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Goods and Services Tax (GST) is one of the biggest tax reforms of India. GST registration has improved ease of doing business and increased the taxpayer base. A large number of small businesses in India have started operating after the introduction of GST. GST has replaced all the existing multiple taxes with a single tax system allowing the businesses to focus on profit making. Introduction of GST has reduced tax complexities to a great extent and increased the tax base substantially. Under the new GST regime, all the entities involved in buying or selling of goods or providing services or both are required to register for GST. Further, for claiming input tax credit and collecting GST from customers, GST registration is necessary. Further, GST is mandatory for businesses which crosses maximum threshold turnover.
GST council laid down certain criteria for the entities to be liable to obtain GST registration in Delhi. GST registration is mandatory for entities in special category states (North-Eastern states, J&K, Himachal Pradesh and Uttarakhand) having annual sales turnover above Rs. 10 Lac and for entities in rest of India having turnover above threshold limit of Rs. 20 Lac. Besides, individual registered under Pre-GST laws, casual taxable person, input service distributor, supplier via e-commerce aggregator along with every e-commerce aggregator, agents of a supplier and person supplying online information from a place outside India to a place inside India are required to register for GST by filing GST application form within 30 days from the date on which the entity became liable for registration under GST.
Delhi is an apt location to begin or conduct business. The main incentive being that it is the Capital of the Country and it receives the center of attraction. The city is not only famous for its modern approach towards economics but also showcases rich history. The city beholds various monuments from the Mughal period along with the India Gate, Red Fort and to add its valor, the Taj Mahal is also close by. It is a city, busy with small businesses and trades like in Chandini Chowk and Connaught Place and hence it is necessary to adhere to GST Registration in Delhi.
GST is introduced with the view to bring tax reforms in the country by single taxation system. It has tremendously improved ease of doing business by bringing millions of small businesses in India. Goods and Services Tax registration in Delhi is important for the following reasons:-
GST registration in Delhi introduced limited compliance to the business. Now, the taxpayers are not required to maintain the business record and they can focus on their business rather than engaging themselves in business complexities. GST registration ensures that the taxpayer has to furnish only quarterly returns.
GST Law ensures that the tax rate to be charged by the taxpayers is nominal. This enables the taxpayers to focus on their business for maximizing their benefits and yielding better results from it.
Once the business gets registered under GST, a person can easily avail funds from various sources like banks, angel investors, venture capitalists and other financial institutions. Banks prefer funding to registered businesses under GST than to any other normal partnership firm or proprietor. A normal taxpayer has to pay output tax on the supplies at a standard rate. Also, he can avail the benefits of any credit of input only when his own supplier files a return online. But, under GST registration, output liability will be nominal and the dependency on return filing by the supplier is also less.
GST registration in Delhi enables the small businesses to offer their products at competitive prices. This helps them to have a better hold on the local market supply by easily outplaying the economies of scale of large enterprises. Thus, it ensures the interest of small businesses by providing a sustainable and competitive market supply.
Goods and Services Tax registration in Delhi helps the entities to expand their businesses by removing legal constraints and providing them a number of opportunities. GST Registration in Delhi is required for the following reasons:
Having a valid tax registration helps the enterprise to be more independent and competitive than any other unregistered competitors. It ensures the business to carry out their operations more effectively and efficiently.
If a business entity is planning to sell its product online through e-commerce platform, it requires a unique identification number called the Goods and Services Tax Identification Number (GSTIN). A person cannot offers its product online through e-retail chains like Flipkart, Amazon, Paytm etc. if his business does not have a unique identification number.
GST registration recognizes the business legally allows it to issue taxable invoices. This helps to expand the business and to make it more competitive because the buyers are now in a better position to take input credits on their purchases.
GST registration ensures inter-state trade. A business registered under GST can easily trade all over India without any restrictions.
Goods and Services Tax Identification Number (GSTIN) is required for many of the government tenders. A person can avail the benefits from those tenders only if he has registered his business under GST and obtained a GSTIN.
GST registration certificate helps to easily open a current bank account which in case of unregistered businesses is difficult.
Having valid GST registration certificate helps the entities to deal with multinational companies.
One need to send all the required documents scanned to CompanyVakil.com. However, the following processes needs to be followed for GST registration in Delhi:
PAN (Permanent Account Number) of the business, mobile number and an email address is required for obtaining Temporary Registration Number (TRN).
Once the Temporary Registration Number has been generated, one need to fill the GST application form which requires following documents:-
One can fill the GST application form by using the above mentioned documents.
Since, the application for GST registration is online, therefore, it requires digital signature of the authorized signatory for the verification of GST application. Digital Signature Certificate is mandatory for Companies and LLPs and can be obtained through any government certifying agencies.
After getting Digital Signature certificate, the GST application form has to be submitted for its verification. On verification, a Goods and Services Tax Identification Number (GSTIN) is generated along with a temporary user name and password. After successful completion, the registration certificate will be issued within 3-5 days.
Following are the minimum requirements for Goods and Services tax Registration in Delhi:-
All the shareholders, directors, subscribers, promoters and members are required to have a digital signature.
It is not mandatory that a registered office have a commercial space. Even a rented house or a residential address can be used as a registered office. The only requirement in using rented house or residential address as registered office is that one need to obtain no objection certificate (NOC) from the landlord.
Following documents are required for Goods and Services Tax registration in Delhi:-
For obtaining GST certificate, PAN card of the business or applicant is required in order to link GSTIN with the PAN of the business.
At the time of registration, all the partners are required to submit their Pan card as a primary address proof. Also, the promoters can submit passport, driving license, Aadhar card or voters identity card as a proof of identity.
Address Proof includes passport, driving license, Aadhar card or voters’ identity card of the promoters.
The promoters are required to submit proof of registration like incorporation certificate, registration certificate or partnership deed for all types of registered business entities.
If the registered office is on rent, then a rent agreement along with a no objection certificate from the landlord has to be submitted. Also, the copies of electricity bill, gas bill, telephone bill, latest property tax receipt etc. have to be submitted as a proof of registered business address.
For the bank account mentioned in the GST application, the promoters are required to submit scanned copy of the first page of the bank passbook showing a few transactions and address of the business.
Following are the benefits of Goods and Services Tax registration in Delhi:-
Since, the business is legally recognized due to the GST registration, it can issue taxable invoices. This helps to expand the business and to make it more competitive because the buyers are now in a better position to take input credits on their purchases.
Voluntarily registered persons under GST increase their business margin and profitability by taking input credit on their own purchases and their own services like legal fees, consultation fees etc.
GST registration enables the businesses to make inter-state sales without any restrictions. This helps the small and medium enterprises to sell their products online through e-commerce platform.
GST registration ensures that the business does not require any further registration and helps the business to be compliant and scalable. Entities can easily maintain their compliance rating through GST registration, which helps them to attract additional businesses.
Once the company gets registered, it can easily derive loans from banks, venture capitalists, angel investors. Further, the banks and other financial institutions prefer registered companies over any other partnership firms or proprietorship concerns.
GST registration helps the entities to manage their taxes on input goods or services. It authorizes the entities to collect tax from their purchasers and utilize the same for payment of the GST due on supply of goods or services.
GSTIN stands for Goods and Services Tax Identification Number. It is a unique identification number assigned to all the businesses who have successfully registered under GST.
An entity can apply for GST registration in India within 30 days from the date on which the entity becomes liable to register for GST.
No. For an entity to operate in multiple states, it is required that the entity must apply for GST registration in each state separately. The entity can operate in multiple states only if it gets approval from each state separately.
Yes, any entity wanted to claim input tax credit can register voluntarily provided the regulation applicable on normal taxable person is also applicable on voluntarily registered entities.
PAN is used as a primary identity proof and, thus, is mandatory for all the normal taxpayers and casual taxable persons. However, foreign nationals are not required to submit PAN during registration.
In case of normal taxpayers, GST certificate is valid till it is cancelled or suspended. However, GST certificate for non-taxable person has validity period.
After verification of the documents and GST application form, GSTIN is obtained within 4-7 working days.
Once GSTIN is issued, a taxpayer can obtain GST certificate within 3-7 days.
North-Eastern states, J&K, Himachal Pradesh and Uttarakhand came under the category of special states. The entities in these states are required to register for GST registration if their aggregate turnover is above Rs. 10 Lac.
Primary authorized Signatory can be the promoter of the business or any person authorized by the promoter of the business for performing action on GST system portal on behalf of the taxpayer.