In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE
and hill states) is required to register as a normal taxable person. This process of registration
is called GST registration.
For certain businesses, registration under GST is mandatory. If the organization carries on
business without registering under GST, it will be an offence under GST and heavy penalties
will apply.
CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs.
1. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.).
2. Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for
North-Eastern States, J&K, Himachal Pradesh and Uttarakhand).
3. Casual taxable person / Non-Resident taxable person.
4. Agents of a supplier & Input service distributor.
5. Those paying tax under the reverse charge mechanism.
6. Person who supplies via e-commerce aggregator.
7. Every e-commerce aggregator.
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 taxable person.
The Services which are included in our package are as Follows:
✅ Consultation for GST Requirement
✅ Preparation of Documents
✅Application Filing
✅GST Certificate and Login Credentials
1. Documentation: The documents required depends on the applicant type, the first step
is to arrange the documents required for GST Registration.
2. Application At GSTIN: The applicant is registered on GST Portal for submission of
the application, for this purpose OTP is sent on the phone and email.
3. ARN Generation: ARN is generated after submission of application on the GST Portal
with all information and required documents.
4. GST Registration: After generation of ARN, the certificate of GST registration is
issued by the GSTIN and GST Number is allotted in approx a week time.
GST will have 3 tax components, which includes a central component (Central Goods and
Services Tax or CGST) and a state component (State Goods and Services Tax or SGST)
where centre and state will levy GST on all entities, i.e. when a transaction happens within a
state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be
levied by the centre, i.e. when a transaction happens one state to another.
What is the input tax credit?
Input tax credit lets you reduce your tax you have already paid on inputs and pay the
remaining amount at the time of paying tax.
You pay taxes on the purchase when a product is purchased from a registered seller, and
when you sell the product, you too collect the tax. With input credit, you can adjust the taxes
paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance
liability of tax, i.e. tax on sale minus tax on the purchase.
An offender not paying tax or making short payments (genuine errors) has to pay a penalty of
10% of the tax amount due subject to a minimum of Rs.10,000.
The penalty will at 100% of the tax amount due when the offender has deliberately evaded
paying taxes.
Q1 What is GSTIN?
All businesses that successfully register under GST are assigned a unique Goods and
Services Tax Identification Number also know as GSTIN.
Q2 When should a business apply for multiple GST registrations?
If a business operates from more than one state, then a separate GST registration is
required for each state. For instance, If a sweet vendor sells in Karnataka and Tamil
Nadu, he has to apply for separate GST registration in Karnataka and TN respectively.
A business with multiple business verticals in a state may obtain a separate
registration for each business vertical.
Q3 What is Composition scheme and when should a business opt for it?
Small businesses having an annual turnover less than Rs. 1.5 crore** ( Rs. 75 Lakhs
for NE States) can opt for Composition scheme.
**CBIC has notified the increased in the threshold turnover for opting into the
Composition Scheme from Rs 1 crore to Rs 1.5 crores.
Composition dealers will pay nominal tax rates based on the type of business:
o Composition dealers are required to file only one quarterly return (instead of
three monthly returns filed by normal taxpayers).
o They cannot issue taxable invoices, i.e., collect tax from customers and are
required to pay the tax out of their own pocket.
o Businesses that have opted for Composition Scheme cannot claim any Input
Tax Credit.
Composition scheme is not applicable to :
o Service providers
o Inter-state sellers
o E-commerce sellers
o Supplier of non-taxable goods
o Manufacturer of Notified Goods
Q4 Who can Register for Composition scheme under GST?
This scheme is a lucrative option for all SMEs who want lower compliance and lower
rates of taxes under GST.
A GST taxpayer whose turnover is below Rs 1.5 crore** can opt for Composition
Scheme. In case of North-Eastern states and Himachal Pradesh, the present limit is Rs
75 lakh.
Turnover of all businesses registered with the same PAN should be taken into
consideration to calculate turnover.
**CBIC has notified the increased in the threshold turnover for opting into the
Composition Scheme from Rs 1 crore to Rs 1.5 crores.
Obtain GST registration and file CMP-02 to opt-in for the scheme.
Q5 What are the benefits of registering under GST?
A. For normal registered businesses:
Take input tax credit
Make interstate sales without restrictions
B. For Composition dealers:
Limited compliance
Less tax liability
High working capital
C. For businesses that voluntarily opt-in for GST registration (Below Rs. 40
lakhs*)
Take input tax credit
Make interstate sales without restrictions
Register on e-commerce websites
Have a competitive advantage compared to other businesses
*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs.