A COMPLETE GUIDE FOR SMALL BUSINESSES TO REGISTER UNDER GST

A COMPLETE GUIDE FOR SMALL BUSINESSES TO REGISTER UNDER GST

GST has completely transformed the process of indirect taxation in India. Introduction of GST is considered as a start of golden period for MSME registrations & small businesses in India. GST has brought with it the urgent plight of small business in making the indirect tax filing convenient. The idea behind bringing in Goods & service tax (GST) is to replace decade old multi-stage indirect tax.

What all businesses are covered under GST?

In order to understand the compliance requirements for small businesses under GST act, 2017 it is important that one must identify whether GST registration is required or not. Following are the list of individuals who are required to register under GST.

  • Business turnover exceeding INR 20 lacs & INR 10 lacs (special category states).
  • Prior to GST those who were registered under Excise, VAT, Service tax etc.
  • Those paying tax under Reverse Charge Mechanism.
  • Supplier agent or Input service provider.
  • E-commerce supplier.

GST Registration is an important step before commencing your business because even if there is no business activity, GST returns filing becomes mandatory.

What is the process of GST registration in India?

The process for GST registration is completely electronic. This means that there is minimal interaction between the tax payer and the tax authority.

The complete GST registration process is divided in two parts viz. Part (A) & Part (B)

Part (A)

  • Go to GST Registration home page [https://www.gst.gov.in/]
  • Find “Register now” icon on the bottom left menu & select appropriate option
  • Click on “New registration” >>> Type of taxpayer >>> Business establishment state >>> PAN Card details & Name of your business
  • Verification of Email ID & Contact no. >>> Click on “proceed”
  • Temporary registration no. (TRN) is generated

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Part (B)

  • Fill in the TRN & captcha details
  • Verify it through an OTP >>> Click on “Proceed”
  • Click on the each tab separately to fill in the following details:
  1. Details of business
  2. Details of promoters & partners
  3. Authorized signatory
  4. Principal place of business
  5. Bank account details
  6. State specific information
  7. Verify all the details

Since GST registration requires expertise and the complete knowledge of indirect tax framework in India, therefore it is advisable to hire a GST registration consultant for all your business queries.

What are some of the most crucial benefits of GST registration for small businesses?

  • Reduced tax barriers
  • Simplified tax policy structure
  • Facility of Input tax credit (ITC)
  • Meet global standards of filing tax.
  • Convenience & ease of doing business.
  • Composition scheme for small businesses.
  • Complete digital mode of making tax payments.
  • Minimal face to face interactions with tax officials.
  • Removed bundle of indirect taxes such as VAT, Excise duty, service tax

FREQUENTLY ASKED QUESTIONS (FAQ’s)

Q.) Which taxes are subsumed under GST?

Goods & services tax (GST) has subsumed almost every indirect tax under its definition. Some of the most prominent taxes such as Value-added tax (VAT), service tax, Octroi tax, Entertainment tax, Sales tax & luxury tax etc. To get rid of the anomaly between central & state level taxes, GST has brought in a new tax structure under three (3) heads viz. CGST, SGST & IGST.

Q.) How to get GST registration for new business?

Application of GST registration for small businesses in India is very convenient. Follow the below mentioned steps for GST registration in India.

  • Go to https://www.gst.gov.in/
  • Click on “Register Now” under Taxpayer section.
  • Verify your Mobile no. & email ID with an OTP.
  • Application Reference No. (ARN): Store your ARN for the future reference.
  • Form GST REG-03 : It is an automatically generated form.
  • Verified Registration certificate will be issue within 3 working days after due background check and document verification.

Q.) What is the due date of filing GST returns?

GSTR Form No.GST Return form descriptionDue date (Proceeding month)
1Outward supplies return11
2AInward supplies return15
3BDeclare GST liabilities20
5Non-resident taxpayers wish to opt out of ITC on local procurements.20
5AOnline Information and Database Access or Retrieval (OIDAR) services provider20
6Input service providers (ISD) regarding ITC.13
6AInward supplies or Purchases & Expenses13
7TDS towards inward supplies.10
7ASystem generated TDS certificate10
8Statement of TCS by E-Commerce operators.10

Some other GST registration requirements which need to be fulfilled are:

9Annual return for every normal taxpayer.31st December of next financial year.
9AAnnual return mandatorily for Composition scheme taxpayer.31st December of next financial year.
10Stock held by taxpayers whose GST registration is cancelled or surrendered.Within three months of the date of cancellation.
11Inward supplies of goods & services are stated.28th of the month following the month for which statement is filed.

POPULAR ARTICLES

Read More: Annual Return under GST (Form GSTR-9)

Read More: Composition scheme under GST

Read More: A Brief explanation about Integrated Goods and Service Tax

ONLINE GST REGISTRATION IN DELHI

ONLINE GST REGISTRATION IN DELHI

New Delhi being the political capital of India is also a center of attraction for various MNC’s, corporate head offices, and Startup companies. Various grievance redressal forums such as NCLT, NCLAT, Debt recovery tribunals are located in Delhi. Even the headquarters of CBIC, CBDT & GST Council secretariat is located in Delhi. So it becomes a bit easy for new entrants to get all their issues resolved regarding tax & compliance.

Recently on 01st July 2020, we have completed 3 years of this new indirect tax regime in the Indian business system where all the products are being bought under a single tax bracket. GST has proved to be one of the most successful indirect tax reforms since the independence of India. But most of the businesses & new Startups still fear to sail through this process.

What is the process to get consulting service for GST registration in Delhi?

Go to CAONWEB home page [https://www.caonweb.com/gst-registration.php] >>> Fill in the GST query form >>> Get in touch with GST registration experts >>> Share the required information with our experts >>> Get your GST registration certificate.

The process of GST registration in Delhi is much easy as compared to other states because of two reasons viz. (1) Head-Office of GST, CBIC & various other departments are located which makes it convenient for the companies to communicate. (2) Expert GST consultancy.

The process of GST registration in Delhi is the same as in the rest of the country which is a completely electronic process. But sometimes you might have to send the documents for verification & authorization so being your GST registration in Delhi; one might get an early response.

What are the required documents for GST registration in Delhi?

  • PAN Card
  • Aadhar Card
  • Photograph
  • Electricity bill of the premises
  • Letter of Authorisation for signatory
  • Bank statement/ Cancelled Cheque
GST Registration

FREQUENTLY ASKED QUESTIONS [FAQ’s]

Q      How to apply for GST registration in Delhi?

Application for online GST registration in Delhi is very convenient. Follow the step by step guide for online GST registration in Delhi.

  •  Verify your Mobile no. & email ID with an OTP.
  •  Application Reference No. (ARN): Store your ARN for the future reference.
  • Form GST REG-03 is an automatically generated form (If any additional information is required to be filed in).
  • Verified Registration the certificate will be issued within 3 working days after a due background check and document verification.

Q      How do I calculate GST?

By including GST indirect taxation system, it becomes easy for the businesses, customers, and government to easily calculate the final tax liability. There are certain set guidelines that are followed to calculate the final tax liability.

  1. Three different types of Goods & Services Tax viz. CGST, SGST & IGST are being levied according to the nature of the transaction.
  2. 5 different tax slab viz. 0%, 5%, 12%, 18% and 28%.
  3. GST amount = the actual cost of an item and the percentage of GST imposed is divided by 100. Net price = Actual cost + Amount of GST

Q      How do I apply for GSTIN in Delhi?

GSTIN is the GST identification number which is a 15 digit unique code containing your PAN Card details. GSTIN is important because it is mandatory for every registered GST person to get the unique identification number imprinted on the final bill summary.

Q      Can I get a GST number without business?

No, one cannot avail GST number without business because GST registration requires you to provide the details of your business while filing the GST registration application form.

Q      How can I get my GST number online for free?

It is a bit difficult to get your GST Registration number for free since it requires a lot of efforts and expertise to get the GST registration in a single go. However, there are some professionals who charge a minimum fee for GST registration in Delhi and them also offer certain other services such as company registration, Income tax consultancy, online accounting & bookkeeping services.

So you cannot get GST Registration for free but one can minimize their actual GST registration fee by bundling various other online CA Services.

POPULAR ARTICLES

Click Here: Annual Return under GST (Form GSTR-9)

Click Here: Composition scheme under GST

Click Here: A Brief explanation about Integrated Goods and Service Tax

COMPANY REGISTRATION At The LOWEST PRICE !! Call @ (0120) 4231116

GSTR 9C

KNOW WHAT IS GSTR 9C – Reconciliation statement and certification

GSTR 9C is an audited report under GST which specific class of GST registered taxpayer needs to comply with. It is a reconciliation statement between GSTR 9 filed and the audited financial statement during the year It is a form that needs to be certified by a CA. This reconciliation statement helps GST authorities to verify the correctness of the GST returns filed by the taxpayers as it is verified by certified professionals. In this guide, you will find the following information. In this article you will find answers to below questions:

  • Who needs to file GSTR 9C?
  • Due dates of filing GSTR 9C?
  • Penalty for nonfiling of GSTR 9C?
  • WHO NEEDS TO FILE GSTR 9C?

Every registered taxpayer under GST having aggregate turnover during a financial year more than two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 of the CGST Act, and shall furnish a copy of the audited annual accounts and a reconciliation statement, duly certified by Chartered Accountant or cost accountant in FORM GSTR-9C. GSTR 9C can only be submitted after applying for GSTR 9.

DUE DATE OF FILING GSTR 9C?

GSTR9C filing shall be done on or before the 31st of December following the financial year which is under audit. 
NOTE: GSTR 9C for FY 2018-19  has been exempted for businesses with  average turnover of INR 5 crore. [ GST 39TH COUNCIL MEETING ]

PENALTY FOR NON FILING OF GSTR 9C?

If the taxpayer fails to submit both the annual return and the Form GSTR-9C, a fee of Rs.200 / will be charged- per day during which the default continues (Rs. 100 under CGST law + Rs. 100/- under State / Union Territory GST law)
*Limit of maximum amount of .50% (0.25% under the CGST Law + 0.25% under the SGST / UTGST Law) of turnover in the State/UT.
These provisions apply to the filing of GSTR-9; however, no specific provisions have been mentioned for  GSTR-9C. Therefore the filing of GSTR-9 and non-filing of GSTR-9C could be subject to a general penalty of Rs 25,000.

HOW TO FIND A CONSULTANT FOR GSTR 9C ONLINE?

CAonWeb is a platform where you can book appointments with chartered Accountants or you could ask team CAonWeb to help you get connected to a chartered accountant online who is an expert on filing gstr 9c, it is a safe and affordable method to avail for ca services online.

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GST FRAUDSTERS

BEWARE: GST FRAUDSTERS AT YOUR DOORSTEP

AVOID TAKING SERVICES OF GST@99/- or GST@99/

Yesterday I saw a poster on a pillar right outside my house which says “GST at Rs 99. Call XXXXX “. I was shocked and thought, it is not some Chinese product which you are selling at the lowest price, it is a matter of tax and compliance which is a law that professionals such as Chartered Accountants, GST certified experts can deal well with.

I felt it is very important that we deliver the message to businesses that might fall in the trap of unskilled GST service providers and that’s how I planned to write a small article.


With the launch of Goods & services tax (GST) in the second half of the year 2017, the confusion arose among the indirect tax professionals regarding GST registration, GST returns & Annual GST filing, etc. However, from 2018 there is an increase in the number of GST practitioners in the market who are providing GST registration service at a lower price as compared to some highly experienced GST professionals.

Looking Online for CA Service/ CA Near Me


Don’t fall in the trap of these GST fraudsters who are offering the GST@ 99/- or 199/-. But there is a huge difference in the services being offered by both of them.


· Less experience of Indirect taxation
· Low on professionalism
· Lack of analytical skills
· No national/international exposure


These fraudsters are using some loopholes and the technicalities involved in the GST to their advantage.


What went wrong for one of the biggest indirect tax reforms in Indian history?


· Technology failure: Technology that was made to root out the tax evasion did not live up to the expectations. Electronically generated forms which were meant to match invoices and weed out of fake invoices was itself compromised.


· Tax evasion: Since the launch of GST, various instances have come to the limelight where some ingenious methods for GST evasion are being used. Tax authorities are continuously taking every step to weed out such activities.


· Loopholes in GST: Taking the cognizance and the seriousness of the matter, the apex governing body GST council has recommended that every tax payer must prepare form-3B which helped in getting away with the need of matching invoices.


· Mushrooming of fake firms: since the rollout of GST across India, CBIC has come up with different modus operandi which is used by GST fraudsters and preparing fake firms and invoices is one of them.


How to avoid GST frauds?


You can do some online research, go meet tax consultants such as Chartered Accountants near you, check reviews of GST service providers online and do not fall prey to those offering GST services at a lower price. Before hiring, have a good conversation with your Chartered Accountant and be smart about what future compliances are, what are the fines and penalties that may occur and ways to prevent them. Some best known online service providers in India currently are:


Ø Cleartax
Ø Vakilsearch
Ø Caonweb
Ø Legalraasta
Ø India filings

Conclusion:

If you don’t want to fall prey to these GST fraudsters then choose a professional who has a very clear intention and will not hurt your business. This will improve your business life cycle with minimal intervention from the tax authorities. A list of some reliable sources from where you can take the GST registration services is mentioned above.

POPULAR ARTICLES

Annual Return under GST (Form GSTR-9)

Composition scheme under GST

A Brief explanation about Integrated Goods and Service Tax