What You Need To Know About GST Registration
What is GST registration and who needs to register for GST? Does it cost anything to register for it? If you want to find out the answers to these questions, then you’ve come to the right place.
What Is GST
GST is short for goods and services tax, and it is a tax that is used in India. The tax is on services and goods offered in the country, and it is a multistage and destination-based tax. It’s important to note that only specific goods and services are taxed, and it is the business that adds the tax to the price of their services and/or goods.
The business collects the GST from the customer. After they do this, they eventually send the tax to the authorities. Generally speaking, collecting and remitting the GST is an easy process.
Who Is Required To Register For GST
Those who are currently registered under pre-goods and services tax should do GST Registration. For example, if your business was currently registered for excise or VAT, then you’ll need to register for GST. The same goes if you were previously registered for service tax.
If your business has a turnover of more than Rs. 40 Lahks, then you’ll need to register. If you do business in certain areas, then the threshold limit is Rs. 10 Lakhs. This means if your business brings in more money than that, then you’ll have to register for GST.
Bear in mind that if you’re a non-resident taxable person, then you too might be required to register for GST. If you sell goods and services to those in India, and you bring in a turnover that exceeds the threshold, then you’ll have to register. This is regardless of where your business is based.
Others who have to register includes anyone who supplies products/services via what is known as an eCommerce aggregator. If you’re an eCommerce aggregator, then you have to register no matter what. Furthermore, agents representing suppliers, as well as an input service distributor are required to register too.
How Much Does It Cost
At the time of this writing, there is no fee to register for GST when you do it on your own. There are companies out there that can aid businesses with setting up their GST, but they do charge a fee. What you’ll pay to have a company help you out depends on several factors, with the main one being the company itself. If the company is very reputable and has a tremendous amount of experience, the chances are you can pay a fair amount of money, but it is usually worth it.
When it comes to GST registration, you can do it right online, which is fast, easy and convenient. As you can see from the above, if your business offers a service and product in India or you have customers in India, the chances are you have to register for GST. If you have any questions or concerns about registering for GST, then speak with an expert.