Documents Required for GST Registration

What is GST registration?

Let’s first understand what GST registration is. A business offering goods and services in any state in India has to get itself registered as a normal taxpaying entity if it crosses a certain prescribed revenue threshold.

Know that a business engaged in offering goods that crosses an annual turnover of 40 lakhs, a business dealing with services crossing the annual turnover of 20 lakhs and businesses in specific/listed states crossing an annual turnover of 10 lakhs have to get a GST registration, mandatorily. In addition to this, for any business to offer their goods and services on any e-commerce platform, obtaining a GST registration is mandatory, regardless of the revenue threshold.¹

Once a business obtains GST registration, a 15-digit GST identification number or GSTIN is provided. This unique identification number is provided to ensure a smooth functioning tax assessment and collection. Additionally, obtaining a GST number also allows businesses to avail of input tax credits for incoming supplies.¹

 

Do you need a GST registration?

Remember that obtaining a GST registration is mandatory for business owners who cross a certain prescribed revenue threshold. In addition to this, if you come under the below-mentioned list, a GST registration is mandatory irrespective of the revenue threshold:

1. If you are an individual registered under pre-GST law, such as excise, VAT, etc.
2. If you are an agent dealing with supply & Input service distributor
3. If you are an individual paying taxes under the reserve charge mechanism
4. If you are an individual liable to pay taxes or a non-resident taxable person.
5. If you are a person who supplies via an e-commerce aggregator
6. If you are involved in the supply of goods or services through e-commerce aggregators.
7. If you are an e-commerce aggregator
8. If you have a business engaged in offering goods that crosses an annual turnover of 40 lakhs, or services crossing the annual turnover of 20 lakhs or have a business in specific/listed states crossing an annual turnover of 10 lakhs.
9. If you are an individual dealing with the supply of online information and database access or retrieval services from a place outside India to a person in India (Excluding a registered taxable person).

 

Key Benefits of GST Registration

Obtaining a GST registration has multiple benefits for every taxpayer, whether it is a natural person or a legal person. Let’s take a look at some of the benefits of GST registration:

 

1. No more cascading effect

Prior to the introduction of GST, businesses and individuals suffered from double taxation at every step, which is called the cascading effect. GST has eliminated this by streamlining all the taxes under one umbrella.

 

2. Streamlined tax assessment and collection

Under the earlier VAT system, businesses with a turnover exceeding ₹5 lakh (varied between by states) had to pay VAT. Service tax was exempt for service providers with a turnover below ₹10 lakh.

With GST, the threshold has increased to ₹20 lakh, providing exemption to many small traders and service providers. GST has ensured that the tax assessment and collection process is streamlined. Every state has its defined jurisdiction and control over tax collection. Additionally, businesses benefit from the streamlined assessment of tax, as well.

 

3. Higher tax threshold

Under the earlier VAT system, businesses with a turnover exceeding ₹5 lakh (varied between by states) had to pay VAT. Service tax was exempt for service providers with a turnover below ₹10 lakh.

With GST, the threshold has increased to ₹20 lakh, providing exemption to many small traders and service providersGST has ensured that the tax assessment and collection process is streamlined. Every state has its defined jurisdiction and control over tax collection. Additionally, businesses benefit from the streamlined assessment of tax, as well.

 

4. Benefits of composition scheme

The GST composition scheme has multiple advantages for businesses registered under the scheme. For instance, Small and medium enterprises registered under the scheme with an annual turnover of less than ₹20-50 lakhs 1 crore can enjoy lower tax rates.

 

Documents needed for GST registration

While applying for GST, one needs to submit certain documents to verify their identity. The requirements differ for individuals and businesses. It is essential to submit the right documents to avoid delays or legal issues in future.

 

1. Documents Required for GST Registration of Individuals and Sole Proprietors

The following documents are required for GST registration of individuals and sole proprietors

1. PAN card of the owner
2. Aadhar card of the owner
3. Photograph of the owner
4. Bank account details
5. Address proof

 

2. Documents Required for GST Registration of Companies

The following documents are required for GST registration of companies

1. PAN card of Company
2. Certificate of incorporation given by Ministry of Corporate Affairs
3. Memorandum of Association (MoA) / Articles of Association (AoA)
4. PAN card and Aadhar card of authorised signatory. The authorised 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 authorised signatory (in JPEG format, maximum size – 100 KB)
7. Board resolution appointing authorised signatory / Any other proof of appointment of authorised signatory (in JPEG format / PDF format, maximum size – 100 KB)
8. Bank account details
9. Address proof of principal place of business

 

Consequences of Not Registering for GST

You must understand by now that applying for GST is mandatory if your business is eligible for GST registration.. But what happens if you fail to get a GST registration?

If you do not register for GST, there’s a penalty of 100% of the tax due or ₹10,000, whichever is higher¹.

 

Key Takeaways

1. Submitting the accurate GST registration documents is essential to avoid delays, penalties, or rejection of your application.
2. The requirements of documents differ for different kinds of entities.
3. For individuals and sole proprietors, the main documents include PAN, Aadhaar, a photograph, bank account proof, and address proof.
4. Companies require documents such as the proof of business, proof of the principal and additional place of business, photographs of the stakeholder and authorised signatories, etc.
5. With GST registration, entities can avail benefits like Input Tax Credit.
6. Failure to register for GST when required can lead to heavy penalties, including fines of 10% of unpaid taxes or higher if tax evasion is proven.

 

Conclusion

Registering for GST has been made mandatory to create a well-structured and streamlined tax assessment and collection system. If you have a GST registration, you can pay taxes smoothly and enjoy benefits by filing income tax returns. The application process is online simple, and you do not have to pay any additional cost to obtain a GST number or GSTIN¹.

 

FAQs

 

1. Is GST registration mandatory for every business?

GST registration is mandatory for any business goods that crosses an annual turnover of ₹40 lakhs (for goods) in all states ₹20 lakhs in special category states along with , a business dealing with services crossing an annual turnover of ₹20 lakhs in all states and and businesses in specific/listed states crossing an annual turnover of ₹10 lakhs and above in special category states⁴. GST registration is mandatory for the following individuals, regardless of their turnover⁵: those making inter-state taxable supplies, casual taxable persons, persons under the reverse charge mechanism, electronic commerce operators, non-resident taxable persons, persons required to deduct tax under section 51, persons making taxable supplies on behalf of others, input service distributors, providers of online information and database services from outside India to non-registered persons in India, and any other persons notified by the Government based on GST Council recommendations

 

2. How can I update or modify my GST registration details?

You can update or modify the core fields in the GST registration by seeking approval from tax officials. Core fields include a change in the business’s legal or trade name, which does not require a change in PAN, a change in principal place of business, a change in an additional place of business, or addition or removal of main business individuals like partners, Karta, managing director, etc.

The change in such core fields can be done online through the GST portal.

 

3. How long does the GST registration process take?

The GST registration process can take anywhere between 2 and 6 days.

 

4. Can I cancel my GST registration later?

Yes, individuals or businesses can cancel GST registration later if the individual or business entity doesn’t meet the threshold required for tax filing or if you are shutting down your business or if the tax officer demands a cancellation.

 

Source:

1. https://cleartax.in/s/offences-and-penalties-gst