Why GST Registration is important
GST Registration is essential for a business to be presented as formal entity. Big companies prefer the vendor with GST Registration. Even bank insist for taking GST registration for opening of current account. GST registration can be taken voluntarily or may be required compulsorily. GST Act provides for Compulsory GST Registration based on threshold limit or other specific condition. GST registration need to be taken separately for each states and union territory of operation.
Threshold Limit for GST Registration
Threshold limit for registration under GST is 20 Lakh all over India except in special category states ( Arunachal Pradesh, Nagaland, Assam, Sikkim, J&K, Tripura, Manipur, Himachal Pradesh, Meghalaya, uttarakhand, Mizoram ) where the limit is Rs. 10 lakh. In the recent council meeting these limit has been proposed to raise to 40 Lakh and 20 Lakh respectively.
Compulsory registration in certain cases
Following persons are required to register under GST irrespective of their turnover
- persons making any inter-State taxable supply;
- casual taxable persons making taxable supply;
- persons who are required to pay tax under reverse charge;
- person who are required to pay tax under sub-section (5) of section 9;
- non-resident taxable persons making taxable supply;
- persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
- persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
- Input Service Distributor, whether or not separately registered under this Act;
- persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
- every electronic commerce operator;
- every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person; and
- such other person or class of persons as may be notified by the Government on the recommendations of the Council.
Time Required for GST Registration
A lot of consultant claims to get GST registration in 3 days or 5 days. If anyone does so it means they are fooling you. When you submit an application for registration, law provides 15 working days to the officer to approve or ask for further clarification. If officer fails to do so, you are deemed to be registered and provided GST registration certificate. But if officer asks for any further documents, you are given 7 days to reply and after your reply officer takes a call to register you or reject your application.
Hence there is no minimum time frame but maximum time frame which is effectively 20-22 days. It depends on the officer of your ward that how much time your registration application will take to be approved. It may be 2 days or it may go upto 45 days.