Overview

GST is known as the Goods and Services Tax. It is an indirect tax that has replaced many indirect taxes in India, such as excise duty, VAT, service tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. Each taxpayer is allotted a PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN) in every state they operate. It is obtained as a part of the GST registration process. Once the GST registration application is verified and passed by the GST officer, a unique GSTIN is assigned to the business.

Who needs GST registration?

• GST registration is required for individuals or business entities engaged in taxable supplies of goods or services.
• The annual turnover of the business should exceed the prescribed threshold limit, which is currently ₹20 lakhs for most businesses.
• E-commerce operators facilitating the supply of goods and services through their platform need to register for GST.
• Non-resident taxable persons who occasionally supply goods or services in India are also required to register for GST.
• Businesses involved in inter-state supply of goods or services must register for GST.
• Input service distributors distributing input tax credit to their branches or units need to undergo GST registration.
• Casual taxable persons supplying goods or services occasionally in India must register for GST.
• Businesses that were previously registered under the old tax regime (such as VAT, Service Tax, etc.) and have migrated to GST are also required to be registered under GST.

Benefits of GST Registration

• Stay Compliant: Registering for GST keeps your business compliant with the tax laws of India, avoiding any penalties or legal issues.
• Seamless Operations: GST registration enables you to seamlessly conduct interstate and intrastate business without any hindrances.
• Input Tax Credit (ITC): By registering for GST, you can claim Input Tax Credit, reducing your tax liability and increasing profitability.
• Enhanced Credibility: GST registration enhances the credibility of your business, making it more trustworthy in the eyes of your customers and partners.
• Legally Mandated: As per Indian law, businesses with an annual turnover above the prescribed limit must register for GST.

Penalties for Failure to Register for GST

Under the Goods and Services Tax (GST) regime in India, failure to register for GST can result in penalties and legal consequences. Here are some of the penalties for failure to register for GST:

• Late Fees: If a person fails to register for GST within the prescribed time limit, a late fee will be levied. The late fee is Rs. 50 per day (Rs. 20 for taxpayers with nil tax liability) from the date of liability until the date of registration, subject to a maximum of Rs. 10,000.
• Penalty: If a person fails to register for GST, they may be liable to pay a penalty of 10% of the tax due or Rs. 10,000, whichever is higher.
• Prosecution: Failure to register for GST may result in prosecution under the GST Act. The penalty for such an offense can be imprisonment of up to one year or a fine, or both.

It is important to note that registering for GST is mandatory for businesses with an annual turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs for certain special category states). It is advisable to register for GST in a timely manner to avoid any penalties or legal consequences.

How we can help you with GST registration - Why Thsgstco?

• We are experts in GST registration: We have helped hundreds of businesses register for GST, and we know the process inside and out.
• We are easy to work with: We understand that you are busy, and we make the process of registering for GST as easy as possible.
• We are affordable: We offer our services at a competitive price, and we are always willing to negotiate.
• We offer a 100% satisfaction guarantee: We are so confident that you will be happy with our service that we offer a 100% satisfaction guarantee.
• Secure and compliant: We take security and compliance very seriously, and we use the latest technology to protect your data.
• Simple and easy-to-use platform: Our platform is designed to be simple and easy to use, even if you are not familiar with GST.
• 24/7 support: We offer 24/7 support, so you can reach us whenever you need help.