All about GST Registration, Process and Procedure

GST registration applies to all individuals, HUFs, companies and other taxable persons supplying taxable goods and services. GST registration is a process to get themselves registered under the GST act. If any individual is supplying goods or services, he needs to take the GST registration in Gurgaon. GST registration is not mandatory unless the supplier of goods or services crosses the limit of exemption. Currently, the exemption is provided in terms of monetary limits. GST registration becomes applicable for the entity registered in the special category stated when the value of supply exceeds Rs.10 lakhs per annum. GST registration is mandatory where the value of the supply of services and goods exceeds Rs.20 lakhs per annum.

Important points:

– It is important to note that the GST registration limit becomes Rs.40 lakhs in place of 20 lakhs where the supplier exclusively deals in goods.

– Value of goods shall not be included while calculating the limit for GST registration for job work done by the job worker.

– Special category States” shall include the State of Jammu & Kashmir, the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.

Let’s understand the type of GST registration and the other important provisions related to GST registration in Gurgaon to simplify the process of taking GST registration.

Type of GST Registration

1. Normal Taxpayer or Voluntarily GST registration:

This type of GST registration does not require pre-payment of GST and this GST registration does not have any validity period. Voluntary GST is valid till the date business is in operation.

2. Casual taxable person:

A casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. the casual taxable person has no fixed place of business such as shops in fares, exhibitions, or sessional business would fall under the category of the casual taxable person.

3. Non-resident taxable person:

GST act provides that a Non-resident taxable person should get the GST registration at least five days before the commencement of the business.

The GST officer may grant GST registration to the non-resident based on a few documents as may be prescribed. A non-resident should apply for GST registration electronically, along with a self-attested copy of passport at least five days prior to the commencement of business.

The GST registration certificate granted to the Non-resident is valid for a period specified in the GST registration certificate in Gurgaon or 90 days, whichever is earlier. However, the registration period may be extended at the request of the proper officer.

4. E-commerce Operator:

Electronic commerce operators such as Amazon, Flipkart, Nykaa, and Myntra are required to take GST registration in Gurgaon irrespective of the exemption limit. Every E-commerce operator is required to collect the TCS under section 52 of the GST act.

The following persons are required to take compulsory registration:

1. Person making a taxable supply to other states (inter-state)

2. Casual taxable person making taxable supply.

3. Person requires to make payment GST under reverse charge mechanism.

4. Non-resident taxable person making taxable supply.

5. E-commerce operators

6. Person making supply of goods and services on behalf of other taxable people such as agent.

7. Input service distributor

8. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

9. Other person as may be recommended by the government or GST council.

Person not liable for GST registration:

1. Persons engaged exclusively in the supply of exempted goods or services or both.

2. An Agriculturist

Obligation after GST registration:

1. Every registered taxable person shall display the Registration certificate in the prominent place of business or additional place of business if any.

2. Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or place of business.

Concluding points:

  • Export of goods and services is treated as inter-state supply, hence exporters of goods or services are compulsorily required to take GST registration in Gurgaon irrespective of the fact that turnover is less than Rs 20 lakhs. However, Notification No. 3/2019 exempts a person from taking GST registration if he is making inter-state supply and his aggregate turnover is less than Rs.20 lakhs. This notification applies to freelancers, software professionals or other professionals rendering inter-state supply of services.
  • The limit of exemption of Rs.40 lakhs applies to those taxable persons, those who are engaged exclusively in supply goods. Therefore, if any nominal amount of service is rendered by the person, the GST registration threshold limit will be reduced from Rs.40 lakhs to 20 lakhs.
  • Extra care should be taken while the inclusion of non-operation income as exempted income like interest from Fixed deposit.
  • GST registration certificate is an important document. When you are registered under the GST law, being an exporter of services, you can take the input credit refunded after getting registered under the GST. Else GST on any input will become part of the cost of services or goods.

Frequently ask questions:

Question 1. Who is liable to take GST registration?

Answer. Every taxable person supplying goods or services crosses the threshold exemption limit of Rs.10/20/40 lakhs. However, few category persons are liable to take GST registration mandatory without taking benefit of an exemption limit.

Question 2. What is the time limit for taking registration under GST Law?

Answer. Every person should take GST registration within 30 days from the date, he becomes liable for GST registration. A casual taxable person and Non-resident taxable person should apply for GST registration at least 5 days before commencement of business.

Question 3. Whether a person can take voluntary GST registration?

Answer. Yes, a person can take GST registration voluntarily. All the provisions apply to registered taxable persons shall also apply to the person taking voluntary GST registration.

Question 4. Krishna was looking for a GST consultant who can register his company in Gurgaon and also help him to get GST registration in Gurgaon. He wants to start the export-import business of goods in Gurgaon. Should he take GST registration in case of export and import of goods?

Answer. Yes, Export is treated as an inter-state sale under the IGST act and in the case of interstate sales, Krishna is liable to take GST registration. Exemption limit shall not be applied in case of export of goods. It only applies to the export of services.