Effective since July 1, 2017, the Goods and Services Tax (GST) enforces every productive business that operates on goods with an annual turnover of above Rs. 40 Lakhs (Rs 20 Lakhs for NE and hill states) more than the stated threshold limit(its 20 lakhs for services), should apply for as a regular taxable individual. Moreover, if you run a business in more than one state, then you are obliged to apply for separate GST registration in India for every state that you operate.
Why GST Registration is a Must – A few Solid Reasons
As per the legal norms of GST, there are specific kinds of businesses that must mandatorily register their operations for tax. If not, then your business is probable to incur high penalties and other judicial liabilities. Additionally, the GST registering procedure is a compulsory one for:
- Input service distributors.
- E-commerce aggregators.
- All the taxpayers, who fall under the Reverse Charge Mechanism scheme.
- Organisations, with a yearly turnover that exceeds Rs. 40 Lakhs(in case of goods , for services turnover exceeding 20 lakhs.
- Agents of a supplier.
- Non-resident taxable person.
Note that businesses functioning in Nagaland, Mizoram, Arunachal Pradesh, Jammu & Kashmir, Uttarakhand, Manipur, Himachal Pradesh, Assam, Meghalaya, Tripura, and Sikkim, are considered to be special category states of India and needs to pay tax for above Rs. 20 Lakhs annual turnover.
Here’s How You Can Do the GST Registration
With the advent of digitalisation, the entire registration procedure for GST is somewhat easy and done paperless (through an online portal), all by yourself. Visit the official government GST portal. You can do this directly on your own or get assistance from a government facilitation centre. And before registering your business under the GST tax, you need to have some essential documents in hand, based on the form of your company or agency.
- Actual Documents Needed for GST Registration in Bangalore:
- Sole Proprietorship:
PAN Card – Aadhar Card – Recent Colour Photograph – Company Address Proof – Current Bank Account Statement or a Cancelled Cheque- Electricity bill- Rental aggrement/lease aggreement
PAN Card of Partnership Firm – PAN Card of Partners – Aadhar Card of Partners – Recent Colour Photographs of Partners – Company Address Proof – Current Bank Account Statement or a Cancelled Cheque – Electricity bill- Rental aggrement/lease aggreement
PAN Card of Partners – Aadhar Card of Partners – Recent Colour Photographs of Partners – PAN CPAN Card of LLP – Company Address Proof – Current Bank Account Statement or a Cancelled Cheque – Certificate of Incorporation- LLP Agreement – Electricity bill- Rental aggrement/lease aggreement
PAN Card of Company – PAN Card of Directors – Aadhar Card of Directors – Recent Colour Photographs of Directors – Company Address Proof – Current Bank Account Statement or a Cancelled Cheque – Certificate of Incorporation MOA & AOA – Electricity bill- Rental aggrement/lease aggreement
Once you have got all the necessary files and photos, proceed to the GST business registration process online. This will take only a few minutes to be done.
Processing Steps on GST Registration for Businesses
Upon visiting the official government portal of GST registration, you will have to fill your Part-A of form GST REG-01. This requires your PAN number, mobile number, and an active email address. Once you are done with this step, you will receive a PAN verification number through your registered mobile number and the e-mail address. Fill it up online and verify your profile digitally. If your verification is successful, you will get a Temporary Reference Number (TRN). Save this up somewhere for all future references.
Now, you have to enter your TRN number onto the portal, give the captcha code correctly, and start attaching your required business documents. The portal might require additional information based on your profile or business type, so you may have to fill the automatically generated GST REG-03 form as well.
And if all your details filling process gets over without any technical error, and complete your aadhar authentication after that officials will verify your profile (post the submission) and you will receive a certificate of registration, within 3 working days.
The Penalties in case of Non-Compliance
Since you did your GST registration digitally via a portal, you never compromise on the accuracy and correctness of the information you provide. The portal is built in such a way that every transaction from the source to the destination is recorded and evaluated on multiple internal parameters. So, if the officials find anything weird, wrong, or false, then the chances are likely that you may have to take the responsibility.
And in case if you don’t register your business, then as per the GST penalty norms, your organisation is legally liable for 10% of your tax amount, which is subject to a minimum value of Rs. 10,000. Also, you are eligible for a 100% tax due penalty, if your business deliberately withholds the actual GST payment (s).
But if you have become a natural defaulter, you can escape from this condition, by paying all your tax dues when and where a GST authority proves you with a demand order or show-cause notice. This way, you must pay the interest too and claim the relief.
NOTE – Tax dues must be paid only through cash and no Input Tax Credit [ITC] is allowed.
Your Takeaway – BSJ & Associates
You can get your GST registration in Bangalore, Thodupuzha, Calicut, Cochin, and surrounding cities from the taxation experts at BSJ & Associates. With the experience of qualified chartered accountants, article trainees, and audit staff, you will get your GST registration done precisely, quickly, and effortlessly.
We also have value-added services such as internal audit, XBRL conversion and filing, certifications, accounting & bookkeeping, CFO services, central excise customs, transfer pricing, and more such options, suitable for all businesses, individuals, and general industries.
So, all you have to do is, call our experts at 080 4146525 or mail your doubts or questions to bglr@bsjassociates.in for getting professional support and assistance.
Remember, paying your tax is neither a burden nor a commitment, it is every citizen’s responsibility. Whether you manage a business or you are just a normal individual, paying the taxes right can leave you authoritatively and legitimately safe.