GST Registration is Important and mandatory compliance for every business entity in India.
If you own a company, you need to obtain GST Registration as per the criteria specified for your business.
It may vary as per the location of your business or the type of work you are involved in.
Besides, not obtaining the GST Registration could lead to heavy penalties against your entity.
So, obtaining one is obligatory.
Why GST is Important?
Businesses with a turnover exceeding 40 lakhs per year for all states and 10 lakhs per annum for North-Eastern states need to obtain registration as a normal taxable person. This process of registration is called GST registration.
Mostly it is mandatory for all businesses to obtain GST Registration. However, for some type of businesses, it is not mandatory to obtain one.
These types of businesses come under the Exempted Category.
Who needs to obtain GST Registration?
The following type of business entities need to obtain registration under GST;
- Individuals registered under the Pre-GST law (for example, VAT, Excise, Service Tax etc.)
- Businesses with turnover over the threshold limit of Rs. 40 Lakhs and Rs. 10 Lakhs for Uttarakhand, North-Eastern States, Jammu & Kashmir, and Himachal Pradesh.
- A casual taxable person or Non-Resident taxable person
- Input service distributor
- Agents of a supplier
- People giving tax below the reverse charge mechanism
- A person who furnishes through e-commerce aggregators
- All e-commerce aggregator
Penalty if GST Registration is not obtained
Any taxable person who fails to obtain registration under GST is liable for a fine of Rs. 10,000 or amount of tax evaded, whichever is greater as per Section 122 of CGST Act.
Documents required for registering under GST
You need to submit the following documents to register under GST;
- PAN of the Applicant
- Digital Signature (in case of Company)
- Identity (PAN and Aadhaar) and Address proof (Voter ID/Passport/DL) of Promoters or Director with their photographs
- Proof of registration of the business or Incorporation Certificate
- Board Resolution or Letter of Authorization
- Address proof of the location of the business (Electricity Bill and Rent Agreement/Sale Deed)
- Bank Account statement or Cancelled cheque
- Brief Objects of the business
GST Registration is important and mandatory compliance for every business entity in India as per their eligibility criterion.
Any company or entity who do not obtain registration under GST is liable for a penalty.
Moreover, it is also compulsory for businesses to file GST Returns after obtaining GST Registration, within the specified period to avoid any legal action against their companies.