The Goods and Services Tax (GST) is a single indirect tax system that has been implemented in India since 1st July 2017. It has replaced all the previous indirect taxes like VAT, Service Tax, and Excise Duty. Under the GST regime, all businesses that supply goods or services with a turnover of over Rs. 20 lakhs (Rs. 10 lakhs for North-Eastern and hill states) are required to register for GST. Service providers are no exception to this rule. In this article, we will discuss the GST registration process for service providers in India.
Who is a Service Provider?
Before we move on to the GST registration process for service providers, let’s understand who is a service provider under GST. According to the GST Act, a service provider is any person who provides a service in exchange for a consideration. Some examples of service providers are:
- Consulting firms
- IT companies
- Healthcare providers
- Advertising agencies
- Chartered accountants
- Lawyers and law firms
- Architects
- Event management companies
- Travel agencies
- Hotels and restaurants
GST Registration Process for Service Providers
The GST registration process for service providers is similar to that of any other business. The following is a step-by-step guide to register for GST as a service provider in India:
Step 1: Check Eligibility Criteria
The first step is to check if you are eligible for GST registration. As mentioned earlier, if your turnover in a financial year exceeds Rs. 20 lakhs (Rs. 10 lakhs for North-Eastern and hill states), you are required to register for GST. However, there are certain other cases where GST registration is mandatory even if your turnover is below the threshold limit. For instance, if you provide services through an e-commerce platform, you are required to register for GST irrespective of your turnover.
Step 2: Collect Required Documents
Once you have determined your eligibility, the next step is to collect the required documents for GST registration. The following is a list of documents that you will need to provide:
- PAN card of the applicant
- Aadhaar card of the applicant
- Photograph of the applicant
- Proof of business address
- Bank statement or cancelled cheque
- Business registration documents like Partnership Deed, MOA, AOA, etc.
- List of services provided
Step 3: Apply for GST Registration
After collecting the required documents, you can apply for GST registration online on the GST portal. The following are the steps to apply for GST registration:
- Go to the GST portal (www.gst.gov.in) and click on the ‘Services’ tab.
- Select ‘Registration’ and then ‘New Registration’.
- Fill in the required details like PAN, mobile number, email ID, and state.
- Enter the OTP received on your mobile number and email ID to proceed.
- Fill in the application form with the required details like business name, address, bank details, etc.
- Upload the required documents and submit the application.
Step 4: Verification and GSTIN Generation
After submitting the application, it will be verified by the GST officer. If there are any discrepancies in the application or documents, the officer may ask for clarification or additional documents. Once the application is verified, the GST officer will issue the GST registration certificate along with the GSTIN (GST Identification Number).
GST Compliance for Service Providers
After obtaining GST registration, service providers are required to comply with certain GST regulations like:
- Filing of GST returns – Service providers are required to file monthly or quarterly GST returns depending on their turnover.
- Collection and payment of GST – Service providers are required to collect GST from their customers and pay it to the government on a monthly
- Collection and payment of GST – Service providers are required to collect GST from their customers and pay it to the government on a monthly