GST Registration Govt Fees/Cost in India
In reality, the Government of India does not charge any fee in the process of GST registration under GST, Companies Who register GST, only take a GST Registration fee. To Make it Clear, Government GST Registration Fees are NIL in India.
GST is a comprehensive indirect tax, the GST Act was passed in the Parliament on March 29, 2017, and came into practice on July 1, 2017. This GST Tax has replaced many taxes from manufacturer to provider to customer. India has followed a dual GST structure, in which both states and central government impose tax/Fees on goods and/or services.
The taxpayer or the business that obtains GSTIN implies it to collect and pay GST on their business dealings or supplies i.e., purchases, to make it clear i.e., sales, and claim GST input tax credit on the inward goods and services. Basically, the types of GST Registration Costs or Charges depend on the type of business.
Types of GST
Following are the four types of GST that have been implemented in the country:
- SGST: The State Goods and Services Tax is levied by the state government.
- CGST: The Central Goods and Services Tax is levied by the central government of India.
- IGST: The Central Goods and Services Tax is levied by both state and central governments together, under the central government.
- UTGST: The Union Territory Goods and Services Tax is imposed on the Intra UT supply of goods and services
As per the new tax regime, the tax will be deducted in the name of GST at every point of sale. State GST and Central GST have levied in case the sales or business transactions are between two different states, and in case of inter-state supply of goods, Integrated GST will be levied for every sale. Goods that are imported will fall under IGST as they will be considered inter-state sales.
1) The State Goods and Services Tax (SGST)
SGST or State Goods and Services Tax is one of the two taxes which is imposed on business dealings of goods and services of every state. This tax is levied by the State Government of every state, and it replaces all types of existing state tax such as Entry Tax, Sales Tax, Entertainment Tax, VAT, and so on. As per the SGST, the State Government can claim the made revenue.
2) The Central Goods and Services Tax (CGST)
CGST or Central Goods and Services Tax is the Central Tax that is imposed on transactions and business dealings of goods and services that take place within that particular state. CGST is imposed by the Central Government, and it ensures to supplant all other Central taxes that include State Tax, SAD, CST, etc. As per the market value, the prices of goods and services are charged under CGST.
3) The Integrated Goods and Services Tax (IGST)
IGST or Integrated Goods and Services Tax is imposed on interstate transactions or business dealings of goods and services. This tax is also imposed on the goods and services that are imported to market in other states. The IGST is imposed only when the goods and services are distributed from one state to another for sales purposes.
4) The Union Territory Goods and Services Tax (UTGST)
UTGST is levied on the Intra UT supply of products and services. The aim to charge this particular tax is to apply a collection of the tax to furnish benefits as same as SGST. The UTGST is charged under the GST regime to five Union Territories, they are Chandigarh, Lakshadweep, Dadra and Nagar Haveli, Damn and Diu.
What are the Types of GST Registration in India
1) GST Compulsory Registration
There are certain situations in which the dealer and the business owners must take registration under the GST Compulsory Registration category, no matter the turnover of the business. The inter-state sales of taxable services and goods, e-commerce sellers, e-commerce operators, etc come under the Compulsory Registration category.
2) GST Voluntary Registration
According to GST Regime, a business that does not come under the compulsory registration category must register its business under GST Voluntary Registration.
Threshold Limit for GST Registration
If a business exceeds more than the prescribed threshold limit i.e., if the business aggregated turnover is more than Rs. 40 lacs and for special category states its Rs.20 lacs for goods or Rs.20 lacs (for special category statesRs.10 lacs) but not more than Rs.1.5 Cr (for special category states its Rs.75 lacs), then the business owner or dealer can register under Composition Scheme under GST regime.
In the case of a business that deals with services, if the aggregate turnover of the business exceeds Rs.20 lacs and Rs.10 lacs for states under a special category but it is not more than Rs.50 lacs, then the dealer can register under the Composition Scheme. According to this scheme, the taxpayer should pay up GST at a fixed rate on the aggregate turnover of the business and the abidance is lesser than in the case of normal GST registration.
Persons Not Liable For Obtaining GST Registration
Below are the individuals who come under the category in which there is no need to require GST Registration online:
- The business that holds aggregate turnover does not exceed more than Rs.40 lacs for goods during the financial year and Rs.20 lacs for a business that operates in special category states or Rs.20 lacs for a business that deals with services and Rs.10 lacs for a business that runs in states under special category.
- The supply of goods and services that does not come under the provisions of compulsory registration.
- individuals selling services or goods that are not covered under GST or non-taxable under GST.
- Supply of crops that farmed from the cultivation of land.
GST charges for products and services
As per the new Tax Regime, The GST Fee Or Charges for Products and Services that can be imposed have been categorized into four tax slabs, they are 5%, 12%, 18%, and 28%. And importantly GST rates will not apply to certain products and services, such as fresh meat, chicken, milk, curd, buttermilk, fresh fruits, fish, eggs, jute, vegetables, natural honey, bread, salt, besan, prasad, bindi, judicial papers, handloom, sindoor, newspapers, bone grist, hoof meal, horn meal, palmyra jaggery, horn cores, printed books, bangles, cereal grains hulled, bone meal, etc.
The GST rates for basic food items have been kept either nil or at very low rates. This is so as essential food items occupy about 50% of the consumer basket and contribute rather significantly to ascertaining that far-flung inflation is kept in check. However, luxury goods and negative items are taxed at a higher rate, this is because to maintain revenue neutrality for central and state governments.
5% Slabs: Following are the some of the products and services that fall under the 5% GST rates slab: apparel below Rs. 1000, Branded paneer, food items that are in packets, cReams, Milk powder, frozen vegetables, coffee, Rusk, Pizza bread, Sabudana, cashew nut, spices, fish fillet, kerosene, raisin, medicines, fertilizers, LPG supply, small restaurants, etc.
12% Slabs: Following are some of the products and services that fall under 12% GST rates: Butter, cheese, almonds, animal fat, sewing machine, packaged dry fruits, biodiesel, cell phones, bio-pesticides, air tickets by business class, etc.
18% Slabs: Following are some of the products and services that fall under 18% GST rates: cameras, biscuits, instant food mixes, tissues, cornflakes, jams, telecom services, pastries and cakes, printers, restaurants in hotels in which rooms rent is around Rs.7500 or more, soups, etc.
28% Slabs: Following are some of the products and services subject to 28% GST rates: 5-star hotels, small cars, pan masala, cigarettes, personal aircraft, race club betting, and gambling, luxury and sin items, high and motorcycles, small cars, consumer durability products like fridge, AC, etc.
The new GST Registration Cost or Govt fee in India is NIL, which means there is no need to pay any amount or there is no charge required for GST registration on the official Government portal.
But note that if you are a Director of a Private Limited Company or LLP or OPC then you must apply for Digital Signature for the GST Registration, so in that situation, you have to bear the cost to obtain the DSC certificate.
And it is always best to get help and guidance from an expert to make your GST registration process easy and simple and to avoid unwanted issues and errors.
FAQs on GST Registration
The fees for GST registration of business can sign up for free through the GST Registration Portal. The whole process is done online for free.
SGST for state GST or SGST applies to intrastate sales of goods and services, per the SGST Act. It is administered by each state's government. Only SGST liability can be offset by SGST or IGST input tax credit.
GSTIN or Goods and Service Tax Identification number is a 15 digit number which is assigned to the applicant or businesses when it is successfully registered under GST.
ARN in GST Registration or Application Reference Number is generated once the submission of the application is successful to the official GST servers.
PAN card mandatory for registering GST - The short answer is "yes," PAN cards are required for GST filing. Except for TDS registration, which can be done with a TAN, GST registration cannot begin without a PAN card.
The threshold limit for GST registration if your company's annual sales are more than 40 lakhs (20 lakhs for north-eastern and hill states), you must register as a regular taxable person and pay taxes. A minimum of 20 lakhs is required from service providers (10 lakhs in northeastern and hill regions).
To get a GST number entire GST registration process, including receiving the GST number, takes 7 to 10 working days.
No, current account is not required for a company to register for GST.
Yes, get multiple GST registrations within a state. The company may file for as many GST registrations as desired within a state. For ease of doing business, the process of holding multiple GST registrations only for different industries within a state has been eliminated.
If the GST application is rejected, you will have the opportunity to respond to the rejection notice. However, you would need to wait for a final rejection, which will take about 10 days, if you wanted to submit a fresh application.