GST or Goods and Services Tax came into effect from July 2017 to eliminate the cascading effect of tax on tax. This taxation system mitigated complications in administration and compliance of taxes and is meant to reduce inflation in the future.
The multiple beneficial features of the GST registration process, along with the Government endeavours saw the inclusion of an additional 3 Lakh traders, taking the number of traders registered under GST to a total of over 10 Lakh.
Complying with the GST norms, business irrelevant of their size and genre of trade can draw numerous perks that end up saving their time, boosts the customer base, and brings in a few additional changes to the business’s financial condition. Hence, the GST registration procedure has been kept comparatively simple for the convenience of the individual.
Check out the following important points that you need to keep in mind regarding the process for GST registration
The threshold for GST registration
According to the norms set by the GST council, here are a few factors that determine if a business is liable to obtain GST registration –
- Businesses that have a turnover of more than Rs. 20 Lakh. The threshold for North-Eastern states, and that of Himachal Pradesh, Jammu and Kashmir, and Uttarakhand is Rs. 10 Lakh.
- NRI taxable individuals or casual taxable people.
- Individuals previously registered under VAT, Service Tax, Excise, etc.
- E-commerce operators, agents of suppliers, input service distributors.
GST is a mandate for any individual involved in the commercial field of trade since it provides one with a legal registration and the respective GSTIN or GST ID number. This number enables one to avail the various benefits of input tax credit. Companies with a turnover of more than Rs. 75 Lakh can enjoy additional benefits of GST composite schemes where they only need to pay 1% tax on their total turnover.
Documents require for GST registration
Individuals need to furnish the following documents to avail GST registration –
- Business PAN Card
- Address proof of the business
- Business registration papers
- Bank account statements as per the lender’s requirements
- ID and address proof of the company’s promoters
Procedure for GST registration
Considering that GST is a mandate for almost all, the GST registration procedure in India is kept conveniently easy for the easy accessibility of all –
Step 1: Log on to the official website for GST registration – www.gst.gov.in
Step 2: Chose the option for ‘new registration.’
Step 3: Fill in Part A of the registration form. Provide business details like legal name of the trade, email address, contact number, business PAN number, state and district of the business, etc. Following which you will need to click on submit and then receive an OTP.
Step 4: Use the temporary referenced number obtained to continue with part B of the process. Provide details like bank accounts, authorised signatory, partners/promoters, etc. Click on save and continue.
Step 5: Submit the uploaded documents.
Applicants will now receive an acknowledgement message in their registered contact number and email in the form of a referenced number.
India continues to grow as a start-up hub and at present hosts about 7200 such start-up companies. A significant number of such businesses require seed stage funding that is provided by reputed lenders. However, such NBFCs require a business vintage of a minimum of 3 years as minimum eligibility criteria to avail such credits.
In case of leading financial institutions like Bajaj Finserv, individuals can avail Business Loan by furnishing their GST registration certificate. Such advances provide individuals with adequate funds to establish or expand their business and come with multiple other borrower-friendly features –
- Loan approval within 24 hours of applying for it.
- High-value credit amount of up to Rs. 30 Lakh.
- Zero collateral.
They also bring you pre-approved offers on numerous financial products that include both unsecured advances like business loans, personal loans, etc. and secured advances like home loans. These offers make the application process to avail such finances hassle-free and convenient. You can take a look at your pre-approved offer by providing a few essential details like name and contact number.
Apart from helping in conveniently availing of business credits, acquiring a GST identification number also helps in the following ways –
- Integration of multiple taxes into one GST.
- Tax exemption for smaller companies with a turnover of lesser than Rs. 20 Lakh (Rs. 10 Lakh in case of north-eastern states.)
The completion of the GST registration process is marked by the receiving of a registration number. GSTIN plays a pivotal role in obtaining diverse benefits under the GST regime. This includes availing considerable funds that would help businesspersons to stock their inventory, expand their workspace, etc.
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