GST i.e. Goods and Services Tax has come into effect to merge most of the current taxes (Central and State level indirect taxes like VAT, Service tax, Excise, etc.) into a single mechanism of taxation. It is a comprehensive indirect tax levied on manufacture, sale and consumption of goods and services at national level. It is a multi-stage and consumption based tax, which means, the tax will be levied at each stage of the purchase and sale of goods and services.
GST registration is primarily required when your annual turnover is more than Rs. 20 Lakhs (Rs. 10 Lakhs for north east and hill states-Special category states). However, even if your sales are less than the prescribed limits, you can still opt for voluntary GST registration.
For businesses where GST registration is compulsory and they carry on their business without GST registration, it is considered as an offense under the law and can attract huge penalties when identified.
If you are looking for a GST consultant and want to get yourself registered, you can get in touch with Numbro. We are a company of professionals who have expertise in GST Registration, GST Implementation, GST Accounting and GST Consulting.
A legal entity becomes recognized as a supplier of goods or services.
It allows smooth flow of Input Tax Credit from suppliers to recipients at the national level.
Can avail composition scheme, applicable for small suppliers whose turnover is below a prescribed limit which is now 1.5 crores.
An individual becomes legally authorized to collect taxes from his customers and utilize the credit of the taxes paid to them.
An individual becomes legally authorized to claim Input Tax Credit of taxes paid by him to his suppliers and he can in turn utilize the same for payment of taxes due.
GST registration is mandatory for:
GST regulations are applicable if your annual turnover exceeds the threshold limit of Rs. 20 lakhs. The threshold limit is Rs. 10 lakh for North Eastern states (Arunachal Pradesh, Assam, Manipur, Nagaland, Meghalaya, Mizoram and Tripura) and hilly regions (Uttarakhand, Jammu and Kashmir, Himachal Pradesh and Sikkim).
As per GST provisions, the taxpayer has to furnish three returns monthly and one annual return. In other words, any business will require to file 37 returns in a financial year. Moreover, the law has defined separate returns for each category of taxpayer. For example, taxpayer registered under the composition scheme, input service distributor, a person liable to deduct or collect the tax (TDS/TCS) have to furnish separate returns.
Not registering under GST law is considered as an offence and is subject to penalty. The penalty if the offence is deliberately made is 100% of the tax amount due or Rs. 10,000, whichever is higher. Therefore, we advise to get GST registration done as soon as possible. You can get in touch with Numbro for all your GST related requirements like GST Registration, GST Implementation, GST Accounting and GST Consulting.
Entities are not allowed to collect GST from a customer or claim input tax credit of GST paid if they have not done GST registration. In case, if they breach the law, they could be penalized heavily.