Every individual who supplies goods and services has to register under Goods and Service Tax (GST) under the current GST regime. So, if your annual business turnover exceeds Rs.20 lakh, you need to register with the Goods and Service Tax Network (GSTN).
You will receive a unique Goods and Service Tax Identification Number (GSTIN) once you have registered under the GST regime. The 15-digit number is issued by the Central Government a state-wise to you once your registration is complete. There are several advantages of GST registration, including the fact that you will get a legal identity as a supplier. You can collect GST from recipients of goods and services by availing of the input tax credit.
When GST Registration of Individuals is Required?
- In a financial year, suppliers who supply the taxable goods or services and have a turnover of Rupees 9 Lakhs or above.
- In a financial year, Suppliers who provide taxable goods or services and have a turnover of Rupees 4 Lakhs or above
Documents required for GST Registration of Individual
The documents you require under GST while registering are listed below.
– Applicants PAN CARD
– Incorporation Certificate or Partnership deed
– Promoters or partners Voter ID’s, PAN cards, or Aadhaar cards
– Address proof of the business in the form of rent, electricity bill, or an SEZ, lease agreement or an issued document by the government
– Digital Signature
– A Company, firm, or individual Bank account statement and cancelled cheque.
Benefits of registering under GST for individuals
- A supplier can be recognized legally for supplying goods or services.
- Input goods or services and proper accounting of taxes paid can be utilized for GST practitioner registration in India due to the supply or both by the businesses.
- The supplier is legally authorized to collect tax from the purchasers. The credit of the taxes paid can be passed on the supply of goods or services to the recipient or purchaser.
- Eligible to avail of various other benefits and privileges under the GST law
Penalty for not registering under GST
An offender has to pay a penalty of 10% of the tax amount due, subject to a minimum of Rs.10,000 for not paying tax or making small payments.
The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.
