Online GST Registration Services in India - Your Trusted Partner for GST Registration

GST Identification Number or GSTIN, also known as the GST registration number, is a 15 digit number which is assigned to every GST registered person. It has replaced the earlier Tax Identification number which was allocated to businesses by state tax authorities for registering under the VAT system. GSTIN is a State Specific code therefore you have to take separate state wise registration for business branches in different states.

The format of GSTIN is as follows:

• ➙ The first two digits represents the unique code of the specific state.
• ➙ Next ten digits (3-12th) is the PAN number of the taxpayer.
• ➙ The 13th digit will be assigned based on the number of registration within a state.
• ➙ The 14th digit will be “Z” by default
• ➙ The 15th digit may be an alphabet or a number which will be used as a check code.

GST registration is mandatory for all individuals/entity given below -

• ➙ All Entities/Casual Taxable persons making Interstate Taxable supply and whose turnover exceeds Rs 40 lakhs (for trading and manufacturing) or 20 lakhs for service (Rs 10 lakhs for special category states)
• ➙ Input Service Distributor (ISD)
• ➙ Non-Resident Taxable persons making Taxable supply.
• ➙ E-commerce aggregators
• ➙ Supplier of OIDAR (Online Information and Database Access or Retrieval) services from outside India to a person in India, other than a registered taxable person.
• ➙ Agents of a supplier making supply on behalf of a taxable person.
• ➙ Persons required to pay tax under Reverse Charge scheme.
• ➙ TDS Deductor.

The following people/entities are exempted from getting GST registration:

• ➙ Agriculturalists for the supply of crops produced from the cultivation of land.
• ➙ Activities that do not come under the supply of goods or services. (Examples - sale of a building or land, and services provided by an employee.)
• ➙ Businesses that make non-GST/ non-taxable supplies. (Examples - aviation turbine fuel, electricity, natural gas, high-speed diesel, and petrol.)
• ➙ Businesses that make exempt/ nil-rated supplies.
• ➙ Businesses that do not fall under the threshold exemption limit.
• ➙ Other Businesses that do not fall under the mandatory registration bucket.

The GST Act prescribes various types of registration under its ambit. The main ones are discussed briefly below -

Normal Taxpayer: This category holds most of the businesses of India. There is no necessity of putting down any money as deposits for Normal Taxpayers. There is also no expiration date of registration under this category.
Casual Taxable Individual : Individuals who wish to set up an occasional/seasonal shop can opt for this category. For instance, say Mr X has a place of business in Delhi and supplies taxable consulting services in Patna where he has no place of business . He would be treated as a casual taxable person in Patna.
In this case, you have to deposit an advance sum of money that is expected to be equal to your GST liability during the operational time-period of the seasonal shop or business. The registration under this category is active for 3 months which can be renewed.
Composition Taxpayer: In the GST composition scheme, businesses/individuals have to deposit a fixed yearly payment irrespective of their actual earnings.Small taxpayers can get rid of tiesome formalities and pay GST at a fixed rate of turnover. Entities having a yearly turnover of up to Rs. 1 Cr are eligible to get registered as composition taxpayers. It is also imperative to note that they will not be able to claim Input Tax credit under this category.
Non-Resident Taxable Individual: People who reside outside India, but supply goods to individuals who stay in India, can opt for this type of GST Registration. As per the GST rules, when a non-resident occasionally supplies goods/services in a GST applied region and does not have a fixed place of business, he will be treated as a non-resident taxable person. It is similar to a casual taxable individual, just that in this case the non-resident has no place of business in India.
You have to deposit a sum equal to the expected GST liability during the operational time-period of registration. Usually, the normal tenure of registration is 3 months, but can be extended or renewed by the taxpayer.

If an eligible individual/business carries on business without registering to GST and paying taxes, it will be considered an offense under GST and penalties will be applied. In case the reason is genuine or unintended, the individual/entity is liable to pay 10% of the total tax amount. But this is applicable only if the burden of total tax is Rs. 1 Lakh or more. In other cases where this seems intentional, the individual/entity is liable to pay the whole due amount as penalty.

There could be other bad consequences arising which include raising a question of your trustworthiness in front of authorities in future, attracting frequent checks, or any other unwanted issues. That’s why it is always advisable to adhere to the GST rules.

Under GST regime, there are 4 components namely :

- Integrated Goods and Services Tax (IGST)
- State Goods and Services Tax (SGST)
- Central Goods and Services Tax (CGST)
- Union Territory Goods and Services Tax (UTGST)

Under the GST law, the government will collect CGST, SGST or IGST depending upon whether the transaction is intrastate or interstate. These are briefly discussed below -

Central Goods and Services Tax (CGST)

CGST is charged on the intrastate supply of goods and services by the central government .
It is collected along with SGST at the same rate. Both the Central and State Government collect the taxes and combine their levies with an appropriation proportion between them. Further, the GST rules also says that the taxes which are imposed on the intra supplies of goods and services shall not be more than 14% each.

State Goods and Services Tax (SGST)

As we discussed above, SGST will be applicable at the same rate and along with CGST on every taxable intra-state supply, but CGST will be controlled by the Central Government. SGST on the other hand is collected by the State Government and is governed by the SGST Act. Any tax liability under SGST then can be set off in opposition to SGST or IGST ITC only.

Union Territory Goods and Services Tax (UTGST)

UTGST is very similar to SGST which is applicable on the supply of goods/services in the Union Territories like Andaman and Nicobar Islands, Chandigarh, Daman Diu, Dadra, and Nagar Haveli, and Lakshadweep.
The UTGST is governed by the UTGST Act and the revenue earned is collected by the Union Territory government. The UTGST is a replacement for the SGST in Union Territories, but the concept of CGST will be the same.
For Instance, a dealer in Jharkhand is selling goods or providing some service to the consumer in the same state worth Rs. 40,000. The GST rate, let's say is 12% consisting of 6% CGST and 6% SGST, in such cases the dealer collects Rs. 4800 from which Rs. 2,400 will go to the central government and Rs. 2,400 will go to the State government.

Integrated Goods and Services Tax (IGST)

IGST is applicable on all inter-state supplies of goods and services. It is also applicable on the imports and exports of goods and services, and on supplying activities related to Special Economic Zones. In the case of interstate tax collection, instead of separately charging taxes for the Center and the State, the Government collects a single IGST, which is divided later
For Instance, if the dealer in Jaipur sold goods to a dealer in Patna worth Rs. 1,00,000. GST rate, let’s say be 12%, then in such cases the dealer has to charge Rs. 12,000 as IGST.