THREE STEPS THAT IS FOLLOWED AT NRV & Co.
Overview
Online GST Registration is the process by which a taxpayer registers with the GST council as a taxpayer via the official government-run portal dedicated to the tax regime. When a taxpayer completes the GST Registration process, they will be issued a Goods and Services Tax Identification Number (GSTIN). The Central Government issues this 15-digit GSTIN to help them determine whether or not a business must pay GST. After having GSTIN, the entity is required to file applicable GST Returns for the relevant periods.
GST has three tax components: a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST), where both the Centre and the State will levy GST on all entities, i.e. when a transaction occurs within a state. Inter-state transactions will be subject to the Integrated Goods and Services Tax (IGST), which will be levied by the central government, i.e. when a transaction occurs between two states.
When Required
Any business whose annual turnover is more than the prescribed limit shall make an online application for a GST Number on gst portal.
The GST registration is mandatory if the "aggregate turnover" exceeds the prescribed limits
Aggregrate Turnover
It comprises of following :
Taxable Supplies
Exempt Supplies
Export of goods or services or both
Inter-state supplies to persons having same PAN
But it excludes CGST, SGST, IGST charged on supplies and inward supplies on which tax is payable under Reverse charge. However outward supplies by a person on which tax is payable by the recipient under RCM are part of aggregate turnover.
Further, this aggregate turnover is be calculated on PAN India Basis. If a person is having one branch in Rajasthan and another branch in Kerala, then turnover of both the branches are to be clubbed for calculating aggregate turnover
Documents Required
The list of documents required for New GST registration of for various business are as follows:
Proprietorship
PAN Card and address proof of proprietor
LLP
PAN Card of LLP
LLP Agreement
Partner's names and address proof
Private Limited Company
Certificate of Incorporation
PAN Card of Company
Articles of Association, AOA
Memorandum of Association, MOA
Resolution signed by board members
Identity and address proof of directors
Digital Signature
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
Penalty
In the event of genuine errors, non- or late registration of an individual's business with the GST council will result in a penalty of 10% of the due amount. The minimum penalty, however, is Rs.10,000. If the authorities determine that an individual is attempting to evade tax on purpose, the penalty will be 100 percent of the due tax amount. As a result, it is critical for an individual to conduct due diligence as quickly as possible.
Benefits of GST Registration
On having, GSTIN, one can also open a current bank account in the name of the entity.
Registered businesses can sell goods and render services online.
Because it is issued by a legal authority, the GST registration certificate is sufficient proof for the registered entity.
The input tax credit is available for goods purchased and services availed.
The GSTIN registration number plays an important role in increasing the value of a company's brand.