Businesses whose revenue surpasses the threshold level of Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh, as the case may be, must register as a normal taxable person under the Goods and Services Tax (GST). It's known as GST registration.
GST registration is required for certain businesses. It is a violation under GST to conduct business without first registering for GST, and hefty fines will be imposed.
The following should be registered under GST:
1. Individuals who were previously registered under the pre-GST law (i.e., Excise, VAT, Service Tax etc.).
2. Businesses with a turnover of more than Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh, depending on the scenario.
3. Non-Resident taxable person / Casual taxable person
4. Supplier's agents and input service distributors.
5. Those who are subject to the reverse charge mechanism.
6. Someone who sells through an e-commerce aggregator.
7. Every online marketplace aggregator.
8. Other than a registered taxable person, a person who provides online information and database access or retrieval services to a person in India from a location outside India.
The following documents are required for registrations under GST.
1. The applicant's PAN.
2. Aadhaar number.
3. Certificate of incorporation or proof of business registration.
4. Promoters/Directors' identity and address proof with photographs
5. Proof of the company location's address.
6. Statement of bank account/Canceled check
7. Sign with a digital signature.
8. Authorized Signatory Letter of Authorization/Board Resolution
An offender who does not pay tax or makes short payments (legitimate errors) faces a penalty of 10% of the tax owed, with a minimum of Rs.10,000.
When the offender has purposefully avoided paying taxes, the penalty will be 100 per cent of the tax amount owed.