Information About GST (Goods and Services Tax) Registration
What is GST?
GST
(Goods and Services Tax) is the biggest indirect tax reform of India. GST is a
single tax on the supply of goods and services. It is a destination based tax.
GST is one of the biggest indirect tax reforms in the country. GST is expected
to bring together state economies and improve overall economic growth of the
nation. GST has subsumed taxes like Central Excise Law, Service Tax Law, VAT,
Entry Tax, Octroi, etc.
Applicability of GST
If
you are involved in any business except agriculture and your aggregate turnover
is above ₹ 20 lakh in a financial year, then you are a taxable
person under GST law.
Businesses
operating in North Eastern and some other states need registration if their
turnover exceeds Rs 10 lakh.
If
you are an NRI doing business in India then it is mandatory for you to register
under GST irrespective of the turnover of your business.
What is GSTIN?
The
Goods and Service Tax Identification Number (GSTIN) is the unique number each
taxpayer will receive once they have registered on the common portal. It is
based on a taxpayer’s PAN. For more details, please read our article on GSTIN.
What are benefits of GST Registration?
A.For normal registered businesses:
1.
Take input tax credit 2. Make interstate sales without restrictions
B. For Composition dealers:
1.
Limited compliance 2. Less tax liability 3. High working capital
C. For businesses that voluntarily
opt-in for GST registration (Below ₹ 20 lakhs)
1.
Take input tax credit 2. Make interstate sales without restrictions
3.
Register on e-commerce websites. 4. Have a competitive advantage compared to
other businesses
Penalty for Late or complete failure to
take GST Registration
As
per GST act, there is a direct penalty for failure to take GST registration in
India and the same is levied even in case of late GST registration.
As
per section122 of CGST act, any taxable person who fails to take GST
registration though he is liable to be registered under the act, then the
penalty of ₹10,000 or amount of tax evaded or any short tax
liability whichever is higher.
Hence,
if any person fails to take GST registration and the total tax liability after
calculation comes to ₹2 lakh, then the penalty for failure to take GST
registration shall be 2 lakh or ₹10,000 whichever is higher and
hence, ₹2 lakh shall be levied.
What is advantage of taking registration
in GST?
Registration
under Goods and Service Tax (GST) regime will confer following advantages to
the business:
Legally
recognized as supplier of goods or services.
Proper
accounting of taxes paid on the input goods or services which can be utilized
for payment of GST due on supply of goods or services or both by the business.
Legally
authorized to collect tax from his purchasers and pass on the credit of the
taxes paid on the goods or services supplied to purchasers or recipients.
For More Details Visit @
For GST Registration & GST
Amendments
Phone No. +91 91122 55597
Email
: support@gstregistrationonline.org
For GST Compliance & GST Surrender
Phone
No. +91 91122 11467
Email
: returns@gstregistrationonline.org
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