GST: The game-changer taxation system
GST or Good & Services Tax is an indirect way of collecting tax on the supply of goods and services. It has replaced all the other indirect and state taxes other than few. All everything is now under GST other than oil, gas, and petroleum products. It is a very comprehensive taxation system where entities are taxed at multiple supply chain stages until the final destination.
What is GST Registration?
Every business with an annual revenue turnover of more than 40 lakhs rupees (this limit is 10 lakh for businesses in Northeast and hill states) needs to register at reg.gst.gov.in like a normal taxpayer who has to register in the income tax website. This whole process of registering a business is called GST registration. The whole process takes 2-5 working days to complete, and if a business owner doesn't want to do it themselves, many agencies help businesses get registered. Some businesses, irrespective of their revenue, need to register for GST. Suppose an organization is found doing business without GST registration while having revenue above the limit of 40 lakh. That business will be booked under GST offense laws and might end up paying hefty penalties.
GST Registration Process
There are various types of registrations, like Normal taxpayers, for normal taxpayers and operate a business. Let's get through the GST registration process. Once you are in the GST portal, click the new registration option. A form is opened, and after each step of filling before moving to the next step, an OTP verification is done for the first time. Once OTP is verified, a TRN number is generated for every new registration. Since the process of filling is long, this generated TRN number lets the user open the draft saved version of the form and continue from where it left last time. The next step is to provide business and promoter related information. In the final stage, authorization, letters, and other documents are submitted. We will discuss the needed documents at a later stage. In the end, the verification of application is done, and once everything is completed successfully, an Application Reference Number receipts are sent to your email id. By this, you complete your GST registration procedure.
Documents needed for GST registration & types of GST registration
Documents required for GST registration are as follows:
Passport photo of applicant and photo of the authorized signatory party
Proof of creation of the business
Letter of authorization (permit of business)
Address proof of business place like electricity bill
Bank details with proof like a bank passbook.
As we are already aware of the GST registration limit. It is obvious to say that those businesses that were registered as ta paying entities pre GST era come automatically under the net of GST as well. Composition taxpayers where taxpayers are enrolled can pay a flat GST rate.
The casual taxable person is for those small businessmen who own seasonal shops or stalls or roadside vendors. Finally, for NRIs doing business in India called Non-Resident taxable persons. The GST registration procedure for all these various types of categories is almost the same with little differences. All the types of registration can be done in a window of 3 months when the registration opens.