What is GST and Why Does It Matter?
Goods and Services Tax (GST) is a crucial component of India’s tax system, streamlining the previous structure of multiple indirect taxes like VAT, service tax, and excise. It is mandatory for businesses with a turnover exceeding ₹40 lakhs (₹20 lakhs for services). GST is levied at every stage of the supply chain, making it essential for all manufacturers, retailers, service providers, and freelancers operating in India to understand and comply with these regulations.
Who Needs GST Registration?
Understanding who requires GST registration is vital for compliance. If your business falls into any of the following categories, registration is mandatory:
- Businesses with turnover above ₹40 lakhs (or ₹20 lakhs for services)
- E-commerce sellers
- Interstate traders
- Freelancers working with clients across states
Documents Required for GST Registration
Gathering the necessary documentation is a crucial step in the GST registration process. You will typically need the following documents:
- PAN card of the business or applicant
- Aadhar card
- Business address proof (like an electricity bill or rent agreement)
- Bank details
- Digital signature (in some cases)
Types of GST Returns You Need to File
The type of GST returns you may need to file depends on your business type:
- GSTR-1: Monthly outward sales return
- GSTR-3B: Summary return for taxes paid
- GSTR-4: For composition scheme holders
- GSTR-9: Annual return, mandatory for most businesses
Penalties for Late Filing
Failing to file your GST returns on time incurs penalties ranging from ₹50 to ₹100 per day per return, along with interest. Regular non-compliance could lead to the cancellation of your GSTIN, emphasizing the importance of timely filing.
How Tachy Helps You Stay Compliant
At Tachy, we provide comprehensive GST services to help you navigate the complexities of registration and filing. Our dedicated support team ensures zero penalties and 100% compliance, offering timely reminders and expert advice tailored to your business needs.