GST Registration in Gurgaon

In India, GST registration is an essential step for those starting a business. It can either be a voluntary decision or a mandatory provision under the GST law. Some people are obligated to register their business under the GST law, while others are exempt from registration. In this article, we will discuss the provisions for GST registration and who is liable to register their business under the GST law.

The Goods and Services Tax Act was implemented on July 1st, 2017, and it encompasses various chapters related to GST returns, GST registration, place of provision of goods and services, time of supply of goods and services, and GST assessment proceedings. The chapter on GST registration outlines provisions relating to exemption from GST registration, who is liable for GST registration, and who is not required to register for GST.

GST registration is a completely online process that requires the applicant to provide details about the proprietor, partners, directors, and the place of business. Once the application form is completed, and the mandatory documents are uploaded, the application must be authenticated using Aadhar authentication. If the applicant’s details and documents are complete and meet the requirements, and the proper officer is satisfied, a GST registration number will be allotted.

Benefits of GST Registration

GST registration is a mandatory requirement for businesses in India that are involved in the supply of goods or services. Gurgaon, a rapidly developing city in the National Capital Region, is no exception to this requirement. In this article, we will discuss the benefits of GST registration in Gurgaon and why businesses should consider registering for GST.

1. Legitimacy and Credibility

GST registration is a legal requirement that gives businesses the legitimacy to operate in the market. It also enhances the credibility of the business, as customers and suppliers view registered businesses as more reliable and trustworthy. This increased credibility can lead to more business opportunities and help to establish a strong presence in the market.

2. Increased Business Opportunities

GST registration opens up new business opportunities for companies. Registered businesses can participate in tenders and apply for government contracts that are only available to registered businesses. Additionally, businesses with GST registration can enter into agreements with other registered businesses without the requirement of a tax deduction at source, thus making transactions simpler and quicker.

3. Input Tax Credit

GST registration enables businesses to claim input tax credit, which allows them to set off the tax paid on purchases against the tax collected on sales. This ensures that businesses are not taxed twice on the same transaction and helps to reduce the overall tax burden. Input tax credit can be claimed on all purchases made for business purposes, including raw materials, goods, and services.

4. Avoidance of Penalty and Interest

Failure to register for GST can result in significant penalties and interest payments. Non-compliance with the GST laws can lead to fines and legal proceedings, which can be costly for businesses. Therefore, GST registration can help businesses avoid penalties and interest payments and ensure compliance with the law.

5. Expansion of Business

GST registration also helps businesses expand their operations beyond the borders of their state. Businesses with GST registration can easily make inter-state sales without the need to obtain multiple registrations in different states. This allows businesses to expand their reach and enter new markets without the administrative hassle of obtaining multiple registrations.

6. Brand Image

GST registration can enhance the brand image of the business, as it indicates that the business is compliant with the laws and regulations of the country. This can help businesses build a positive reputation in the market, which can be valuable in attracting new customers and retaining existing ones.

7. Ease of Doing Business

GST registration enables businesses to comply with the laws in a streamlined manner. The registration process is simple and can be completed online, which reduces the need for paperwork and saves time. Additionally, GST laws are standardized across the country, which makes it easier for businesses to comply with the laws and regulations.

GST registration offers numerous benefits to businesses in Gurgaon. It provides legitimacy and credibility to businesses, opens up new business opportunities, allows businesses to claim input tax credit, helps businesses avoid penalties and interest payments, allows businesses to expand their operations, enhances brand image, and simplifies compliance with the laws. Therefore, businesses in Gurgaon should consider registering for GST to avail these benefits and stay compliant with the law.

Person liable to obtain GST registration

As per Section 22(1) of the CGST act, any person whose aggregate turnover in a financial year exceeds Rs. 20 lakhs is required to register under the GST act. However, for certain special categories, the state turnover limit is Rs. 10 lakhs. It’s worth noting that the limit of Rs. 20 lakhs has been increased to Rs. 40 lakhs for businesses dealing exclusively in goods. If a business deals only in services, then they do not qualify for this increased limit of Rs. 40 lakhs.

For instance, consider the case of Mr. Rakesh who deals in the supply of services in Gurgaon. His total aggregate turnover during the current financial year is Rs. 38 lakhs. Based on the exemption limit of Rs. 40 lakhs, one might assume that he doesn’t need to register under the GST act. However, since he’s dealing in the supply of services, he’s required to register himself under the GST act.

In summary, any person whose aggregate turnover exceeds the prescribed limit is liable to obtain GST registration, with certain exemptions and special categories. It’s crucial for businesses to understand these requirements and ensure that they’re in compliance with the law to avoid any penalties or legal proceedings.

Persons not liable for GST Registration

According to the GST law, certain persons are not liable to obtain GST registration. These include persons who are not liable to tax or are wholly exempt from tax. Such persons do not require GST registration.

Another scenario where GST registration is not mandatory is when a service recipient is liable to pay tax under the reverse charge mechanism (RCM). In such cases, the service provider is not required to take GST registration.

Job workers who have an annual turnover of up to Rs. 20 lakhs (or Rs. 10 lakhs in special category states) are exempt from obtaining GST registration, even if they supply goods to a registered person across state borders. However, it’s important to note that this exemption is only applicable to job workers and not to other types of businesses.

Additionally, businesses that supply services, including inter-state supply, with an aggregate turnover of up to Rs. 20 lakhs (or Rs. 10 lakhs in special category states) are also not required to obtain GST registration.

It’s crucial to keep in mind that these exemptions are subject to certain conditions and limitations. For instance, the exemption for job workers only applies if they’re engaged in specified types of work, such as textile manufacturing or diamond processing. Furthermore, this exemption is not applicable to job workers who supply goods directly from the place of business of the principal to the customer.

Similarly, the exemption for businesses supplying services only applies if they are not engaged in making any inter-state supplies. If such businesses engage in inter-state supplies, they would be required to obtain GST registration, regardless of their aggregate turnover.

It’s worth noting that even if a person is not liable to obtain GST registration, they may still choose to register voluntarily. There can be several advantages to registering under the GST act, including the ability to claim input tax credits and the ability to sell goods or services to registered businesses.

In conclusion, the GST law provides for certain exemptions and conditions under which a person is not required to obtain GST registration. However, it’s essential to understand these provisions thoroughly and ensure that they apply to your specific situation before deciding not to register. It’s also important to note that voluntary registration may provide additional benefits and should be considered carefully.

Person liable for compulsory GST registration

According to the GST Act, there are certain cases in which a person is liable to obtain GST registration regardless of their turnover. These cases are as follows:

1. Inter-State Supply of Goods: If a person is making inter-state supplies of goods, they are required to obtain GST registration irrespective of their turnover.
2. Casual Taxable Person: A person who occasionally supplies goods or services in a territory where GST is applicable but does not have a fixed place of business in that territory is considered a casual taxable person. Such persons are required to obtain GST registration before making any taxable supply.
3. Reverse Charge Mechanism (RCM): If a person is required to make payment of tax under the reverse charge mechanism, they are required to obtain GST registration. Under RCM, the recipient of goods or services is liable to pay the tax instead of the supplier.
4. Non-Resident Taxable Person: A non-resident who makes taxable supplies in India is required to obtain GST registration, irrespective of their turnover.
5. TDS Deductor: A person who is required to deduct tax at source (TDS) under section 51 of the GST Act is required to obtain GST registration.
6. E-commerce Operator: If a person operates an e-commerce platform and is required to collect tax at source (TCS) under section 52 of the GST Act, they are required to obtain GST registration.
7. Person Supplying Goods or Services on Behalf of Another Taxable Person: If a person supplies goods or services on behalf of another taxable person, whether as an agent or otherwise, they are required to obtain GST registration.
8. Input Service Distributor: An Input Service Distributor (ISD) is a person who receives invoices for input services and distributes the credit of tax paid on such services to other units of the same organization. Such persons are required to obtain GST registration.
9. E-commerce Operator Facilitating Supplies: If a person supplies goods or services, other than those covered under section 9(5), through an e-commerce operator who is required to collect TCS under section 52 of the GST Act, they are required to obtain GST registration.
10. Online Information Database Access and Retrieval Services (OIDAR): If a person supplies OIDAR services from a place outside India to a person in India who is not a registered taxable person, they are required to obtain GST registration.

If a person falls under any of the above-mentioned categories, they are required to obtain GST registration regardless of their turnover. It is important to note that failure to obtain GST registration in such cases may result in penalties and legal repercussions.

FAQs on GST Registration:

Q: Do I need to submit hard copies of documents at the GST office?

A: No, the GST registration process is paperless. All documents are submitted online.

Q: When do I need to apply for GST registration?

A: Within 30 days from the date you become liable. For Casual Taxpayers or Non-Resident Taxable Persons, the application must be submitted 5 days prior to the commencement of business.

Q: Can I have multiple GST registrations within the same state?

A: Yes, you can have multiple GST registrations in a state if you have a business requirement. However, you can add your branch office as an additional place of business under one registration.

Q: Can I apply for GST registration without a PAN?

A: No, PAN is mandatory for GST registration because the GST registration number is based on your PAN.

Q: Whose email ID and mobile number should I provide for GST registration?

A: You should provide the details of the Primary Authorised Signatory.

Q: What is a TRN?

A: TRN or Temporary Reference Number is a unique 15-digit reference number that allows you to access your new registration application on the GST Portal in the pre-login mode (without valid login credentials).

Q: Do I need a digital signature to submit a GST registration application?

A: The GST registration process in Gurgaon is completely paperless and online. However, a digital signature is mandatory for Public Limited Companies, Private Limited Companies, Unlimited Companies, Foreign Companies, LLPs, Foreign LLPs, and Public Sector Undertakings.

Q: Do I need a PAN to obtain temporary registration as a Non-Resident Taxable Person?

A: No, a PAN is not mandatory for obtaining temporary registration as a Non-Resident Taxable Person. However, you must have an authorized signatory who is an Indian citizen with a valid PAN card.

We Assist Businesses in Obtaining GST registration in Gurgaon

As a service provider, we assist businesses in obtaining GST registration in Gurgaon. Here are the steps we take to make the process hassle-free for our clients:

1. Understanding client requirements: We first understand the client’s business and its requirements to determine if they need GST registration or not.
2. Documentation: We assist our clients in collating all necessary documents required for GST registration in Gurgaon, including PAN, Aadhaar card, bank account details, and proof of business ownership.
3. Online application: We help our clients in submitting the online application for GST registration in Gurgaon on the GST portal.
4. Follow-up: We follow-up with the GST department on behalf of our clients to ensure that the application is processed in a timely manner.
5. GSTIN generation: Once the application is processed, we assist our clients in obtaining their GSTIN (Goods and Services Tax Identification Number) for their business.
6. Post-registration compliance: We also provide post-registration compliance services to our clients, such as filing GST returns and maintaining proper records to ensure compliance with GST regulations.

We provide end-to-end assistance in obtaining GST registration in Gurgaon, from documentation to post-registration compliance, to make the process seamless for our clients.