GSTIN is a unique 15 digit code that is allocated to every taxpayer that has valid GST registration in India. It is a unique code that is allocated to every taxpayer which is given based on the state and the PAN. GSTIN is mandatory for businesses when the annual turnover is exceeding Rs.20 lakh. If the business is carrying out a business e-commerce platform it is necessary to obtain the GSTIN.
GST registration is mandatory once the entity is crossing a minimum threshold turnover or when the individual starts a new business that is expecting to cross the prescribed turnover.
Who is eligible to obtain GST registration?
Businesses are required to get a GST registration if they fall in the below categories.
A service provider that is providing services valuing more than Rs.20 Lakhs aggregate in a year is needed to get GST Registration. Whereas an entity that is engaged exclusively in the supply of the goods whose aggregate turnover crosses Rs. 40 lakh is required to get GST registration mandatorily.
An entity should get GST registration in India if they are involved in supplying goods from one state to another.
Any individuals that supply goods or services through the E-commerce platform should get the GST registration in India. The individuals shall register under GST irrespective of the turnover. To commence with an E-commerce business it is necessary to obtain the GST registration.
Casual taxable persons
An individual who is undertaking the supply of Goods or services seasonally or intermittently through a temporary stall or shop is required to get GST registration. Irrespective of the turnover the individual should apply for GST registration
An entity can obtain GST registration voluntarily, earlier an entity that has a voluntary GST registration was not able to surrender GST registration for up to a year. After the recent revisions, voluntary GST registration can be surrendered by the applicant at any time.
What are the different types of GST Registration?
Mentioned below are the different types of GST registration:
Benefits of GST Registration
GST registration has various benefits here we have listed some of them:
GST has eliminated the cascading effect of Tax: GST is a form of Indirect tax that is designed to subsume all the indirect taxes under one umbrella. GST has reduced the cascading effect of tax that was evident earlier.
Registration threshold is higher: Earlier under VAT any business that had a turnover of more than Rs. 5 Lakh was liable to pay VAT. This limit was different in different states. Also, the service providers were exempted from service tax if the turnover was less than Rs.10 lakh.
Under GST this threshold has been increased to Rs.20 lakh which has exempted many small traders and service providers.
Composition Scheme for the small businesses: Small businesses are benefitted as they can exercise the option for utilizing the composition scheme. The composition scheme has considerably brought down the compliance and the tax burden on small businesses.
Simple and easy online procedure: The process of GST registration is completely online and it is super simple. All you need to do is submit the documents required to our experts.
Fewer Compliances: Under GST there is only one return that is to be filed. There are around 11 returns under GST out of which all of them can be filed online. IndiaFilings can also help you to file your GST returns.
Improved efficiency of the logistics: Under the Goods and Services Tax Act the restrictions on the interstate movement of the goods have been reduced considerably. This reduction in unnecessary logistics costs has caused profits for the businesses that are involved in the supply of goods through transportation.
The unorganized sector is now regularized under GST: Before the GST era, a lot of industries in India like construction and textile were largely unregulated and unorganized. Under GST there are provisions where the compliances can be met online. This has brought considerable accountability and regulation to these industries.