GST Registration in Chennai
GST (Goods and Services Tax) is a single tax system that applies to the supply of goods and services across India. Businesses that exceed a certain annual turnover threshold are required to register for GST. In Chennai, GST registration allows companies to collect GST from customers and remit it to the government, ensuring legal compliance. It also offers the benefit of claiming Input Tax Credit (ITC), which allows the business to offset the GST paid on their inputs. This reduces the overall tax liability for businesses. Moreover, registering for GST adds to the business's legitimacy, helping to establish trust with customers, vendors, and financial institutions.
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Not obtaining GST registration when mandatory can lead to legal penalties and fines, so businesses in Chennai need to understand when and how to register under the GST Act. GST in India is required by the Central Goods and Services Tax CGST Act 2017, State Goods and Services Tax (SGST) Act and Integrated Goods and Services Tax (IGST) Act.
Benefits of GST Registration
There are several benefits of GST Registration in India, and some of the benefits are mentioned below:
- Legally Recognized Business.
- Avoids Penalties
- Input Tax Credit (ITC) Benefits
- Simplified Taxation
- Easy Compliance
Eligibility for GST Registration
Businesses have to ensure that they are eligible before applying for GST Registration:
- Turnover Threshold:
- For Service Providers: Businesses with an aggregate turnover of ₹20 lakhs or more in a financial year (₹10 lakhs for North-Eastern and hill states) are required to register for GST.
- For Goods Suppliers: The threshold for businesses dealing in goods is ₹40 lakhs (₹20 lakhs for North-Eastern and hill states).
If your business turnover exceeds these limits, GST registration is mandatory.
- Inter-State Supply: Businesses engaged in interstate supply of goods or services, regardless of turnover, must register for GST. This applies if you’re selling across state borders, including exports.
- E-Commerce Sellers: If you are an e-commerce operator or seller, Amazon, Flipkart, Meesho, etc., you have to register for GST irrespective of your turnover.
- Casual Taxable Persons: If you are a casual taxable person (a business that operates temporarily in a different state), you must obtain GST registration.
- Non-Resident Taxable Persons: Non-resident businesses (foreign entities) engaged in taxable supplies in India are required to register for GST.
- Businesses that make Taxable Supplies: Those businesses that are engaged in making taxable supplies of goods or services, like manufacturers, traders, or service providers, are required to register for GST if the turnover exceeds the prescribed limit
- Voluntary Registration: Businesses whose turnover is below the prescribed limit can also voluntarily opt for GST registration if they wish to enjoy the benefits of GST Registration.
- Other Conditions: Businesses that are required to deduct or collect tax at source (like TDS or TCS) or those providing online information or database access services (OIDAR) must also register for GST, regardless of turnover.
Documents Required for GST Registration
You need the following documents for the GST Registration in Chennai:
- PAN Card
- Aadhaar Card
- Address Proof of Business
- Business Constitution Documents like Company Incorporation Number, Partnership Registration Certificate, and Sole Proprietorship Registration Certificate
- Passport-size Photograph of the taxpayer
Bank Details of the business, as well as of the taxpayer
Process of GST Registration
- Login to GST Portal: Go to the official GST portal (www.gst.gov.in) and click on the “Register Now” option under the ‘Taxpayers’ section. Select “New Registration” and fill in basic details like your business type, PAN, email, and phone number.
- Enter your Business Details: Include entity type, PAN, and contact details.
- Temporary Reference Number Generation: After you verify your details with the OTP, the system generates a Temporary Reference Number (TRN) and sends it to your phone and email.
- Document Upload: Upload the following documents on the GST portal:
- PAN Card
- Aadhar Card
- Address proof of business
- Business Registration proof
- Bank account details
- Passport-sized photograph of the business owner
- ARN Generation: Once you upload the required documents and submit the application, you will receive an Application Reference Number (ARN) on your mobile number and by email.
GST Certificate Issuance: Once your application is approved, you will receive your GST Identification Number and an official GST certificate.
GST Compliance Checklist for Businesses in Chennai
In order to stay compliant with GST laws, businesses are required to comply with the conditions post GST Registration:
GST Registration Compliance
- Threshold Limit Check: Ensure your business meets the turnover threshold for mandatory GST registration.
- GSTIN Issuance: Complete GST registration on the GST portal and obtain your GST Identification Number (GSTIN).
GST Return Filing Compliance
- Collect Invoices: Collect and verify all sales and purchase invoices.
- GST Returns Filing: File GST returns accurately and on time (monthly or quarterly, depending on turnover).
- Monthly Returns (GSTR-1, GSTR-3B):
- GSTR-1: Report outward supply (sales) details.
- GSTR-3B: File summary of monthly sales, purchases, and taxes payable.
- Input Tax Credit (ITC) Reconciliation: Ensure that the Input Tax Credit (ITC) claimed matches the purchases and is supported by proper invoices.
GST Payments
- GST Payment Compliance: Pay GST on time as per the returns filed. This includes both CGST, SGST, and IGST, as applicable.
- Payment of Late Fees and Interest: If returns or payments are delayed, pay the applicable late fees and interest (18% p.a.).
Annual Compliance
- Annual Return Filing (GSTR-9): File the annual return that consolidates all monthly returns for the financial year.
- Audit Compliance: Businesses with turnover exceeding ₹2 crore must undergo a GST audit and file GSTR-9C, a reconciliation statement.
Tax Invoice Compliance
- Proper Tax Invoice: Ensure that tax invoices are issued for every sale, including the required GST details, such as GSTIN, invoice number, and correct tax rates.
- Record of Invoices: Maintain records of all tax invoices, credit notes, debit notes, and receipts to support GST filing and claims.
Key GST Compliance Dates
- Monthly Returns Filing: 10th of the next month (for GSTR-1) and 20th of the next month (for GSTR-3B).
- Quarterly Returns Filing: 22nd or 24th of the month after the end of the quarter.
- Annual Returns Filing: By December 31st of the following year (for GSTR-9).
- GST Payment Deadline: On or before the due date of return filing.
FAQ's
1. What is the deadline for filing GST returns in Chennai?
The deadline for GSTR-1 is the 10th of the next month, and the 20th for GSTR-3B. Quarterly returns are due on the 22nd or 24th of the month following the quarter.
2. Do I need to file GST if my business turnover is below the threshold?
No, businesses below the prescribed turnover threshold are not required to file GST returns, but you can voluntarily register your GST.
3. What happens if I miss the GST return filing deadline?
If you miss the filing deadline, you may incur a late fee and an interest charge of 18% p.a. on the outstanding tax amount.
4. Can I claim ITC if I have not filed my returns?
No, you must file your GST returns first, and then you can claim the Input Tax Credit (ITC).
5. How do I check my GST return status in Chennai?
You can check your GST return status on the official GST portal by logging into your account and checking the filing status.
6. What documents are necessary for GST filing?
You need invoices for sales and purchases and any supporting documents for Input Tax Credit (ITC) claims.
7. Do e-commerce businesses need to comply with GST?
Yes, e-commerce businesses must comply with GST regulations and file GSTR-8, which reports transactions made through e-commerce platforms.