REGISTRATION

Since its introduction on July 1, 2017, Goods & Services Tax (GST) has replaced multiple state and central taxes, simplifying the tax process for service providers, traders, manufacturers, and freelancers in India. GST is levied at each stage of the supply chain, from production to sale, with revenue allocated based on consumption.

Key Components of GST

The Goods and Services Tax (GST) comprises the following key components:

  • CGST (Central GST): Levied by the Central Government on intra-state transactions.
  • SGST (State GST): Charged by the State Government on intra-state transactions.
  • IGST (Integrated GST): Imposed by the Central Government on inter-state transactions.

Who Needs GST Registration?

GST registration is mandatory for the following entities:

  • Business Entities: Turnover over Rs. 40 lakhs (Rs. 20 lakhs for special states).
  • Service Providers: Turnover above Rs. 20 lakhs (Rs. 10 lakhs for special states).
  • Inter-State Suppliers: Businesses supplying across state lines.
  • Casual Taxable Entities: Those engaging in occasional taxable supplies.
  • E-Commerce Platforms: Online aggregators or operators.

GST Registration Turnover Limit

GST registration turnover thresholds are as follows:

  • Service Providers: Turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs for special states).
  • Goods Suppliers: Turnover exceeding Rs. 40 lakhs, or Rs. 20 lakhs for special states.

Benefits of GST Registration

Registering under GST offers the following benefits:

  • Legal Compliance: Avoid penalties and remain compliant with Indian tax laws.
  • Input Tax Credit: Claim credits for taxes paid on purchases.
  • Inter-State Trade: Simplifies transactions across states.
  • Cost Reduction: Eliminates cascading taxes, lowering product costs.
  • Enhanced Reputation: Builds trust with customers and partners.
  • Access to Markets: Opens opportunities to work with large businesses and government tenders.
  • Improved Cash Flow: Better tax management and cash flow.
  • Transparent Operations: Promotes accuracy and professionalism in record-keeping.

Voluntary registration is also available for businesses below the turnover threshold, offering benefits such as input tax credits, inter-state trade capabilities, and listing on e-commerce platforms. This enhances growth and competitiveness for smaller entities.

GST Certificate and GSTIN

GST registration provides:

  • GST Certificate: Proof of GST registration, required for tax collection, credit claims, and government tenders.
  • GSTIN: A unique 15-digit identification number for all GST-registered entities.