In India, businesses that supply goods or services are required to obtain a GST number. This number is used to identify the business for tax purposes and is required on all invoices issued by the business.
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What is GST?
The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption in India. The GST is paid by consumers, but it is collected and remitted to the government by businesses. The GST was introduced in 2017, replacing a complex system of indirect taxes that had been in place since the 1950s.
The GST has made doing business in India simpler and more efficient, as businesses now only need to deal with one tax authority instead of multiple authorities. This has helped to reduce compliance costs and increase efficiency. However, businesses need to be registered for the GST in order to collect and remit the tax.
If you are starting a business in India, you will need to obtain a GST number. You can apply for a GST number online through the GST Portal. You will need to provide your company name, registration number, contact details, and other information. Once you have applied for a GST number, you will receive a certificate of registration that you must keep for your records.
Documents required for registration for GST
- The applicant’s Permanent Account Number (PAN)
- Copy of Aadhaar card
- A certificate attesting to a company’s incorporation or registration
- Documentation showing the promoters’/directors’ identities and addresses, including photographs
- Cancelled check or bank statement.
- Board authorization resolution or letter of authorization for authorised signatory
- A digital signature
How to get GST number in India?
The process of obtaining a GST number in India is relatively simple and can be done online. First, you need to have a registered business in India. Once you have your business registered, you can apply for a GST number through the GST Portal.
The application for a GST number is free of cost and can be completed online. After you have applied for the GST number, you will receive a provisional registration certificate. This certificate is valid for a period of 3 months and can be used to file your GST returns.
Once you have filed your GST returns, you will be issued a final registration certificate with your GST number. This certificate is valid for an indefinite period of time and can be used for all your future dealings with the GST.
Who is eligible for GST number in India?
The following categories of people are eligible for a GST number in India:
- All companies registered under the pre-GST laws (Excise, VAT, Service Tax, etc.)
- Businesses whose annual revenue exceeds the threshold level of Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh, depending on the situation
- Non-Resident taxable person or casual taxpayer
- A supplier through an e-commerce aggregator
- E-commerce aggregators
- Any company that deducts TDS/TCS
- Anyone who provides online information and database access or retrieval services to a person in India who is not a registered taxable person from a location outside of India
What are the benefits of a GST number
There are numerous benefits of having a GST number, including:
1. Increased credibility with customers and suppliers: A GST number demonstrates that your business is compliant with Indian tax laws and is therefore more credible to customers and suppliers.
2. Easier to track GST liability: As mentioned above, a GST number allows businesses to easily track their GST liability. This information can be used to make informed decisions about pricing, inventory, and other aspects of the business.
3. Reduced paperwork: Businesses with a GST number are required to file fewer tax returns than those without one. This saves time and money on accounting and administrative costs.
4. Access to certain government schemes: Some government schemes are only available to businesses with a GST number. For example, the Export Promotion Capital Goods Scheme provides financial assistance to businesses that export capital goods.
How to use the GST number in India?
If you are a business owner in India, you will need to obtain a GST number. This number is required for businesses that supply goods and services that are taxable. The GST number is also required when filing your taxes.
FAQs related to GST
Is GST registration free?
The GST registration process is free of cost.
I need to know the GST cap so I can plan accordingly?
A company must register for GST if their annual sales are more than 20 lakhs of Indian rupees. The special category states in the North Eastern region and the hilly regions have a lower limit of 10 million Indian Rupees.
Is GST a voluntary tax?
Once your annual sales reach the threshold, you must apply for GST registration.
In how many days can a company become GST compliant?
The typical processing time for a GST registration is 2-6 business days.
Can I request to have my GST registration cancelled?
For a limited number of circumstances, a GST registration can be revoked. Both the department and the registered individual have the option of requesting cancellation of the registration. In the event of a person’s death, their heirs can file a request to have their registration cancelled.