GST Registration

What is GST Registration?

GST is an indirect tax in India that simplifies taxation on goods and services. Registration is mandatory for certain businesses, and non-compliance can result in penalties. It allows tax authorities to track transactions. Startup GST registration takes 2 to 6 working days via the official portal.

Services provided by CapEasy for GST Compliances are:

• GST application filing
• Securing GST identification number
• Documentation and eligibility support
• Post registration support
• Compliance maintenance

Eligibility for GST Registration

1. Companies – Businesses with an annual turnover above ₹40 lakhs (₹20 lakhs for special states).
2. Service Providers – Those exceeding ₹20 lakhs per annum (₹10 lakhs for special states).
3. Exempt Entities – Businesses dealing only in GST-exempt goods/services are not required to register.
4. Migrated Businesses – Pre-registered entities under VAT, Excise, etc., must transition to GST.
5. Inter-State Suppliers – Businesses supplying goods across different states.
6. Casual Suppliers – Those making occasional taxable supplies.
7. Reverse Charge Payers – Entities paying tax under the reverse charge mechanism.

GST Registration Turnover Limits

1. Voluntary Registration – Any business or individual can register for GST, regardless of turnover. However, it becomes mandatory upon crossing specific thresholds.
2. Service Providers – Registration is required for businesses with an annual turnover exceeding ₹20 lakhs (₹10 lakhs for special category states).
3. Goods Suppliers – Registration is mandatory for businesses with an annual turnover above ₹40 lakhs, provided they:
   • Supply only goods and not services.
   • Do not conduct intra-state sales in special category states (e.g., Arunachal Pradesh, Manipur, Meghalaya).
   • Do not deal in restricted goods such as ice cream, pan masala, or tobacco.
4. Other Businesses – The turnover threshold for GST registration is ₹20 lakhs (₹10 lakhs for special category states).
5. Special Category States – Certain states like Arunachal Pradesh, Assam, and Jammu & Kashmir have lower turnover limits for mandatory registration.

Documents Required for GST Registration

For online GST registration, the following documents are mandatory based on the business type:

1. Public/Private Limited Company

• PAN Card – Company's PAN
• Certificate of Incorporation – Issued by MCA
• MoA & AoA – Memorandum & Articles of Association
• ID & Address Proof – Of directors and authorized signatory
• Photographs – Passport-sized photos of directors & authorized signatory
• Board Resolution – Copy of the resolution appointing the authorized signatory
• Bank Details – Bank account information
• Business Address Proof – Office lease/rent agreement or utility bill

2. Sole Proprietorship

• PAN Card – Of the owner
• Aadhar Card – Of the owner
• Photograph – Passport-sized photo of the owner
• Bank Details – Bank account details
• Business Address Proof – Utility bill, rent agreement, or property document

3. Partnership Firm

• PAN Card – Of all partners, including managing partner & authorized signatory
• Partnership Deed – Copy of the partnership agreement
• Photographs – Of all partners & authorized signatories
• ID & Address Proof – Of all partners (Aadhar, Passport, Driving License, Voter ID)
• Aadhar Card – Of the authorized signatory
• Appointment Proof – Letter/Resolution for appointing the authorized signatory
• Registration Certificate – Or Board Resolution (for LLPs, if applicable)
• Bank Details – Bank account information
• Business Address Proof – Lease deed, rent agreement, or utility bill

4. Hindu Undivided Family (HUF)

• PAN Card – Of HUF
• Photograph – Passport-sized photo of the Karta
• ID & Address Proof – Of the Karta (Aadhar, Passport, etc.)
• Business Address Proof – Lease deed, rent agreement, or utility bill

Benefits of GST

For Regular Registered Businesses

• Avail Input Tax Credit (ITC) on purchases
• Conduct inter-state trade without restrictions

For Composition Scheme Taxpayers

• Lower compliance burden with simplified tax filing
• Reduced tax liability with a fixed percentage tax rate
• Minimal impact on working capital due to lower tax rates

For Voluntary GST Registration (Turnover Below ₹40 Lakhs)

• Claim Input Tax Credit to reduce tax burden
• Seamless inter-state business operations without restrictions