration is mandatory for businesses with a turnover exceeding a certain threshold.
Eligibility Criteria for Mandatory GST Registration in India
1. Interstate supply of goods or services:
If a business supplies goods or services to another state, then GST registration is mandatory, irrespective of its turnover.
2. E-commerce operators:
E-commerce operators that facilitate the supply of goods or services between suppliers and customers must register for GST, irrespective of their turnover. This includes platforms such as Amazon, Flipkart, and Snapdeal.
3. Input Service Distributors (ISD):
Businesses that distribute the credit of input tax paid on services to their branches or units require GST registration as an Input Service Distributor.
4. Casual taxable persons:
If an individual or a business supplies goods or services occasionally or on a seasonal basis, they must register for GST, irrespective of their turnover.
5. Non-resident taxable persons:
Foreign businesses that supply goods or services in India are required to register for GST, irrespective of their turnover.
The GST registration process is relatively simple and can be completed online. Businesses are required to provide certain documents and details, such as their PAN card, bank account details, and proof of business registration. Once the registration is completed, a unique GST Identification Number (GSTIN) is issued to the business, which is used for all GST-related transactions. If you need help registering for GST in India, click here!
Documents Required for GST Registration
Goods and Services Tax (GST) is a unified indirect tax levied on the supply of goods and services. GST was introduced in India to replace multiple indirect taxes such as VAT, service tax, and excise duty. Any business that supplies goods or services with a turnover exceeding a certain threshold is required to register for GST.
To register for GST, certain documents need to be submitted. In this article, we will discuss the GST Registration Documents Required in detail.
1. PAN Card of the Applicant:
The PAN card of the applicant is required for GST registration. The name and address mentioned on the PAN card should match the name and address of the business.
2. Aadhaar Card:
The Aadhaar card is required for identity verification. The Aadhaar number should be linked to the mobile number and email ID of the applicant.
3. Proof of Business Registration:
The proof of business registration could be any of the following documents –
- Certificate of incorporation
- Partnership deed
- Memorandum of association
- Articles of association
- Trust deed
- Society registration certificate
4. Proof of Place of Business:
The proof of place of business could be any of the following GST registration documents –
- Property tax receipt
- Electricity bill
- Rent agreement
- Lease agreement
5. Bank Account Proof
The bank account proof could be any of the following documents –
- Bank statement
- Canceled cheque
- Passbook
6. Digital Signature
The digital signature is required for GST registration. The digital signature is used for authentication and verification of the application.
7. Photographs:
Passport-size photographs of the applicant are required for GST registration.
In addition to these documents, there are certain other documents that are required for specific types of businesses:
- Sole Proprietorship: In a sole proprietorship, the proprietor’s identity proof and address proof are required.
- Partnership Firm: In a partnership firm, the partnership deed and the partners’ identity proof and address proof are required.
- Private Limited Company/Public Limited Company: In the case of a private limited company or a public limited company, the certificate of incorporation, memorandum of association, articles of association, and the directors’ identity proof and address proof are required.
- LLP: In the case of an LLP, the LLP agreement and the partners’ identity proof and address proof are required.
It is important to note that the documents required for GST registration may vary depending on the type of business and the state in which the business is registered. It is recommended to check the official GST portal or seek professional advice to ensure that all the required documents are submitted.
Also, Read – Documents Required for Company Registration
Aadhaar Authentication For GST Registration Process
Aadhaar authentication is a process of verifying an individual’s identity through the Aadhaar card issued by the Unique Identification Authority of India (UIDAI). It has been made mandatory for GST registration to curb fraudulent activities and to ensure that the registered individuals or entities are legitimate and authorized.
The Aadhaar authentication process for GST registration online involves the following steps:
- Aadhaar Number: The first step is to provide the Aadhaar number of the authorized signatory of the entity who is applying for GST registration. It is mandatory for at least one authorized signatory to have an Aadhaar number to complete the authentication process.
- OTP Verification: After providing the Aadhaar number, the system generates an OTP (One-Time Password) which is sent to the mobile number registered with UIDAI. The applicant must enter the OTP within the specified time to validate the authentication process.
- Biometric Verification: In certain cases, where OTP verification fails, biometric authentication can be done using the registered fingerprints of the authorized signatory. The Aadhaar authentication system verifies the fingerprints and authenticates the identity of the applicant.
- Additional Information: After the successful completion of Aadhaar authentication, the applicant must provide additional information such as PAN (Permanent Account Number) details, bank account information, and other relevant documents to complete the GST registration process.
The Benefit of Aadhaar Authentication in GST Registration
The use of Aadhaar authentication in the GST registration process has several benefits, such as –
- Simplified Process: The use of Aadhaar authentication simplifies the GST registration process by eliminating the need for physical documents and reducing the time required for verification.
- Curb Fraudulent Activities: Aadhaar authentication helps to prevent fraudulent activities by ensuring that the registered individuals or entities are legitimate and authorized.
- Quick and Efficient: The Aadhaar authentication process is quick, efficient, and accurate. It saves time and effort for both the applicant and the GST authorities.
- Digitalization: The use of Aadhaar authentication promotes digitalization and reduces the dependence on physical documents, thus contributing to the Government’s Digital India initiative.
How Professional GST Consultant can be helpful for Businesses?
Professional GST Consultants or Practitioners can help you with their expertise & accuracy to the information. When you consult a Professional GST Practioner, you will be able to figure out the requirement of GST registration for your business.
- They will check your documentation, company structure, AoA & MoA, type of business & accounting figures to determine the need for GST registration. This can clarify your dilemma of getting GST registered for your business.
- They’ll be able to give an overview of GST payments to make every month based on your previous financial transactions (Sales, expenses, fines, etc.,) Then you’ll be good to decide the need for GST registration.
- They give you the big picture of GST’s impact on your business. There will be periodic updating to GST rules & regulations that can influence the business economy.
Did You Got Everything Right About GST?
In conclusion, GST registration is mandatory for businesses whose turnover exceeds a certain threshold or those engaged in specific categories of supply. However, businesses that are not required to register for GST can choose to do so voluntarily to avail of various benefits. It is important for businesses to comply with GST laws to avoid penalties and ensure smooth operations. Actax India Experts can help you get GST registration for your business with proper consultation. Actax offers GST registration services in 3 simple steps & also helps you understand the GST Return filing structure & intervals. GST Registration in Bangalore & Company Registration in Bangalore with the help of Actax India enables more potential to view business opportunities further!
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