GST Registration for Public Limited Company: A Comprehensive Guide

 

GST Registration for Public Limited Companies in India 

The Goods and Services Tax (GST) in India is an indirect tax that has replaced many other indirect taxes, including VAT, service tax, and excise duty. GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. For any business, including public limited companies, understanding the intricacies of GST registration is crucial to ensure compliance and smooth operations. This guide provides a detailed overview of the GST registration for a public limited company in India.

Introduction to Public Limited Company

A public limited company (PLC) is a type of company that offers its shares to the public and has limited liability. It requires a minimum of seven shareholders and three directors. Public limited companies are subject to stringent regulatory requirements and disclosure norms, making transparency and compliance essential.

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 Importance of GST Registration

GST registration is mandatory for businesses exceeding a certain turnover threshold, currently set at ₹20 lakhs (₹10 lakhs for special category states) for service providers and ₹40 lakhs (₹20 lakhs for special category states) for goods suppliers. However, irrespective of the turnover, certain businesses, such as e-commerce operators and inter-state suppliers, are required to register for GST. For a public limited company, GST registration is crucial as it:

• Ensures compliance with tax laws.
• Enables input tax credit, reducing the tax burden.
• Enhances the credibility of the business.
• Facilitates smooth business operations across states.

 

 Prerequisites for GST Registration

Before initiating the GST registration process, a public limited company should have the following documents and information ready:

1. Company Details:

   • Certificate of Incorporation.
   • PAN Card of the company.
   • Memorandum and Articles of Association.

2. Directors' Details:

   • PAN Card and Aadhaar Card of all directors.
   • Passport-size photographs.
   • Address proof (e.g., electricity bill, telephone bill).

3. Authorized Signatory Details:

   • Digital Signature Certificate (DSC) of the authorized signatory.
   • PAN Card and Aadhaar Card of the authorized signatory.
   • Authorization letter or board resolution for the authorized signatory.

4. Principal Place of Business:

   • Address proof of the principal place of business (e.g., rent agreement, property tax receipt).
   • No Objection Certificate (NOC) from the owner if the premises are rented.

5. Bank Details:

   • A cancelled cheque or bank statement.

6. Additional Places of Business:

   • Address proof for each additional place of business, if any.

 

 Step-by-Step GST Registration Process

1. Visit the GST Portal:

   • Access the GST portal at www.gst.gov.in.

2. Create a New User:

   • Click on ‘Register Now’ and select ‘New Registration’.
   • Fill in the required details, including the legal name of the company, PAN, email, and mobile number.
   • An OTP will be sent to the email and mobile number for verification.

3. TRN Generation:

   • Upon successful verification, a Temporary Reference Number (TRN) will be generated.
   • Use the TRN to log in and proceed with the application.

4. Part B of the Application:

   • Fill in the details of the business, including the principal place of business, additional places of business, and HSN/SAC codes for goods/services supplied.
   • Provide details of directors and the authorized signatory.
   • Upload the required documents in the specified format.

5. Verification and Submission:

   • Verify the details provided using DSC or E-Sign.
   • Submit the application.

6. Application Reference Number (ARN):

   • Upon successful submission, an Application Reference Number (ARN) will be generated.
   • Use the ARN to track the status of the application.

 

 Post-Registration Compliance

After obtaining the GST registration, a public limited company must comply with the following:

1. Display of GSTIN:

   • Display the GST Identification Number (GSTIN) prominently at the principal and additional places of business.

2. Invoice Format:

   • Ensure that GST-compliant invoices are issued, including details such as GSTIN, invoice number, date, HSN/SAC codes, and the applicable GST rates.

3. Filing GST Returns:

   • Regularly file GST returns as per the prescribed due dates. The types of returns include GSTR-1, GSTR-3B, and annual returns (GSTR-9).

4. Maintenance of Records:

   • Maintain proper records of all business transactions, including sales, purchases, input tax credit, and payments.

5. Payment of GST:

   • Ensure timely payment of GST to avoid interest and penalties.

6. Input Tax Credit (ITC):

   • Claim input tax credit as per the provisions of the GST law. Ensure that suppliers have filed their returns to avoid discrepancies.

 

 Penalties for Non-Compliance

Non-compliance with GST regulations can attract severe penalties and legal consequences. Some of the common penalties include:

• Late Filing: A late fee of ₹100 per day for CGST and SGST, subject to a maximum of ₹5,000 each.
• Non-Filing: Interest at the rate of 18% per annum on the outstanding tax liability.
• Wrongful Claim of ITC: Penalty equal to the amount of wrongful credit availed or utilized.
• Fraudulent Activities: Penalties ranging from 10% of the tax amount to imprisonment in severe cases.

 

 Conclusion

GST registration is crucial for public limited companies in India to ensure compliance with tax regulations, enhance business credibility, and avail input tax credits. The registration process, though detailed, is straightforward and can be completed online through the GST portal. By sticking to the prescribed guidelines and maintaining regular compliance, public limited companies can benefit from the streamlined tax structure under GST, thereby contributing to the country's overall economic growth.

For further assistance with GST registration, public limited companies can visit thegstco.com. At TheGSTCo, we offer comprehensive services to help businesses with GST registration, amendments, filings, notice replies, refunds, cancellations, and reactivations. Our services include VPOB & APOB by State for Amazon and Flipkart, GST practitioner registration, Import Export Code, Professional Tax, Trade License, FSSAI License, Start-up India Registration, MSME Registration, and ONDC Registration. We ensure a smooth and hassle-free registration process, enabling businesses to focus on their core operations while we handle the compliance requirements.

Choose TheGSTCo.com for a seamless GST registration experience and benefit from our expertise in navigating the complexities of GST compliance.