We’ve covered when you need GST Registration and what the minimum turnover is to qualify in earlier posts. After receiving your GST registration certificate, there are several further procedures you need to do to ensure you stay in compliance.
If an application for registration is filed within 30 days of the day on which a person becomes liable to registration, the registration will take effect on the 31st day from the date on which the person becomes liable to registration. However, registration will be effective from the date of registration grant if the application is received beyond the 30-day period. If your company operates in more than one state, you must register with each state’s GST agency individually. Therefore, each of these GSTINs must individually comply with these GST registration requirements.
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Display GST Registration details in place of business
It is mandatory for all businesses to prominently display their GST Registration Certificate at their primary and all other locations.
Businesses that have acquired their GST identification number (GSTIN) are required to prominently display it on a name-board in the lobby of their main location.
Identify the place of supply to decide whether to charge CGST & SGST or IGST
See whether the supply is coming from inside or beyond the state to get a sense of the deal’s nature. To determine this, you need to look at the place of supply rules of GST legislation. Whether the site of supply is within the State or across the State determines whether CGST & SGST or IGST will be applied. There is no universal rule governing where a certain commodity or service must be supplied.
It is mandatory under the Goods and Services Tax for any business with a turnover of more than Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh to register as a regular taxable person (GST). Registration for GST is the term used. Some companies are obliged to register for GST. If the company operates without registering for GST, it would be committing a tax evasion crime and will be subject to severe penalties. There is an average processing time for GST registration of 2-6 business days. The three-step process to become registered for GST with Team Clear’s help is straightforward.
- (These include taxes like Excise, Value-Added Tax, Tax on Services, and so on.)
- Corporations having annual sales of more than 40 lakh, 20 lakh, or 10 lakhs
- Exempt taxpayer / non-resident taxpayer
- Reverse charge system taxpayers include suppliers’ agents and input service wholesalers.
- One who operates as a retailer yet uses a third-party online marketplace to conduct business.
- Any non-Indian resident who operates an e-commerce aggregator and offers Indian residents’ online information and database access or retrieval services must register as a taxable person in India.
All about the GST registration process
- You may sign up for GST using the GST site. Fill complete Form REG-01 on the GST site and submit the application in accordance with the instructions in our article “How to Apply for GST Registration?”
- However, Clear Tax’s GST registration services will aid you in registering your firm for GST and acquiring a GST Identification Number (GSTIN).
- In addition to registering your company for GST, the specialists at Clear can advise you on whether or not GST is applicable to your firm and whether or not you are in compliance.
Documents Required for GST Registration
- Proof of company registration or incorporation certificate, identification and address proof of promoters/directors, and pictures
- Address verification letter Cancelled check or bank statement Authorization letter with digital signature Board resolution naming authorised signatory
GST Registration Fees
As a time-consuming 11-step procedure, GST Registration requires the submission of several company facts and scanned documents. You may register for GST via the GST site at no cost to yourself, but you’ll save a lot of time and energy by buying Clear Tax’s GST registration plan instead. A GST Expert is available to help you through the whole GST Registration process if you choose Clear GST Registration services.
Penalty for not obtaining GST registration
A penalty of 10% of the tax amount owed, with a minimum of Rs.10,000, is imposed on anybody who commits the offence of failing to pay tax or making inadequate payments (true mistakes).
The penalty for tax evasion is the whole amount of the tax that should have been paid.
Start issuing the GST compliant invoices
If a buyer is eligible for an input tax credit. They may use the GST invoice as the basis for their claim. Therefore, once a company obtains GST Registration, it must immediately begin producing legal invoices that adhere to all regulations governing invoices. For the time period commencing on the registration effective date and ending on the day the GST registration certificate is granted, a registered business is required to provide corrected bills to customers.
This must be done within one month after the registration certificate’s issue. Composition dealers are required to produce a bill of supply for exempt goods and a GST invoice for chargeable supplies. Only one invoice-cum-bill should be generated when making both taxable and exempt supplies to an unregistered customer. A number of mandatory fields on the invoice must be filled out. For example, the CGST regulations provide the following necessary information for invoices:
It’s a specific serial number for the current fiscal year that may have up to 16 characters total (including letters, numbers, and symbols).
- Provider’s GSTIN
- delivery date, name and address of the GST-registered receiver, and the date on which the GSTIN was issued
- Explanation of the Goods or Services
- Rate of taxation
- The amount of GST, SGST, or IGST charged on taxable supplies as an HSN code.
- Supply location and state name are both necessary in the event of interstate commerce.
- In the event that the tax is due on a reverse charge basis or not.
- Signature of the Supplier
At last, GST invoice must be sent within the timeframe set by law. If products, the tax invoice must be produced at the time of removal. While if services, it must be issued no later than 30 days after the service is performed.