GST Registration & Return Filing

Who needs to take GST registration?

Well, any business that wants to legally sell goods or services and avoid tax troubles. Got goods to sell? Services to offer? If your annual turnover is ₹ 40 lacs or more for goods, or ₹ 20 lacs or more for services, then you’re in luck – it’s time to get registered for GST!

(Otherwise, the taxman might come knocking on your door and ask for a “small” donation to the government. And trust me, you don’t want that kind of attention unless you want to become a government’s ATM machine!)

GST Registration Online - An Overview

Welcome to the exciting world of GST! The Goods & Services Tax (GST) was launched on 1 July 2017 and applies to all Indian service providers, traders, and manufacturers, including freelancers. GST is a consolidation of various Central and state taxes like Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, Octroi, and VAT. Those with a turnover of less than ₹1.5 crore can choose a composition scheme and avoid complex GST formalities by paying at a fixed rate of turnover. GST is levied on all stages of the supply chain, from raw materials to the final sale to the consumer, regardless of the product’s origin and destination. So, if you’re selling tea from Darjeeling to someone in Kerala, the entire revenue will go to Kerala, not Darjeeling.

What Are the Components of GST?

The Goods and Services Tax (GST) has three main components: CGST, SGST, and IGST.

CGST is the tax component levied by the central government, while SGST is a tax component levied by the state government. Both of these components are levied on all entities for all transactions within the state.
On the other hand, the IGST component is levied by the centre when a transaction occurs between two states. So, whether you’re trading within a state or across state lines, GST has got you covered!

Mandatory Documents For Online GST Registration

To register for GST, businesses need to provide certain documents based on their entity type. Here are the document requirements for different business structures:

For Proprietorship: PAN card and address proof of the proprietor.
For LLP: PAN card of the LLP, LLP agreement, partners’ names, and address proof.
For Private Limited Company: Certificate of Incorporation, PAN card of the company, Articles of Association (AOA), Memorandum of Association (MOA), resolution signed by board members, identity and address proof of directors, and a digital signature.

Don’t forget, double-checking the document requirements can save you from future headaches and stress!

The Following Can Be Shown as Proof of Address of a Director:

Passport
Voter Identity Card
Aadhar Card
Ration Card
Telephone or Electricity Bill
Driving License
Bank Account Statement

Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone

Who Needs a GST Registration Service?

Are you a seller of goods or services?
Do you make taxable supplies?
Do you operate an e-commerce platform?
Are you occasionally supplying goods or services in India as a non-resident?
Are you involved in inter-state supply of goods or services?
Are you an input service distributor or a casual taxable person?
Have you migrated from the old tax regime to GST?

If any of these apply to you, then you need to register for GST services with the prescribed threshold limit of ₹20 lakhs for most businesses.

What is a GST Certificate?

The GST Certificate is a must-have document that proves your business is officially registered under GST. It includes essential details such as your GST identification number, name, and address, and is required to charge and collect GST from your customers. This valuable document can also be used to avail input tax credits, apply for loans, and participate in tenders. So ya, It’s like a superhero’s cape, except it doesn’t make you fly (unless you’re in the aviation industry, of course).

What is GSTIN?

GSTIN, or Goods and Services Tax Identification Number, is a unique identification number assigned to each registered GST taxpayer in India. It is a 15-digit alpha-numeric code that serves as a distinct identification for the taxpayer for all their tax-related activities. The GSTIN can be verified by visiting the GST portal and entering the corresponding GST number. Verification of GSTIN is an essential step to ensure that businesses comply with GST regulations and maintain accurate records of their transactions.

1.Benefit from Input Credit: Under the GST system, input credit allows taxpayers to deduct the tax already paid on inputs while paying tax on the final product or service. This enables businesses to reduce their tax liability and retain more of their profits. Voluntarily registered businesses can enhance their margins and profitability through this mechanism.
2.Expand Inter-State Selling: Small and Medium Enterprises (SMEs) can unlock new growth opportunities by engaging in inter-state selling without facing any restrictions. This allows them to tap into a broader customer base and explore online platforms, expanding their business horizons.
3.Tap into E-commerce Platforms: Registering on e-commerce websites offers SMEs the chance to expand their market presence significantly. By leveraging these platforms, they can reach a wider audience and connect with potential customers who prefer online shopping, giving them a competitive edge over other businesses.
4.Gain a Competitive Advantage: Embracing the benefits of input credit, inter-state selling, and e-commerce registration provides SMEs with a distinct competitive advantage. They can optimize their operations, increase profitability, and enjoy greater market visibility, positioning themselves ahead of their competitors.

What is the GSTN (Goods and Service Tax Network)?

The Goods and Service Tax Network (GSTN) is a non-governmental, non-profit, and privately-held company that operates as a one-stop-shop for all indirect tax-related needs. As a leading platform, the GSTN is tasked with maintaining and facilitating the Indirect Taxation platform for GST. This includes supporting businesses in the preparation, filing, rectification, and payment of their indirect tax liabilities. With its comprehensive services and resources, the GSTN serves as a valuable partner for businesses looking to navigate the complex world of indirect taxation.

Voluntary Registration Under GST (for Companies With A Turnover Below ₹20 Lakhs)

Take input credit: In GST, there is a flow of input credit right from manufacturers of the goods to the consumers across the country. Input credit means a taxpayer while paying tax on output, can deduct the tax that has already been paid on inputs and pay only the remaining amount. Voluntarily registered businesses can increase their margins and profits through this
Do inter-state selling with no restrictions: SMEs can increase the scope of their businesses and find prospective customers and explore online platforms
Register on e-commerce websites: SMEs can widen their market by registering through e-commerce sites
Have a competitive advantage compared to other businesses.

Small businesses with turnover less than ₹20 lakh can choose to register for GST voluntarily. Voluntary GST registration comes with various advantages including the ability to take input credit, do inter-state selling without restrictions, register on e-commerce websites, and gain a competitive edge over other businesses. This can ultimately increase the margins and profits of voluntarily registered businesses.

GST Return Filing

GST return filing is an indispensable process where registered taxpayers submit the details of their sales, purchases, and taxes paid to the government. It is compulsory for all GST-registered taxpayers in India, regardless of their sales or purchases during the filing period.

Output GST (On sales)
Sales
Input tax credit (GST paid on purchases)
Purchases

For filing a GST Return, you need to have GST compliant sales and purchase invoices attached.

GST Returns - Types and Due Dates

GST Returns	Purpose
GSTR1	This form records all your B2B and B2C sales, interstate and intrastate, along with reverse charge purchases and stock transfers during the tax period. Filing Form GSTR-1 late will incur a late fee, to be collected in the next return in Form GSTR-3B. Starting from January 2022, filing Form GSTR-1 will be prohibited if Form GSTR-3B hasn’t been filed in the previous month.
GSTR1A	Make amendments to your GSTR-1 document to ensure accurate tax records with ease. From correcting mismatches to fixing any errors, file GSTR1A between 15 and 17 of the following month.
GSTR2	GSTR-2A is a monthly GST return for inward supplies. It provides taxpayers with a detailed list of final invoice-level purchase information for goods and services received during the tax period
GSTR2A	The GSTN auto-generates a tax return for a taxpayer’s purchases and inward supplies based on the information from their suppliers’ GSTR-1.
GSTR2B	The GST Council has emphasized that GSTR-2B is a tool that can aid in streamlining the return filing process by reducing the time required to file returns, minimizing the occurrence of errors, facilitating reconciliation, and simplifying compliance for taxpayers.
GSTR3	The GST return form consolidates monthly tax returns and includes important information such as the taxpayer’s basic information, period of return, turnover details, final aggregate-level inward and outward supply details, tax liability under CGST, SGST, IGST, and additional tax(+1% tax), ITC details, cash and liability ledgers, and information about other payments including interests, penalties, and fees.
GSTR3A	It is a notice issued by the tax authority to taxpayers who have failed to file their monthly GST returns on time. It serves as a reminder to file their pending returns and avoid any penalties or late fees.
GSTR3B	GSTR-3B is a temporary consolidated summary GST return that provides relaxation to businesses that have recently registered for GST. It includes details of inward and outward supplies, taxes paid, and input tax credit claimed. It is filed on a monthly basis by registered taxpayers until a regular return is implemented.
GSTR4	It is a quarterly GST return filed by compounding vendors. This form includes the total value of supplies made during the return period, along with details of the tax paid at the compounding rate (not more than 1% of aggregate turnover) for the period. Additionally, it includes invoice details for inward supplies if they are either imports or purchased from normal taxpayers.
GSTR4A	The composition dealer’s quarterly tax return for purchases is filed using this form. It is an auto-generated document based on the information provided in the GSTR-1, GSTR-5, and GSTR-7 of the suppliers. It contains details of the taxpayer, period of return, and invoice-level purchase information separately for goods and services.
GSTR5	The tax return for non-resident foreign taxpayers is subject to variations, and it includes details of the taxpayer, return period, and invoice information for all goods and services sold, purchased, and imported by the taxpayer during the registered period/month.
GSTR6	This monthly GST return is specifically for Input Service Distributors (ISDs). It includes the taxpayer’s basic information (name, GSTIN, etc.), period of the return, and invoice-level supply details from the GSTR-1 of counterparties.
GSTR7	This is the monthly GST return for Tax Deducted at Source (TDS) transactions. It includes the taxpayer’s basic information, the period to which the return pertains, the supplier’s GSTIN, and the invoices against which the tax has been deducted.
GSTR8	The e-commerce operator files this return monthly, which includes the taxpayer’s basic information, the return period, details of supplies made by registered and unregistered suppliers through the e-commerce portal to customers, the amount of tax collected at source, tax payable, and tax paid.
GSTR9	It is an annual return that includes consolidated details of a taxpayer’s income and expenses. The information provided is regrouped according to the monthly GST returns filed by the taxpayer, providing a comprehensive overview of their GST transactions over the course of a year.
GSTR9A	Every taxpayer enrolled in the composition scheme is required to file an annual return using this form.
GSTR9B	It is an annual return form that e-commerce operators who collect tax at the source are required to file.
GSTR9C	This is an audit form that taxpayers must file if their aggregate turnover exceeds ₹2 crores in a financial year and they are required to have their annual reports audited.
GSTR10	When terminating business activities permanently or cancelling GST registration, taxpayers are required to file their final GST returns before doing so. This return will include details of all supplies, liabilities, tax collected, and tax payable.
GSTR11	The aforementioned is a tax return filed by taxpayers who possess a UIN (Unique Identification Number). It comprises the specifics of purchases made by foreign embassies and diplomatic missions for their own use during a specified month.

Benefits of GST Return Filing

GST Eliminates Cascading Effect – The introduction of GST has eliminated the cascading effect where tax on tax was paid for a single transaction, resulting in saving money for taxpayers.
Higher Threshold – The threshold for GST has been increased, with the limit for the sale of goods being aggregate turnover exceeding 40 lakhs, and aggregate turnover exceeding 20 lakhs for sale of services, thereby exempting small businesses below this limit from GST filing.
Easier for Startups and E-commerce Businesses – GST has made tax management easier for startups and e-commerce businesses by eliminating the different tax laws across different states.
More Organised System – The introduction of the GST tax return filing system has made the process more organised, with all taxes being paid online and the elimination of major hassles associated with tax filing.

Who Should File GST Return

Regular enterprises with an annual aggregate revenue of more than ₹5 crore must file GST returns.
Taxpayers who did not choose the QRMP plan need to file two monthly returns and one yearly return under GST.
QRMP filers must submit nine GSTR files annually, including four GSTR-1 and three GSTR-3B forms, as well as an annual return. They must pay tax on a monthly basis.
Composition dealers must file five GSTR files annually (4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4).

Documents Required for GST Return Filing

Invoices issued to persons with GSTIN or B2B invoices
Invoices issued to persons without GSTIN or B2C invoices
This needs to be submitted only when its total value is above ₹2.5 lakhs
A consolidation of inter-state sales
HSN-wise summary of all goods sold
Any other debit or credit notes or advance receipts

Registration FAQ's

What are the types of GST registration?

Integrated Goods and Services Tax (IGST)
State Goods and Services Tax (SGST)
Central Goods and Services Tax (CGST)
Union Territory Goods and Services Tax (UTGST)

What are the steps to download a GST registration certificate?

Login to the GST portal
Go to ‘Services’ > ‘User Services’ > ‘View/ Download Certificate
GST registration certificate
Click on the ‘Download’ icon
Open the downloaded PDF document and take a printout
Display the printed certificate prominently at all your places of business in the State or UT.

What are the benefits of GST registration?

Eliminates tax cascading
Allows for the composition scheme for small businesses
Simple online procedure
Clear treatment for e-commerce operators
Reduces compliance requirements
Enhances logistics efficiency
Regulates the unorganized sector under GST.

Does GST apply to all businesses?

Yes, GST doesn’t discriminate, it covers everyone! Whether you’re a service provider, a manufacturer, or a trader, GST is a must! It even extends its loving arms to dealers, bloggers, writers, import-export businesses, startups of all shapes and sizes, and even those entities like LLPs, proprietorships, partnerships, and private limited companies. No one can escape the mighty grasp of GST!

How many days will it take to get a GST number?

GST registration usually takes between 5-7 working days.

Can I apply for multiple GST registrations?

Yes, but only if you’re operating in multiple states! If a business spreads its wings across multiple states, it must spread its GST registrations too. Each state demands its own GST registration. It’s a state-by-state affair, my friends!

Can I be voluntarily registered under GST?

Voluntary GST registration is available even if your annual turnover doesn’t exceed the threshold limit (40/60lakhs). By registering, you gain recognition as a legal entity and access various benefits, including issuing GST invoices and claiming input tax credits. Don’t miss out on these advantages – seize the opportunity to register for GST today.

What is the threshold limit for GST registration?

Businesses engaged in the sale of goods must register as a normal taxable person if their turnover exceeds ₹40 lakhs (₹20 lakhs for north-eastern and hill states). Service providers, on the other hand, need to register if their turnover exceeds ₹20 lakhs (₹10 lakhs for north-eastern and hill states).

Why is there a delay in GST registration?

Delays in GST registration may occur for various reasons, including the need for additional document clarifications, errors in submitted documents (such as name mismatches), and non-linking of Aadhaar to the mobile number. This list is not exhaustive, but these are some common factors that can cause delays in the registration process.

What are the documents required for GST registration?

PAN card
Aadhaar card
Proof of business address
Proof of constitution of business
Passport-size photograph
ID and address proof for all directors with photographs
Authorisation details
Bank details
Board resolution

What is the composition scheme under GST?

The composition scheme was introduced to ease the compliance burden for small taxpayers. It enables them to file quarterly returns instead of monthly returns. Taxpayers with an aggregate turnover below 1.5 crores are eligible to opt for this scheme.

What happens once the GST registration process is over?

After successfully completing the GST registration process, you will receive a GST registration certificate and a valid GSTIN. This enables you to claim input tax credit and start filing GST returns. If you prefer, we can handle your GST filings, making the process easy and convenient, just like the registration process.

What is an E-way Bill?

The E-Way Bill is an electronic waybill that a GST registered person needs to obtain for the movement of goods in a vehicle with a value exceeding ₹50,000. You can register for an E-Way Bill through the E-Way Bill Portal at https://ewaybillgst.gov.in/.

How long can I wait to register under GST?

Maximum of 30 days from the date on which they become liable to register.

Can a person without GST registration claim ITC and collect tax from their customers?

No. A person without GST registration cannot claim input tax credit for the GST paid by them or collect GST from their customers.

Is GST charged on exported goods and services?

No, GST is not charged on exported goods and services. Since GST is a tax based on consumption, and in the case of exports, the goods/services are not consumed in India, they are not subject to taxation.

Is it mandatory for an e-commerce operator to obtain GST registration?

Yes, it is mandatory for e-commerce operators but the threshold limit doesn’t apply to them.

My business operates in two different states. Do I need to register for GST separately in these states?

Yes, if a business spreads its wings across multiple states, it must spread its GST registrations too. Each state demands its own GST registration. The same goes for two states.

I don’t know the HSN Code for any of the products I supply. What should I do?

The new registration application form includes an online utility for selecting the HSN Code in the Goods and Services section. You can easily find the HSN Code by typing the product name or code in the search field. A dropdown menu will appear with relevant options, allowing you to select the appropriate chapter and product. The HSN Code will be automatically populated in the application. You can repeat this process for multiple goods if needed.

Is a PAN card mandatory for registering GST?

Yes, a PAN card is mandatory for GST registration. However, the TDS registration which is possible through TAN.

Can we use the same GST number for multiple businesses?

Under a single GST registration, it is possible to register multiple businesses, as long as they are located in the same state. However, it is important to note that you cannot use two different trade names for these businesses under the same registration.

Can we apply for GST after cancellation?

Taxpayers whose GST registrations have been cancelled are obligated to apply for a new registration. It is crucial for them to obtain a valid GST registration in order to maintain their business operations.

What happens if the GST application is rejected?

If your GST registration application is rejected, you will have an opportunity to respond to the rejection letter and address any issues. However, if you choose to submit a new application, you will need to wait for a final rejection, which typically takes around 10 days.