Goods and Services Tax (GST) is an indirect tax that has unified the taxation system in India. Professionals like chartered accountants, lawyers, doctors, consultants, architects, and even freelancers need to know the registration details and compliance requirements with the taxation laws. You, whether are an independent professional or working on the firm’s, must ensure GST Registration for Professionals and for taking advantage of input tax credit. If you need specialized help, a GST Registration Consultant in Delhi or a reputed CA Firm in Delhi NCR can help.
Who Needs GST Registration?
GST registration is essential for a professional in the following situations:
1. Annual Turnover Requirements: If a professional earns more than Rs. 20 lakh (if he/she is a service provider) or Rs. 10 lakh in special category states, then GST registration is a must.
2. Providing Services Across State Borders: A professional providing services to clients situated in other states needs to have GST registration irrespective of his/her turnover.
3. Freelancers: Those providing services through e-commerce websites need to register for GST irrespective of their income levels.
4. Reverse Charge Mechanism (RCM): Professionals covered under the reverse charge mechanism must register for GST as they need it to pay tax to their suppliers on behalf of their suppliers.
Registration With GST is Beneficial for Different Professionals: Conducting business professionally in India has multiple benefits, such as credibility through tax compliance. Goods and Services Tax (GST) and gain multiple advantages get registered for Any professional. They are as follows:
Optional Registration: Individual service providers seeking to build credibility in their business can apply for GST registration to receive input tax credits.
Other Advantages in Registration: Any professional service provider who gets registered under GST has the following additional benefits:
Increased Business Geography: After registering, the professional service provider can service customers from anywhere in India without any legal barriers.
Increased Professional Image: A service provider with a GST number is viewed more favorably and professionally compared to other service providers without the number.
Costumer satisfaction: Many companies like working with professionals they can trust to make correct tax submissions by being GST compliant.
How do GST Registration for Professionals?
1. Documents Needed
Prepare the following documents before starting the registration process:
– Aadhaar card
– PAN card of the professional
– Utility bill, rental agreement, or ownership documents as proof of address
– Business bank account details
– Bank signatory passport sized photograph
– Digital signature of the company / LLP signatory
2. Registered Online Application Submission
- Students will locate the GST website. On the website, the student can complete the needed fields on the Application Form GST REG-01 such as, business name, PAN, business contact details, and business address.
- After filling these details, the student must scan and upload the documents needed.
- Decoding OTP and DSC Verification: The OTP one-time password can be used by users and companies can authenticate by DSC Digital Signature Certificate.
- Getting ARN Application Reference Number: An ARN is produced with the initial application submission and will update once there is progress with it.
Step 3: Verification and Granting Approval
- The GST Officer looks at the form and may request additional information.
- GST Identification Number (GSTIN) is provided after approval.
- This period normally doesn’t exceed 7-10 working days.
- GST Compliance for Professionals
Once registered, it is mandatory for those professionals to follow the GST rules, such as,
- Supply GST Compliant Invoices: Each and every invoice must provide the GSTIN along with the service description, the tax amount to be charged, and the total amount.
- Filing of GSTR Returns.
- GSTR-1: Return with details of supplies for outward taxable supplies made during the month or quarter based on the return frequency.
- GSTR-3B: Simplified monthly return giving basic information on outward supplies and tax.
- GSTR-9: Final statement of accounts for the year from businesses having turnover above Rs. 2 crores.
Invoicing and purchases, tax payments, and all done in a timely manner.
Paying GST on time is crucial and if not done when due, there can be severe penalties that must be avoided by professionals.
How A Consultant for GST Registration in Delhi Can Help
GST registration is challenging for professionals largely due to legal issues and compliance gaps, even though the entire process is online. A GST Registration Consultant in Delhi or a CA firm in Delhi NCR can offer assistance with:
- Smooth registration process for GST
- Support with filing GST returns
- Tax planning and compliance advisory
- Response to any actions and Communications from the Revenue
Some Do’s & Don’ts When Registering for GST
- Improper Details of the Business: PAN, address of the business, and the contact number must be correct.
- Filing with Wrong HSN/SAC Codes: So, make sure that you used that services for correct Service Accounting Code (SAC).
- Not Filing Voluntary Registration: A person may register even if not needed.
- Tax Filing Too Late: Non-timely filing of return attracts needless penalties and interest.
Conclusion
Professionals in any field including law, medicine, and civil engineering are required to register for GST in order to remain compliant and maximize business. Even freelancers and consultants are expected to operate within the laws of GSTs regulations. A GST Registration Consultant in Delhi or a good CA Firm in Delhi NCR will alleviate the complexity of the task and, at the same time, save time in the duration of registering for GST.
Following the guidelines set out by GST not only enables one to evade penalties, but also helps in establishing credibility with clients and relevant officials. If you have not registered already, this is the perfect opportunity to get the wheels in motion!
