GST Registration

GST (Goods and Services Tax) registration is mandatory for businesses in India that have an annual turnover of more than Rs. 20 lakhs.As per the GST Act, businesses that have an annual turnover of more than Rs. 20 lakhs are required to register for GST. Additionally, certain businesses, such as those engaged in inter-state supply of goods or services, e-commerce, are also required to register for GST, regardless of their turnover.

GST Registration for E-Commerce

It is mandatory for e-commerce operator (as defined above) to obtain GST registration irrespective of the value of supply made by them.

Input Tax Credit under GST

‘Input Tax Credit’ or ‘ITC’ means the Goods and Services Tax (GST) paid by a taxable person on any purchase of goods and/or services that are used or will be used for business.GST registration allows businesses to avail of input tax credit, which can help reduce their overall tax liability. Therefore, it is advisable for businesses to check if they meet the GST registration criteria and register for GST if required.

Conditions to claim an input tax credit under GST

Input tax credit is eligible only if the goods or services purchased are further used for business purposes and not for personal use.
Buyer must have such tax invoice or debit note or document evidencing payment towards the purchase.
Tax invoice or debit note must be filed by the supplier in Form GSTR-1 and it appears in the buyer’s Form GSTR-2B.
The buyer must furnish the GST returns in Form GSTR-3B

Who should obtain the GST registration?

Individuals registered under the Pre-GST law
Those paying tax under the reverse charge mechanism
A person who supplies via an e-commerce aggregator
Every e-commerce aggregator
Businesses with turnover above the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh as the case may be
Casual taxable person / Non-Resident taxable person

Fee for GST registration

The fee for GST registration in India is nil, which means there is no Government charge for registering for GST. However, businesses may need to pay a fee for the services of a GST practitioner or chartered accountant, if they choose to use their services for GST registration

Time taken for GST registration

The time taken for GST registration in India can vary depending on various factors, such as the completeness and accuracy of the application, the workload of the GST department, and any additional information or documents required by the GST officer. However, as per the GST Act, the GST department is required to process the application for registration within a period of three working days from the date of submission of the application.

Documents Required for GST Registration

PAN of the Applicant
Aadhaar card
Identity and Address proof of Promoters/Director with Photographs
Proof of business registration or Incorporation certificate
Address proof of the place of business
Letter of Authorization/Board Resolution for Authorized Signatory

penalty for not obtaining GST (Goods and Services Tax) registration

Late fee : the late fee for not registering under GST is ₹200 per day. However, the total late fee cannot exceed ₹5,000.
Interest : In addition to late fees, interest may be charged on any unpaid tax liability from the due date of payment until the actual date of payment.
Prosecution : In cases of severe non-compliance or deliberate evasion of GST registration, legal action including prosecution may be initiated against the defaulter.
Blacklisting : Non-compliant entities may be blacklisted or face restrictions on conducting certain transactions until they fulfill their GST registration obligations.