Goods And Services Tax (GST) Registration in Delhi: An Overview

Goods and Services Tax:

The Goods and Services Tax or GST as we call it is an indirect tax in India. It is a tax levied on consumption of goods and services. It came into effect through the 101st amendment in the constitution of India on 1st July, 2017. It is one of the biggest tax reforms that has came into effect in India. It replaced multiple taxes laid by the central and the state governments. A GST council has been set up by the government consisting the finance minister in the centre and of all the states that regulate the rules and regulations and tax rate under the GST.  The GST tax rates have been divided into five slabs that are 0%, 5%, 12%, 18% and 28%. However, certain items have not been considered under GST namely, alcohol and beverages, petroleum products etc. and the state government has the power to independently regulate the price including taxes of such items.

GST Registration in Delhi:

Any business related to buying and selling of goods and services are to be registered under GST act. GST registration implies to registration of business owners and organization that has a turnover of 40 lakh rupees and above in supply of goods and 20 lakh rupees and above in supply of services.

What is GST Registration Number?

GSTIN or Goods and Services Tax Identification Number is assigned to every tax payer who has registered themselves under GST act.

How to Get GST Registration Number?

One can apply to get GSTIN online on the GST registration portal of the government.

  • Provide your contact details
  • Register your e-mail address
  • Provide your PAN (Permanent Account Number)
  • Draft all the documents
  • Upload all the required documents
  • Make the payments
  • Generate ARN
  • Issue of GSTIN.

Who Needs a GST Registration Number?

  • All businesses having a turnover above 20 lakh rupees (and 10 lakh rupees in case of north eastern states).
  • Business that are dealing in goods and services in more than one state.
  • If previously the business has been registered under the VAT, excise laws, service tax laws etc.
  • If the business is selling goods and services outside India.
  • If the business is selling goods and services on e-commerce platform or online.

List of Documents for GST Registration in Delhi:

  • PAN card of the proprietor/ all directors/partners.
  • AADHAAR card of the proprietors/all directors/partners.
  • Bank details of the proprietors/all directors/partners including cancelled cheque.
  • Address proof of the proprietor/all directors/partners.
  • In case of a Private Limited MOA and AOA and incorporation certificate is required.
  • In case of partnership or LLP’s partnership deed or LLP certificate is required.

Benefits of GST Registration in Delhi:

  • To get the benefits of the Input Tax Credits.
  • To improve the credibility of the business.
  • For better interaction with the customers. One can easily collect taxes from the customers legally.
  • One can easily apply for central and state government tenders with GSTIN.
  • It makes a business 100% tax compliant.
  • One can expand the business on e-commerce platform or online.
  • To easily open current account or business account GSTIN certificate can be used as a document.
  • To start payments gateways or use mobile wallets for the business.

 

Penalties for not having a Registration Number:

If a business is not registered under the GST act then it shall be liable to 100% tax due or 10,000 Rupees whichever is higher.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.
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