Are you a small business owner? If so, you need to be aware of the GST registration limit. This is the point at which you are required to register for GST and start charging tax on your sales. This blog post will discuss the GST registration limit and how it affects small businesses. We’ll also provide some tips on how to stay below the limit. We’re waiting for you, so keep reading!
What is the exact threshold limit for GST registration?
The threshold limit for GST registration is the same for services and goods, which is a total turnover of Rs. 40 lakhs in a financial year. This limit is applicable for all states except for Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, where the threshold limit is Rs. 10 lakhs. If your turnover exceeds Rs. 40 lakhs, you have to register under GST even if you are providing services or selling goods. GST registration is compulsory for those who provide taxable services or sell taxable goods. GST registration gives you the authority to charge GST on your supplies and also claim GST credit on GST paid on your purchases. GST registration threshold limits are different for special category states like importers and manufacturers of notified goods. They have to get registered even if their turnover is below Rs. 40 lakhs as they have to pay GST on their imports.
Documents required for GST registration
1. The threshold limit for GST registration is INR 20 lakhs for most states (INR 10 lakhs for some north-eastern and hilly states). This means that businesses with a turnover below this limit are not required to register for GST.
2. However, businesses providing taxable services are required to register for GST even if their turnover is below the threshold limit. The GST registration limit for services is, therefore, nil.
3. All businesses required to register for GST must obtain a PAN (permanent account number) from the Income Tax department.
4. Businesses registered under the previous VAT or excise regime must obtain a migration certificate from the concerned authority in order to be eligible for GST registration.
5. After obtaining the PAN and migration certificate (if applicable), businesses can apply for GST registration through the common portal of the Goods and Services Tax Network (GSTN).
6. The application must be accompanied by certain documents, such as proof of business address, identity proof of the business proprietor, and bank statements or cancelled cheques.
7. Once the application is filed, the concerned authority will process it and issue a GST registration certificate to the business within three working days.
Benefits of GST registration
All businesses required more than 20 lakh’s turnover limit for GST registration. This is irrespective of the nature of the business, service or manufacturing. The late fee for not registering on time is 10% of the tax due. In the case of voluntary registration, the late fee is 100% of the tax due. Businesses that do not register will not be able to charge GST from their customers and may also face penalties.
There are several benefits of GST registration. It helps businesses avail of an input tax credit, which can offset any taxes paid on inputs. It also makes businesses eligible for GST refunds. GST registration also provides businesses with a robust compliance system and makes it easier to track invoices and payments. Overall, GST Registration helps enterprises to save costs and improve efficiency. Thus, it is recommended for all businesses with a turnover of more than 20 lakhs to register for GST.
GST Registration in Mumbai
GST registration in Mumbai is a fairly simple and straightforward process. There are several GST registration offices located throughout the city, so it should not be difficult to find one near you. The first step is to complete an application form, which can be obtained from the office or online. Once the form is complete, you will need to submit it along with any supporting documentation to the office. The GST registrar will then review your application and issue a GST registration number. This number must be quoted on all invoices issued by your business. In addition, you will need to file regular returns and make payments to the GST department. However, the process of GST registration in Mumbai is relatively simple and should not pose any major difficulties.