FAQs on New GST Registration 13/01/2025

FAQs on New GST Registration 13/01/2025

Q1. What is GST registration?

A1. GST registration is the process through which a taxpayer becomes recognized under the Goods and Services Tax (GST) system. It is mandatory for businesses exceeding the prescribed turnover limit or engaged in inter-state supply, e-commerce, etc.

 

Q2. Who needs to register under GST?

A2. 

• Any business whose aggregate turnover in a financial year exceeds Rs. 40/20 lakhs (Rs. 20/10 lakhs for special category states)
• Persons making inter-state taxable supplies
•  Casual taxable persons making taxable supply
•  Non-resident taxable persons making taxable supply • Persons required to pay tax under reverse charge mechanism
•  E-commerce operators and their suppliers
• Persons supplying via e-commerce operators who are required to collect tax at source
• Input service distributors
• Persons supplying online information and database access or retrieval services from outside India to a non-taxable online recipient in India

Q3. What is the time limit for obtaining GST registration?

• A3.  A person should apply for registration within 30 days from the date on which he becomes liable for registration.
•  A casual taxable person or a non-resident taxable person should apply for registration at least 5 days before commencement of business.

 

Q4. What is the process for obtaining GST registration?

• A4. 
• Apply online on the GST Common Portal (gst.gov.in gst.gov.in/)
• Fill Form GST REG-01 with required details and documents
• Verify via OTP/e-sign
• Receive Application Reference Number (ARN)
• Proper officer verifies application and may approve or seek clarification
• On approval, receive GSTIN and access credentials
• Download registration certificate from portal

 

Q5. What documents are required for GST registration?

A5. 

• PAN of the business or applicant.
• Aadhaar of the proprietor, partners, or directors.
• Business address proof (electricity bill, rent agreement, etc.).
• Bank account statement or cancelled cheque
• Authorization form for authorized signatory
• Proof of principal place of business
• Digital signature or e-sign

 

Q6. Is there a fee for GST registration?

A6. GST registration is free of cost. However, charges may apply if a professional assists in the process.

Q7. Can an individual register for GST?

A7. Yes, individuals providing taxable goods or services exceeding the threshold can register under GST.

 

Q8. Can a person have multiple GST registrations?

A8.

•  A person needs separate registration for each state where he has business operations
•  Multiple registrations can be obtained within a state for different business verticals
•  Separate registration is required for SEZ units/developers

 

Q9. What is a voluntary GST registration?

A9.

•  Businesses not mandated by turnover limits can voluntarily register to avail benefits like input tax credit and build credibility.
• All provisions of GST law will apply to voluntarily registered persons

Q10. What is the validity of GST registration?

A10.

•  GST registration is valid unless surrendered, cancelled or suspended
•  There is no concept of periodic renewal of registration

 

Q11. Relevant CGST Act Sections:

A11.

•  Section 22: Persons liable for registration
• Section 24: Compulsory registration in certain cases
• Section 25: Procedure for registration

 

Q12. Relevant CGST Rules:

A12.

• Rule 8: Application for registration
• Rule 9: Verification of the application and approval
• Rule 10: Issue of registration certificate

 

Q13. What is the penalty for not registering under GST?

A13. Failure to register attracts penalties:

• 10% of the tax due or ₹10,000, whichever is higher.
• 100% of the tax due if there is intentional evasion.

 

Q14. Can GST registration be amended?

A14. Yes, registered taxpayers can update their details by filing an amendment application on the GST portal.

 

Q15. How to cancel GST registration?

A15.

• File a cancellation request via GST REG-16 on the GST portal.
• Provide reasons for cancellation, like business closure.

Hope you will find these useful.

Warm Regards,

 

Jaydeep Mitra

Professional Tax Accountant