GST registration is the process of obtaining a unique identification number from the government for businesses that are required to pay GST. It is mandatory for businesses with an annual turnover of over Rs. 40 lakhs (Rs. 10 lakhs for businesses in special category states), involved in inter-state supplies, e-commerce, or if the business is a non-resident taxable person, among others. The registration process involves the submission of various documents, and after obtaining the GSTIN, businesses are required to file GST returns regularly. Failure to comply with GST laws can attract penalties and legal action.
How much time does it take to get a GST number?
The time it takes to get a GST number in India depends on various factors, such as the completeness of the application, the verification process, and the workload of the GST department. Generally, it takes 3 to 6 working days to get a GST number after the submission of the application. However, in some cases, it may take longer than usual time, especially if there are discrepancies in the application or additional information is required for verification purposes. It is advisable to check the status of the GST application regularly on the GST portal or through the GST helpdesk to stay updated on the progress of the application.
Eligibility to register GST online in India
In India, businesses and individuals are required to register for GST if their turnover exceeds a certain threshold limit. The eligibility criteria to register for GST online in India are as follows:
- Businesses with an annual turnover of Rs. 40 lakhs or more (Rs. 10 lakhs for businesses in special category states) are required to register for GST.
- Businesses engaged in inter-state supply of goods or services must register for GST, regardless of their turnover.
- Businesses involved in e-commerce activities, regardless of their turnover, must register for GST.
- Any person or entity who is liable to pay tax under the reverse charge mechanism must register for GST.
- Non-resident taxable persons and casual taxable persons, who supply taxable goods or services in India, are required to register for GST.
- Input service distributors, persons supplying goods or services on behalf of other registered taxable persons, and agents of a supplier are also required to register for GST.
It is important to note that registration for GST is mandatory for eligible businesses and individuals. Failing to register for GST can attract penalties and legal action. The registration process for GST can be done online through the GST portal.
Benefits of GST number in India
The Goods and Services Tax (GST) is an indirect tax that has been implemented in India to replace a range of indirect taxes such as excise duty, value-added tax (VAT), and service tax. Every business that is registered under GST is assigned a unique GST identification number (GSTIN), which provides a range of benefits to businesses in India. Some of the benefits of having a GST number in India are:
- Legal recognition: GST registration and GST number provide legal recognition to a business, which is mandatory for businesses with a turnover exceeding Rs 40 lakh.
- Increased credibility: GST registration helps businesses gain credibility in the market as it signifies that they are following all the tax-related compliance and rules set by the government.
- Input tax credit: GST registration allows businesses to claim the input tax credit on the GST paid on purchases, which can be used to reduce the tax liability on sales.
- Increased business opportunities: GST registration helps businesses to expand their business by making them eligible to participate in tenders and trade deals, both within the state and across different states in India.
- Compliance benefits: GST registration ensures that businesses comply with all the rules and regulations set by the government, which can help them avoid penalties and legal action.
- Simplified tax system: GST replaces multiple indirect taxes, which makes the tax system more simplified and transparent, reducing the chances of tax evasion.
Overall, having a GST number in India is essential for businesses, as it provides a range of benefits that can help them increase their credibility, expand their business, and comply with tax laws in a more efficient and effective manner.
If you’re running a business in India, having a GST number is crucial for smooth business transactions, legal compliance, input tax credit claims, and avoiding penalties for non-compliance. Therefore, it is essential to register for GST and obtain a GST number if your business is eligible for it.