Goods and Service Tax (GST) is an indirect tax (or consumption tax) levied in India on the sale of goods and services. GST is levied at every step in the production process, but is refunded to all parties in the chain of production other than the final consumer.
Goods and services are divided into five tax slabs for collection of tax - 0%, 5%, 12%,18% and 28%.
Businesses whose turnover exceeds Rs. 20 lakhs (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
GST registration usually takes between 3-5 working days.
Required Document for GST Registration
Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
Legally recognized as supplier of goods or services.
Proper accounting of taxes paid on the input goods or services which can be utilised for payment of GST due to supply of goods or services or both by the business .
Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
Getting eligible to avail various other benefits and privileges rendered under the GST laws.
No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.
As per Section 22 of the CGST/SGST Act 2017, every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turn over in a financial year exceeds the threshold limit of twenty lakh rupees shall be liable to register himself in the State or the Union territory of Delhi or Puducherry from where he makes the taxable supply.
GST Registration is not mandatory for persons who :
Supply agricultural produce from cultivation.
Make only exempt supplies (Nil Rated or Non-Taxable supplies) of goods or services.
Make supplies which are entirely covered under reverse charge.
Registration can be cancelled in 2 scenarios:
When the taxable person wishes to voluntarily cancel his GST registration.
When the proper officer, on default by the taxable person, moves to cancel the GST registration on his own motion. This may be when the person is not doing business from his declared registered place of business or if he issues tax invoice without making the supply of goods or services.
No . Every person who is liable to take a registration will have to get registered seperately for each states where he has business operation and is liable to pay GST .