GST Registartion in Delhi

GST Registration

Before the year 2017, there were multiple types of taxes applicable at different rates for manufacturing and service industry and further varied from state to state and on centre level. This led to problems such as cascading effect of taxes, no provision for compensation of tax credits, requirement of multiple fillings and record-keeping and audits from time to time which increased the costs of production for businesses. GST Registration is mandatory for start or run the business in india.

Therefore, to encourage entrepreneurship and promote the objective of “ease of business” in India, the Ministry of Finance introduced the Goods and Services Act in 2017 that subsumed taxes such as VAT, CST, Wealth Tax, entertainment tax etc. and provided a consolidated structure under one taxation system and standardized rates for manufacturing and services industry all over the country. Every goods & services intended to be offered to consumers go through these three stages-

  • Purchase and manufacturing of Raw Material for further processing.
  • Wholesale and  retailing of the manufactured and processed goods.
  • Final sale to the consumer for Consumption.

Therefore any business entity who is involved in manufacturing of goods or offering services and  whose turnover exceeds the limit of Rs. 40 lakhs(Rs. 20 Lakhs for North-East states and Hilly States) in the previous year is required to mandatorily register themselves under GST regime. Whereas some businesses are required to mandatorily get themselves registered despite having revenues lesser than the mentioned above, others can get themselves voluntarily registered to avail the benefits provided under the GST regime. On successful completion of the GST registration process, the applicant shall be provided a  15-digit unique identification number namely the GST Identification Number (GSTIN) required to be mentioned in every official publication by the applicant.

GST Registration with Legalmart

The process of GST registration is a simple online process which could be easily processed through an online application on the GST portal. For which, the applicant is required to fill required forms and upload required attachments. However, it is necessary to practice caution while preparing, collecting and submitting information on the portal. Therefore, it is always advisable to take assistance of an expert source which could give you reliable information and expert assistance in successfully completing the process of GST registration making you worry lesser about getting GST registration timely without any worries and focusing on business at the comfort of your convenience. For which, Legalmart has gained experience in GST registration under one roof. Further, Legalmart can also provide guidance and assistance regarding GST compliances and fillings from time to time.

Benefits of GST Registration

Following are the main advantages of obtaining registration under GST as provided below-

  • Simplified System of TaxationGST has been introduced with the objective to simplify the taxation system and to promote “Ease of Doing Business” by combining all previously applicable indirect taxes under one roof and has integrated the Indian taxation system.
  • Reduced Costs of Goods & service- The Government has introduced GST with the purpose to reduce the price of goods and services by offering tax credit system which compensates them of the prices expended in cost of raw materials etc. leading to remarkable reduction in the prices of goods and services.
  • One Nation One Tax” system– Under GST, there are unique standardized rates of taxation for each goods and services which are same all over the country. Further, it helps businesses to save costs regarding fillings, record-keeping, audits, or tax-fillings under different rates. Further, goods manufacturers having an annual turnover of less than 40Lakh and service providers having a turnover lesser than rupees 20 lakh annually are exempted from paying GST.
  • Encourages Compliance & Discourages Tax EvasionGST has been introduced with the purpose to put curbs on dishonest practices such as showing sales without actual receipts and encourage proper compliances. Further, smaller business entities holding yearly turnover lesser than applicable under GST are saved from the need to pay GST and perform other compliances.
  • Uniformity in Taxation Processes- In order to promote “Ease of doing business”, CBIC has launched a “GST online portal” facilitating uniformity in GST related compliances and a uniform system for GST centralized registration for applicable entities.
  • Higher Threshold For Registration- In the pre-GST era, there were multiple taxes at different rates applicable on the same entity with different applicable turnover fixing eligibility of a business entity to be liable for payment of each tax/es. For instance under VAT system a business holding turnover more than Rs. 5 Lakh annually was liable to pay VAT. Whereas a business entity providing services up to a yearly turnover of Rs. 10 lakh was eligible to pay service tax. However, under the GST regime, goods manufacturers are eligible to get registration on crossing a yearly turnover of Rs. 40 Lakh and Rs. 20 lakh in case of service providers, which exempts small manufacturers, traders and service providers.
  • Composition Scheme for Small Businesses– CBIC has also provided an alternate system of taxation under GST namely, the composition scheme which has to be voluntarily adopted by the business entity. On adoption of the same, it allows lesser rates of taxation, upper limit of eligibility for tax payments (i.e. Rs 20 to 75 lakh) and limited tax liability. This factor has led to tax benefits and lesser compliances for smaller businesses.
  • Online process of registration- Reducing the need to run from one place to other, or eliminating the need to have numerous formalities for the same, the Ministry of Corporate Affairs has allowed proposed businesses t entities to place a request for GST registration along with the request for incorporation on the MCA portal. This is especially advantageous for start-ups reducing their costs related to business registration and compliances.
  • Lesser Compliances- GST has been launched under the “One nation one tax”, eliminating the need to register under multiple taxation systems, tax payments at varying rates and compliances “. Thus, business entities are require to file unified returns under the GST portal.
  • Regulated Unorganized Sector- In the pre-GST era, India majorly suffered from lack of organization and regulations in the real-estate and textile industry. However, under the GST regime there have been adequate measures for ensuring online compliances and payments in the sense that a manufacturer can avail input tax credit only after supplier has accepted the amount. Thus, the levy of GST has brought better accountability and regulation in these industries.

Disadvantages of GST Registration

  • Costs of software purchase adds up to the cost of production- After obtaining registration under GST, business entities are required to regularly update their books of accounts and accounting information along with the newest GST software or ERP software for the efficient management of the business. However, with higher costs of ERP software’s and the requirement of professional staff along with training requirements makes it costly for businesses to handle the situation. Besides, compliances applicable under GST regime has increased costs for small and medium business entities who need to hire professionals for fulfilling compliances which further adds to the costs of business operations.
  • Hefty Penalties- Though GST has been introduced for promoting “ease of doing business”, however it is possible that smaller traders and manufacturers are still unable to understand the provisions applicable under GST regime. Thus, unable to follow compliances on time makes the, subject to hefty penalties applicable under the Act. In such event, they will be further required to hire professional assistance further increasing their business costs.
  • Compliances under GST regime & technical issues- On getting registration under GST regime, a business entity is subject to fulfilment of various compliances such as monthly, quarterly and annual returns and many more. Further, the whole process of registration, maintenance of books of accounts, book –keeping, record maintaining and returns is tedious. Since the GST portal has not been developed completely, businesses have been facing difficulty in submitting returns due to lesser knowledge of technology, internet connectivity problems and technical issues on portal, which is especially problematic for new businesses and start-ups.
  • Increased tax liability on SMBs- During the pre-GST era, smaller & medium businesses were eligible for excise duty payments and registration, only in the event of the annual turnover crossing Rs. 1.5 crores. However, under GST regime businesses are required mandatory registration on crossing an annual turnover of Rs. 40 lakh which is a disappointment for businesses.
  • Online taxation system- All business entities eligible under GST registration are required to register themselves on the GST portal and slowly all the compliances related to GST are being required to be fulfilled through the online system. However, India is still developing in terms of technological aspects of online procedures and it will take time to adapt to the system, which is challenging for businesses at present.
  • Complexity for businesses- Though GST was launched with an intent to promote “ease of doing business” in the nation. However, businesses opting for composition scheme are allowed benefits such as lesser rate of taxes, lesser compliances and upper limit for eligibility, but they are not allowed to avail input tax credits on the purchase of raw materials. This fails the whole essence of levying GST tax.
  • Multiple registrations for different branches- Business entities having their business operations in more than one state often find it difficult to comply with the procedures and are required to register under each state of operation and follow compliance procedures.
  • Distribution of revenue- Different provisions regarding the sharing of revenues and sharing of profits among states and central government is often confusing and difficult to understand under the GST regime.

Eligibility criteria of GST Registration

Following businesses are eligible to obtain registration under the GST regime-

  • Businesses applicable and registered under (i.e., Excise, VAT, Service Tax etc.) in the pre-GST era.
  • Businesses registered under the above-mentioned laws having an annual turnover more than threshold limit of Rs. 40 Lakhs* (Rs. 20 Lakhs for North-Eastern States and Hilly States).
  • Casual taxable person.
  • Non-Resident taxable person.
  • Agents of a supplier & Input service distributor.
  • Person eligible to pay taxes under reverse charge mechanism.
  • Person who supplies via e-commerce aggregator.
  • Entities engaged as an e-commerce aggregator.
  • Person providing services related to supply of online information or retrieval services from a place outside India to a person residing in India who is unregistered under GST.

Documents required for GST Registration

Following are the documents required for the purpose of  GST registration-

  • Scanned copy of documents related to the Constitution of Business (MOA & AOA in case of company, LLP Deed in case of LLP & Partnership Deed in case of partnership concern.
  • Certificate of Incorporation of the business entity.
  • Scanned passport size photograph of authorized officer of the entity.
  • Passport size photo of Promoters/Directors/Partner/Proprietor.
  • Copy of letter of appointment of the authorized signatory for registration purposes.
  • Copy of duly passed board resolution by board of directors.
  • Proof of residence of the proposed Principal place of business.
  • Copy of Utility Bills (Electricity Bill/ Water Bill).
  • Proof of ownership of place of business (sale deed/ lease deed/Rent Agreement).
  • Receipt of Property Tax.
  • Details of Business Bank Account & scanned copy of first page of bank passbook.
  • Copies of Bank statement.
  • Scanned copy of Cancelled Cheque.

GST Registration Online

For inculcating the spirit of entrepreneurship and fulfilling the objective of “Ease of Doing business”, the Ministry of Finance has simplified the process of obtaining GST registration by way of submitting an online request on the GST portal. Following is the step-by-step process of applying GST registration-

STEP 1: LOG ON TO THE GST PORTAL

Log on to the GST portal by logging onto www.gst.gov.in and click registration and “New Registration”. Follow the page and complete “New Registration” page by filling details, after clicking submit you will get a Temporary Reference Number (TRN) for continued filling of form. Once TRN is generated you will be able to access the GST portal using the TRN for registration purposes.

STEP2- FILL AND SUBMIT DETAILS

On receipt of TRN, the applicant shall begin the process of GST registration filling details such as-

  • Details related to the business such as name of the business, constitution of business, registered address, Commissionerate Code, Division Code and Range Code, if composition scheme required etc.
  • Details of Promoter/Partners/Directors/Proprietor including their name, contact details, date of birth, address, designation, DIN number in case of (Private Limited Company/Public Limited Company/Public Sector Undertaking/Foreign Company registered in India),PAN & Aadhaar details etc.
  • Details related to the signatory of the business entity who has been duly authorised by the business entity (Partnership firm/company/LLP/proprietorship firm) for the purpose of GST registration & form filling on behalf of the entity.
  • Details related to principal place of business and additional place of business of the business entity for which GST registration is sought. In case the applicant acts as “SEZ Developer” and the principal place of business is located in a Special economic Zone, then the applicant shall be required to submit necessary documents/certificates issued by Government of India.

STEP 3- UPLOAD DOCUMENTS TO PROVIDE PROOF OF OWNERSHIP OF BUSINESS PREMISES

Next, upload documents regarding ownership of premises such as-

  • Proof of own premises- Through documents such as Latest receipt of property tax or copy of municipal khata or copy of any utility bills such as electricity/water bill.
  • Rented or Leased premises Scanned copy of rent agreement where property has been taken on rent or lease deed in case the property of the business premises is leased.

Where the property is not covered in any one of the above, then upload a copy of documents in support of ownership of the business premises of the person giving consent  either through a copy of municipality khata copy or through any utility bill.

STEP 4- FILL REMAINING DETAILS

After submitting above-mentioned details, you will be required to provide details of five goods or services in which the business entity is engaged in along with the HSN & SAC code for the same. Further, you will be required to submit bank details along with a scanned copy of bank statement, passbook and a cancelled cheque.

STEP 5- VERIFY THE APPLICATION AND SUBMIT FOR APPROVAL

Once all the information has been submitted along with attachments, you will be allowed to verify details to avoid any discrepancy. Finally, you will be required to affix signatures of the authorized officer using Digital Signature Certificate (DSC)/ E-Signature after which a message displaying successful submission of the application will be received and an application reference number shall be generated for future reference purposes.

Further, ARN could also be used to check the status of the GST application and to get any updates on posting of any query.

Why you Choose Legalmart

Therefore, the process of GST registration is a simple process which takes around 7-10 days for the application verification and issue of GST certificate containing a 15 digit GSTIN number. However, it is always advisable to choose a reliable source for obtaining GST registration because not filling adequate information or any discrepancy in documents may lead to delay in the process or even rejection of the application. At Legalmart, we hold years of professional experience in undertaking and successfully completing registration process due to our unique features including-

  • Large team of professionals such as Chartered Accountants, Company secretaries, Legal professionals and many more.
  • End to end assistance from guidance to document preparation to submission on the portal and successfully getting registration.
  • Simple, quick and efficient process of registration with complete transparency and at reasonable prices.
  • 24*7 availability for listening and answering your queries.