GST Registration in India

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Total cost with Breakdown

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Government fees Rs 1899.00

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TotalBuy NowRs 1899.00

ONLINE GST REGISTRATION IN INDIA

In India, we as a citizen have to pay two types of taxes i.e. Direct tax and Indirect tax. Goods and Services Tax (GST) is a type of Indirect tax which has replaced many other indirect taxes in India. The Goods and services tax act was passed by the parliament on March 29th, In India, we as a citizen have to pay two types of taxes i.e. Direct tax and Indirect tax. Goods and Services Tax is an of Indirect tax which has replaced many other indirect taxes in India. The Goods and services tax act was passed by the parliament on March 29th, 2017 which came into effect on July 1st, 2017. In the year 2000, a committee was set up to draft GST law and it took its final form in 2017, therefore GST took 17 years to come into its real application in India.

It is basically levied on the sale of goods and services and now it is the only tax charged replacing various other previously existing indirect tax laws in India.

GST is a multi - stage and destination-based tax law, which is levied at every point of sale of goods and services. Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) is charged in case of transactions occurring intra – state while in case of inter – state, Integrated Goods and Services Tax (IGST) is charged.

The production of goods and services goes through many stages from manufacturer to final sale to the customer. Thus, it is levied at each stage, making it the multi – stage tax. It is charged only to the value added at each stage by the seller. It is levied at the point of consumption; hence it is destination based. Get GST Registration in India with help of Company Vakil Expert Lawyers, CA’s and CS at most affordable prices.

 

Evolution of GST in India

The history of goods and services tax can be traced all the way back to year 2000 wherein a committee to draft the GST law was setup by late prime minister Atal Bihari Vajpayee. The GST timeline is given as under:

  • 2000 – committee to draft GST law by PM Atal Bihari Vajpayee
  • 2004 – improvement in tax structure through GST proposed by task force
  • 2006 – introduction of GST proposed by finance minister from April 1, 2010
  • 2007 – central sales tax decided to be phased out, rates slashed from 4% to 3%
  • 2008 - dual GST structure finalized by EC, having separate levy and legislation
  • 2010 – computerization of commercial taxes started but GST implementation got postponed
  • 2011 – Constitution Amendment Bill passed to bring GST law in force
  • 2012 - Clause 279B stalls discussion over GST bill by standing committee
  • 2013 - Standing Committee files its reports on goods and service tax registration in India
  • 2014 – Re-introduction of GST bill in the parliament by finance minister
  • 2015 – Bill passed in Lok Sabha but not in Rajya Sabha
  • 2016 – GSTN goes live, amendment passed in both houses, President gives assent
  • 2017 - Four supplementary GST bills passed by Lok Sabha and later by Rajya Sabha, Final implementation begins July 1, 2017

 

GST LAW & GST APPLICATION PROCESS EXPLAINED

Gst online registration is considered mandatory for any entity that is involved in purchase and sale of goods and services in India. As one of the biggest tax reforms of the country, this law facilitates the ease of doing business in India at the same time bring more and more businesses under the tax bracket, thereby contributing to the growth of the economy. Through goods and service tax registration in India, Government can more easily track transactions across and within states and put a check on unregulated transactions across the country. It has significantly boosted the tax law compliance in India.

Goods and Service Tax, as the name suggests, is an indirect tax that is levied on the supply of goods and services in India. It has in fact replaced a number of indirect taxes in the country such as VAT, excise duty etc. In simple terms, it is a single indirect tax for the whole country. Before the introduction of GST, indirect taxes such as VAT and excise duty were levied at every stage of the distribution cycle with varying rates which was difficult to regulate. But with Goods and Service Tax registration in India, tracking and regularization became much easier.

Some of the key facets of GST law are that it is a multi-stage, destination-based tax law that will be applicable whenever there is some value addition.

  • Multi-stage implies that there are multiple stages in the production to the delivery of a good or service; namely raw material purchase, manufacturing or production, warehousing, sales to the wholesaler, then the retailer and ultimately to the end customer. GST will be applicable at each of the above cases.
  • Destination based implies that if the goods manufactured in Punjab are sold in Haryana, the entire tax revenue will go towards the destination state i.e. Haryana which is the point of sale for the end consumer.
  • Value addition implies that the manufacturer who purchases raw material transforms and adds value to it produce the good. Similarly, when passed to a warehousing agent who packs and labels the good, value is added. When this good is again sold to the retailer, value addition occurs. At each of these stages, GST will be levied till the final good reaches the end consumer.

The process of how things worked in the pre-GST era can be explained as under:

Stakeholder  Cost  Tax@10%  Total
Manufacturer  1,000  100  1,100
Warehouse packages and labels @ 200  1,300  130  1,430
Retailer advertises @ 400  1,830  183  2,013
Total  1,600  413  2,013

In the earlier regime, taxes were cascaded, hence the final customer had to pay more since tax was levied on previous stage taxed item.

However, in the current regime, this cascading effect of taxes has been eliminated to benefit the end consumer, as illustrated below:

Stakeholder Cost Tax@10% Actual Liability Total
Manufacturer 1,000 100 100 1,100
Warehouse packages and labels @ 200 1,200 120 20 1,220
Retailer advertises @ 400 1,600 160 40 1,760
Total 1,600   160 1,760

As it can be observed, there is a significant tax saving of Rs 253 under the current regime. This benefit is directly transferred to the end customer.

Other benefits of getting a GST online registration done from one of the top GST Registration Portals such as Company Vakil are explained below.

 

Benefits of GST Registration Online in India

  • Removal of cascading effect of taxes
  • Logistical efficiency improvement
  • Reduced complexity and less compliance
  • Regulation of unorganized sector
  • Composition scheme for the small and medium enterprises
  • Increased threshold for registration
  • Simple GST online registration procedures via GST Registration Portals
  • Well defined treatment of e-commerce transactions

 

GST SLABS IN INDIA

Apart from items that are exempted from Goods and Services Tax such as jute, eggs, fish, fresh meat, milk, butter milk, chicken, curd, fresh fruits, vegetables, salt, natural honey, bread, printed books, bindi, sindoor, judicial papers, newspapers, colouring books, drawing books, handloom, bangles, horn cores, horn meal, bone meal, palmyra jaggery, cereal grains etc. most other items are placed in four Goods and Services Tax slabs namely 5%, 12%, 18% and 28%. Items in each slab are periodically reviewed by the GST council as per industry and economic norms to take final call on their tax slab. Some of the items in each slab are as under:

 

5% GST SLAB RATE

Commodities- Milk food for babies, packaged food products like paneer, pizza bread, both postage and revenue stamps, roasted coffee beans, rusk, spices, skimmed milk, domestic LPG, edible oil, fish fillet, first day cover, fertilizers, frozen foods, floor covering, footwear upto Rs 500, hearing aid, apparels upto Rs 1000 etc.

Services- Transport services like railways, economy class air travel, radio taxis and motor cabs, sale of print media advertisement space, tour operator services, small restaurants of turnover up to Rs 50 lakhs.

 

12% GST SLAB RATE

Commodities – Almonds, apparel above Rs 1000, butter, animal fat sausage, cake servers, ayurvedic medicines, chess and carrom boards, diagnostic kits, forks, knives, fruits, fruit juices, frozen meat, exercise books, ghee, pickle, nuts, sewing machine, tooth powder, tongs, umbrella, spoons, playing cards, work contracts etc.

Services - business class air tickets, hotels, inns and guest houses with tariff ranging from Rs 1000 to Rs 2500.

 

18% GST SLAB RATE

Commodities – Aluminium furniture, bamboo, cakes, biscuits, branded garments, camera, CCTV, computers, curries, corn flakes, transformers, hair oil, footwear above Rs 500, envelopes, refined sugar, circuits, printers, tampons, toothpaste, steel products, speakers, soups, soaps, weighing machinery, salad seasonings etc.

Services – IT services, telecom services, hotels, inns, guest houses with tariff between Rs 2500 and Rs 5000, AC hotels which serve alcohol.

 

28% GST SLAB RATE

Commodities – Deodorants, paint, after shave lotions, aerated water, automobile motorbikes, personal aircrafts, hair clippers, pan masala, shavers and shaving creams, washing machine, vacuum cleaner, dyes, dishwashers, water heater, shampoos, waffles, vending machines, tiles, wallpapers etc.

Services – Cinema tickets and entertainment events, five-star hotels, gambling and race clubs, hotels, inns and guest houses having tariff between Rs 5000 upwards

 

 

 

WHAT IS CGST, SGST & IGST?

  • CGST means Central Goods and Services tax and SGST means State Goods and Services tax. When there is a transaction that takes place within a state i.e. intra state then CGST & SGST is levied. A transaction where buyer and the seller are located in the same state, seller collects CGST & SGST from the buyer. The Central and the State governments, both agree to combine the charges in an appropriate proportion for sharing the revenue on a sale of goods and services that takes place intra-state but the tax rate should not exceed 14% each.
  • IGST means Integrated Goods and Services Tax which is charged on sales that take place between two or more states. This is levied when the location of the buyer and the seller is in different states. When an export or import of goods or services takes place and when the supply of goods or services is done to or by a SEZ unit, the deal is presumed to be Inter-State and IGST is charged. A seller collects IGST from the buyer in case of inter – state transactions. The taxes have been segregated for the fact that both central and state government need to raise funds for their development and offering services and responsibilities.

 

WHY I NEED TO REGISTER FOR GST IN INDIA?

  • A person carrying out taxable activities in India need to register for Goods and Services Tax.
  • Anyone who performs business in any part of India needs GST Registration online via a GST Registration Portal.
  • Any person who is engaged in trade and commerce activities in India are required to have a GST Registration in India.
  • Any firm, company, individual, LLP government company, etc. are under obligation to register under law.
  • GST registration Online is necessary to continue the commercial activities in India.
  • Registration via GST Registration Portal is mandatory for few businesses. If the organization undertakes a business without GST registration in India, it is considered to be a crime under law and heavy penalties are charged on non-registered companies.
  • GST - Goods and Services Tax Registration in India takes between 2-6 working days. Company Vakil Experts are always available to help you with your registration via its GST Registration Portal.

 

What Benefits do I get from GST Online Registration in India?

For a standard registered business opting for Goods and Service Tax registration in India, benefits include:

  • Input tax credit facilities
  • No restrictions regarding inter-state sales

For a composition dealership, benefits are:

  • Reduction in tax liability
  • More working capital
  • Fewer compliances

For business houses with turnover less than 20 lakh per annum voluntarily opting for Goods and Service Tax registration in India via a GST Registration Portal, advantages are:

  • Input tax credit facilities
  • No restrictions regarding inter-state sales
  • Competitive advantage over other businesses
  • Access for registering to e-commerce websites

 

WHO SHOULD GET GST REGISTRATION IN INDIA?

  • Person who is already registered under previously established laws (i.e., Excise, VAT, Service Tax etc.) is needed to register for GST.
  • If the turnover of the business in a financial year exceeds Rs.20 lakhs (Rs.10 lakhs for North Eastern and hill states), they need get a goods and service certificate.
  • In case of transfer of business, the person to who it is transferred will have to register for it.
  • Anyone who supplies online information and database access or other services from a place outside of India to the person residing in India, other than a registered taxable person also has to register himself under Goods and Services Tax laws.
  • Person driving inter-state supply of goods will be required to register.
  • A casual taxable person who irregularly supplies goods or services in a territory where GST is applicable has to register under it.
  • Non-Resident taxable person
  • Agents of a supplier are also needed to register as per the act.
  • People who are paying tax under the reverse charge mechanism will be required to get themselves registered under GST law.
  • Supplier of the goods / services which receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the credit of CGST / SGST / IGST paid on the said services to the branch with same PAN is required to register for it.
  • E-commerce operator or aggregator needs to register for it, if the total sales exceed Rs. 20 lakhs.
  • Person who supplies through e-commerce aggregator

 

GST REGISTRATION ONLINE PROCESS

At Company Vakil you may avail services to get your business registered under The Goods and Services Tax Law and get your Goods and Services Identification Number (GSTIN).
Taxation Experts of Company Vakil can guide you on its applicability and guidelines to be followed under GST Registration Online for your business. All its process is online through a Central Govt. of India’s GST registration portal. Following is the process for GST registration Process in India:

  • Applicant will have to submit his PAN number, valid email id and phone number in the PART – A of the GST REG – 01 form with company Vakil.
  • After submitting the details, verification of PAN, Phone Number and Email id is done and the application reference number is sent to the registered mobile number and email id. In the GST REG – 02 form, an acknowledgement is issued electronically.
  • After filing the required details and reference number in PART – B of GST REG – 01 form, applicant will have to submit the form.
  • For additional information GST REG – 02 form is required to be filled further.
  • After this, GST REG – 04 form needs to be submitted in 7 working days with required information after receiving GST REG – 03 form.
  • In the form of GST REG – 06, the registration certificate will be provided.

 

FEES FOR GST ONLINE REGISTRATION IN INDIA

GST Registration Online in India is lengthy and time consuming 11 step process which involves filling various details, submitting documents and scanned certificates.

Company Vakil charges a nominal fee as stated above to register your GST. Team of company Vakil Taxations experts, CA’s and CS are always at your disposal for any queries.

 

PENALTY FOR NOT REGISTERING UNDER GST ONLINE REGISTRATION

Those who are not registered under GST law are subject to the penalty of 10% of the total of the tax amount to a minimum of Rs.10, 000.

The penalty will be charged at 100% of the tax amount due if the lawbreaker has purposely evaded from paying taxes.

DOCUMENTS REQUIRED FOR GST REGISTRATION IN INDIA

Documents are required only in scanned form, you can attach the document in the form after payment or email it to us on documents@companyvakil.com. Feel free to get in touch for any query.

Following are the necessary documents required to be submitted while GST registration process:

  • Bank Passbook - Scanned copy of first page of bank account passbook mentioning few transactions and address is to be submitted.
  • Address Proof of business - Another important document is the address proof where the business is needed to be conducted. It can be rent agreement or sale deed along with NOC from the owner.
  • A business registration document/ Certificate need to be submitted for authentication like MoA, AoA or partnership deed.
  • PAN card of the applicant.
  • Address proof of the owners or promoters and list of directors with their address proof.
  • Cancelled Cheque of the bank having IFSC Code, bank branch details, MICR code or account holder’s details.
PAN Number for GST Registration in India

PAN Card of the Business or Applicant

ID Proof for Goods and services Tax Registration Online in India

Identity and Address Proof of Promoters

Required one of the following: Aadhar Card / Voter's ID / Passport / Driver's License

GST Certificate of Registration

Business Registration Document

Required One of the following - Incorporation certificate / Partnership deed / any registration certificate must be submitted for all types of registered entities.

Address Proof for GST Registration in India

Address Proof for Place of Business

One of the following - Rent Agreement /
Sale deed
Required: NOC form the Owner/Utility Bills

Bank Account proof for Registration of GST in India

Bank Account Proof

Scanned copy of the first page of bank passbook showing few transactions and address of the business must be submitted for the bank account proof.

what will you get?

Online GST Registration Certificate

GST Registration Certificate

TOTAL TIME TAKEN

2 Working days

Temporary Reference Number

3 to 4 working days

GST Number

ABOUT COMPANY VAKIL

We are India`s one stop tech legal registration platform aimed on making legal registrations efficient and affordable to end user, i.e. individuals, entrepreneurs or business owners.

Company Vakil with the help of technology and experts such as lawyers, Chartered accountants, company secretary makes registration error-free and seamless.

We provide variety of services such as Pvt Ltd Company registration, Trademark registration, copyright, udyog aadhaar (MSME), SSI, GST online registration in India, Import Export Code Registration, patent etc. Get Goods and Service Tax Registration in India with help of Company Vakil an online GST Registration Portal in India.

 

WHY CHOOSE COMPANY VAKIL

Legal Experts at your Fingertips – At company vakil all your queries are handled by experts at every stage, we have a team of lawyers, chartered accounts and company secretary to help you till your service is fulfilled

Money Back Guarantee – Company Vakil believes strongly in Customer satisfaction, and all our associates and professionals make sure you are provided with all the information required at every stage. Yet if you are not satisfied with the service provided we shall refund you the money.

Seamless Process – Through Company Vakil we try to make the process of registration via GST Registration Portal as convenient and seamless as possible. With options like trademark and company search bar it is a breeze for a user to search the right name for their company.

Customer redressal – We at Company Vakil give utmost importance to customer’s satisfaction that said we have a customer redressal team setup that outranks every other legal portal in the country, with an option to chat with our CEO if our team fails to fulfill your query.

 

FREQUENTLY ASKED QUESTIONS (FAQ's) ABOUT GST REGISTRATION IN INDIA

 

I have a VAT or Service Tax Registration; do I need to Apply for GST?

Yes, VAT & Service Tax Registrations have been merged into GST i.e. Goods & Service Tax Registration. Migration from these Old Tax provisions to GST has to be done as Law.

 

What is GST?

GST is Goods and Services Tax applicable in India. It is a Unified Indirect Tax Provision that was made applicable in India on 1st July 2017 and almost every kind of Indirect Tax i.e. Vat, Service Tax and Excise have been replaced to only One Unified Tax Provision.

 

Who needs GST online Registration in India?

It is needed by every business exceeding the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs in case of North Eastern and Hill States), any business registered under previous Indirect Tax Laws (i.e. VAT, Service Tax and Excise) and apart from these there are some special cases too.

 

What are these Special Cases for Mandatory GST Registration Online?

Special Cases for GST online Registration in India are as follows:-

1. Any business registered under Previous Indirect Tax Laws i.e. Vat, Excise or Service Tax 
2. A Casual Taxable Person 
3. Tax payers under Reverse Charge Mechanism 
4. Online e-commerce Operators/Aggregators like Amazon, Flipkart etc. 
5. People who are Agents of a Supplier 
6. People Supplying through an Ecommerce Operator / Aggregator 
7. Non – Resident Taxable Person 
8. Input Service Distributors 
9. When a Person Supplies online Information and Database Access or Retrieval Service from a Place outside of India to person in India, other than a Registered Taxable Person.  
10. Anyone doing a business that involves inter-state Supplies of Goods & Service [As per the new Amendment Service Providers doing Inter-state Supply of Service is exempted from registering under it, till their Annual Turnover doesn’t Reach the Threshold of Rs 20 Lakhs (10 Lakhs in Special States & 20 Lakhs for Jammu & Kashmir)]

 

What is GSTIN and when do u receive it?

GSTIN is a unique Goods and Service Tax Identification Number and once a business is properly registered under the same, it receives a unique GSTIN.

 

Is there a penalty for not registering under GST?

Yes, there are penalties for not registering, If a TAX Offender is not paying the same or is doing lesser payment than the actual Amount (due to genuine errors), has to pay penalty of 10% of the tax amount due and subject to minimum of Rs. 10,000. If it’s done deliberately by the offender, then penalty would be of 100% of tax amount due.

 

What are some of the indirect taxes which GST has replaced?

Central excise duty, other additional excise duties, duties of customs, special additional customs duties, state VAT, luxury tax, entertainment tax, purchase tax, entry tax, cess, central sales tax, taxes on advertising, lotteries, betting and gambling etc. are some of the indirect taxes replaced by GST.

 

What are some of the non-GST goods sold in India?

Alcoholic liquor, aviation fuel, petroleum crude, petrol or motor spirit, diesel, natural gas etc. are some of the major non-GST goods sold in the country.

 

What is the migration procedure for GST online registration in India?

For all existing tax payers that are registered under VAT/CST or service tax or TIN, the migration procedure to goods and service tax registration in India has started. The following items are needed for GST migration:

  • Login credentials i.e. username and password for existing VAT/CST or service tax portal
  • Provisional login credentials for the GST Registration Portal i.e. the username and password for the same

What is the turnover limit for Goods and Service Tax registration in India?

There are two turnover limits for the same via a GST Registration Portal:

  • excluding the north eastern states, INR 20 lakh turnover across rest of the country.
  • For north-eastern states namely Assam, Meghalaya, Mizoram, Manipur, Sikkim, Nagaland, Arunachal Pradesh as well as Uttarakhand and Himachal Pradesh, INR 10 lakh turnover.

 

Who is an ISD? does an ISD require any separate registration?

ISD implies an Input Service Distributor. It is similar to a central office that receives tax invoices of the given input services and then is responsible for further distribution of the credit of the tax paid by it to its units in proportion. An ISD registration is different from a normal registration for any given taxpayer.

 

What is the format of GSTIN number?

  • The first 2 digits of the GSTIN number refer to the state code, eg- 01 for J&K, 02 for Himachal Pradesh and so on.
  • The next 10 digits give the PAN number of the person or entity involved in the business.
  • The next 1 digit denotes the number of such entities in the same state of the given PAN holder.
  • Alphabet ‘Z’ denotes 1 digit by default.
  • Sum of all the numerals denotes the last digit of the GSTIN number.

 

What are the various compulsory post-GST registration compliances?

The various mandatory post-GST registration compliances include:

  • Invoices- Before making an actual supply, each invoice should be generated as well as uploaded on the GST website to create a reference number.
  • Monthly Returns- Based on the uploaded invoices, three specific monthly returns namely GSTR-1, GSTR-2 and GSTR-3 are required to be filed.
  • Annual Returns- One annual return is required to be filed in the form of GSTR-9.

 

What is meant by a composition scheme?

Its an optional scheme intended for all small business enterprises under which:

  • 3 monthly returns are to be summarized on a quarterly basis.
  • Tax input credit cannot be availed.
  • Taxable invoices cannot be issued.
  • The tax rate is defined as 2% for the manufacturer, 1% for the supplier and 5% in the service sector.

However, the composition scheme is not applicable to:

  • Interstate sellers
  • E-commerce sellers
  • Service providers
  • Notified goods manufacturers
  • Non-taxable goods suppliers

 

Who all can opt for Composition Scheme?

All small and medium enterprises who want lower compliances as well as lower tax rates under GST regime can consider this scheme.

A GST taxpayer having turnover below Rs 1 crore can opt for this scheme. In case of North-Eastern states as well as Himachal Pradesh, the limit has been presently set to Rs 75 lakh. Awaiting a formal notification, limit has been proposed to be raised to Rs. 1.5 crores after a decision taken by the GST Council.

However, turnover of all businesses registered under the same PAN number should be considered to calculate the turnover.

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