Businesses must first assess whether it’s eligible to register under the most recent indirect tax regime before beginning the online GST registration process. Any individual or group engaged in commercialized business must comply with the New GST Registration and Eligibility Criteria because it enables the proprietary to discharge taxes and take advantage of input tax credit. Certain businesses must get online GST registration done. It will face severe penalties if it conducts business operations without being registered. The GST Council states that a business entity must meet a number of GST filing requirements in order to be eligible for online GST registration.
What is meant by GST registration?
The Goods & Services Tax (GST) is an indirect tax that is paid when purchasing goods or services for consumption. It’s also a value-added tax levied on services. Additionally, companies that deliver services and sell goods must contribute fairly to the GST. GST eliminates the cascading effect of indirect taxes. In addition, it combines a number of separate central and state indirect taxes to provide more revenue for the government. Similar to that, online GST registration went into effect in April 2017 and demanded registration from all eligible enterprises.
What is the eligibility criteria under GST filing?
- Individuals registered under legislation like excise, VAT, service tax, etc. that were in place prior to the implementation of the GST
- A non-resident Indian taxpayer or a casual taxpayer
- Supplier’s agents, distributors of Input Services, and aggregators or E-commerce operators
- People who pay taxes through the GST registration reverse charge mechanism
- A business with a turnover that exceeds the 20 lakh rupee threshold. For states like Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and the North Eastern Indian states, the limit is 10 lakh rupees
- Any business engaged in the supply of goods whose annual turnover exceeds Rs. 20 lakhs for states in the Special category and Rs. 40 lakhs for states in the Normal category
- Any business providing services whose annual turnover surpasses Rs. 10 lakhs for states in the Special category and Rs. 20 lakhs for states in the Normal category
- If a registered business is transferred to another party or dissolves, the transferee must take online GST registration since the date of the transfer
- A person who provides online information and database access or retrieval services from a location outside India to a person in India who is not a registered taxable person
- A person making interstate supplies and a person providing online information and database access or retrieval (OIDAR) services to a person in India who is not a registered taxable person from a location outside India
Who is considered a Casual taxable person for online GST registration?
A person without a permanent place of business, who occasionally provides goods or services in an area where GST is applicable. According to GST, this person will be regarded as a casual taxable person. Suppose, a person operates in Bangalore and provides taxable consulting services in Pune, with no place of business there. Here, the person would be regarded as a casual taxable person in Pune.
Who is considered a Non-resident taxable person for online GST registration?
If a non-resident does not have a permanent place of business in India but periodically supplies products or services in an area where GST is applicable. This person will be regarded as a non-resident taxable person under GST. Similar to the situation above, however, the non-resident does not have a place of business in India.
Who is a distributor of Input Services for GST filing?
An ‘Input Service Distributor’ is an office of the supplier of goods or services that receives tax invoices upon receipt of input services. They issue tax invoices for distributing credit of paid on the said services to branch with the same PAN. Therefore, credit can only be distributed for ‘input services’, not for input goods or capital goods.
For assessees who are not currently registered as input service distributors, this will be a new topic. The use of this facility is, however, optional.
What is the meaning of composition taxpayer?
A composition taxpayer is a person registered under the composition scheme who is exempt from having to charge customers the normal rates of GST. Instead, they can file Form CMP-08 and pay tax to the government at nominal or lower rates. For these taxpayers, specific guidelines have been established. When the GST was first implemented, only suppliers of goods with an annual turnover of up to Rs. 1.5 crore were eligible to choose the composition scheme governed by Section 10 of the CGST Act. For online GST registration, the maximum annual aggregate turnover limit must be Rs. 50 lakh.
What is the meaning of QRMP taxpayer?
A registered person who must file a GSTR-3B return and who has an aggregate turnover of up to Rs. 5 crore in the last financial year is eligible for the QRMP Scheme. The scheme allows for the quarterly filing of GSTR-1 and GSTR-3B and the monthly payment of tax using form PMT-06. Furthermore, the Invoice Furnishing Facility (IFF) can be used if B2B sales invoices need to be uploaded.
Online GST registration by type of taxable person
- Within thirty days from the date on which they are required to register, every person is required to submit an application for GST registration in each state where they are liable
- Casual/non-resident taxpayers must submit their applications at least five days before they commence business
- Since the GST registration number will be based on PANs, possessing a PAN is a need for registering
- Since GST registration is State-specific, the assessee must obtain separate registrations for each State
- The assessee has the choice to acquire separate registrations in the same State for each of the ‘business verticals’
- Special GST registration provisions for non-resident taxable persons and casual taxable person
- A casual taxable person or a non-resident taxable person must make an application for registration at least five days before the start of business. Special provisions for casual and non-resident taxable persons under GST are outlined in Section 24
- A temporary registration for a term of 90 days that may be extended for an additional 90 days is available to non-resident or casual taxable persons. A person that registers under Section 24 will need to pay an advance GST deposit based on their anticipated tax liability
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