GST REGISTRATION
GST registration is essential for businesses in India. If your business revenue surpasses certain threshold levels or belongs to specific categories that require GST registration, it’s imperative to register following the GST regulations. GST Accounting Hub can assist you in obtaining your GST registration seamlessly.
Contact our experts today to streamline your GST registration process!
OVERVIEW OF ONLINE GST REGISTRATION
Since its introduction on 1 July 2017, the Goods & Services Tax (GST) has been mandatory for all service providers, traders, manufacturers, and even freelancers in India. The GST system was implemented to replace Central and state-level taxes such as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT, making the tax process more streamlined.
For those taxpayers whose annual turnover is less than ?1.5 crore, the GST framework provides an option for a composition scheme. This scheme allows them to undergo simplified GST procedures and pay taxes at a predetermined rate according to their turnover.
The GST mechanism operates throughout various stages of the supply chain. This includes acquiring raw materials, production, wholesale, retail, and the eventual sale to the end consumer. Notably, GST is imposed at every one of these steps. For example, when a product is produced in West Bengal and then used in Uttar Pradesh, the GST revenue generated is allocated entirely to Uttar Pradesh, emphasizing the consumption-based nature of GST.
KEY COMPONENTS OF GST
The Goods and Services Tax (GST) in India is structured around three primary components:
- Central Goods and Services Tax (CGST): This tax is levied by the Central Government on the supply of goods and services within a particular state. CGST applies to transactions carried out entirely within the boundaries of one state.
- State Goods and Services Tax (SGST): SGST is charged by the State Government on the supply of goods and services within its jurisdiction. Similar to CGST, SGST is also limited to transactions happening within a specific state.
- Integrated Goods and Services Tax (IGST): This tax is imposed by the Central Government on the supply of goods and services that occur between different states or between a state and a Union Territory. IGST is relevant for transactions where goods or services cross state or Union Territory boundaries.
WHO IS REQUIRED TO REGISTER FOR GST?
GST registration is essential for following person:
- Business Entities: Any enterprise with an aggregate annual turnover exceeding Rs. 40 lakhs. For special category states under GST, the threshold is Rs. 20 lakhs.
- Service Providers: Those with an aggregate annual turnover surpassing Rs. 20 lakhs. For special category states, this limit is Rs. 10 lakhs.
- Exemptions: It’s important to note that entities dealing exclusively in GST-exempted goods or services are not bound by these thresholds.
- Previously Registered Entities: Entities that were registered under older tax frameworks (like Excise, VAT, Service Tax, etc.) need to migrate and register under the GST regime.
- Inter-State Suppliers: Any entity or individual involved in the supply of goods across state boundaries.
- Casual Taxable Entities: Those who undertake taxable supply occasionally.
- Entities under Reverse Charge Mechanism: Businesses obligated to pay tax under the reverse charge.
- Input Service Distributors & Agents: Distributors of input services, including their representatives.
- E-Commerce Platforms: Operators or aggregators of e-commerce platforms
- Non-Resident Taxable Entities: Individuals or entities that are non-resident but engage in taxable supply within India.
- Supplier’s Agents: Representatives who supply on behalf of a principal supplier.
- E-Commerce Suppliers: Individuals or entities that offer goods or services through an e-commerce aggregator.
- Online Service Providers: Entities delivering online information, database access, or retrieval services from outside India to an individual in India, excluding those already registered under GST.
GST REGISTRATION TURNOVER LIMIT
GST registration can be obtained voluntarily by any person or entity irrespective of turnover. GST registration becomes mandatory if a person or entity sells goods or services beyond a certain turnover.
Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.
Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:
- Should not be providing any services.
- The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.
- Should not be involved in the supply of ice cream, pan masala or tobacco.
If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.
Special Category States: Under GST, the following are listed as special category states – Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).
Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.
ADVANTAGES OF GST REGISTRATION FOR BUSINESSES
Registering for GST offers a range of benefits to businesses:
- Legal Compliance: Ensures that businesses remain compliant with tax regulations, thus avoiding any potential penalties.
- Input Tax Credit: Businesses can claim credits for the GST they’ve paid on purchases, which can then be set off against the GST charged on sales, leading to a reduction in tax liability.
- Inter-State Trade Ease: Encourages businesses to transact across state boundaries without facing tax-related challenges.
- Elimination of Cascading Effect: By removing the effect of tax being levied on an already taxed amount, the overall cost of products or services is reduced.
- Competitive Edge: Being GST compliant can instill trust in potential customers, opening up more business opportunities.
- Access to Larger Markets: Major corporations often prefer collaborating with GST-registered vendors.
- Optimized Cash Flow: Efficient management and lower tax liability can enhance the cash flow within a business.
- Enhanced Credit Rating: Maintaining a consistent and positive GST compliance record can boost a business’s credit profile.
- Legal Safeguard: A GST registration protects businesses and ensures their rights are upheld.
- Simplified Compliance: The GST process is streamlined, enabling businesses to file returns and make payments online easily.
- Transparent Operations: Ensures businesses maintain accurate records, promoting a sense of trustworthiness and professionalism.
GST CERTIFICATE
The GST Certificate stands as an authoritative document provided by the Indian government to entities that are registered under the Goods and Services Tax (GST) framework. This certificate confirms a business’s legitimate Registration under GST and prominently displays key details such as the GST identification number, the business name, and official address.
Possessing an authentic GST Certificate is pivotal for enterprises because:
Tax Collection Authority: It empowers businesses to impose and gather GST from their clientele.
- Tax Credit Claims: With this certificate, businesses can rightfully claim credits on the GST they’ve disbursed on their procurements and operational costs.
- Furthermore, beyond its tax-related functions, the GST Certificate holds significance in several other domains:
- Loan Applications: When seeking financial aid or loans, businesses might be asked to present their GST certificates to validate their authenticity.
- Government Tenders: To be eligible and participate in official government tenders, the GST Certificate must often be produced as evidence of tax compliance.
- Market Reputation: The certificate enhances a business’s stature in the market, reflecting its commitment to national tax regulations.
GSTIN
GSTIN, which stands for Goods and Services Tax Identification Number, is a distinctive 15-digit alphanumeric code allocated to every taxpayer who is registered under the GST framework in India. This number acts as the primary identifier for both businesses and individuals in the context of GST-related transactions and compliance.
NOT REQUIRED GST REGISTRATION FOR BUSINESSES
Businesses generating a turnover of less than Rs.20 lakhs can enroll for GST voluntarily. By doing so, they can benefit from advantages such as availing input tax credits, unrestricted inter-state sales, eligibility to list on e-commerce sites, and establishing a competitive stance against businesses that aren’t GST-registered. While this Registration isn’t a mandate, it paves the way for enhanced growth prospects and the potential for increased profitability.
DOCUMENTS REQUIRED FOR GST REGISTRATION
Sole proprietor / Individual |
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LLP and Partnership Firms |
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HUF |
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Company (Public and Private) (Indian and foreign) |
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CONSEQUENCES OF NOT SECURING GST REGISTRATION
For Non-Payment or Underpayments: If a taxpayer either neglects to pay the requisite tax or mistakenly underpays, an acceptable equivalent of 10% of the outstanding tax amount is levied. However, the penalty cannot be less than Rs. 10,000.
Intentional Tax Evasion: If an individual or business willfully avoids paying the due taxes, the penalty equals 100% of the evaded tax amount.
GET GST REGISTRATION QUICKLY THROUGH GST ACCOUNTING HUB
You can obtain your GST registration through GST Accounting Hub in less than 7 working days. Enter your name, phone number and email to being the process.
When we receive your request a GST expert will reach out to you and understands your business activity, the state where the business is operating and answer any questions that you may have.
The GST expert will also collect and verify the documents required to obtain GST registration. Once the payment is initiated we start with the GST registration process and we upload all your application into the GST Portal.
You obtain the GST registration within 3 to 7 working days. Everything is completely online you don’t need to be physically present at the office for the same. Along with the GST registration, access is provided to LEDGERS Platform for your to do GST invoicing and GST return
Documents Required For GST Registration
Electricity Bill
Latest electricity bill for the premises where GST registration is applied for.
Telephone Bill
Latest telephone bill for the premises where GST registration is applied for in some states.
Property Tax Receipt
Latest property tax receipt for the premises where GST registration is applied for.
GST Registration FAQ’s
GST Return Filing
In India, Every Organizations registered under GST must file their GST returns with a frequency that aligns with their business operations – monthly, quarterly, or yearly. This requirement might seem daunting, but with the online assistance of GST professionals from GST Accounting Hub , navigating through the necessary processes can be straightforward. Taxpayers must adhere to the designated deadlines for their GST submissions, as these returns are crucial for the Indian government to ascertain the nation’s tax obligations.
Streamline your GST Return filing process and maintain compliance effortlessly with GST Accounting Hub. Benefit from the convenience of LEDGERS GST platform, where you can access your business financials in real-time from any location. Plus, LEDGERS integrates smoothly with the apps you already use, ensuring a seamless workflow.
File GST returns with GST Accounting Hub now and keep your business ahead with ease!
What is GST Return?
A GST Return is a detailed statement that captures all the financial transactions of a person registered under GST, reflecting revenues and expenditures. It is a mandatory submission for every holder of GSTIN to the tax authorities, allowing them to determine the net tax liability with precision.
The GST return filing encompasses several critical elements:
- Purchases: It records in detail the purchases the taxpayer has made.
- Sales: It provides a comprehensive log of the taxpayer’s sales activities.
- Output GST (On Sales): It notes the GST charged on the taxpayer’s sales.
- Input Tax Credit (GST Paid on Purchases): It lists the GST paid on purchases, which is eligible to be deducted from the GST owed on sales.
For those seeking guidance on GST return filing or support with managing their GST compliance, GST Accounting Hub offers GST software designed to streamline the process.
Who Should File GST Returns?
GST returns must be filed by any business or individual registered under the GST regime. This obligation applies to entities whose annual aggregate turnover surpasses the specified threshold, which is set by the tax authorities and may differ for various classifications of taxpayers, such as standard taxpayers and those opting for the composition scheme.
How Many Returns are there under GST?
Within the Goods and Services Tax (GST) system, 13 returns cater to different facets of a taxpayer’s financial dealings. It’s important to recognize that not all taxpayers must file every type of return; the specific returns that need to be filed depend on the taxpayer’s category and the particulars of their GST registration.
Below is a snapshot of the 13 GST returns:
- GSTR-1: Filed for disclosing details of outward supplies, essentially the sales.
- GSTR-3B: A summarised return that outlines both sales and purchases, inclusive of tax payments.
- GSTR-4: Applicable to those under the Composition Scheme, summarizing turnover and corresponding tax.
- GSTR-5: For non-resident taxpayers conducting taxable transactions in India.
- GSTR-5A: For providers of online information and database access or retrieval services.
- GSTR-6: Used by Input Service Distributors for detailing input tax credit distribution.
- GSTR-7: For entities required to deduct TDS under GST.
- GSTR-8: To be filed by e-commerce operators reporting transactions on their platform.
- GSTR-9: An annual comprehensive return summarizing all periodical filings over the fiscal year.
- GSTR-10: The final return upon cancellation or surrender of GST registration.
- GSTR-11: For those with a Unique Identity Number, claiming refunds on their purchases.
- CMP-08: A quarterly statement for Composition Scheme taxpayers detailing tax liability.
- ITC-04: For manufacturers to declare details about goods dispatched to and received from a job worker.
Additionally, there are return-related statements for input tax credits:
- GSTR-2A (dynamic): Offers a real-time perspective of inward supplies as suppliers report.
- GSTR-2B (static): Provides a fixed snapshot of inward supplies based on the suppliers’ filings.
For small taxpayers enrolled in the Quarterly Return Monthly Payment (QRMP) scheme, the Invoice Furnishing Facility (IFF) permits the declaration of B2B sales during the first two months of a quarter. Nonetheless, these taxpayers are obligated to remit taxes monthly using Form PMT-06.
GSTR-1 (Return for Outward Supplies)
GSTR-1 is the mandatory return for businesses to detail their outward supplies of goods and services. This encompasses all sales-related invoices and adjustment notes for the given tax period. Every regular taxpayer under GST, including those classified as casual taxable persons, is obligated to file GSTR-1.
Submission Deadlines
- Monthly: Due on the 11th of the subsequent month for businesses whose yearly turnover exceeds Rs. 5 crore or for those not enrolled in the QRMP scheme.
- Quarterly: Due on the 13th of the month after the quarter’s end for businesses participating in the QRMP scheme.
GSTR-2A (Dynamic Read-Only Return)
GSTR-2A is a dynamic, read-only return for the recipients or purchasers of goods and services, capturing details of all incoming supplies from registered GST vendors within a tax period. The information in GSTR-2A is filled automatically from the GSTR-1 returns of suppliers and the Invoice Furnishing Facility (IFF) data for those in the QRMP scheme.
GSTR-2B (Static Read-Only Return)
Introduced in August 2020, GSTR-2B is a static read-only return that provides consistent ITC information sourced from the previous month’s GSTR-1 filings. It supports purchasers in matching their ITC claims for each tax period, advising on necessary actions for each listed invoice, including any need for reversals, ineligibility, or application of the reverse charge.
GSTR-2 (Deferred Return)
GSTR-2, an editable return, is presently deferred and was meant for registered purchasers to declare their inward supply of goods and services for a tax period. Initially planned to be auto-filled from GSTR-2A, its filing has been on hold since September 2017.
GSTR-3 (Deferred Return)
GSTR-3, a suspended monthly summary return for regular taxpayers, compiled concise figures of both outward and inward supplies, input tax credits, tax liabilities, and tax payments. It was automatically generated from GSTR-1 and GSTR-2 filings but has been deferred since September 2017.
GSTR-3B (Consolidated Return)
GSTR-3B, a monthly summary declaration for normal taxpayers, summarizes outward supplies, input tax credits, and tax dues. Before submitting GSTR-3B, it is critical to reconcile sales and ITC details with GSTR-1 and GSTR-2B records.
Submission Deadlines
- Monthly: Due by the 20th of the month following the reporting month for taxpayers with an annual turnover above Rs. 5 crore.
- Quarterly: Due by the 22nd of the month following the quarter for ‘X’ category states and by the 24th for ‘Y’ category states for taxpayers with a turnover of up to Rs. 5 crore in the QRMP scheme.
GSTR-4 (Return for Composition Scheme Taxpayers)
GSTR-4 is the yearly return for those under the Composition Scheme, due by April 30th of the subsequent financial year. GSTR-4 has replaced the prior quarterly submissions, with taxpayers now submitting a simplified challan via Form CMP-08 by the 18th following each quarter’s end
Under the Composition Scheme, businesses with goods turnover up to Rs. 1.5 crores may pay tax at a predetermined rate on their turnover. Service providers with a turnover of up to Rs. 50 lakh can opt for a similar benefit
GSTR-5 (Return for Non-Resident Foreign Taxpayers)
GSTR-5, required by non-resident foreign taxpayers engaged in business in India, details their outward and inward transactions, adjustments, tax liabilities, and payments, with submissions due by the 20th of each month
GSTR-5A (Return for OIDAR Service Providers)
GSTR-5A is the monthly summary for providers of Online Information and Database Access or Retrieval Services, due by the 20th of every month.
GSTR-6 (Return for Input Service Distributors)
Input Service Distributors must file GSTR-6 monthly, reporting the ITC received and allocated, including detailed documentation related to the distribution of credits, by the 13th of each month.
GSTR-7 (TDS Return)
Entities must deduct TDS under GST file GSTR-7 monthly, documenting TDS deducted, due and paid amounts, and any TDS refunds, with filings due by the 10th of the subsequent month.
GSTR-8 (Return for E-commerce Operators)
E-commerce operators under GST must submit GSTR-8 monthly, recording the supplies made and tax collected at source, due by the 10th of the following month.
GSTR-9 (Annual Return)
All GST-registered taxpayers must file GSTR-9 annually, summarizing their outward and inward supply details, taxes due, and paid. The due date is December 31st of the year after the
Due dates for various types of GST returns
| GST Return | Type of Taxpayer | Due Date |
|---|---|---|
| GSTR-1 | Regular Taxpayer |
Monthly: 11th of the following month Quarterly: 13th of the month following the quarter |
| GSTR-2A (Auto-generated) | All Taxpayers | Auto-generated, utilized for reconciliation purposes |
| GSTR-3B | Regular Taxpayer | Monthly: 20th of the following month |
| GSTR-4 | Composition Scheme Dealer | Annually: 30th of April following the end of the financial year |
| GSTR-5 | Non-Resident Foreign Taxpayer | 20th of the following month |
| GSTR-6 | Input Service Distributor | 13th of the following month |
| GSTR-7 | Tax Deducted at Source (TDS) | 10th of the following month |
| GSTR-8 | E-commerce Operator | 10th of the following month |
| GSTR-9 | Regular Taxpayer (Annual) | 31st December of the following financial year |
| GSTR-9C | Regular Taxpayer (Annual) | Filed along with GSTR-9, by 31st December of the following financial year |
Penalty for Late Filing GST Returns
If you submit GST returns late, you could face penalties and interest charges. Businesses should submit on time to avoid these costs. Here’s what you need to know about late GST returns:
- Filing Returns is Required: Every registered taxpayer has to file GST returns regularly, even if there’s no business activity.
- Delays Lead to More Delays: If you miss a filing deadline, you can’t file for the next period until you’ve filed for the previous one. This can lead to a pile-up of late returns.
- Penalties for Late Filing: If you file GSTR-1 late, for example, you’ll get a penalty that shows up when you file GSTR-3B.
- Interest on Late Tax Payments: If you owe taxes and pay late, you’ll be charged 18% interest per year on the amount you owe, starting from the day after the due date until you pay
- Late Filing Fees: The law sets the late filing fee at Rs. 100 per day for each CGST and SGST, with a maximum of Rs. 5,000.
- Annual Return Late Fees: For yearly returns like GSTR-9 and GSTR-9C, the late fee is capped at 0.25% of your turnover in your state or UT unless the government provides relief or changes the fees.
How do you file the GST returns?
GST Accounting Hub is a leading business service platform in India; we offer end-to-end GST services. We have helped thousands of business owners to get GST registration, as well as file GST returns.
Outsource GST Compliance to GST Accounting Hub
Outsource your GST compliance to GST Accounting Hub to ease your compliance burden and focus your efforts on growing your business. With GST Accounting Hub, your GST compliance will be maintained on the LEDGERS GST platform, providing you access to live business data – anywhere, anytime. LEDGERS can also seamlessly sync and work with other online and offline applications you regularly use
When GST return filing is outsourced to IndiaFilings, a dedicated GST advisor is assigned to the business.
This dedicated advisor would reach out to you every month and collect the necessary information, prepare the GST returns, and help in filing the GST returns.
Benefits of choosing GST Accounting Hub for the GST returns
Dedicated GST Advisor
A relationship manager with experience in the sector that you operate in will guide you through the process of GST registration and filing. They will help with specific tasks such as uploading invoices and also ensure that your filing is taken care of on time.
Reminder to file GST returns
Our platform ensures that you get timely reminders well in advance of the deadline beyond which penalty will be applicable. In addition to this, your GST advisor will remind you periodically so that no deadlines are missed.
Monthly GST Status reports
Monthly reports detailing the status of GST return filing, including GSTR- 3B and the way forward, will be shared with the clients by the GST advisors.
GST returns by LEDGERS
GST returns are prepared by LEDGERS- the GST software so that it is error-free and filed on time without hassles.
Standard accounting and cloud records
All of your financial transactions and invoices will be recorded in LEDGERS by accountants so that the filing of all your returns, including ITR, TDS, and GST, is seamless and cost-effective.
LEDGERS GST Software
In addition to the GST advisor support, LEDGERS GST Software will be provided to the client for GST invoicing, payments, returns filing, and accounting.
Some of the features of LEDGERS are:
- Customer management
- Supplier management
- GST Invoicing
- Estimate issuance & tracking
- Accounts receivables tracking
- Purchase register
- Payments tracking
- Payables management
- Automated GST return filing (GSTR-1, GSTR-3B)
- Automatic Input Tax credit reconciliation
- GST E-way bill generation & management
Ensure your business stays compliant and avoids penalties by filing your GST returns on time with IndiaFilings. Talk to our experts today to start and experience hassle-free filing with expert assistance every step of the way.
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