GST Registration Bangalore: Eligibility, Requirements & Process
Posted on: 2018-11-30 00:46:15
The term GST refers to goods and services tax, a tax structure brought about to replace all previous kinds of taxes such as sales tax, service tax, and excise duty, to name a few. GST registration is needed if you are selling goods and services in excess of INR 40 lakh a year.
However, experts would tell you that you should register for GST even if your annual sales are lower than that and there are some good reasons for that as well. Without GST registration you would not get tax refunds on purchases and you would be unable to sell the products or goods outside of your state as well.
It normally takes around 2 to 6 working days in order for an applicant to be registered for GST. Thankfully, these days there are plenty of service providers that can help you with the likes of GST registration services in Bangalore.
What are the different kinds of GST? Why are they necessary?
India is a federal country, which means that both the central government and the state governments have the power to levy and collect taxes. The tax structure of GST has also been determined keeping this in mind only.
There are three main types of taxes in this regard – CGST (central goods and service tax), SGST/UTGST (state or union territory goods and service tax), and IGST (integrated goods and service tax).
CGST: CGST is a tax that is levied on the intra state supplies of goods and services. It is the Indian government that levies the tax and the entire thing is done under the guidance of the CGST Act. This means that if you sell goods outside your own state this tax would come into play. The highest rate of taxation in this case at present is 14 per cent.
SGST/UGST: SGST or UTGST is a tax that a state or union territory government levies on the interstate supplies of goods and services. This means that the tax would come into play when you supply goods and services within your state. It is the SGST Act that governs such levies.
IGST: IGST is the tax that is levied under the IGST Act and is levied on imports and exports to and from India.
The main purpose of such taxation is to make sure that both the central government and state or union territory governments can get an equal share of the revenue that is being generated by way of these taxes.
Rate slabs under GST
There are five main rate slabs in the GST structure – 0 per cent tax slab, 5 per cent tax slab, 12 per cent tax slab, 18 per cent tax slab, and 28 per cent tax slab.
Who is Liable to Register Under GST?
A taxable person who is doing business or engages in ecommerce activity or supplying in goods/ services in any places of India has to acquire the GST registration under Section 22 or Section 24 of GST Law.
The registration of GST happens to be based on PAN (permanent account number) and is state specific in nature.
- If you are a supplier who works in a number of states as well as union territories you would have to register in each one of them. There are certain conditions fulfilling which one should register for GST.
- If you earn INR 40 lakh from sales all across the country you have to register for GST. In the northeastern states this limit is at lower than INR 20 lakh.
- If you are presently registered under any indirect tax such as VAT (value added tax), excise laws or service tax laws you would have to get registered for GST.
- If you have branches in various states or a number of businesses at the same time in a state you would have to register for GST.
- If you have to pay taxes under reverse charge you should register for GST. This is applicable when your supplier has not registered for GST.
- If you are input service distributor or are supposed to deduct taxes at source you have to get registered for GST. The same is also applicable if you work as the agent of a supplier.
- If you provide goods and services through an ecommerce operator you would need GST registration. This is also applicable for the ecommerce aggregators and operators such as Flipkart, Amazon, and Uber that operate under their own brand name.
- If you are in the business of supplying database retrieval and access services, and online information from outside India to people in India with the exception of a registered taxable individual you ought to be registered for GST as well.
Who are exempted to register from GST?
Those who are supplying non-taxable or exempted goods/ products, they are not required to register under GST.
These are the following supplies which come under the exemption in GST as per GST Law:
- Supplying tax exempted (0%) goods or products;
- Supplying non-taxable goods or services or both as per Section 2(78) of GST Act, 2017;
- Supplying goods and services or both that is wholly and partly exempted from IGST Act under Section 11 or Section 6;
- Engaging activities which neither regarded as supply of goods nor services (like doing work as employee);
- Engaging in preparation of agriculture products (like agriculturists);
What are the benefits of GST registration?
When you are registered under GST you would receive a number of advantages as a taxpayer.
- Legally, you will be recognized as a supplier of goods or services.
- Your porper accounting of taxes paid on purchased goods or services helps to maintain GST due on supply or sales of goods or services.
- You would have the authority to collect taxes from your customers and pass on the credit of the taxes that you have paid to them.
- You can also claim input tax credit of all the taxes that you have paid to your suppliers and can use the money to pay for other taxes that are due to be paid by you. At the national level GST allows for smooth flow of input tax credit to the recipients from the suppliers.
Online GST Registration Process
To do GST registration and obtain GSTIN for the businesses, the applicant has to follow these 8 steps:
- First of all, you would have to visit the official website of GST Portal and click on Service tab, then Registration and then click on New Registration for fresh GST registration.
- The applicable form in this case would be GST REG-01. Here you would have to fill up Part A with important details such as Select the Type of Taxpayer, State/UT, District, Business Name, PAN, Email ID and Mobile Number.
- After this there would be an OTP (one-time password) verification. After this you would get a Temporary Reference Number (TRN) on your mobile phone as well as email.
- After this you would have to fill up Part B by selecting Temporary Reference Number (TRN). At this stage, you would have to fill the details of your business and upload certain documents regarding to it. Then you have to sign it using your DSC (digital signature certificate) or EVC (electronic verification code).
- After this you would get the Application Reference Number (ARN) acknowledgment form GST REG-02.
- In case the GST department asks for any information or provides you any intimation through the Form GST REG-03, you can upload that through form or visit the department yourself. Then you would need to provide the necessary clarifications and produce some documents within a space of 7 working days. This needs to be done through GST REG-04.
- In case there are any errors in your application the office could reject it and you would get information of the same through GST REG-05.
- The registration certificate of GST would be issued to you in the form of GST REG-06.
What are the documents needed to register for GST?
The following documents are needed in order to register for GST:
- PAN card of owners, partners, or directors
- Aadhaar card of owners, partners, or directors
- Electricity or telephone bill, letter of consent, or rent agreement
- A proper Indian mobile phone number
- Partnership deed or MOA (memorandum of association) and AOA (articles of association)
- A proper email address
- Letter of authorization for the signatories – they should be residents of India at the very least
- Jurisdiction details
- Bank statement or cancelled cheque
Fees for a new GST registration
We would like to tell you one thing that Government is not charging any fees for the GST registration in India; means no need to pay any fee for GST registration on GST Portal. But for doing this, professionals (CA/ CS/ CMA) are charging some fees.
However, this process is a little bit longer, requires lots of information and scanned documents to input for the business. You can opt for BusinessWindo in this regards, our Professional charges starts from Rs. 2500; you will be assisting by our well experienced experts up to end-to-end process and it is excluding from GST return filing.
What are the penalties for not registering with GST?
The GST Act specifies some strict laws for businesses that do not comply with GST regulations. In case you do not pay the full amount, you would have to pay 10 per cent of the unpaid amount or INR 10,000 for tax evasion. At the same time if you do not pay the taxes the penalty would be 100 per cent of your due taxes.
How can we help you in this regard?
These days, there are a number of companies that are offering services such as GST returns filling for businesses in Bangalore, and online GST registration services. They are helpful organizations, really helping the business entities to come out from certain sorts of GST dilemma.
Apart from them; we are BusinessWindo, a leading company registration service provider in Bangalore can help you with each and every facet of GST related work. Here are some of the services we are offering to you by our organization which is enumerated as below:
- GST Consultation
- GST Registration
- GST Returns Filing
- GST Audit
- Income Tax Filing
- PF (Provident Fund)
- ESI (Employees’ State Insurance)
- PT (Professional tax)
- All kinds of taxation related services
- Accounting Services
- Company Incorporation
So, as you can see, you can basically get all the services that you need from our expert CAs (chartered accountants). We have been in this business for a long time and helped plenty of businesses like you before. You can trust on us to do it better for you as well. GST is something that is necessary for your business. If you are eligible for that as per GST Law; go for that, which help you to grow and legalize your business.
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