India has become a nerve center of the world’s most complex taxation system. The reports of World Bank suggests that Goods and Services Tax is structured with complicatedness just to ensure that it’s unbreakable. And no matter what, despite the shortcomings of the regime, the taxpayers of the nation complied with GST in a large amount. Until now, over 1.03 crore businesses have registered under the new taxation regime.
However, some businesses, especially the MSMEs, find it difficult to comply with rules and regulations of the Goods and Services Tax Act. In addition to the compliance with GST, the government has made few distinctive changes to make the entire taxation simpler. Moreover, you should first be well-aware of the most important process under GST that is the registration. But who should register? This is one basic question that might pop into your mind and even annoy you a bit if you own a business and are clueless about GST registration rules. Let’s straight this out and get to the point. Here is a list of things that you have to keep in mind while registering your business under GST:
1. Are you liable for GST registration?
Asking yourself this would straighten things out within seconds. If the turnover of your business exceeds INR 20 lacs, then you are liable to register. Even if your business does not make as much as INR 20 lacs, then also you are required to register under GST. The basic idea of the government behind making each business register under the Goods and Services Tax is to scrutinize the entire taxation process. The evasion measures could rise by a significant amount if the government will overlook the activities of small businesses.
FYI, the businesses in the states like Andhra Pradesh, J&K, Assam, Nagaland, Mizoram, Sikkim, and Uttarakhand are liable to register if their turnover increases INR 10 lacs. Yes, you heard it right. The government has decreased the turnover limit in the India GST registration rules for few selected states.
2. Know about the exempted businesses
And now the wow factor of the taxation regime. It’s a clear fact that India is still developing and home to the millions of people involved in the small businesses. These businesses like agriculture, handicrafts, and the production of daily used products do not have enough revenue margin to cope well with GST. The income in such businesses only brings two time’s bread and butter home. Comprehending the fact that these businesses might never come out of their nascent stage, the government exempted such items from the regime.
The exempted businesses include:
- Agriculture
- Handicrafts
- Products of daily use like bread, eggs, butter etc.
- Bangle making
- Cotton and silk
- Live animals
- Human blood and contraceptives
- Hand tools
- Meat like chicken and fish (not frozen)
So, if you are involved in any of these businesses then you can take a sigh of relief as you won’t have to be a part of the hectic return filing. And in the case of return filing, it is advisable that even if the business didn’t make any revenue and is registered under GST, then it must file a nil return.
3. The right documents
Although the registration under GST is not a rocket science, it’s also true that it requires a serious approach. The process of registration would take an extended amount of time if the submitted are wrong or insufficient. Or in the worst case scenario, you’d be required to repeat the entire process again and re-register. So better avoid such mishap. Here is the list of the documents required for the GST registration:
- PAN of the registrant- The permanent account number is the first requirement for GST registration as it links directly with the business PAN. So, make sure you obtain the PAN of the business entity and keep it handy while doing registration.
- Business registration proof- As per the GST registration rules, the business proof is a must. And if you also have branches, then separate registration for each of them needs to be done. If the business is in partnership, then a document stating the partnership deed is needed.
- Personal documents- The people who hold the accountability of the business like proprietors and managing director need to submit their personal documents. Any of the identity proof like Aadhaar card, PAN, voter id, driving license with attached photographs is required.
Conclusion
The end result of the registration under the Goods and Services Tax Act is GSTIN. This unique number differentiates your business from the other ones. And it also facilitated a seamless taxation with the processes like multiple return filing and tax calculation. If you are not a registered business, then take the step forward today, register, and do hassle-free business.
