GST Registration – Easy Guide FY 2021 Onwards

GST is applicable on supply of goods or services in India. It is a destination-based consumption tax. A dual taxation model wherein tax levied by both Central and State governments. GST has replaced Excise duty, Service tax, State VAT, Purchase Tax, luxury Tax, Entry Tax, Entertainment allowance, States cess and surcharges.

Definition of taxable person under section – 2 of GST Act

GST defines a ‘taxable person’ as a person carrying business and is either registered or required to be registered under the Act in India. A taxable person can be Individual, Hindu undivided Family (HUF), company including foreign company, firm, LLP, Association of Person (AOP) or Body of Individuals (BOI), local authority & Artificial Judicial Person (AJP), Trust, Cooperative Societies, Societies as defined under societies registration Act Central Government and State government, body corporate incorporated under the laws of outside India.

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.

For Service Providers if aggregate turnover exceeds INR 20 lakhs in a year is compulsorily required to obtain GST registration. However, for special category states, aggregate turnover limit for service providers is INR 10 lakhs.

Goods Suppliers if aggregate turnover exceeds INR 20 lakhs in a year is compulsorily required to obtain GST registration. However, for special category states, aggregate turnover limit for service providers is INR 10 lakhs.

As per Notification No. 10/2019 dated 07 Mar, 2019 a special benefit was given to persons who is exclusively involved in supply of goods and whose aggregate turnover does not exceed INR 40 Lakhs. Also, the benefit is available only to person who are not compulsorily required to obtain registration under Section 24 or they are not supplier of pan masala, Ice cream and other edible ice, whether or not containing cocoa or All goods, i.e., Tobacco and manufactured tobacco substitutes.

What are Special Category States

As specified in article 279A(4)(g) of constitution. They are Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. 

What is Aggregate Turnover as per GST Act

As per Section 2(6) of the GST Act ‘Aggregate Turnover’ means 

Aggregate turnover = Value of all taxable Supplies

Add: Exempt Supplies

Add: Export of Goods or Services or both

Add: Interstate supply of persons having same PAN

Less: CGST/SGST/IGST/UGST, Cess

Less: Value of inward supplies on which tax is payable be a person on reverse charge basis.

Compulsory GST Registration

Following category of persons have to obtain compulsory GST Registration:

1. Persons making inter-State taxable supply
2. Casual taxable persons ( However, casual taxable person making taxable supply of handicraft goods were given exemption from compulsory registration vide notification no 32/2017 of CGST Act)
3. Person who pays tax under RCM
4. persons who supply goods or services or both through electronic commerce operator
5. non-resident taxable persons making taxable supply
6. Input Service Distributor
7. every electronic commerce operator;
8. every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

Exempted from GST Registration even if making inter state supply

Following categories of person are exempted to obtain GST registration even if making inter state supply:

• Persons making interstate supply of services if the aggregate turnover does not exceed 20 lakhs & for special category states, aggregate turnover limit for service providers is INR 10 lakhs.
• Job workers engaged in making inter-State supply of services to a registered person.
• Person making supply of services through Electronic Commerce Operator (ECO) who is required to collect TCS U/S 53 if the aggregate turnover does not exceed 20 lakhs & for special category states, aggregate turnover limit for service providers is INR 10 lakhs.
• Persons or casual taxable persons making interstate supply of handicraft goods if the aggregate turnover does not exceed 20 lakhs & for special category states, aggregate turnover limit for service providers is INR 10 lakhs.

HSN Code covered under handicraft goods are:-

S No	Description	HSN Code
1.	Leather articles (including bags, purses, saddlery, harness, garments)	4201, 4202, 4203
2.	Carved wood products (including boxes, inlay work, cases, casks)	4415, 4416
3.	Carved wood products (including table andkitchenware)	4419
4.	Carved wood products	4420
5.	Wood turning and lacquer ware	4421
6.	Bamboo products[decorative and utility items]	46
7.	Grass, leaf and reed and fibre products, mats, pouches, wallets	4601, 4602
8.	Paper Mache articles	4823
9.	Textile (handloom products)	including 50, 58, 62, 63
10.	Textiles hand printing	50, 52, 54
11.	Zari thread	5605
12.	Carpet, rugs, durries	57
13.	Textile hand embriodery	58
14.	Theatre costumes	61, 62, 63
15.	Coir products (including mats, mattresses)	5705, 9704
16.	Leather footwear	6403, 6405
17.	Carved stone products (includingstatues, statuettes, figures of animals, writingsets, ashtray, candle stand)	6802
18.	Stones inlay work	68
19.	Pottery andclay products, including terracotta	6901, 6909, 6911, 6912, 6913, 6914
20.	Metal table and kitchen ware (copper, brass ware)	7418
21.	Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals of chapters 73 and 74	8306
22.	Metal bidriware	8306
23.	Musical instruments	92
24.	Horn and bone products	96
25.	Conch shell crafts	96
26.	Bamboo furniture, cane/Rattan furniture
27.	Dolls and toys	9503
28.	Folk paintings, madhubani, patchitra, Rajasthani miniature	97

All about GSTIN

GSTIN acronym of Goods and Services Tax Identification Number a 15-digit registration number provided to taxable person. Applying for GST registration does not involve any payment of fees and same can be obtained online within 7 working days. The Code consists of 2-digit state code followed by 10-digit PAN of person.

Download GST Registration Certificate

GST certificate can be downloaded for GST portal online.  Logon to GST Account and go to user services to download the same. The certificate should be prominently displayed at taxable persons place of business.

GST Portal Link refer >> https://www.gst.gov.in/

Register for GST through TaxLedgerAdvisor

Our experts at TaxLedgerAdvisor can obtain GST Registration. The process usually takes 3 to 7 working days. The process is in online mode and no manual process involved.

Also refer other articles from Tax Ledger Advisor >>

https://www.taxledgeradvisor.com/gst-return-filing/

https://www.taxledgeradvisor.com/gst-annual-return-filing/

https://www.taxledgeradvisor.com/gst-cancellation/

Voluntary Registration under GST in Udaipur and Rajasthan

Any taxable person being a supplier of goods or services or both as defined above can voluntarily obtain GST registration irrespective of their aggregate turnover.  Voluntary registration

Any person or entity that wishes to supply goods or services can obtain GST registration voluntarily, irrespective of business turnover. Voluntarily obtaining GST registration can help the business avail Input Tax Credit and also provide GST bill to customers.

Penalty for not Obtaining GST Registration

A taxable person who once crosses the aggregate turnover limit or who is otherwise required to obtain registration shall obtain the same with thirty days of becoming liable to obtain such registration. A penalty of INR 10,000 can be levied for delay or non-compliance

Documents Required for GST Registration

Sole proprietor / Individual	1.      PAN Card and Aadhar card 2.     Photograph 3.     Bank account statement 4.    Place of business Address proof either property documents/rent agreement along with electricity bill/No Objection Certificate by owner
LLP and Partnership Firms	1.      PAN card of all partners 2.     partnership deed copy 3.     Photograph of all partners and authorized signatories 4.    Address proof of partners 5.    Aadhar card of authorized signatory 6.    Proof of appointment of authorized signatory 7.     In the case of LLP, registration certificate / Board resolution of LLP 8.    Bank account details 9.    Place of business Address proof either property documents/rent agreement along with electricity bill/No Objection Certificate by owner Address proof of principal place of business
HUF	1.      PAN card of HUF 2.     PAN card and Aadhar card of Karta 3.     Photograph of the owner 4.    Bank account details 5.    Place of business Address proof either property documents/rent agreement along with electricity bill/No Objection Certificate by owner Address proof of principal place of business
Company (Public and Private) (Indian and foreign)	1.      PAN card of Company 2.     Certificate of incorporation provided by MCA 3.     Memorandum of Association / Articles of Association 4.    PAN card and Aadhar card of authorized signatory. The authorized signatory must be an Indian even in case of foreign companies/branch registration 5.    PAN card and address proof of all directors of the Company 6.    Photograph of all directors and authorized signatory 7.     Board resolution appointing authorized signatory / Any other proof of appointment of authorized signatory 8.    Bank account details 9.    Place of business Address proof either property documents/rent agreement along with electricity bill/No Objection Certificate by owner Address proof of principal place of business

GST Registration Advantages

• GST Registration and return filling serves as a proof of turnover and business activity which facilitates person to seek loans from banks or NBFCs.
• Big Corporates/ MNCs usually have a onboarding process for supplier and usually GST registration is a mandatory requirement.
• E- commerce operators (ECO) have made compulsory GST registration for their supplier. So in order to sell products through ECO, person must obtain GST registration.
• Registered person can obtain benefits of taxes paid on his purchases and expenses to meet out its output tax liabilities on supplies made by him.