Documents Required for GST Registration

What is GST registration?
 

Let’s first understand what GST registration is. A business offering goods and services in any state in India has to get itself registered as a normal taxpaying entity if it crosses a certain prescribed revenue threshold.

Know that a business engaged in offering goods that crosses an annual turnover of 40 lakhs, a business dealing with services crossing the annual turnover of 20 lakhs and businesses in specific/listed states crossing an annual turnover of 10 lakhs have to get a GST registration, mandatorily. In addition to this, for any business to offer their goods and services on any e-commerce platform, obtaining a GST registration is mandatory, regardless of the revenue threshold.¹

Once a business obtains GST registration, a 15-digit GST identification number or GSTIN is provided. This unique identification number is provided to ensure a smooth functioning tax assessment and collection. Additionally, obtaining a GST number also allows businesses to avail of input tax credits for incoming supplies.¹

Do you need a GST registration?
 

Remember that obtaining a GST registration is mandatory for business owners who cross a certain prescribed revenue threshold. In addition to this, if you come under the below-mentioned list, a GST registration is mandatory irrespective of the revenue threshold:¹

 

• If you are an individual registered under pre-GST law, such as excise, VAT, etc.,
• If you are an agent dealing with supply & Input service distributor
• If you are an individual paying taxes under the reserve charge mechanism
• If you are an individual liable to pay taxes or a non-resident taxable person.
• If you are a person who supplies via an e-commerce aggregator
• If you are involved in the supply of goods or services through e-commerce aggregators.
• If you are an e-commerce aggregator
• If you have a business engaged in offering goods that crosses an annual turnover of 40 lakhs, or services crossing the annual turnover of 20 lakhs or have a business in specific/listed states crossing an annual turnover of 10 lakhs.
• If you are an individual dealing with the supply of online information and database access or retrieval services from a place outside India to a person in India (Excluding a registered taxable person).
   

Documents needed for GST registration
 

Applying for a GST registration is mandatory for individuals and businesses belonging to different categories as prescribed. Therefore, the process, documents required for GST registration, etc., have been kept simple. Here’s a list of documents that you need to obtain GST registration:¹

• PAN card
• A document showing business registration or an incorporation certificate
• Aadhar card
• A document showing identity and address proof of promoters/ directors of the business.
• Photographs of promoters/directors
• Documents of business identification like address proof of the place of business.
• Digital signature of the applicant
• Bank account statement
• A cancelled cheque
• A letter of authorization or board resolution is required for the authorized signatory.
   

Failure to get GST registration: What you need to know
 

You must understand by now that applying for GST is mandatory if you fall under any of the above-mentioned categories and GST registration requirements. But what happens if you fail to get a GST registration? Know that failing to obtain GST registration puts you under penalties stipulated for evading taxes. For instance, If the total tax burden is above ₹1 lakhs, then 10% of the amount is charged as a penalty for not paying taxes or inadequate payment subject to a minimum of Rs 10,000. However, if it is proved that the tax evasion was intentional, then the entire amount can be charged as a penalty.¹

GST registration: What is in it for you?
 

Obtaining a GST registration has multiple benefits for every taxpayer, whether it is a natural person or a legal person. Let’s take a look at some of the benefits of GST registration: ²

• No more cascading effect

  Prior to the introduction of GST, businesses and individuals suffered from double taxation at every step, which is called the cascading effect. GST has eliminated this by streamlining all the taxes under one umbrella.

• Streamlined tax assessment and collectionHigher tax threshold

  Under the earlier VAT system, businesses with a turnover exceeding ₹5 lakh (varied between by states) had to pay VAT. Service tax was exempt for service providers with a turnover below ₹10 lakh.

  With GST, the threshold has increased to ₹20 lakh, providing exemption to many small traders and service providersGST has ensured that the tax assessment and collection process is streamlined. Every state has its defined jurisdiction and control over tax collection. Additionally, businesses benefit from the streamlined assessment of tax, as well.

• Benefits of composition scheme

  The GST composition scheme has multiple advantages for businesses registered under the scheme. For instance, Small and medium enterprises registered under the scheme with an annual turnover of  less than ₹20-50 lakhs1 crore can enjoy lower tax rates.

 

Over to you Conclusion
 

Registering for GST has been made mandatory to create a well-structured and streamlined tax assessment and collection system. If you have a GST registration, you can pay taxes smoothly and enjoy benefits by filing income tax returns. The application process is online simple, and you do not have to pay any additional cost to obtain a GST number or GSTIN¹.
 

FAQs
 

1. What is GST registration?3

   
   A business offering goods or services in any Indian state has to get itself a GST registration if it crosses a certain revenue threshold. The business gets a 15-digit GSTIN or GST number after the registration is complete.
    

2. Is GST registration mandatory for every business?

     
   GST registration is mandatory for any business goods that crosses an annual turnover of ₹40 lakhs (for goods ) in all states ₹20 lakhs in special category states along with , a business dealing with services crossing an annual turnover of ₹20 lakhs in all states and and businesses in specific/listed states crossing an annual turnover of ₹10 lakhs and above in special category states⁴. GST registration is mandatory for the following individuals, regardless of their turnover⁵: those making inter-state taxable supplies, casual taxable persons, persons under the reverse charge mechanism, electronic commerce operators, non-resident taxable persons, persons required to deduct tax under section 51, persons making taxable supplies on behalf of others, input service distributors, providers of online information and database services from outside India to non-registered persons in India, and any other persons notified by the Government based on GST Council recommendations