What is GST Registration?

GST Stands for Goods and Services Tax. It is a form of indirect tax which replaced host of other indirect taxes that were prevalent in India. It was launched in the year 2017. Since then the goods and services are taxed under a single legislation called GST. In simple words GST is a form of tax that a customer bears when he or she purchases any goods or services. The process by which a taxpayer gets registered under Goods and Service Tax (GST) is known as GST registration. Once the registration process has been completed, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15-digit GSTIN is provided by the Central Government and helps to determine whether a business is liable to pay GST.

Types of GST

CGST:
CGST stands for Central Goods and Services Tax. CGST is levied on the movement of goods within a state. This type of tax is collected by the Central Government on an intra-state sale.

SGST:
SGST stands for State Goods and Services Tax. This form of GST is collected by the State Government, which is applicable on transactions done in its geographical boundaries. The features of SGST may vary state-wise as each State Government has individual acts. However, certain characteristics such as taxable events, valuation, classification of goods & services, are similar across the nation.

IGST:
GST stands for Integrated Goods and Services tax which is applicable to interstate transactions, i.e., transactions made between two states. It is levied on supplies of products and services between two states as well as on exports and imports (IGST + customs). IGST is collected by the central government.

UTGST :
UTGST stand for Union Territory Goods & Service Tax. It is one of the components of the GST regime in India, along with the CGST, SGST, and IGST. UTGST is applicable on the supply of goods and services within the Union Territories of India, which are regions that are directly governed by the Central government.

Type of GST Registration

Compulsory Registration
Under the following Situation the dealer must take Compulsory Registration irrespective of turnover :-

• E-commerce Operator
• E-commerce seller
• Interstate supply of Taxable Goods
• Non Resident Taxable Person

Voluntary Registration
A business does not need to apply compulsory registration can apply for voluntary registration.

Registration under Composition Scheme
If the Aggregate Turnover exceeds the prescribed threshold limit of 40 lakhs (20 lakhs in special category states) for goods or 20 lakhs (10 lakhs for special category states) but less than 1.5 Cr (75 lakhs in special category states), then business can be registered under composition Sceme.

In case of services, if the aggregate turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states) but it is less than Rs.50 lacs, the business can be registered under the Composition Scheme. Under this scheme, the taxpayer should pay GST at a fixed rate on turnover and the compliance is lesser than in case of normal registration.

No Registration
In the following case persons are no required to Registration under Gst.

• The business for which aggregate turnover during the financial year does not exceed Rs.40 lacs for goods (Rs.20 lacs for special category states) or Rs.20 lacs for services (Rs.10 lacs for special category states).
• The business that does not fall under the provisions of compulsory registration.
• Persons selling goods or services that are exempt under GST or not covered under GST.
• Agriculturists for the supply of crops produced from the cultivation of land.

Documents Required

• Aadhaar card copy of the proprietor/partners/directors;
• Passport size photograph of the proprietor/partners/directors;
• PAN Card copy of business entity;
• Latest Electricity bill/ bill of any tax paid / Municipal Khata Copy;
• If place is rented, rent agreement will be required, else consent letter is sufficient;
• Bank Statement/ cancelled cheque copy/ copy of first page of passbook;
• Entity should provide registration certificate with Memorandum of Association- Articles of Association / LLP Agreement or Partnership Deed as applicable.