GST is a product of the biggest tax reform in India that has tremendously improved the ease of doing business and also increased the taxpayer base in India by including millions of small businesses under one uniform tax system. The tax complexities have reduced considerably due to the introduction of GST in India. As multiple tax systems are abolished and subsumed into a single, simple tax system under GST.
The GST regime mandates that all the entities that are involved in buying or selling the goods or providing services or both are required to register and obtain the GSTIN.
GSTIN is a unique 15 digit code that is allocated to every taxpayer that has valid GST registration in India. It is a unique code that is allocated to every taxpayer which is given based on the state and the PAN. GSTIN is mandatory for businesses when the annual turnover is exceeding Rs.20 lakh. If the business is carrying out a business e-commerce platform it is necessary to obtain the GSTIN.
GST registration is mandatory once the entity is crossing a minimum threshold turnover or when the individual starts a new business that is expecting to cross the prescribed turnover.
The following documents must be submitted by regular taxpayers applying for GST registration.
Mentioned below are the different types of GST registration:
This category of GST registration in India applies to the taxpayers that are operating a business in India. Taxpayers that are registering for normal taxpayers do not require to deposit and are also provided with unlimited validity dates.
To register as a Composition taxpayer the individual is required to enroll under the GST composition scheme. The taxpayers enrolled under the composition scheme can pay a flat GST rate. But the taxpayers opting for the composition scheme are not allowed to claim the input tax credit.
A taxpayer that is establishing a stall or a seasonal shop should register under the casual taxable person. Here the taxpayer is required to deposit an amount equal to the GST liability. The liability should is required to match the active registration periods. The registration is active for 3 months.
The category of the non-resident taxable person applies to the individuals that are located outside India. To register as a casual taxable person the taxpayer is required to deposit an amount that is equal to the amount of the GST liability. The liability is required to match against the active registration periods. The registration for the Non-resident taxable person is valid for 3 months.