GST Registration

GST laws require every entity that is subject to Goods and Services Tax (GST) to have a Goods and Services Tax Identification Number (GSTIN). It is the identity by which that entity is recognised under the GST regime.

The GSTIN has 15 digits: the first two represent your state code, the next ten are the Permanent Account Number (PAN) of the manufacturer, dealer or exporter, the 13th is the business entity number, the 14th is a default "Z" and the 15th is the check sum.

It is mandatory for your business to have a GSTIN in cases including the following:

• your annual turnover is above the threshold for intrastate business (in special states, a lower one);
• you are an e-commerce aggregator;
• you are liable to be taxed under the reverse charge mechanism;
• you are liable to be taxed under Section 9(5) of the CGST Act;
• you are a non-resident making taxable supplies.

GST registration is complicated mainly because of the provisions around the place of supply of goods and services. Your manufacturing might be in Delhi, your headquarters in Mumbai, your client's office in Pune and the place of delivery of goods in Hyderabad — so in which state will you pay State Goods and Services Tax (SGST)? Things get even more complicated in the case of services.

You will need GST registration in each state where your business operates, so it is better to seek professional advice from the very beginning to avoid any blunder.

• the company's PAN;
• the Certificate of Incorporation;
• photos of the authorised signatories;
• identity and address proof of the promoters or partners, with their photographs;
• the business's address proof (electricity bill, property tax receipt, Municipal Khata copy or legal ownership document);
• the resolution passed by the Board of Directors or Managing Committee, and the acceptance or authorisation letter;
• bank account proof: account statement, passbook or cancelled cheque.

Besides avoiding penalties, GST registration gives you access to smooth inter-state business and the benefit of claiming Input Tax Credit — which means less tax liability and more liquidity in the business.

We are a confluence of Chartered Accountants and Company Secretaries, so our clients have one stop for regulatory compliance, taxation, finance and accounting — saving the cost and effort of outsourcing to several firms or changing firms as the business expands.