GST (Goods and Services Tax)
Under the GST system, businesses are required to register for GST and collect the tax from their customers. They can then claim input tax credits on the GST they have paid on their purchases or inputs. This ensures that the tax is applied only on the value added at each stage of the supply chain, leading to a more efficient and transparent tax regime.
However, there can be certain scenarios where GST may be optional or have specific rules for certain individuals or entities. Here are a few examples:
Threshold Exemption: There will be a turnover threshold below which businesses are not required to register for GST. This means that if a business’s annual turnover falls below the threshold, they have the option to choose not to register for GST.Small Businesses or Individuals: Special provisions or schemes for small businesses or individuals with limited turnover. These schemes, such as the composition scheme in India, provide simplified compliance and lower tax rates for eligible businesses. Participation in such schemes may be optional.
Specific Transactions or Exemptions: Certain transactions or activities may be exempted from GST or have specific rules. For example, basic necessities like food, healthcare, education, and financial services may be exempted or attract a zero or reduced GST rate
In India, under the GST regime, businesses are required to register for GST if their annual turnover exceeds the prescribed threshold limit. The threshold limit varies based on the type of business and location. As of September 2021, the threshold limits for GST registration in India were as follows:
For businesses operating in most states: If the annual turnover exceeds Rs. 40 lakhs, GST registration is mandatory.
For businesses involved in the supply of goods or services through e-commerce platforms: Regardless of the turnover, GST registration is mandatory.
The process of GST registration in India involves several steps. Here is a general outline of the registration process:
Determine Eligibility: Check if your business meets the eligibility criteria for GST registration,
Gather Required Documents: Collect the necessary documents and information for registration, which may include PAN (Permanent Account Number) card, identity and address proofs, bank account details, business registration documents (like partnership deed or certificate of incorporation), and photographs.
Online Registration: Visit the official GST portal (www.gst.gov.in) and navigate to the GST registration page. Fill out the online application form with the required details. The form is divided into several sections, including business details, promoters/partners details, authorized signatory details, and bank account information.
Verification: After submitting the online application, you will receive an Application Reference Number (ARN). The application is verified by the GST officer, who may request additional documents or information if needed.
Field Visit (if required): In some cases, a GST officer may conduct a field visit to verify the business premises, especially for certain categories of businesses or if additional verification is deemed necessary.
Registration Certificate: Once the application and documents are verified, and any required clarifications or field visits are completed, you will receive the GST registration certificate. This certificate indicates that your business is now registered under GST and provides your GSTIN (GST Identification Number).
It’s important to note that the registration process and requirements may be subject to updates and changes. It is advisable to refer to the official GST portal (www.gst.gov.in) or consult with a tax professional for the most accurate and up-to-date information regarding the GST registration process in India.
An individual can have GST below 40 Lakhs also, but he/she should have to apply the gst of goods selling to individual/buyer.He/she also have to fill gst if there is 0 selling of goods.