GST (Goods and Services Tax) registration is a process by which a business in India can get a unique GST identification number (GSTIN) from the government of India. GST is a comprehensive tax introduced in 2017 that replaced various indirect taxes such as VAT, excise duty, service tax, etc. The GST Registration in Mumbai, Maharashtra is mandatory for companies whose annual turnover exceeds a stated annual turnover.
Any business or individual that supplies goods or services and exceeds an annual turnover of Rs. 20 lakhs (Rs. 10 lakhs for businesses in some special category states) is required to register under GST. Some businesses may also voluntarily choose to register for GST, even if the annual turnover is below the threshold limit considering the benefits.
The process of GST registration in Mumbai, Maharashtra is done through the GST portal, and businesses need to provide various documents and details such as PAN, Aadhaar, business registration documents, bank account details, and more. Once registered, companies need to file regular GST returns and pay the GST tax that is applicable to their transactions. The company can face penalties and fines as consequences of non-compliance under GST regulations.
Who is mandated to obtain GST registration in Mumbai, Maharashtra?
As per the GST laws in India, the following persons are required to obtain GST registration:
- Any business whose total annual turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for companies in some special category states).
- Any person who makes the inter-state supply of goods or services.
- Casual taxable persons who occasionally supply goods or services in a taxable territory where GST is applicable.
- Non-resident taxable individuals who supply goods or services in India.
- E-commerce businesses need to collect tax on websites under section 52.
- Persons who are required to deduct tax at source under section 51 of the GST Act.
- Input service distributors distribute input tax credits to the branches.
- Persons who supply goods or services on behalf of other registered taxable persons.
- Persons who supply goods or services through electronic commerce operators.
Document required for GST Registration in Mumbai, Maharashtra
- Some of the mandatory documents required for GST registration in India are:
- PAN card of the company or individual applying for GST registration
- Aadhaar card or any other government-issued address proof of the authorized signatory
- Proof of business registration such as partnership deed, certificate of incorporation, memorandum of association, etc.
- Proof of the principal place of business such as rent agreement, electricity bill, property tax receipt, etc.
- Bank account statement or a canceled cheque with the name of the account holder and IFSC code.
- Digital signature certificate (DSC) of the authorized signatory (not mandatory for certain types of businesses).
- Photographs of the authorized signatory.
- Authorization letter in case the registration is being done by a third-party representative.
- Details of goods and services supplied or intended to be supplied.
- Details of the directors/partners/proprietor of the business.
What is the Penalty for not registering under GST?
As per the GST laws in India, failure to obtain GST registration can result in penalties and fines. The penalty for not obtaining GST registration depends on the nature of the offense and the period of default.
If a person is required to obtain GST registration but fails to do so, the penalty may be levied as follows:
- A penalty of 10% of the tax due or Rs. 10,000 (whichever is higher) if the person has deliberately evaded tax.
- A penalty of 10% of the tax due or Rs. 10,000 (whichever is higher) if the person has not deliberately evaded tax.
- If the tax due is not quantifiable, the penalty may be levied at Rs. 10,000.
In addition to the penalty, interest may also be levied on the tax amount due from the date on which the tax was due to be paid until the date of payment.
Note: Failure to obtain GST registration can result in the person being unable to collect tax from customers, and the tax liability may be borne by the person themselves. Therefore, it is advisable to obtain GST registration as soon as the person becomes liable to do so, to avoid penalties and fines.
How ASC Group helps?
Now ASC Group is the leading GST Registration & GST Return Filing Consultant in Mumbai, Maharashtra. A team of professionals consisting of CA, CA, Advocates, and Business management experts assists in end-to-end GST-related services and assists 1000+ companies in managing their compliances related to GST.
- Understanding the applicability of GST registration based on the nature of the business and turnover.
- Preparation and submission of the GST registration application along with the required documents.
- Verification of the GST registration certificate and ensuring that it is error-free.
- Helping businesses obtain the necessary GST identification numbers (GSTIN).
- Ensuring that the business complies with all GST regulations and guidelines.
- Providing guidance on GST compliance, such as filing GST returns, GST refunds, GST audits, GST E-invoicing, GST reconciliation, payment of GST tax, and maintaining proper records.
- Advising on GST-related matters such as input tax credit, tax liability, and refunds.
- Represent your company in case of any disputes or any other doubt related to GST to ensure all compliances and deadlines are met.