GST Registration for Small Business, is it helpful for them?

"Unlocking Opportunities: How GST Registration Empowers Small Businesses for a Brighter Future"

Hi, Friends, Welcome to the CMA Knowledge blog, How are you all, I hope you are healthy and Safe. In this article, we are going to discuss How small businessmen or a trader can implement GST for their businesses.

1. GST registration,
2. How it benefits small businessmen.
3. Turnover limit for registration,
4. Process of Registration,
5. Documents Required for registration, 

cmaknowledge.in

Hence, the small business person is essential to possess all the facts about legal obligations, for the business and accomplish all the legal compliance. As we all know from the 1st of July 2017, the Government of India has implemented the GST (Goods & Services Tax) in India.
So, friends, When anyone starts a small business, at that time he/she is not certain, how much that business will rise in the future.
Consequently, if any person doing business, then he should understand the GST obligation. If any person is doing any business activity with the trader outside the State i.e. Interstate business. In that case for the GST registration
No turnover limit is applicable to all interstate business transactions and that person needs to get registered his business before doing taxable Supply.
Therefore, at that time that person needs to know the basic requirements for the GST registration. 

So, Friends, We are going to comprehend all the necessary actions required in GST registration, in this article, so I request read the full article to know about GST registration.

1. GST registration:

GST Registration is a legal compliance and in certain cases, all businessmen/organizations/ firms need to get registered compulsorily. 

• a. Any Businessman/Firm/organization doing any interstate taxable supply (Business Transaction).

• b. Some of the Traders are doing a seasonal business and at the time of movement of Business setup on an occasional basis (casual taxable person) making any taxable supply (Business transition)

• c. In a GST on some of the transaction, whereas a buyer need to pay tax on under the Reverse Charge (means buying goods from an unregistered person for the sale or furtherance of business)

• d. If a small trader is an NRI, and he is making any taxable supply then he needs to get registered under GST compulsorily.

Therefore, the above type of business person needs GST registration compulsorily for doing any taxable supply in India. GST registration is the basic requirement to start any business supplies in India. After GST registration the business person will obtain a unique GSTIN number from the concerned tax authorities.  (State/Centre). After registration under the GST than a business person can make taxable supplies, and collect taxes on behalf of the government and he/she can avail the input tax credit for the taxes he/she is paid on his inward supplies.   (Purchased trade inventories/input services consumed in the business activities)

2. How it benefits small businessmen.

• A businessman will get a unique registration of GST and he is recognized as a supplier of goods and services both.
• After getting registered, the person is legally authorized to collect taxes from his customers and pass on the credit of the taxes he paid on the goods/services supplied to the next customers.  (Recipients)
• the most important benefit for small businessmen, they can claim all the business-related inward supplies input tax credit, (ITC means taxes paid at the time of buying goods/services for business purposes), They can be utilized the same for the payment of taxes payable on the supply of goods and services because of input credit is allowed at all levels of supply, it is helpful all the businessmen to grow business with the wide-open market. Because of no restriction on the input tax credit, you can supply your goods and services all over India.
• To take or participate in government bids/contracts/ assignments GST registration is a must. It is an added advantage if you want to do business with government organizations GST registration will help you to participate and you are eligible for that.
• All business is happening on mutual trust, if you are GST registered person, then it will help businessmen to gain the trust of the customers.

3. Turnover limit for registration, 

If you are in a Taxable supply business, then registration is mandatory, and the Government has specified some aggregate turnover threshold limit.

For suppliers doing business only in "Supply of Goods"

If a business person in the following states, then the threshold limits are different, those are as follows:

1. Manipur, Mizoram, Nagaland, Tripura  Threshold limit is Rs. 10Lakhs.

2. Uttarakhand, Meghalaya, Sikkim, Arunachal, Andhra Pradesh, Puducherry, Telangana Rs.20 Lakhs

3. Rest of the state of India the threshold limit is Rs. 40 lakhs.

If a business person is doing business in Supply of Services or both Goods and Servies, in that case, the threshold limit is as under

1. For the person belonging to the Manipur, Mizoram, Nagaland, and Tripura States the threshold limit is Rs. 10 Lakhs.

2. If the person is belonging to the rest of the states of India, then the threshold limit is Rs. 20 Lakhs.

If you are starting a new business and your turnover limit is not met the threshold limit, don't worry, you can voluntarily apply for the registration and start your business.
For taking voluntary registration you can take any time before starting your taxable supplies.

4. Process of Registration

All businessmen or organization who needs to be registered under the GST Act shall apply for the registration within 30 days from the date on which he/she becomes liable for the GST registration.

For applying for registration the businessmen or a firm needs to declare the following details
a. Legal Name of the Business Firm/organization
b. PAN No.  (Issued by the income tax authority) Because of GST Reg. No is based on PAN no. If PAN no. If taken from the Income-tax authority, the one should get PAN no. For the Business Firm/ organization.
3. Owner / Principal person Mobile Nos.
4. Email address
5. State or UT (Union Territory)

cmaknowledgein

For registration online need to visit the Goods and Services Tax official site: and fill up all the details.

On successful verification of all the details filled in part A of the form GST REG-1, a registration reference no. Will be generated. After that applicant/ business person needs to submit Part B of the form GST REG-1, duly signed, with the required documents, as per the nature of the firm list of documents available on the common GST portal. After submission of part B, form GST REG-2 acknowledgment of application is generated. Then the GST officer checks all the documents and if they found all the in order, then within 3 working days, from the date of form submission proper GST officer will approve the registration.

5. Documents Required for Registration

As per the nature of the business, the Document list is different, check the document list at the time of submission of the form  visit at the GST common portal

cmaknowledge.in

So, friends, doing business is challenging in the current cut-throat competitive market, but with the help of proper business planning and following the statutory rules, a small businessman can get registered under the GST, by following the above-stated simple steps.
So, friends, thanks for reading, If you have any ambiguity regarding the business enrollment process, send me an email, and I will try to help you out, and guide you throughout the registration process.

Thanks,
Mahadev S.
Registered GST Practitioner

CMA knowledge team.