What is GST?

GST, or Goods and Services Tax, is a unified tax system that came into effect in India on July 1, 2017. It replaced various indirect taxes and is now applied to the supply of both goods and services. This system simplifies taxation by eliminating the cascading effect of multiple taxes. GST is technology-driven, with processes like registration and return filing done online, making it more efficient.

If a business’s turnover exceeds a certain threshold (usually INR 20 lakhs / 40 lakhs, but lower in some areas), they must register for GST. The registration process involves submitting various business details and documents. Registering for GST allows businesses to avoid penalties and fines and offers benefits like the ability to claim input tax credit, a composite scheme for small businesses, and a simplified online portal for payments and return filing.

• Central GST (CGST): This is a tax imposed by the central government when goods or services are sold within the same state. When you buy something from a seller in your state, they collect both CGST (for the central government) and SGST (for the state government).
• State GST (SGST): State governments levy SGST on sales that happen within the state. So, if you buy something locally, you’ll pay SGST.
• Integrated GST (IGST): When you buy from a seller in another state, they charge you IGST. This tax is collected and later divided between the central and state governments.
• Union Territory GST (UTGST): This is like SGST but for sales that occur in India’s Union Territories, and the revenue goes to the Union Territory’s government.

Application Requirements for GST Registration

• Business Turnover: Businesses with an annual turnover exceeding Rs 40 lakhs in case of goods and Rs 20 lakhs in case of services.
• Agent for Supplier: Anyone acting as an agent for a supplier.
• Previous Tax Registrants: Those already registered under previous tax laws.
• Interstate Suppliers: Organizations or suppliers involved in interstate product distribution.
• Regular Tax Payers: Regular tax payers.
• Reverse Charge: Those under the reverse charge mechanism.
• Distributors of Input Services: Distributors of input services and their representatives.
• E-commerce Operators: Operators or aggregators in e-commerce.
• Non-resident Taxpayers: Non-resident taxpayers.
• Online Service Providers: Entities providing online services to individuals in India from abroad.
• E-commerce Suppliers: Individuals who supply through an E-commerce platform.

Documents Needed to register for GST Registration

• For Sole Proprietorship Business:
  • Owner’s PAN card
  • Owner’s Aadhar card
  • Owner’s photo (in JPEG format)
  • Bank account details
  • Proof of address
• For Partnership Firm:
  • PAN cards of all partners
  • Copy of the collaboration agreement
  • Photos of all partners (in JPEG format)
  • Proof of partners’ addresses
  • Authorized signatory’s Aadhar card
  • Proof of authorized signatory’s appointment
  • Registration certificate or LLP Board resolution in the case of an LLP
  • Bank account details
  • Proof of the main business address
• For Hindu Undivided Family (HUF):
  • HUF PAN Card
  • Karta’s ID and address proof
  • Business address proof
  • Bank account details
• For Public or Private Limited Company:
  • Company’s PAN card
  • Certificate of incorporation
  • MOA and AOA (Memorandum of Association and Articles of Association)
  • Proof of identity and address for all directors and authorized signatory
  • Passport-sized photos of directors and authorized signatories
  • Copy of board resolution naming an authorized signatory
  • Bank account details
  • Proof of the company’s location address