GST registration allows your firm to operate legally and establishes your brand as reliable and trustworthy. GST registration is the first step toward successfully managing your company’s taxes, as the GST portal has streamlined numerous processes, from application to filing returns.

GST registration allows your firm to operate legally and establishes your brand as reliable and trustworthy. GST registration is the first step toward successfully managing your company’s taxes, as the GST portal has streamlined numerous processes, from application to filing returns.

In layman’s words, it’s a single indirect tax levied on the added value provided by a company’s goods and services. The Government of India taxes companies exclusively on their respective offerings at every level, from manufacturing to distribution, and the tax burden is passed on to the final consumer.

The first step in paying the GST is to register your business with the GST system. If you’re a startup founder, the process is likely to be overwhelming. Here is a simple tutorial to help you understand everything you need to know about GST registration for your company.

Who is qualified to become a GST registrant?

To be eligible for GST registration, your yearly turnover must fall between one of the following ranges:

• The barrier for the manufacturing industry is Rs. 40 lakhs or higher.
• The threshold for the service sector is Rs. 20 lakhs or more.
• The barrier for businesses in the north-eastern and hill states is Rs. 10 lakhs or more.

You must also apply for GST registration if you match any of the following criteria:

• You sell goods or services in a state where you are not physically based.
• You sell your stuff on e-commerce sites like Flipkart or Amazon.
• You’re in the import-export business.
• You’d want to send tax invoices to your customers.
• You are a corporation that is attending an exposition or event outside of your state as a Casual Taxable Payer.
• Under the reverse charge technique, you are taxable.
• You’re a tax agent representing a registered taxpayer.
• You’re a distributor of input services.
• You run an e-commerce site or an aggregator company.

What documents are required for GST registration?

You must have the following documents on hand in order to register for GST:

• Photographs
• Company PAN Card
• Aadhar Card, Passport, or Driver’s License are examples of identity proofs.
• For your offices, you’ll need proof of address.
• Bank account information can be obtained through a statement, a canceled check, or a passbook.
• Private Limited Liability Company, LLP, or OPC Certificate of Incorporation
• For partnership firms, a partnership deed is required.

What exactly is GSTIN?

A GST officer will review your whole application after your GST registration is complete. If it is approved, you will be given a GST Identification Number, or GSTIN, which you must provide on all of your invoices. 

When should you apply for more than one GST registration?

You may be able to register for numerous GST numbers under the following circumstances:

• If your company operates in one state but has many verticals, you can register for multiple GSTs to make your accounting process easier.
• If a company is based in one state but delivers products and services across the country, it does not need to register for numerous GST registrations.

When is the GST composition scheme required by a business?

The following are the advantages that these taxpayers enjoy:

• Instead of filing monthly taxes like regular taxpayers, they can only file one return per quarter.
• They are only liable for a small amount of tax.
• They are subject to less regulations in terms of books and records, invoicing, and so on.

However, there is a downside to the scheme:

• Input tax credits are not available to taxpayers.
• They are unable to issue a tax invoice.
• They are unable to conduct inter-state transactions.

What are the benefits of GST registration?

In the long run, there are numerous benefits to GST registration for business owners. These are some of them:

• The amount of tax you pay to the government can be reduced because you just have to pay for the value-added services provided by your company and not any additional “tax on tax.”
• For your clients, e-commerce platforms, government tenders, banks and financial institutions, MNCs, and more, the GSTIN is a symbol of authenticity. These businesses would refuse to work with you unless you have a GST registration.
• There are fewer compliances to follow under GST because there is only one return to file.
• GST provides precise provisions on interstate transportation of goods for e-commerce brands, which were not previously defined.

At the end of the day, GST registration allows your business to operate legally and establishes your brand as one that can be trusted. GST registration is the first step toward successfully managing your company’s taxes, as the GST portal has streamlined numerous processes, from application to filing returns.