The Indian tax system has been complete, especially in the pre-GST era. However, since the time GST was introduced, the entire regime changed. Today, every business falls under the annual turnover threshold of more than Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh is required to register under GST. Moreover, firms located in hill states and northeastern states, with a turnover of Rs. 10 lakhs, need to get registered under GST. To get things done, you need to present GST registration documents for goods.
Similarly, if an individual or company engages in the interstate supply of goods, they may also need to seek GST registration in addition to meeting the aggregate turnover criteria. However, to get registered, you need to be prepared with documents. There is a GST registration checklist for goods submission, which can result in getting the GSTIN (GST Identification Number) a 15-digit unique number allowing tax authority to monitor your tax payments for goods business.
This article presents an insight into GST registration documents for goods in India that will help you pass the process without any hurdles.
What is GST Registration for Goods?
As mentioned above, a proprietor of a business dealing with goods and having a turnover of more than Rs 10 lac or Rs 20 lac annually must register under the Goods and Services Tax (GST), also known as GST registration. Certain firms must register for GST, and it is against the law for an organization to conduct business without a GST registration.
Benefits of GST Registration for Goods
Irrespective of the size of your business, if you are dealing with goods and fall under the criteria of annual turnover limit, you are eligible for GST registration. Here are a few benefits to know-
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Lowers Goods Costs
With the implementation of GST, the impact of several VATs and taxes was eliminated. Once you register for GST, you can bring down the price of your goods, thus increasing sales.
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Aids in Preventing Protracted Tax Services
Small businesses benefit from GST registration by eliminating time-consuming tax services. It is because goods and services providers with less than 40 lakhs in revenue and 20 lakhs in revenue, respectively, are excluded from paying GST.
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Helps in Cutting Down on Sales Without Receipts and Corruption
The goal of the introduction of GST was to lessen sales without receipts and corruption. It also reduces the requirement that small businesses pay different indirect taxes.
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Higher Registration Barrier
Any company with a turnover of around Rs 5 lakh had to pay VAT under the previous VAT regime. Additionally, service providers with less than Rs 10 lakh in revenue were exempt from service tax. However, under the GST regime, this ceiling has been raised to Rs 20 lakh, exempting many small businesses and service providers.
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Scheme of Composition for Small Enterprises
Small businesses with annual revenue between Rs. 20 and Rs. 75 lakhs can profit from the GST since it offers the opportunity to use the Composition scheme to reduce taxes. For many small firms, this action has reduced the burden of taxes and compliance.
Different Types of GST Registration
Before you learn about the GST registration requirements for goods, you must be aware of different types-
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Ordinary Taxpayer
In India, most enterprises fit under this group. To become an ordinary taxpayer, you do not have to make any deposits. Moreover, for taxpayers in this category, there is no expiration date.
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Unusual Taxable Individual
This category is for people who want to open a temporary store or booth. When a stall or seasonal shop is open, you must pay a deposit in advance equal to the anticipated GST liability. Under this category, GST Registration has a three-month validity that can be renewed or extended.
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Taxpayer by Composition
If you want to get the GST Composition Scheme, taxpayer by composition is the best. Under this category, a flat deposit is required. This category does not allow for the Input Tax Credit.
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Taxable Non-Resident Individuals
Choose this GST registration if you are based outside of India yet sell goods to people who reside there. You must pay a deposit equal to the anticipated GST liability while the GST registration remains open, just like with the Casual Taxable Person type. This kind of GST registration typically lasts for three months, although it can be renewed or extended when it approaches its expiration date.
What is the GST Checklist for Goods?
When you are doing the registration of GST for your goods business, you need to be ready with documents representing you and your business identity. Below is the list of GST registration documents for goods online-
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PAN Card Details
If you have a PAN card linked to your business account, you need to present the same along with the document.
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Address Proof with Photographs
Documents such as a voter identity card, PAN, passport, driver’s license, and Aadhar card work best as proof of identity. Documents such as a passport, driver’s license, voter identity card, Aadhaar card, and others work as evidence of address. Besides, there are other documents, including-
- Hindu Undivided Family- Karta
- Local Authority permission
- Statutory Body permission
- Letter from Company MD, or Authorized Person
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Business Registration Document
Since you are registering your business under GST, you must present certain documents. Since the proprietor and the proprietorship are regarded as the same legal entity, proprietorships are exempt from the necessity to present this paperwork.
In contrast, the taxpayer must provide the partnership deed in the case of a partnership firm. Moreover, the incorporation certificate issued by the MCA is required for LLPs and companies. A registration certificate may be given to other kinds of organizations, such as clubs, societies, trusts, government agencies, or individual bodies.
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Address Proof of the Business
On-Premises
You must present documents proving the property’s ownership, such as a copy of the electricity bill or the most recent property tax receipt.
Leased or Rented Property
Suppose you are running your goods business on a rented property. In that case, a copy of the current rental agreement, together with any paperwork proving the lessor’s ownership of the property, needs to be submitted. In case a lease or rental agreement is unavailable, an affidavit to that effect is acceptable, as is any documentation proving the premises’ ownership, such as a copy of an electrical bill.
SEZ Buildings
The applicant must upload the necessary paperwork if their main place of business is a Special Economic Zone (SEZ).
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Bank Account Details
You must present your business bank account details and a scanned copy of the cancelled cheque with the account number and IFSC code.
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Digital Signature
All applications for GST registration need to have a Class 2 Digital Signature digitally signed on it. Therefore, before starting the application process, it is crucial to collect the digital signature of the following individual having permission to sign the GST registration application.
Mistakes to Avoid during GST Registration Documents for Goods Online
When you follow the above process, there is a high chance of mistakes that could result in delays in GST registration for your goods business. Here are a few things to amend-
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Inaccurate Business Information
Errors in submitting crucial business information like the address, trade name, type of business, and other details may cause issues with registration. Make sure these details correspond to the information in your supporting materials.
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Inappropriate Business Structure
Making the wrong business structure choices might result in tax and legal problems. For example, you register as a sole proprietorship when your company is a partnership. Select the right kind of business structure.
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Inaccurate PAN Information
Inaccurate Permanent Account Number (PAN) submissions may lead to registration process delays or rejection. It is the most crucial document, so add the correct PAN number.
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No Digital Signature Certificate (DSC)
During the GST certificate, your company needs to have a digital signature certificate; if not, the online registration procedure can be difficult. If necessary, make sure you have a current DSC.
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Inaccurate Information on the Application Form
Applying with inaccurate or missing information may result in processing delays or rejection. Complete the form entirely and check each entry for accuracy.
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Ignoring to Verify the GSTIN
Once you receive the GSTIN, ensure you double-check on the official website of the GST to avoid any errors. Errors and fraudulently obtained GSTINs may result in legal problems.
Failure to Monitor Application Status: You risk missing updates or notices if you don’t keep an eye on the progress of your GST registration application.
Conclusion
GST registration documents for goods in India can be pretty time-consuming. Still, if you are ready with the required documents and have complete knowledge, you can register for a quick session.
FAQs
1) What is the validity of GST Registration of Goods?
Ans: The validity of a GST registration certificate for goods depends on the overall condition of the taxpayer. However, the usual validity is 90 days, as the certificate mentions.
2) Where can I get the GST document registration done for the goods?
Ans: The business owner must register the GST document for goods by visiting https://www.gst.gov.in .
3) Is it necessary to register for GST?
Ans: Yes, if a business’s turnover surpasses the threshold, the taxpayer must obtain GST registration as part of the tax payment.
4) Can I register for more than one GST in the same state?
Ans: Indeed, within a state, you can apply for more than one GST registration for the same firm. The only thing eliminated was GST registration for various enterprises operating inside a jurisdiction.
5) Is it possible to register a business for GST without an address?
Ans: No, you need to have the physical address of your business to get the registration and documents verified for the GST registration.
6) After the GST registration is finished, what happens?
Ans: After the GST registration and documentation process is finished, you will get a GST registration certificate along with a valid GSTIN.
7) My business operates in two states. Do I need to register for GST in each of these states separately?
Ans: Yes, you need to register your business GST in both states separately.
8) Is a bank account required to register for GST?
Ans: Although it is not necessary to have a bank account during documentation, having one can be helpful in the future.
9) What is the cost of a GST document submission and registration?
Ans: For GST registration, there are no costs levied by the government.
10) Is a Digital Signature necessary for GST document registration?
Ans: Irrespective of the type of business you are running, having a digital signature during GST documentation and registration is required.
