GST Registration

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ICStask Team

Expertise in GST Registration. We are legal consultancy services provider for manufacturers and Importers.

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Call us or Schedule a Virtual Meeting with us to Examine the products covered by the Mandatory Certification Scheme.

Step 2

Submit the Application and all supporting documentation to BIS Section in our Portal

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Certificate is issued based on the officer's assessment of the premises and sample. Dont worry we have your back:)

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What is GST Registration

GST, or the Goods and Services Tax, is a value-added tax that is levied on the supply of goods and services in India. It is a comprehensive, destination-based tax that is levied on every value addition. GST is designed to replace various indirect taxes that were levied by the central and state governments in India, including the Value Added Tax (VAT), the Service Tax, and the Central Excise Duty, among others.

In order to be eligible to collect GST, businesses must register for GST with the government of India. GST registration is mandatory for all businesses whose annual turnover exceeds a certain threshold, which is currently set at INR 40 lakhs (for most states in India). Businesses with an annual turnover of less than INR 40 lakhs may also opt to register for GST voluntarily.

To obtain GST registration, businesses must complete an online application process and provide certain documents, including proof of identity, proof of business, and proof of address. Once registered, businesses are assigned a unique GST identification number, which must be displayed on all invoices and other relevant documents.

GST registration is an important compliance requirement for businesses operating in India, as it allows them to claim input tax credits for GST paid on inputs and raw materials, and to charge GST on the goods and services they supply.

Types of GST Registration

There are three types of GST registration in India:

  1. Regular GST registration: This is the most common type of GST registration, and it is mandatory for businesses whose annual turnover exceeds the prescribed threshold (currently INR 40 lakhs for most states). Businesses with a regular GST registration can claim input tax credits and charge GST on the goods and services they supply.
  2. Composite GST registration: This type of GST registration is available to small businesses whose annual turnover is less than INR 1.5 crores and who supply taxable goods. Composite GST registration allows businesses to pay GST at a flat rate on their total turnover, without the need to charge GST on their individual supplies.
  3. GST registration for special categories: This type of GST registration is available to certain categories of businesses, including non-resident businesses, casual taxable persons, and businesses operating in special economic zones.

Who needs GST Registration?

In India, GST registration is mandatory for businesses whose annual turnover exceeds a certain threshold, which is currently set at INR 40 lakhs (for most states). Businesses with an annual turnover of less than INR 40 lakhs may also opt to register for GST voluntarily.

GST registration is required for businesses that supply taxable goods or services, whether they are engaged in manufacturing, trading, or rendering services. It is also required for businesses that are engaged in the import or export of goods or services.

In addition to businesses, GST registration is also required for individuals or entities that are engaged in the business of providing online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

It is important for businesses to register for GST in order to be able to claim input tax credits for GST paid on inputs and raw materials, and to charge GST on the goods and services they supply. Failure to register for GST when required can result in fines and penalties.

Benefits of GST License Registration

There are several benefits of GST registration for businesses in India:

  1. GST simplifies the tax system by replacing multiple indirect taxes with a single tax, making it easier for businesses to comply with tax laws and reducing the burden of tax compliance.
  2. GST reduces the cost of doing business by eliminating the cascading effect of multiple taxes and providing businesses with the ability to claim input tax credits.
  3. GST promotes the growth of domestic trade by eliminating the barriers to inter-state trade and making it easier for businesses to sell their goods and services across state borders.
  4. GST promotes exports by providing a refund of the GST paid on inputs and raw materials used in the production of goods for export.
  5. GST enhances the tax base by expanding the scope of the tax to cover a wider range of goods and services, including those that were previously untaxed or taxed at a lower rate.
  6. GST increases transparency in the tax system by requiring businesses to maintain complete and accurate records of their GST transactions and by providing a centralized system for the filing of GST returns.
  7. GST helps to curb tax evasion by requiring businesses to be registered for GST and by providing for the assessment and enforcement of GST compliance.

Overall, GST registration provides businesses with a number of benefits that can help them to grow and succeed in the Indian market.

Eligibility for GST Registration

In India, GST registration is mandatory for businesses whose annual turnover exceeds a certain threshold, which is currently set at INR 40 lakhs (for most states). Businesses with an annual turnover of less than INR 40 lakhs may also opt to register for GST voluntarily.

To be eligible for GST registration, a business must meet the following criteria:

  1. The business must be engaged in the supply of taxable goods or services, whether it is manufacturing, trading, or rendering services.
  2. The business must have a valid Permanent Account Number (PAN) issued by the Income Tax Department.
  3. The business must have a valid bank account in its name.
  4. The business must have a valid proof of business, such as a trade license, partnership deed, memorandum of association, or certificate of incorporation.
  5. The business must have a valid proof of identity and proof of address for the proprietor, partner, or director.

Note: Eligibility criteria for GST registration may vary depending on the nature and size of the business, as well as the goods and services it supplies.

What is the input tax credit?

Input tax credit, or ITC, is a credit that businesses can claim for the GST paid on inputs and raw materials used in their business. ITC allows businesses to offset the GST paid on inputs against the GST collected on their supplies, effectively reducing the overall tax burden on their business.

For example, if a business pays GST on the purchase of raw materials, it can claim ITC for the GST paid and use it to offset the GST charged on the goods or services it supplies. This helps to reduce the cost of doing business and makes it easier for businesses to compete in the market.

ITC is an important feature of the GST system, as it helps to eliminate the cascading effect of taxes and promotes the growth of domestic trade. Businesses that are registered for GST are eligible to claim ITC, provided they have the necessary documents, such as invoices and receipts, to support their claim.

It is important to note that ITC is available only on GST paid on inputs and raw materials that are used in the course of business. ITC is not available on GST paid on capital goods or on goods and services that are not used in the business.

What are the GST tax rates?

In India, GST is levied at different rates depending on the nature of the goods or services being supplied. The GST tax rates are as follows:

  1. 0% GST: Some goods and services are exempt from GST, and are taxed at a rate of 0%. These include essential items such as fresh fruits and vegetables, milk, and certain types of medical and educational services.
  2. 5% GST: Some goods and services are taxed at a rate of 5%, including items such as transportation of goods by road, honey, and preserved fruits.
  3. 12% GST: Many goods and services are taxed at a rate of 12%, including items such as processed food, computer hardware, and non-AC hotels.
  4. 18% GST: A large number of goods and services are taxed at a rate of 18%, including items such as furniture, electrical goods, and telephone services.
  5. 28% GST: Some goods and services are taxed at a rate of 28%, including items such as luxury cars, tobacco, and aerated drinks.

Note: GST rates are subject to change, and the applicable rate may vary depending on the nature and classification of the goods or services being supplied.

What is a GST Return?

A GST return is a document that businesses registered for GST are required to file with the government on a periodic basis. The GST return contains details of the goods and services supplied by the business, the GST collected and paid, and any input tax credits claimed by the business.

There are several types of GST returns that businesses may be required to file, depending on the nature and size of their business and the goods and services they supply. The most common types of GST returns are:

  1. GSTR-1: This is a monthly or quarterly return that contains details of all outward supplies (sales) made by the business during the relevant period.
  2. GSTR-2: This is a monthly or quarterly return that contains details of all inward supplies (purchases) made by the business during the relevant period.
  3. GSTR-3: This is a monthly or quarterly return that reconciles the details of outward and inward supplies provided in GSTR-1 and GSTR-2 and calculates the net GST liability of the business.
  4. GSTR-9: This is an annual return that contains a summary of the GST paid and collected by the business during the financial year, as well as details of any input tax credits claimed and any discrepancies in the GST returns filed during the year.

GST returns must be filed electronically through the GST portal, and businesses must ensure that they are filed on time to avoid penalties and interest. Filing GST returns accurately and on time is an important compliance requirement for businesses operating in India.

Penalties for not complying with GST Guidelines

Failure to comply with GST guidelines can result in various penalties for businesses in India. The specific penalties that may be imposed will depend on the nature of the non-compliance and the severity of the breach. Some of the common penalties for non-compliance with GST guidelines are:

  1. Late filing of GST returns: If a business fails to file its GST returns on time, it may be subject to a late filing penalty. The penalty for late filing of GST returns is INR 100 per day for every day of delay, up to a maximum of INR 5,000.
  2. Non-filing of GST returns: If a business fails to file its GST returns at all, it may be subject to a non-filing penalty. The penalty for non-filing of GST returns is INR 10,000 per return, up to a maximum of INR 50,000.
  3. Incorrect GST returns: If a business files incorrect GST returns, it may be subject to a penalty. The penalty for incorrect GST returns is INR 10,000 per return, up to a maximum of INR 50,000.
  4. Failure to pay GST: If a business fails to pay the GST due on its supplies, it may be subject to a penalty. The penalty for failure to pay GST is INR 10,000 or the amount of GST due, whichever is higher.

 

Documentations required for GST Registration

To obtain GST registration in India, businesses must complete an online application process and provide the following documents:

  1. PAN card of the business: This is a unique identification number issued by the Income Tax Department to businesses and individuals.
  2. Proof of identity and address of the proprietor, partner, or director: This could be a copy of the PAN card, passport, voter ID, or driving license.
  3. Proof of business: This could be a trade license, partnership deed, memorandum of association, or certificate of incorporation, depending on the nature of the business.
  4. Bank account details: This could include a copy of the bank statement or a certificate from the bank.
  5. A passport-sized photograph of the proprietor, partner, or director.

 

GST License Registration Process

The GST registration process in India is as follows:

  1. Determine the type of GST registration that is required: Businesses must determine the type of GST registration that is required based on the nature and size of their business, as well as the goods and services they supply.
  2. Gather the necessary documents: Businesses must gather the necessary documents, including a PAN card, proof of identity and address, proof of business, and bank account details.
  3. Apply for GST registration online: Businesses must complete an online application for GST registration on the GST portal.
  4. Submit the required documents: Businesses must submit the necessary documents online to support their application for GST registration.
  5. Wait for the GST registration certificate: Once the application for GST registration has been approved, the business will receive a GST registration certificate, which contains the GST identification number (GSTIN).

 

Validity of GST License/Registration

The validity of GST registration in India depends on the nature and size of the business, as well as the goods and services it supplies. For most businesses, GST registration is valid indefinitely, unless the business is cancelled or suspended by the authorities for non-compliance with GST guidelines.

However, for businesses that are registered as composite taxpayers, the validity of GST registration is limited to a maximum of three years. Composite taxpayers are small businesses whose annual turnover is less than INR 1.5 crores and who supply taxable goods. These businesses are required to renew their GST registration every three years to continue to enjoy the benefits of composite GST registration.

It is important for businesses to ensure that their GST registration is valid at all times in order to be able to claim input tax credits and charge GST on their supplies. If a business’s GST registration has lapsed or been cancelled, it may be required to re-apply for GST registration and pay any outstanding GST liabilities before it can resume its business activities.

Fees Required for GST License Registration

There are no fees required for GST registration in India. Businesses can apply for GST registration online through the GST portal, and the process is generally free of charge.

It is important for businesses to carefully consider their GST compliance obligations and ensure that they pay the correct amount of GST on their supplies and file their GST returns accurately and on time to avoid any penalties or interest charges.

GST Terminologies

Here are some important GST terminologies that businesses operating in India should be familiar with:

  1. GST: The Goods and Services Tax is a value-added tax that is levied on the supply of goods and services in India.
  2. Input tax credit (ITC): ITC is a credit that businesses can claim for the GST paid on inputs and raw materials used in their business. ITC allows businesses to offset the GST paid on inputs against the GST collected on their supplies.
  3. Output tax: Output tax is the GST collected by a business on the supply of goods and services.
  4. GST registration: GST registration is the process by which businesses register with the government to collect and pay GST on their supplies.
  5. GST return: A GST return is a document that businesses registered for GST are required to file with the government on a periodic basis. The GST return contains details of the goods and services supplied by the business, the GST collected and paid, and any input tax credits claimed by the business.
  6. GST identification number (GSTIN): A GST identification number, or GSTIN, is a unique identification number assigned to businesses registered for GST. The GSTIN is used to identify the business for GST purposes and must be displayed on all invoices and other relevant documents.

How ICStask can help you?

Inspired Certification Services (ICStask) can help businesses with the process of obtaining a GST registration certificate in a number of ways:

  1. Advice on GST registration: ICStask can provide businesses with advice on the type of GST registration that is required based on the nature and size of the business, as well as the goods and services it supplies.
  2. Preparation of documents: ICStask can assist businesses with the preparation of the necessary documents for GST registration, including the PAN card, proof of identity and address, proof of business, and bank account details.
  3. Filing of the GST registration application: ICStask can assist businesses with the online filing of the GST registration application on the GST portal and ensure that all necessary documents are submitted as required.
  4. Follow-up with the authorities: ICStask can follow up with the authorities to ensure that the GST registration application is processed in a timely manner and to resolve any issues or queries that may arise.
  5. Advice on GST compliance: ICStask can provide businesses with ongoing advice on GST compliance, including filing of GST returns and payment of GST due on supplies.

Overall, ICStask can provide valuable assistance to businesses with the process of obtaining a GST registration certificate and help ensure that they are compliant with GST guidelines.

 

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