GST (Goods and Services Tax) Registration is a procedure whereby a business in India can get a distinct GST identification number (GSTIN) from the federal government of India. GST is a detailed tax introduced in 2017 that changed numerous indirect taxes such as VAT, excise task, service tax, etc. The GST Registration in Mumbai, Maharashtra is obligatory for business whose yearly turnover exceeds a stated annual turnover.
Any type of business or person that supplies goods or services and also exceeds an annual turnover of Rs. 20 lakhs (Rs. 10 lakhs for services in some states with special category status) is needed to register under GST. Some companies might also willingly choose for GST Registration, even if the annual turnover is below the threshold limit considering the advantages.
The procedure of GST registration in Mumbai, Maharashtra can be done by visiting the GST portal, as along with the documentation process such as PAN CARD, Aadhaar Card, business registration, bank account information, etc. When registered, businesses are required to file regular GST returns and pay the GST that is applicable on their purchases. The company might have to face hefty penalty, fines or government notice as repercussions of non-compliance under GST guidelines.
Who is mandated to obtain GST registration in Mumbai, Maharashtra?
According to the GST laws in India, the following individuals are needed to get 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 Mumbai 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 in Mumbai depends on the nature of the offense and the period of default.
If an individual is mandated for obtaining GST registration in Mumbai but falls to obtain on time, it leads to penalty:
- A Penalty or fine of 10% of the tax obligation due or Rs. 10,000 (whichever is greater) is charged if the individual has deliberately doesn’t comply with tax obligation.
- 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 obligation due is not quantifiable, the charge may be levied at Rs. 10,000.
Along with the penalty, interest might be imposed on the tax amount due from the day on which the tax obligation is due to be paid until the date of payment.
Note: Failure to acquire GST Registration can lead to the person being unable to collect tax from customers, and also the tax obligation might be borne by the individual themselves. Therefore, it is suggested to obtain GST Registration in Mumbai or anywhere in India.
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 in Mumbai 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.