ABOUT GST REGISTRATION

Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST, Service Tax, Central Excise duty, Entertainment Tax, etc and is valid all over India with effect from 1st July 2017. Mandatory to register under GST when annual turnover exceeds INR 40/20 lakh or supply goods and services inter-state or through e-commerce platform. Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month.

GSTIN is an abbreviation for Goods and Service Tax Identification Number. It consists of 15 alphanumeric digits. This is generated by the government after you have successfully completed GST registration.
First 2 digit show state code
Next 10 digit indicates PAN Number
Next 1 shows serial number of gst registration in a state.
Last 2 digits are random

WHEN GST REGISTRATION MANDATORY IN INDIA?

• Turnover Criteria- All taxpayers who have an annual turnover above ₹40 lakhs are required to get new GST registration.
• Causal taxpayer- 1If you supply goods or services in events/exhibition where you do not have a permanent place of business, you need to get online GST Registration before starting a business. Such a dealer has to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.
• NRI taxpayer- NRI taxpayer, who does not have a place of business in India, wishes to start a business, then he has to apply for GST Registration in India before beginning operations in India. The validity of a new GST registration is 90 days.
• Agents of a supplier & Input service distributor:- All Input service distributor who wants carry-forward benefit of input tax credit requires gst registration.
• Reverse Charge- A business who requires to pay tax under the reverse charge mechanism need gst registration
• E-Commerce portal- Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendor’s selling their product requires gst registration

WHY I NEED GST REGISTRATION?

• Become more competitive- You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
• Expand your business Online- You cannot sell products or services on e-commerce platform without GST registration. If you're planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.
• Can take input tax credit- NOnly Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
• Agents of a supplier & Input service distributor:- All Input service distributor who wants carry-forward benefit of input tax credit requires gst registration.
• Can sell all over India without any restrictions- Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.n
• Apply Government Tenders- Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
• Open Current Bank Account- Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.
• Dealing with MNCs- Generally, MNC’s does not comfortable to deal with small business entities until they carry valid tax registration proof.