In the tax scheme, Registration of the corporate company plays a key role in raising the tax on behalf of the government and to avail the Input Tax Credit. For collecting the tax from consumers and availing the Input Tax Credit the registration of every business company is very important under GST Law. If a company cannot declare itself, it cannot raise a customer’s tax and cannot take advantage of the Input Tax Credit.
A individual with a total turnover of greater than 40 Lacs is liable for registration under the law in the financial year, and a group turnover of more than 20 Lacs under certain categories in the financial year is liable for registration of any business organisation.
In principle, the fiscal authority shall have a Unique Identification List, including Permanent Account Number (PAN) and State Number, after registration of any business enterprise. In essence. Unique ID number is called the fifteen-digit GST Identification number (GSTIN). GST Identification Number (GSTIN) is the State Code for the first two digits and the next ten digits are the taxpayer’s permanent account number (PAN). After that, the 13th digit of the Unique Identification Number shows the registration number within the Territory, and the 14th digit is Z by chance.
GST is, however, categorised into four categories, namely CGST, SGST, UTGST and IGST, but no one has to register for all categories and no taxes have to be registered.
What is the advantage of GST registration?
The GST is an indirect tax with the primary aim of abolishing many additional indirect taxes in India. The government created a forum to pay tax after the elimination of certain indirect taxes.
The Registration Registration of GST offers the following advantages:
The scrapping of the cascade effect: The cascading effect which caused double taxation of goods was abolished after GST was enacted in India. The tax burden for the corporate company was lowered following the cascading impact was scrapped.
Less compliance: There were many indirect taxes, including service tax, VAT, excise, etc, used prior to the adoption of GST in India. So all indirect taxes merged into the single tax scheme after the implementation of GST reduced the number of filings.
Easy application procedure: A citizen should register online and file a GST through a GST portal that saves the individual’s time. Easy application procedure:
Recognition: After GST registration, an individual is legally recognised as a products and services supplier.
Input tax credit: The individual will then demand the input tax credit from tax collected, which can be used to pay taxes because of the provision of products and services that ensure that the tax collecting scheme is transparent after registration. Tax credit:
Document required for registration of GST
A person has to submit the following documents at the time of registration of GST which are as follows:
PAN of the Applicant: An applicant has to submit the details of the Permanent Account Number (PAN) at the time of registration.
Aadhar card: At the time of registration of GST, an applicant has to submit a copy of Aadhar card.
Address proof of the place of the business: A person needs to submit the address proof of the place of business where he is planning to set up from where he wants to commence business.
Bank Account Statement: An applicant has to submit the bank account statement, cancelled cheque at the time of registration of GST.
Digital Signature: The digital signature of the applicant is necessary at the time of registration of GST.
Letter of Authorization: At the time of registration, a person needs to submit a letter of authorization or board resolution for the authorized signatory.
Incorporation Certificate: An incorporation certificate is a legal document or license which is related to the formation of a company, so a person needs to submit the incorporation certificate at the time of registration of GST
Identity and Address proof of the Directors: At the time of registration, a person has to submit the identity and address proof of the directors.
Person liable for Registration (Sec 22)
- Section 22 of the CGST Act talks about the person liable for registration. If a taxable supply of goods and services of a person exceeds forty lakh rupees in a financial year then he shall be liable for registration. However, for some special category state (Jammu & Kashmir, Ladakh, Assam, Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, and Uttrakhand) the threshold limit of taxable supply of goods and services is twenty Lakh in a financial year which means that such special category state shall be liable for registration if his aggregate turnover in a financial year exceeds ten Lakh rupees.
- Every person who, on the day immediately preceding the appointed day, is registered or holds a license under existing law, shall be liable to be registered under this Act with effect from the appointed day.
- If in the case of transfer of business by the registered person then the transferee shall be liable to be registered with effect from the date of such transfer or succession.
- In the case of transfer according to the sanction of a scheme, amalgamation or in the case of the demerger of two companies by the order of High Court, Tribunals then the transferee of business shall be liable to be registered.
Section 2(6) of CGST defines the Aggregate turnover. Aggregate turnover means the aggregate value of all taxable supplies, exempt supplies, exports of goods and services, the inter-state supply of persons having the same Permanent Account Number (PAN) to be computed on an all India basis.
However, the Aggregate turnover excludes taxes, if any charge under CGST Act, UTGST/SGST Act, and ITGST Act. The value of inward supplies on which tax is payable by the person on a reverse charge basis and the value of inward supplies are also excluded in Aggregate turnover.
What is the Procedure for Registration (Section 25)
- After checking the criteria for registration under Section 22or 24 of the CGST Act, if a person fulfils the criteria for registration then such person shall apply for registration in every state or Union territory within the thirty days from the date on which he becomes liable to registration.
- After the submission of the application, a proper officer has to take action within the three days of submission of the application or within the seven days of receiving the clarification so solicited, the applicant for the grant of registration is deemed to be approved.
- In the case of a casual taxable person or non-resident taxable person, a person shall apply for registration at least five days before the commencement of business.
- If a person is making the supply of Goods and services from territorial waters of India then in such a situation a person shall obtain the registration in the coastal State or Union Territory where the nearest point of the appropriate baseline is located.
- Only one registration has to be done for a single business in a State or Union Territory. However, if a person is engaged in multiple businesses in a State or Union Territory then in such a condition a person shall have to apply for separate registration.
- If a person is not liable to register under Section 22 or 24 of the CGST Act, then such person may get himself registered voluntarily and all the acts which apply to the registered person shall apply to such person.
- If a person has registered himself in more than one state or union territory, then in such a situation the person will be treated as a distinct person.
- Establishment of the same person in different states or Union territory to be treated as the establishment of a distinct person.
- A person shall have a Permanent Account Number issued under the Income Tax Act, 1961 to be eligible for grant of registration.
- Authority shall verify the registration details and after the verification, he shall issue the Unique Identity Number. However, if the authority finds any error then he has the authority to eject after the verification.
- A certificate of registration shall be issued in such form and with effect from such date as may be prescribed
Amendment of GST Registration
When a registered individual wishes to alter the details provided on registration, the registered person shall alert the appropriate office within 15 days of obtaining the single identity number in such situation. After registration the registered person must notify the registered person in such a situation.
When amendments are submitted, the approval or rejection of them will depend on the discretion of the appropriate officer. The proper official shall not, however, refuse the registration application without giving it a chance to be heard
After arriving at GST in India, many indirect taxes have been placed under a single framework that simplifies Indian taxation. In paying tax electronically via a simple process, digitisation plays an important part. The number of taxes is reduced by GST. A person can now review the registration requirements himself and register online. Registering GST is a simple process in which no tax experience is required. The government also publishes notifications from time to time concerning the individual responsible for registering or the threshold for registering GST.