Before we go deeper into the GST registration requirements, we need to take a look at the tax system itself. It is important because the key to understanding the document requirements for the Goods and Services Tax (GST) lies in the structure of tax levied on the taxable persons in India.
The Government of India defines GST as an indirect tax that is levied on the taxable people countrywide. GST subsumes a large number of other taxes once levied across the country including excise duty, customs duty, service tax, VAT, and entry tax into a single tax system.
The primary purpose behind introducing the Goods and Services Tax (GST) in India was to reduce the complexities and complications once associated with the taxation system in India. Its introduction was directly associated with the ease of doing business in India.
GST registration number (GSTIN) is a 15-digit unique number that the tax authorities provide to the registered taxpayers as part of the maintenance and tracking of their tax payments. From September 2017 onwards, all individuals categorized as taxable bodies need to unfailingly obtain GST (Goods and Services Tax) registration for filing GST monthly returns.
In India, any individual who deals in taxable items needs to register for GST if:
- The organization has an annual turnover of 20 Lakhs
- The same limit for NE states and Hilly states is 10 Lakhs
- The organization deals in interstate supplies.
The introduction of GST has drastically reduced various complications associated with the complex regulatory compliances benefitting millions of small businesses in the country.
Why is the GST Registration Necessary?
Once the registration of GST is done fulfilling all the GST registration requirements. A GST registration certificate and a unique 15-digit GST identification number (GSTIN) are granted to the concerned entity. The tax authorities in the country monitor the tax history of the concerned entities or the bodies through this number. Simply put, once a particular individual registers for GST and gets a unique number from the tax authorities, he or she can do the following things:
- Availing of Input Tax Credit on any inbound supplies
- Selling goods on an e-commerce platform regardless of the threshold limit to get a GST registration.
GST Registration Requirements
The Goods and Services Tax GST registration requirements in India depend on the type of GST registration process or the type of business. For instance, a sole proprietor/ individual and a company need to obtain a different set of documents for registration of GST. But, there is a set of common documents that everybody will need to fulfill for a due GST registration. Some of them include the following:
- PAN Card
- Photograph of the owner
- Phone number and E-mail id
- Proof of address
- Bank account details
The PAN Card is one of the most important GST registration requirements for all types of GST registrations. For GST registration of sole proprietors or individuals, an Aadhar card is also an important document apart from the PAN card. A special PAN card is required for:
- Companies (private and public)
- Hindu Undivided Families (HUF)
Photograph of Owner/Authorized Signatories
Passport-sized photographs of Owner/Authorized Signatories are a must for GST registration. If an individual initiates the process online, he or she needs to upload the photograph(s) in JPEG format. Photos more than 100 KB are not permitted on the portal.
Phone Number & E-mail ID
A working contact number, as well as an e-mail ID of the primary signatory, are also very important GST registration requirements. These sources will act as points of contact for updates and status of your GST registration. In case the individual applying for a GST registration does not have an e-mail ID. He or she needs to create it before initiating the process.
Proof of Place of Business
Every business whether small or large has a location from where all the operations are conducted and all the records are stored and accounts are monitored. As part of the proof of place of business for GST registration, any of the given below documents can be used:
- Any document that testifies that you are the owner of the property or the premises. These might include electricity bills, municipal record copies, and property tax receipts.
- A copy of the rent agreement
- For additional places, the requisite proof of each location is required.
Bank Account Details
As far as bank account details are concerned, they are not necessary while you apply for the GST registration. These details can be added through an amendment application at the time of the first log-in. The given below details that are also a part of the running business can be produced to update the bank account:
- A copy of a canceled cheque
- The first and last pages of your passbook
- A bank statement
- The Indian Financial System Code (IFSC) for the concerned account.
If you are a taxable individual and are not applying for the GST registration, then your act would be considered tax evasion. It would be a fraud offense as per the latest financial laws. Thus all types of businesses must keep in mind the gravity of the registration of GST and do the needful without fail before starting the operations. The government does not charge anything for GST registration.
The money charged is called professional fees of the service providers for this process. As for GST registration requirements, they are a very important part of the process but seem to be complicated for many individuals and business owners. Such people are advised professional help to carry out the process.
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