In India, there is a tax on the supply of goods and services that depends on the destination. Businesses with a revenue above a particular level must register for GST. Some businesses prefer to work with a registration agent even though it is possible to apply for GST registration on your own. Businesses may legitimately collect GST, make an input tax credit claim, and build credibility by registering for GST. Following the rules is crucial since failing to register for GST can result in penalties and fines.
Understanding GST Registration
What is GST?
In India, a value-added tax known as GST (Goods and Services Tax) is imposed on the delivery of products and services. With the goal of establishing a single and straightforward tax system, it replaced several indirect taxes, including VAT, service tax, excise duty, and others. Every step of the supply chain is subject to GST, and tax paid on inputs is credited. The Central GST, State GST, and Integrated GST components make up the GST system.
Who needs to register for GST?
If a company’s annual revenue exceeds a certain threshold, they are required to register for GST. Depending on the type of business and the state where it is situated, different thresholds apply. The barrier for companies selling products is INR 40 lakhs for the majority of states as of April 2023 and INR 20 lakhs for a few northeastern states. The barrier for service providers is INR 10 lakhs in several northeastern regions and INR 20 lakhs in the majority of states. Additionally, certain enterprises, including those involved in interstate commerce or those that provide products or services through an e-commerce platform, are required to register for GST, regardless of their annual revenue.
Benefits of GST registration
Businesses can profit from GST registration in a number of ways, including access to specific government programs, enhanced credibility, input tax credits, and compliance with the law. Additionally, it eases the overall tax burden on businesses and helps them streamline their operations. Additionally, companies can increase their customer base and establish a presence across India by registering for GST.
Documents required for GST registration
The following documents must be submitted in order to register for GST.
- PAN card of the company, the owner, the partners, or the directors
- a copy of the business owner’s or signatory’s Aadhaar card
- Proof of a company’s incorporation or registration, and verification of the location of the business
- a business’s bank account statement or canceled check
- The authorized signatory’s digital signature (in the event of a business or LLP)
- A picture of the proprietor or other authorized signatory.
Applying for GST Registration
GST registration involves the following steps:
- Click “Register Now” when you go to the GST portal.
- Complete Part A of the registration form with your basic information, including your PAN, phone number, and email address. You’ll receive an OTP at the registered phone.
- Include information about your business’s name, type, and nature in Part B of the registration form.
- The necessary paperwork is online.
- An Application Reference Number (ARN) will be generated upon application submission.
- If there are no problems after the GST officer has validated the application, the GST registration certificate will be provided.
Online vs offline registration
Both online and offline registration for GST are available options. By completing the registration form, providing the necessary files, and submitting the application, one can register online using the GST site. Offline registration involves completing the registration form in person at the nearest GST Seva Kendra or Taxpayer Service Center. However, because it can be done from anywhere and the application status can be monitored in real-time, online registration is typically considered more expedient and convenient.
Common errors to avoid during the registration process
The following are some errors to avoid when registering for GST:
- Giving false or erroneous information on the registration form
- submitting incorrect papers or failing to upload the necessary documents
- Giving incorrect bank information or information about a bank account that is not in the business’s name
- not applying within the allotted period
- utilizing a single PAN card for multiple registration applications
- Providing an incorrect email address or mobile number is crucial because these are the primary channels through which the registration process will be communicated.
Timelines for GST registration
The following are the deadlines for GST registration:
- For standard registration, the application for GST registration must be submitted within 30 days of the earliest of the day the business passes the threshold limit or the date the firm becomes liable for registration.
- For occasional taxpayers or non-resident taxpayers: The GST registration application must be submitted at least 5 days before the start of commercial operations in India.
- Application for GST registration under the composition scheme must be made prior to the start of the fiscal year for which the scheme is to be used.
To avoid any last-minute issues or delays, it is advised to finish the registration procedure as soon as you can.
Working with a GST Registration Agent
What does a registration agent do?
Businesses can apply for GST and acquire the GST registration certificate with the help of a registration agent. They assist companies in understanding the registration process, completing the registration form, and submitting the necessary paperwork. They also offer advice on compliance standards and can help companies in resolving issues that may arise during the registration process. Businesses unfamiliar with the procedure or those that prefer to have a professional handle the assignment may benefit from working with a registration agent.
Pros and cons of working with a registration agent
Pros:
- Throughout the registration process, experienced direction and assistance are provided
- Saves companies time and effort
- It can aid in preventing typical errors and mistakes
Cons:
- Added expense for enterprises
- Working with untrained or dishonest agents might be risky
- The registration procedure may not be entirely under the control of businesses.
How to choose a reliable registration agent?
Businesses should: in order to select a trustworthy registration agent:
- Look for agents that have experience and training.
- Check out customer feedback and endorsements.
- Verify the agent’s registration with the relevant government agencies.
- In the meantime, enquire about the rates and services offered.
- Check their addresses and places of business.
Fees charged by registration agents
The fees that registration agents charge fluctuate based on the agent and the services provided.
Applying for GST Registration on Your Own
Advantages of self-registration
- Cost savings
- Additional control over the registration process
- More knowledge of the registration process
- There is no need to wait for or rely on a registration agent.
- Satisfaction from completing the work by yourself.
Risks and challenges of self-registration
- Lack of familiarity with or comprehension of the registration procedure
- Committing errors or blunders while registering
- Potential for application delays or rejections.
Tips for successful self-registration
Advice for effective self-registration:
- Investigate and comprehend the registration procedure
- Check the information twice and avoid common mistakes.
- When necessary, ask for assistance.
Conclusion
The primary consideration is that companies with an annual revenue exceeding a specific level must register for GST. Although it incurs a fee, working with a registration agent can offer expert direction and support. More control and cost reductions are possible with self-registration; however, there are also hazards and difficulties.
The GST registration procedure may be facilitated for businesses by Kanakkupillai, a reputable and knowledgeable registration agency. However, Kanakkupillai also offers tools and advice for companies that prefer to self-register to ensure a successful registration. Working with a registration agent or going it alone should ultimately depend on the demands and resources of the particular firm.
