What is GST and why is it necessary to register under it?
GST is a value added tax which is levied on most of the goods and services. It has been recently introduced tax by our government. The GST is paid by the costumers but it is send to the government by the businesses selling goods and services.GST provides revenue for the government. The person who carries on any business or firm ,has to register under GST or GST Act. Person who engages in economic activities is considered to be a taxable person. So for him,it becomes a compulsion to register under GST.
If you are a new business or you didn’t register earlier and now you need to register because of the threshold limits then the only way is a new GST registration.
Steps to follow for a new GST registration
Know About The Threshold Limits In Your State
- Special Category States (Arunachal Pradesh, Assam,Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) is INR 10 Lakhs
- Rest of India is INR 20 lakhs.
Note: J&K, although in the start wasnot under the GST ambit, adopted the GST resolution on 5th July. The threshold limit in J&K will mostly remain at INR 10 lakhs approx.
Find about the actual requirement
Any person with a taxable supply turnover of over Rs.25 lakhs is mandatory to register for GST in India. There is also a procedure available for voluntary GST registration to help claim input tax credit.
Get The GST Registration Number
The registration number is probably provided on the PAN number. The Same registration number can be used in all states across India.
Documents required for the registration
- PAN Number
- Contact Details – Email ID, Contact No.
- Photographs of proprietor, partners, managing trustee, committee and authorized signatory.
Constitution of taxpayer
Partnership deed, registration certificate or other proof of constitution will be needed as well.
Proof of principal / additional place of business
- For own premises – Any document in support of the ownership of the property like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
- For rented or leased premises –copy of rent / lease agreement and owner’s (landlord) documents like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
- Bank account related proof: Scanned copy of the first page of bank pass book or bank statement required.
For each authorized signatory, you are expected to upload authorization copy or a copy of resolution of managing committee or board of directors in the authorized format.
These were the few steps which help you and guide you to register under GST which is very much required to be done.