GST is the biggest tax reform of India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. A single system is formed by abolishing and subsuming multiple taxes reducing tax complexities and increase tax base substantially. All the goods and services are taxed under one single law being Goods and Service Tax Law. The tax is levied at a single rate and is then bifurcated between the State and the Central Government in the name of SGST, CGST or IGST.
All entities that are involved in buying or selling of goods or services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Registration for GST is mandatory based on the criteria of turnover or business activities. In a special category, entities with an annual turnover of Rs. 10 lakhs and above whereas in all other categories, entities with an annual turnover of Rs. 20 lakhs and above are required to register for GST. There are also various other criteria’s, that could make an entity liable for obtaining GST registration – irrespective of annual sales turnover. Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST.
A Decrement in Cost with Input Tax Credit
Once the supplier has obtained GST registration, he can take credit of GST paid to the previous supplier related to business activities. This lowers the pricing of supplies. The registered GST suppliers can also pass on the ITC to the consumers.
One Time Simplified Registration
With the assistance from LW experts, the online registration process is simplified. The certificate granted to the applicant after registration states the GST Registration number, also known as GSTIN. The registration granted is permanent without any requirement for renewal.
After registration for GST, the supplier is eligible to collect the taxes legally and can also pass on the credit. The voluntary registrant also gets equal status and responsibilities of taxpayer registered under the mandatory criteria. With the said registration, the registrant can also issue fair invoice to the consumers.
Easy Compliance Requirement
Every registrant on registration is liable to fulfil compliance in the form of return filing in a periodical manner. These compliance requirements are simplified under the GST regime. It is also proposed to simplify the compliance through single return filing from multiple filings. A regular taxpayer would be awarded a higher GST Compliance rating as compared to others.
DSC of Partners or Directors, in case of LLP and Company only.
Copy of passport size photograph of the Proprietor/ Partners /Directors.
Entity’s PAN Card
A copy of PAN Card of business entity
PAN & Aadhar Card
A copy of Aadhar Card of Proprietor/ Partners/ Directors
Business Address Proof
Latest Electricity bill/ Any Tax paid bill/ Municipal Khata Copy
If the place is rented, rent agreement is mandatory, else consent letter is sufficient
Latest Bank Statement/ Copy of cancelled cheque/ copy of the first page of passbook
Certificate of Registration
An Entity should provide registration certificate with MoA- AoA / LLP Agreement or Partnership Deed as applicable