Registering for Goods and Services Tax (GST) is essential for suppliers, as it legitimizes their business operations and enables them to collect tax and claim input tax credits (ITC). GST returns, which need to be submitted periodically, summarize sales, purchases, and the associated tax obligations. The registration process is primarily conducted online through the official GST portal, ensuring that businesses adhere to tax regulations efficiently.
Who Needs to Register
Registration is generally mandatory if:
Your annual aggregate turnover exceeds ₹40 lakh for goods or ₹20 lakh for services (these limits are ₹20 lakh and ₹10 lakh, respectively, for special category states).
You make inter-state supplies of goods or services.
You supply goods through an e-commerce operator.
You are a casual taxable person or a non-resident taxable person making supplies in India.
You fall under the reverse charge mechanism (where the recipient pays the tax).
Businesses can also register voluntarily to avail ITC benefits and enhance credibility.
Benefits of Registration:
Legal Recognition: Your company is acknowledged by the law as a provider of products or services.
Input Tax Credit (ITC): You can eliminate the "tax on tax" effect by claiming credit for the GST paid on your purchases (input tax) and using it to offset your sales tax payment (output tax).
Business Expansion: By registering, you can sell products and services in multiple states without having to deal with complicated tax issues.
Increased Credibility: It enhances your company's reputation and facilitates working with big clients, government agencies, and obtaining business loans.
Key Documents Required:
Permanent Account Number (PAN) of the applicant/business.
Aadhaar card of the owner/authorized signatory.
Proof of business registration or incorporation certificate (e.g., Partnership Deed, Certificate of Incorporation).
Identity and address proofs with photographs of promoters/directors/owners.
Address proof of the business premises (e.g., electricity bill, rent agreement, property tax receipt).
Bank account details (a canceled cheque or bank statement).
The registration process is entirely online via the official GST portal.
GST Returns
A GST return is a document submitted to the tax authorities that details sales, purchases, ITC claimed, and tax owed. Filing this return is compulsory for all registered businesses, even in the absence of transactions (NIL return).
Registered businesses must submit various GST return forms on a periodic basis. Common forms include GSTR-1 for sales information (due either monthly or quarterly), GSTR-3B for summarizing tax liabilities and claiming ITC (due either monthly or quarterly), GSTR-4 for taxpayers under the composition scheme (due annually by April 30th), and GSTR-9 for regular taxpayers (due annually by December 31st).
Common Return Forms and Frequency
The forms a business needs to file depend on its type and turnover.
Regular Taxpayers:
GSTR-1: Details of outward supplies (sales).
GSTR-3B: A monthly summary return for reporting supplies and ITC, and making tax payments.
Frequency: Monthly (for turnover > ₹5 crore) or quarterly (under the QRMP scheme for turnover up to ₹5 crore).
Composition Dealers:
CMP-08: Quarterly statement-cum-challan for tax payment.
GSTR-4: Annual return for the financial year.
Annual Returns:
GSTR-9: An annual consolidation for regular taxpayers.
GSTR-9C: A reconciliation statement for audited taxpayers (turnover > ₹5 crore).
Note: Filing is mandatory even if there are no transactions (NIL return), and late filing attracts interest (18% p.a.) and late fees. And Goods and Services Tax (GST) registration provides a business with a legal identity, enabling it to collect tax and claim input tax credits (ITC). Filing GST returns involves periodically reporting business transactions online to the tax authorities.
