GST refers to Goods and Services Tax which includes all taxes like sales tax, service tax, excise duty etc. If your annual sales are more than. 20 Lakh. Even if your sales are less than Rs 20 lakhs, we suggest that you voluntarily opt for GST registration because You will not get any tax refunds on purchases (e.g. if you buy goods worth Rs 1 lakh in a year, and tax rate is 28% – you will lose tax refund of Rs. 28,000).
You cannot sell outside your state.
GST registration is usually takes between 2-6 working days. You need to file your application with the department and sign it with your digital signature. GST registration can be done through Tax Clinic. Situated In delhi.
(B) Who needs GST registration?
Registration in GST is PAN based and state specific. The supplier is required to register in each state or union territory from which it supplies if he fulfills any of the following conditions:
- Having an annual aggregate turnover from all-India operations which is above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States).
- Currently registered under any of the earlier indirect tax regimes (VAT, Excise Laws, Service Tax Laws) irrespective of the threshold limit.
- Having branches in multiple states or multiple business verticals in one state.
- Making any supply to other states.
- Required to pay tax under Reverse Charge (In case your supplier is not registered under GST).
- Required to deduct tax at source or an Input Service Distributor.
- Agents of a supplier.
- Supplying goods or services through E-commerce Operator.
- E-commerce Operator / Aggregator who supplies goods or services under his brand name (e.g. Flipkart, Amazon, Ola).
- Supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.
(C) Benefits of Registration under GST
GST Registration will give the following advantages to a taxpayer.
- He is authorized to collect taxes from his customers and pass on the credit of the taxes paid to them.
- He can claim Input Tax Credit of taxes paid to his suppliers and can utilize the same for payment of taxes due
- Seamless flow of Input Tax Credit from suppliers to recipients at the national level