The Indian Government introduced GST, also known as Good and Services Tax, on July 1st 2017, passed on March 29th in the same year in the Indian Parliament. It is a tax imposed on goods and services that replaced several other indirect taxes prevalent in India.
Presently, GST registration has become mandatory for businesses with a yearly turnover of Rs.40 lakh and above and in hilly states for companies that earn more than Rs.10 lakh annually.
Businesses that fail to register under GST are liable to pay hefty fines and a 10% penalty tax. The registration process is simple and is completed within 6 working days.
Before registering under GST, borrowers need to know all types of GST applicable in India, including –
Following are the categories of individuals that are liable to pay GST –
- Non-resident, E-commerce aggregators and casual taxable person are liable for GST.
- Businesses that have a yearly turnover of over Rs.40 lakh need to register under GST.
- Individual or business owners who were previously registered under pre-GST laws must register for GST as well.
How to register for GST?
For GST registration, borrowers need to provide their PAN no., email ID to fill out the registration form.
Next, an OTP will be provided to verify the mobile no. and email ID. Borrowers need to save the ARN no. and attach the essential documents such as authorised signatory’s photo, certificate of incorporation, business address proof (legal ownership document, electricity bill etc.), bank account statement, stakeholder’s photo etc.
Then, applicants will need to fill out the automatically generated form with necessary personal information.
Lastly, after submitting all the documents, the verification process will be initiated, and certification of registration will be issued within 3 working days. Individuals who plan to apply for a business loan for their business must know everything about GST to avoid further complications.