Registration under Goods and Service Tax

Once a business is formed, the promoter feels the need to get his business entity registered under the recognized tax regime. This article gets to answer important questions regarding registrations under the GST regime.

-Do i mandatorily need to get myself registered under GST regime?

No, by default you are not required to get yourself registered under GST. But compulsory GST registration is required where aggregate business turnover exceeds the threshold limit in a particular financial year.

And apart from above, following person is required to get himself mandatorily registered irrespective of the amount of turnover: –

• Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax, etc.).
• Businesses with turnover above the threshold limit.
• Casual taxable person except if making supplies of specified handicraft goods within the threshold limit.
• Non-Resident taxable person.
• A person who is receiving supplies on which GST is Required to be paid on Reverse Charge Mechanism.
• Every e-commerce operator
• A person who supplies on behalf of some other taxable person.
• TDS Deductor
• A person who supplies via e-commerce aggregator.
• Input service distributor.
• A person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

-Okay, so I get it. I am not compulsorily required to get registered. But what if I want to get myself registered voluntarily to be part of an organized business chain? Am I allowed?

Yes of course. GST does have the provision for the same. An entity can apply for voluntary registration under GST.  But once you opt for this option you cannot undo your decision for that particular financial year.

-And one very obvious question. Is there any way by which I can reduce my tax liability? I mean I don’t intend to evade tax but you see I am operating a very small business confined only to this state as of now. And I feel that I cannot afford to keep all the purchase documents, and I want to minimize my tax compliance.

Luckily Yes. GST regime offers you to get yourself registered under Composition Scheme. This scheme allows small businesses to pay tax at the reduced rates of 1%, 5%, and 6%. But businesses are not allowed to operate interstate and are not allowed to take input credit of taxes paid on the purchase. But since your area of operation is within your state, this scheme is perfect for you.

-I must say that this whole GST thing looks very business-friendly. Can you please elaborate on a few benefits which I could get, by getting myself registered under any of the GST schemes?

Yes sure, benefits you will get under normal registrations are as follows:

• You can get yourself registered on an e-commerce site.
• Become eligible to take credit of taxes paid on purchases.
• You can freely make interstate sales.
• And along with the above benefits you seem to get a competitive advantage over other businesses who are not registered and are not part of an organized business chain.

And benefit you will get under composition scheme are as follows:

• Limited Compliance.
• Reduced tax liability.
• Less tax resulting into high working capital.

-Okay benefits seems to be decent enough. And I am kind of convinced to get myself registered under this regime. So, what all documents are required for GST Registration?

• PAN of the Applicant.
• Aadhaar card.
• Proof of business registration or incorporation certificate.
• Identity and Address proof of Promoters/Director with Photographs.
• Address proof of the place of business.
• Bank Account statement/Cancelled cheque.
• Digital Signature.
• Letter of Authorization/Board Resolution for Authorized Signatory.

-Okay thanks for your support. And one last thing. From where can I get such other important information about businesses and compliances?

You can always visit our website www.akcoindia.com/blog  for reading such important information. And if you feel you need any assistance then you may just mail us on contact@akcoindia.com.

You may find our other blogs below:

Key Changes in New notified ITR Forms: Click here
Annual Information System: Click here
All About PAN: Click here

Source Info: https://www.gst.gov.in./ , https://www.cbic.gov.in/