Goods and Service Tax (GST) is an indirect tax collected by the government from registered dealers on selling taxable goods and providing taxable services. GST registration is mandatory for all suppliers with turnover exceeding Rs.40,00,000 (trading in goods), and Rs.20,00,000 (Service provider). Suppliers of taxable goods can also register GST on an optional basis, in that case, all the rules and regulations that are applicable to the mandatory dealers are applicable to dealers registered under the optional category.
What is GST ?
GST is tax collected on sale of taxable goods or on providing taxable service. Collection of GST is based on concept of value addition, tax amount is paid by the dealer only on the value added by them. Collection of GST on each stage is ensured by the process of granting input tax credit on supplies received. There are different rates of taxes in GST, generally things which comes under necessity is taxable at lowest rate. The GST number is prefixed with state code, which enables the state government to assess GST revenue generated from the state.
How to apply GST registration in Chennai
GST registration is the process of application by dealer for getting them self registered under GST Act. On approval of GST application, a 15 digit PAN based GST number is allotted to the taxpayer. For each GST registration, a separate GST number is issued to the taxpayer. Registered GST dealer should file periodical returns on time to avoid penalty. GST number can be applied on voluntary basis for advantage of GST credit, etc. You can also apply online GST registration yourself, but it is recommended to approach GST registration consultant for proper filing of GST application
What are the documents required for GST registration ?
- Pan card of individual / partners/ directors.
- Address proof of individual / partners/ directors.
- Passport size photo of individual / partners/ directors.
- Pan card of business
- Rental agreement or sale deed as supporting proof for business address.
- Latest EB bill or corporation tax receipt in the name of owner of business premises.
- Filled up checklist
Steps to Register
GST registration consultation
Filing for GST applcaition
Aadhaar authentication process
Generation of ARN
Tracking of GST application
GST compliance consultation
Important information one should know before the application for GST number
- GST registration application is a completely online process, submission of all documents and information is done through the GST portal online. There is no requirement to visit the GST department, as all the process is routed through an online process applications are processed on a first-come, first-served basis by the department so chances of faster approval by pushing in front of a queue are not possible
- GST registration is mandatory for all dealers who deal with interstate sales of goods and services, export of goods and services, carrying on the business using the brand name of others, etc. Therefore, the question of turnover limit for GST registration does not arise in these cases, even startups need to register for GST if they fall under this category.
- Regarding voluntary GST registration, which is also called optional GST registration, dealers should consider the benefits of GST registration over the additional tax burden on sales value. Optional registration most of the time is preferred for businesses engaged in B2B business where it is necessary to possess a GST number to make a sale to other businesses
- The composition scheme of GST registration is widely seen only in food business operators as GST paid on food products is eligible for the input tax credit in a general sense, so the buyer of food for human consumption does not differentiate regular suppliers from composition supplier
- Aadhaar authentication is mandatory for GST registration approval without inspection by the officer, GST application can be authenticated through Aadhaar E-KYC only when name as per pan and name as per the Aadhaar card are the same. This facility can be used only one time, if the validation fails using OPT the link will be deactivated and ARN will be generated for processing through physical verification mode.
- In case of any previous GST registration, not is cancelled properly by the dealer, there will be issues in the application of new GST no application. GSTR-10 final return has to be filed after registration is cancelled by the department on suo-moto basis or cancellation by GST surrender application by the dealer.
Important compliance that is required after GST registration
- Filing of periodic GST returns is the first and most important compliance required under the GST Act, late filing of GST returns will have multiple complications including blockage of payment from customers, interest on GST output liability, GST late filing fees, etc.
- Apart from periodic regular GST returns, annual return in form GSTR 9 is required to be filed on a self-declaration basis if GST turnover crosses Rs.2 crores in the financial year and GST annual reconciliation statement in form GSTR-9C. The penalty for later filing of GSTR-9 is Rs.200 per day, which will build up even to lakhs if not filed on time.
- Proper reconciliation of ITC for each month is required to be done for an efficient claim of input tax credit and reversal.
- The input tax credit is auto-populated in GSTR-2B, but we cannot take the entire credit so calculated because there may be some items of the invoice on which a claim of GST credit is not allowed for business, some of such expense item is insurance on a passenger car, purchase of a car, etc.
- The HSN-wise summary is required for B2B business during the filing of annual returns, so it is recommended to have an HSN summary month-wise during monthly GSTR-1 filing.
From Auditor DESKFor the benefit of clients, we advise you to make sure to file GST periodical returns on time. Filing of GST returns is a critical factor in the maintenance of the GST number, if the GST number is not required at any point of time care should be given to apply cancellation of the GST number
Frequently Asked Questions
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I am having 2 branches in Chennai can I apply composite dealer GST registration for one branch and normal dealer registration for other branches