As per the recent changes made by the GST Authority of India, the suppliers of goods or services need not register under GST if their turnover earned during a relevant financial year does not exceed INR 40 Lakhs. However, being a business owner or an MSME (Micro, Small and Medium Enterprises) business owner, it would always be beneficial to have enough insight with regard to GST and the registration to be taken under the same.
The major point of discussion in this article is about the obtaining of GST Registration by individuals and the documents which are necessarily required for the same.
What is GST Registration?
GST Registration is the process of getting registered or recognized under the GST Act by entering the official website of the GST and filling the details in the application form along with the submission of the necessary documents that are required by the portal and GST Law for successful registration. The GST registration process has been done successfully. It will issue you a GSTIN, which is the registration number that will be unique to each registered person.
Who is to Obtain GST Registration?
Individuals who are running a business supplying goods or services earning a turnover of INR 40 Lakhs and above in states belonging to the normal category of states or earning a turnover of INR 20 Lakhs or above in states belonging to the Special Category Status then shall take registration under GST. In addition to this, the following conditions shall also function as the point of stress for determining the obtaining of registration under GST by individuals:
– The individual was registered under the Service Tax law before the commencement of the GST Act.
– The individual is engaged in inter-state or other state supply of goods or services or both.
– The individual is liable to pay tax or GST under the reverse charge mechanism (RCM).
– The individual is a non-resident but a taxable person in the eyes of the law or is a casual taxable person.
– The individual is supplying goods and services as an agent or in such other manner or on behalf of another taxable person.
– The individual is acting as the distributor of input service.
– Individual is engaged in e-commerce operations.
– Such individual or group of individuals has been notified by the Central or State Government to get registered under GST as per the recommendations which were made by the GST council.
– The individual is supplying goods using the e-commerce operator’s platform.
The special category states which are stipulated above include the following as per the GST Act:
– Arunachal Pradesh
– Assam
– Jammu & Kashmir
– Manipur
– Meghalaya
– Mizoram
– Nagaland
– Sikkim
Documents Required for Obtaining the GST Registration
The individual, like any other person intending to apply for the registration under GST, shall have certain documents kept ready such that they can easily avail of the GST registration. In the case of individuals, only certain basic personal documents are required, and the same has been listed and explained below:
Individuals PAN Card
A PAN Card, which is nothing but a Permanent Account Number, is issued by the Income Tax Department to the individual. It can be easily obtained by the individual through the NSDL website by submitting required documents or even the e-KYC using Aadhar Card credentials. It shall be issued on a faster basis and does not involve any physical dispatching of documents. The hard copy or PAN card shall be delivered to your registered address within a span of 15 to 20 days.
And while taking the registration under GST, the individual shall submit a copy of this as identity proof as it contains a unique number that is issued for each taxable person in a separate manner.
Individuals Aadhar Card
Aadhar card is one single place where various biometrics and other credentials of the individual shall be held. This card functions as proof which can easily be used by the authority also for obtaining the details pertaining to the individual who is seeking the registration. Individuals can easily use this as proof of identity while opening a bank account, taking a SIM card, and trying to obtain such other services as necessary.
While applying for registration under GST, it is recommended that the individual submit a copy of his Aadhar card along with the other documents.
Photograph of Individuals
Passport size photographs of the individual should also be submitted while applying for the obtaining of registration under GST.
Address Proof
The address proofs can be a water bill, electricity bill, or a copy of the rental agreement if the same has been rented for residential purposes or a lease agreement if leased.
The property tax receipt can also be used as the address proof and a copy of the same can be submitted.
Bank Account Details
For this, a copy of the bank statements or bank passbook can be submitted. A cancelled cheque would serve the purpose of registering under GST.
Type of GST Registration
The individual can obtain registration under GST as any one of the following, namely:
Normal Tax Payer
Most of the business enterprises would be registering under this category and would be paying GST as per the relevant provisions and sections as and when applicable without any expiry date. Any amount of money can be deposited for the availing of this registration.
Casual Taxable Person
This is opted by business persons who are setting up a seasonal stall or shop. And there is a definite expiry period for this which is 3 months with an option to extend or renew. The amount of deposit to be made for this would be an amount that is equal to the expected GST liability that would arise for such individuals during the season or time of operation of the stall.
Composition Taxpayer
This shall be taken by individuals who wish to opt for the composition scheme of GST payment. The taxpayer cannot obtain credit for input tax paid if opted for a composition scheme and cannot collect tax from the consumers either.
Non-Resident Taxable Person
This is to be opted by those persons who are living outside India but are providing certain services to individuals in India. The validity of such registration shall be 3 months and can be extended or renewed. The deposit shall be made of an amount equal to the GST liability, which would arise when the registration is active.
Hence, we can conclude that the individual getting registration under GST should provide the above stipulated documents without any fail such that there is an easy availing of the registration.
