Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. GST Registration is mandatory for businesses with a turnover exceeding a certain threshold, as well as for those engaged in inter-state supply of goods or services. Once registered under GST, businesses are required to file periodic GST returns, which outline the details of sales, purchases and tax paid/collected. Corporate Wheel LLP offers expert GST Registration and Return Filing Services to ensure your business stays compliant with GST laws and avoids penalties.
What is GST Registration?
GST Registration is the process of obtaining a unique GST identification number (GSTIN) from the government. It is mandatory for businesses whose annual turnover exceeds the prescribed limit or if they are involved in interstate supply of goods or services. GST registration makes a business a recognized taxpayer under the GST Act and enables it to collect GST on sales and claim input tax credit on purchases.
Who Needs GST Registration?
Businesses are required to register for GST under the following circumstances:
- Businesses with a turnover above the threshold limit:
- For Service Providers: Rs. 20 Lakhs (Rs. 10 Lakhs for special category states)
- For Goods Suppliers: Rs. 40 Lakhs (Rs. 20 Lakhs for special category states)
- Businesses involved in interstate supply of goods or services
- Casual Taxable Persons: Businesses who occasionally engage in supply
- E-commerce operators and vendors selling goods or services online
- Exporters: Businesses involved in export of goods or services
- Businesses with reverse charge mechanism obligations
Why is GST Registration Important?
- Legal Recognition: GST registration gives your business a legal identity and helps establish credibility in the market. It allows your business to invoice customers with GST, ensuring they can avail input tax credit.
- Tax Compliance: Registration ensures your business complies with the law and avoids penalties for non-compliance. It also enables your business to claim tax credits on goods and services purchased.
- Interstate Sales: For businesses dealing with inter-state sales or providing services to customers across state borders, GST registration is mandatory.
- Builds Trust: GST registration builds trust with customers, vendors and other stakeholders as it signifies that your business is tax-compliant and follows the legal requirements.
- Claim Input Tax Credit: GST-registered businesses can claim Input Tax Credit (ITC) on their business-related purchases, reducing the overall tax burden.