The Goods and Services Tax (GST) constitutes the primary element of India’s indirect tax system, and registration is mandatory for business owners, service providers, and professionals alike.
This concise post provides a detailed roadmap for online GST registration in Maharashtra, including the requirements and key criteria to consider when registering for GST.
If your business operates in Maharashtra, understanding the online registration process will help you stay compliant and run your business smoothly.
GST Registration in Maharashtra: Eligibility Conditions
Businesses that need GST registration in Maharashtra come under the categories noted below:
- Aggregate turnover: Any vendor or supplier offering services higher than Rs. 20 lakhs annually needs a GST registration in Maharashtra. While an organization involved in goods supply and merchandising that exceeds the figure of 40 lakhs also requires a GST registration in Maharashtra, which is mandatory.
- Interstate commerce: Where an entity is engaged in the supply of interstate merchandise and goods.
- Engaging in E-commerce: An individual must obtain GST registration, regardless of their turnover, if he is involved in the supply of merchandise and utilities using an E-commerce platform. To launch an E-commerce transaction, it is requisite to acquire a GST registration for merchandise.
- Occasionally taxable person: A person who is taxed casually engages in transactions regarding supply of provisions or utilities or both during the execution of business activities or its advancement, whether in the role of a principal, dealer, or any other position. Any individual carrying out seasonal delivery of goods or services through a temporary outlet or stall also needs a GST registration in Maharashtra, regardless of the turnover.
- Voluntary registration: GST registration can be procured voluntarily at an earlier stage. Such self-registration for GST did not provide for surrender for a year. Following the current revisions, GST registration can now be withdrawn by the applicant at any time. No validity duration exists for the GST registration in Maharashtra. In fact, it ceases to lapse till its cancellation. For an occasionally taxable individual and an NRI person subject to taxation, the GST registration arrives with a termination date.
- Entities accountable for deducting or levying Tax Deducted at Source (TDS) or TCS (Tax Collected at Source).
- Persons or ventures subject to taxation on account of the supplier
- Entities that have been on record in the previous tax regimes are shifting towards GST.
Supporting Documents for GST Registration
- Applicant’s PAN card
- Aadhaar card
- Certificate of Incorporation or business registration
- Identity and proof of residence of Promoters/Directors with their pictures
- Proof of business location
- Bank Account statement/Cancelled cheque
- Digital Signature
- A letter of Permission/ Board Resolution designating individuals with the authority to sign documents
Possessing a PAN card is indispensable for obtaining a GST Registration in Maharashtra. Similarly, a PAN is mandatory for acquiring a GST Registration for proprietorships, LLPs, partnership firms, or trusts. However, owning a PAN is not essential for foreign firms or foreign nationals.
Penalty for Non-Compliance with GST Registration in India
- An overdue fine of Rs 100 per day for every Act (Rs. 200/day for CGST and SGST)
- Penalty of 10% of the tax obligation, which is no less than Rs. 10,000
- In case of deliberate avoidance of GST, a six-month imprisonment term. This penalty is usually imposed, especially in cases of intentional circumvention or willful evasion, which constitutes a grave offense.
Procedure for Online GST Registration in Maharashtra
1. Enter the GST Portal
Sign up for the official GST web portal: https://www.gst.gov.in.
2. Go to New Registration in the Menu Section
- Select ‘Services’ > ‘Registration’ > ‘New Registration’.
- Choose ‘Taxpayer’ for type and pick Maharashtra as your state.
- Complete your personal and business information (including registered business name, email, PAN, and mobile number).
- Obtain a One Time Password (OTP) to confirm your details.
3. Receiving TRN
- After confirmation, you will receive a Temporary Reference Number (TRN).
- Make use of TRN to key in and resume the application.
4. Finalize the Registration Application (Form GST REG-01)
Complete all relevant fields:
- Business information (Official Name, Brand Name, PAN, Constitution)
- Partner/Owner/Promoter Information (Identification documents, address).
- Main Place of Business/Head Office (proof of residence, ownership documents or deeds like rent agreement, utility bill)
- Additional or Secondary Business Locations
- Goods/Rendered Services (HSN for classification of goods/SAC codes for service categorization).
- Data specific to the state
- Aadhar verification.
- After disclosing all the information, correctly choose the verification check-box.
5. Send GST REG- 01 Application Making Use of DSC or EVC
- Digitally sign and file through Digital Signature Certificate (for companies or LLPs) or Electronic Verification Code (EVC)
- After the applicant has duly completed all the above processes, the submission of Form GST REG-01 will be regarded as final.
6. Creating ARN and Application Status
Application Reference Number (ARN) is created and monitored online.
7. Confirmation and Issuance
The GST officer may authorize or inquire for more information within seven business days.
If accepted, you will obtain your GSTIN and GST registration certificate through email or the portal.
Advantages of GST Registration in Maharashtra
- Small Businesses can opt for the Composition Scheme: Businesses generating below a turnover of ₹ 1.5 crore can opt for the composition scheme, which allows for the submission of quarterly returns and payment of a flat tariff ranging from 1% to 5%, based on the classification of goods or services they provide.
- Premium benefits for Start-ups: Startups are entitled to a range of inducements, including deferment of GST during the initial five years of business undertakings, and a refund of 90% of IGST payments on imports.
- Interstate Commerce: GST registration facilitates businesses in a particular state to engage in uninterrupted interstate trade without paying multiple taxes. It makes the taxing process easier for goods and services crossing state lines, which simplifies commerce.
- Special Incentives for Women Entrepreneurs: Women entrepreneurs enjoy several perks, such as a 50% reduction in the cost of obtaining a GST registration certificate and a 2% GST refund for specified items or services provided by businesswomen.
- Compliance Advantages: GST-registered entities can submit GST returns online, ensuring smooth compliance with tax laws.
- Entitlement to Government Schemes: Businesses that are registered under GST are entitled to avail of various government schemes, such as the Goods and Services Tax Refund for Exporters (RoE) Scheme.
Things to Consider
- Registration is compulsory in case your aggregate turnover surpasses the prescribed limit (generally INR 40 lakh/20 lakh/10 lakh as appropriate).
- Voluntary registration is available for entities falling short of the threshold.
- Additional registration as necessary for multilocational companies in Maharashtra.
Conclusion
The GST registration procedure in Maharashtra is consistent with the national infrastructure set up by the Indian government. Similar to any other state in India, the GST registration procedure in Maharashtra adheres to a standard protocol established by the GST Council. Businesses across Maharashtra that generate annual sales exceeding the cutoff point are required to register for GST. Signing up takes several steps. It starts with filling out forms on the GST website. Then, you need to provide business information, such as your PAN, Aadhaar, and any other required documents. After you’re signed up, your business can charge GST to customers, get input tax credits, and send in regular reports as the GST rules say.
Making taxes easier and shipping goods faster has helped Maharashtra’s economy grow. As India’s business hub, these changes have made it a more attractive place to do business, thereby contributing to the overall growth curve of the state.
