The GST is a unified tax structure launched by the Government of India on 1 July 2017. It is the most historic tax reform in Indian Taxation History. The taxation system has come far from complex to open, closed, futuristic, and straightforward. This article explores all the important concepts of GST Registration for Service Providers.
GST for Service Providers
GST is a destination-based or consumption-based taxation. Also, as GST is a destination-based tax, it may take a lot of work to find out the destination of certain services. This complicates determining inter-state GST, central GST, or state GST on B2B and B2C transactions.
What is GST Registration?
Usually, any business in India, whether they manage goods or services, if they have an income above the threshold limit as agreed below the new GST regime, has to get registered under GST. But there are exemptions to this general rule, where several businesses must register under GST regardless of their income. If the organization carries on business without GST registration, it will be an offense, and huge penalties will apply.
Turnover Limit for Service Providers
Like any other business category, all service providers must obtain GST registration if the entity’s aggregated annual turnover surpasses Rs.20 lakh per year in maximum states, and in the special category states, it is Rs.10 lakh.
Service Providers Requiring Mandatory GST Registration
The Government has offered an exemption for getting GST registration for most service providers, subject to the annual aggregate turnover criteria. But, the following types of service providers would still need to be registered under GST irrespective of annual aggregate turnover:
- E-Commerce Operators
- OIDAR Service Providers
- Casual Taxable Person
- Non-Resident Taxable individual supplying services to Indian Residents
Also read: How to get GST Registration if I am starting a new online business
When should you get GST Registration?
If you were an existing service provider with service tax registration, the entity should take the necessary steps to transfer service tax registration to GST registration.
If you are beginning a new service business, you should apply and obtain GST registration within 30 days of starting. If you are a casual or non-resident taxable person, you should get GST registration at least five days before commencing business.
Tax Invoice for Services Subject to GST
You may submit a bill of supply without including any GST information if you are not GST registered. In addition, if you are not registered for GST, you cannot charge clients GST.
If you are GST registered, then you must issue a tax invoice for the rendered services no later than 30 days after the services were rendered. The original and a copy of the invoice must be produced by the supplier. Service description, GSTIN (if client is GST registered), date of invoice, invoice number, GST rate, SAC code, and GST applicable should all be included on the tax invoice. For doing GST E-Invoicing in easier and quick ways, you can use InstaBill.
Document Requirement to get GST Registration
- PAN Card of the Business or Applicant:- GSTIN is linked to the PAN of the business. Hence, PAN is required to obtain a GST certificate.
- Identity and Address Proof of Promoters:- documents like PAN, passport, driving license, aadhaar card, or voters identity card must be submitted for all the promoters
- Address Proof for Place of Business:- Documents like rental agreements or sale deeds along with copies of the electricity bills or the latest property tax receipt or municipal khata copy must be submitted to the address mentioned in the GST application.
- Bank Account Proof:- Scanned copy of the first page of the bank passbook showing a few transactions and the address of the business must be submitted for the bank account mentioned in the registration application.
Conclusion
In conclusion, GST has made making business and trade very easy and trouble-free In India. The size of the market for every trader and business owner has grown. About the service sector In India, GST has positive impacts such as clear differentiation between goods and services, consolidation taxes for inter-state service providers, input credit facility, and making return filing consistent. If you need GST Registration or have any other queries, you can contact our GST Experts at: 8881-069-069.
Procedure for cancellation of GST registration by tax officer
moreover, If you want any other guidance relating to GST Return Filing or GST Registration, please feel free to talk to our business advisors at 8881-069-069.
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