GST Registration

GST registration is essential for businesses in India. If your business revenue surpasses certain threshold levels or belongs to specific categories that require GST registration, it's imperative to register following the GST regulations. Leagel Edge Advice Care can assist you in obtaining your GST registration seamlessly.

Contact our experts today to streamline your GST registration process!

Key Components of GST

The Goods and Services Tax (GST) in India is structured around three primary components:

Central Goods and Services Tax (CGST): This tax is levied by the Central Government on the supply of goods and services within a particular state. CGST applies to transactions carried out entirely within the boundaries of one state.

State Goods and Services Tax (SGST): SGST is charged by the State Government on the supply of goods and services within its jurisdiction. Similar to CGST, SGST is also limited to transactions happening within a specific state.

Integrated Goods and Services Tax (IGST): This tax is imposed by the Central Government on the supply of goods and services that occur between different states or between a state and a Union Territory. IGST is relevant for transactions where goods or services cross state or Union Territory boundaries.

Who is Required to Register for GST?

GST registration is essential for following person:

Business Entities: Any enterprise with an aggregate annual turnover exceeding Rs. 40 lakhs. For special category states under GST, the threshold is Rs. 20 lakhs.

Service Providers: Those with an aggregate annual turnover surpassing Rs. 20 lakhs. For special category states, this limit is Rs. 10 lakhs.

Exemptions: It's important to note that entities dealing exclusively in GST-exempted goods or services are not bound by these thresholds.

Previously Registered Entities: Entities that were registered under older tax frameworks (like Excise, VAT, Service Tax, etc.) need to migrate and register under the GST regime.

Inter-State Suppliers: Any entity or individual involved in the supply of goods across state boundaries.

Casual Taxable Entities: Those who undertake taxable supply occasionally.

Entities under Reverse Charge Mechanism: Businesses obligated to pay tax under the reverse charge.

Input Service Distributors & Agents: Distributors of input services, including their representatives.

E-Commerce Platforms: Operators or aggregators of e-commerce platforms

Non-Resident Taxable Entities: Individuals or entities that are non-resident but engage in taxable supply within India.

Supplier's Agents: Representatives who supply on behalf of a principal supplier.

E-Commerce Suppliers: Individuals or entities that offer goods or services through an e-commerce aggregator.

Online Service Providers: Entities delivering online information, database access, or retrieval services from outside India to an individual in India, excluding those already registered under GST.

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.

Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.

Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:

Should not be providing any services.

The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.

Should not be involved in the supply of ice cream, pan masala or tobacco.

If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.

Special Category States: Under GST, the following are listed as special category states - Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).

Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.

Advantages of GST Registration for Businesses

Registering for GST offers a range of benefits to businesses:

Legal Compliance: Ensures that businesses remain compliant with tax regulations, thus avoiding any potential penalties.

Input Tax Credit: Businesses can claim credits for the GST they've paid on purchases, which can then be set off against the GST charged on sales, leading to a reduction in tax liability.

Inter-State Trade Ease: Encourages businesses to transact across state boundaries without facing tax-related challenges.

Elimination of Cascading Effect: By removing the effect of tax being levied on an already taxed amount, the overall cost of products or services is reduced.

Competitive Edge: Being GST compliant can instill trust in potential customers, opening up more business opportunities.

Access to Larger Markets: Major corporations often prefer collaborating with GST-registered vendors.

Optimized Cash Flow: Efficient management and lower tax liability can enhance the cash flow within a business.

Enhanced Credit Rating: Maintaining a consistent and positive GST compliance record can boost a business's credit profile.

Legal Safeguard: A GST registration protects businesses and ensures their rights are upheld.

Simplified Compliance: The GST process is streamlined, enabling businesses to file returns and make payments online easily.

Transparent Operations: Ensures businesses maintain accurate records, promoting a sense of trustworthiness and professionalism.

GST Certificate

The GST Certificate stands as an authoritative document provided by the Indian government to entities that are registered under the Goods and Services Tax (GST) framework. This certificate confirms a business's legitimate Registration under GST and prominently displays key details such as the GST identification number, the business name, and official address.

Possessing an authentic GST Certificate is pivotal for enterprises because:

Tax Collection Authority: It empowers businesses to impose and gather GST from their clientele.

Tax Credit Claims: With this certificate, businesses can rightfully claim credits on the GST they've disbursed on their procurements and operational costs.

Furthermore, beyond its tax-related functions, the GST Certificate holds significance in several other domains:

Loan Applications: When seeking financial aid or loans, businesses might be asked to present their GST certificates to validate their authenticity.

Government Tenders: To be eligible and participate in official government tenders, the GST Certificate must often be produced as evidence of tax compliance.

Market Reputation: The certificate enhances a business's stature in the market, reflecting its commitment to national tax regulations.

GSTIN

GSTIN, which stands for Goods and Services Tax Identification Number, is a distinctive 15-digit alphanumeric code allocated to every taxpayer who is registered under the GST framework in India. This number acts as the primary identifier for both businesses and individuals in the context of GST-related transactions and compliance.

Voluntary GST Registration for Businesses

Businesses generating a turnover of less than Rs.20 lakhs can enroll for GST voluntarily. By doing so, they can benefit from advantages such as availing input tax credits, unrestricted inter-state sales, eligibility to list on e-commerce sites, and establishing a competitive stance against businesses that aren't GST-registered. While this Registration isn't a mandate, it paves the way for enhanced growth prospects and the potential for increased profitability.

GST return filing

GST return filing is a formal process in which a taxpayer provides the government with information regarding their sales, purchases, and taxes collected and disbursed. In India, every GST-registered taxpayer must submit these returns consistently, even if there were no sales or purchases during a particular period.

If you need assistance, our team of experts is at your service to guide you through the GST return filing process.

Documents Required for GST Registration

Consequences of Not Securing GST Registration

For Non-Payment or Underpayments: If a taxpayer either neglects to pay the requisite tax or mistakenly underpays, an acceptable equivalent of 10% of the outstanding tax amount is levied. However, the penalty cannot be less than Rs. 10,000.

Intentional Tax Evasion: If an individual or business willfully avoids paying the due taxes, the penalty equals 100% of the evaded tax amount.

Get GST Registration quickly through Leagel Edge Advice Care

You can obtain your GST registration through Leagel Edge Advice Care in less than 7 working days. Enter your name, phone number and email to being the process.

When we receive your request a GST expert will reach out to you and understands your business activity, the state where the business is operating and answer any questions that you may have.

The GST expert will also collect and verify the documents required to obtain GST registration. Once the payment is initiated we start with the GST registration process and we upload all your application into the GST Portal.

You obtain the GST registration within 3 to 7 working days. Everything is completely online you don't need to be physically present at the office for the same. Along with the GST registration, access is provided to LEDGERS Platform for your to do GST invoicing and GST return filing.