The Goods and Services Tax (GST) is a single tax on most things we buy and services we use in India. It replaced many taxes on things we buy and services we use. This change is considered India’s most important policy change since economic liberalisation. The GST aims to make the tax structure uniform, remove the cascading effect, and improve tax administration and government finances.
While the transition caused lower growth in the economy initially, it has the potential to bring about productivity gains, formal jobs, and better competitiveness in the long run. If you have a business running and are about to step into the domain, know a few things about GST registration.
Insights into GST Registration
- To register for GST, you must have a PAN card, an Aadhaar card, proof of business registration, bank account details, and address proof.
- To begin the online application, visit the official GST portal and complete the online registration form (GST REG-01).
- After applying, it will be verified and validated by the GST officer. If any additional documents or clarification is needed, the GST officer may request it.
- Once the application is approved, a GSTIN (GST Identification Number) will be generated. You will also receive a GST certificate indicating successful registration.
- Depending on verification and clarification requirements, the process generally takes 2-6 working days.
Who Needs GST Registration?
Now, if you are wondering whether you would require GST registration, we’ve made it simple to answer your question. Have a look below:
- Mandatory Registration
Businesses that exceed the prescribed annual turnover limit must register for GST. Different thresholds apply for both goods and services.
- Voluntary Registration
Businesses falling below the turnover threshold have the option for Voluntary GST Registration, which is especially beneficial for startups and small businesses looking to expand.
- Casual Taxable Person
Individuals or businesses involved in occasional transactions must register as a Casual Taxable Person.
- Non-Resident Taxable Person
Non-resident entities providing goods and service tax in India must obtain GSTN Registration.
- E-commerce Operators:
Platforms facilitating the supply of goods or services must obtain E-commerce GST Registration.
Key Policy Changes and Their Implications
Here are some informative pointers regarding the latest GST news:
- The 52nd GST Council meeting was held on 7 October 2023, and several updates were approved. You can find the complete highlights of the meeting on the government website.
- The GST Council approved the rules to implement a 28% GST levy on casinos, race courses, and online gaming during the 51st GST Council meeting held on 2nd August 2023.
- During the 50th GST Council meeting held on 11th July 2023, a decision was taken to send intimations for excess ITC claims in GSTR-3B compared to GSTR-2B above a certain limit through DRC-01C to seek a response. Further, GST on online gaming was fixed at 28% on the full face value.
- The National Informatics Centre (NIC) has made it mandatory for taxpayers with turnover of more than Rs.100 Crore to log in using the Two-factor Authentication from 15th July 2023 for both the e-invoicing and e-way bill system.
- GSTR-9 and GSTR-9C filing facility for FY 2022-23 has gone live on the government portal as of 16 May 2023.
- The department launched the automated return scrutiny module in May 2023 from FY 2019-20 onwards, streamlining communication between GST officers and taxpayers and saving much time and effort for the parties involved.
- CBIC notified the 6th phase of e-invoicing, and hence, taxpayers with Rs. 5 Cr turnover in any financial year from 2017-18 shall issue e-invoices w.e.f 1st August 2023.
Conclusion
GST Edge has the potential to unlock growth and financial efficiency in India. While the transition to GST caused lower growth initially, it aims to bring about productivity gains, formal jobs, and better competitiveness in the long run. If you are a business owner planning to enter the domain, knowing about GST registration is essential.
The online registration process is relatively simple, and it generally takes 2-6 working days, depending on verification and clarification requirements. It is also crucial to stay updated with the latest policy changes and their implications, as they can significantly impact your business.
