Clearing the Confusions: FAQ on GST Registration in Gurugram

Gurugram is a rapidly growing city in the National Capital Region (NCR) of India. The city is home to various businesses, which include small, large and medium-sized enterprises, start-ups, and large corporations. One of the necessary needs for businesses conducting in Gurgaon is to register as per the Goods and Services Tax (GST) regime. It is mandatory for businesses with a turnover of over Rs. 40 lakhs (Rs. 20 lakhs for North-eastern and hill states) to register for GST. In this article, we will answer some FAQ on GST Registration in Gurugram.

FAQ on GST Registration in Gurugram

Here are some frequently asked questions about GST registration in Gurugram:

Q.1. What is GST Registration?

GST registration is a mandatory process for businesses that involves obtaining a unique GSTIN from the government. It is a tax registration that allows businesses to collect and pay the GST to the government. GST is a comprehensive tax that replaced multiple indirect taxes such as VAT, service tax, and excise duty. Under the GST regime, businesses are required to register if their annual turnover exceeds a certain threshold limit (currently Rs. 20 lakhs for most businesses). GST Registration provides businesses with a legitimate status, allows them to claim input tax credit on GST paid on purchases, and makes them compliant with the law.

Q.2. Who should register for GST in Gurugram?

Any business whose turnover exceeds Rs. 40 lakhs (Rs. 20 lakhs for North-eastern and hill states) is required to register for GST. Additionally, businesses that are registered under any previous tax regime like VAT or Service Tax are also required to register for GST.

Q. 3. Benefits of GST registration in Gurugram?

The benefits of GST registration in Gurugram are as follows:

• Legitimate status: GST registration provides businesses with a legitimate status, which is essential to conduct business in the formal economy.
• Input tax credit: GST registration allows businesses to claim Input Tax Credit on GST paid on purchases. This reduces the overall tax liability and improves cash flow.
• Compliance: GST registration makes businesses compliant with the law, which reduces the risk of penalties and legal action.
• Inter-state trade: GST registration is mandatory for businesses engaged in inter-state trade, allowing them to sell goods and services across state borders.
• Competitive advantage: GST registration provides businesses with a competitive advantage over non-registered businesses, as registered businesses are preferred by customers and other businesses.
• Easy registration: GST registration is a simple and online process, which makes it easy for businesses to comply with the law.
• Simplified taxation: GST replaces multiple indirect taxes, which simplifies taxation for businesses and reduces the compliance burden.

Q. 4. How to apply for GST Registration in Gurugram?

A. The application process for GST registration in Gurugram is entirely online. You need to visit the GST portal and create an account. Then, you need to fill the application form with all the necessary details like business name, address, PAN Number, bank account details, and others. Once you submit the application, you will receive an application reference number (ARN) that you can use to track the status of your application.

Q. 5. What are the documents required for GST registration in Gurugram?

The following documents are required for GST registration in Gurugram:

• PAN card of the business
• Aadhaar card of the authorized signatory
• Proof of business registration or incorporation certificate
• Proof of place of business (rental agreement or electricity bill or property deed)
• Bank account statement or cancelled cheque
• Digital signature of the authorized signatory
• Photograph of the authorized signatory

The documents may vary based on the type of business entity, such as sole proprietorship, partnership firm, private limited company, or public limited company. It is advisable to check the exact list of documents required for GST registration on the GST portal.

Q. 6. Can a business owner register for GST without a PAN card?

No, a business owner cannot register for GST without a PAN card. PAN Card is mandatory for GST registration.

Q. 7. How long does it take to get a GST registration in Gurugram?

The GST registration process takes around 3-7 working days in Gurugram. However, the timeline may vary depending on the accuracy of the information provided and the verification process.

Q. 8. Is it mandatory to register for GST even if my turnover is less than Rs. 40 lakhs?

No, if your turnover is less than Rs. 40 lakhs (Rs. 20 lakhs for North-eastern and hill states), it is not mandatory to register for GST. However, if you deal with inter-state supply of goods or services, it is mandatory to register for GST.

Q. 9. What is the penalty for not registering for GST in Gurugram?

If a business fails to register for GST, they will be liable to pay a penalty of 10% of the tax due or Rs. 10,000, whichever is higher.

Q. 10. What is the process of GST registration in Gurugram?

The process of GST registration in Gurugram is as follows:

• Go to the GST portal (www.gst.gov.in)
• Click on the ‘Register Now’ button under the ‘Taxpayers (Normal)’ tab
• Fill in the details in Part-A of the registration form, such as PAN, mobile number, and email address, and submit the application. You will receive an Application Reference Number (ARN) on your mobile and email.
• Next, complete the verification process by entering the OTP received on your registered mobile number and email.
• Once you have verified Part-A, fill in Part-B of the registration form, such as business details, business bank account details, and authorized signatory details.
• Upload the required documents in the prescribed format.
• Submit the application form and documents using a digital signature or Electronic Verification Code (EVC).
• After submitting the application, you will receive an acknowledgement with an ARN on your registered email and mobile number.
• The GST officer will verify the application and may ask for additional documents or clarification if required.
• Upon successful verification, the GST officer will issue the GST registration certificate containing the GSTIN, which will be sent to the registered email address.

Q. 11. Is it mandatory to have a GST registration in Gurugram?

Yes, it is mandatory for businesses to register under GST if their annual turnover exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for special category states). However, some businesses exempt from GST registration, such as small businesses with an annual turnover of up to Rs. 40 lakhs (Rs. 20 lakhs for special category states). Such as certain types of businesses such as agriculturalists, individuals providing services through e-commerce aggregators, and others as per the GST law. 

Q. 12. What is the validity of a GST registration certificate in Gurugram?

The validity of a GST registration certificate in Gurugram is until it is surrendered, cancelled, or suspended. However, businesses are required to file GST returns on a regular basis, failing which their registration may be cancelled by the GST authorities. Hence, it is essential for businesses to comply with the GST regulations and file GST Returns on time to maintain the validity of their GST registration certificate.

In conclusion, registering for GST is an important legal requirement for businesses in Gurugram. It is essential to understand the process and the necessary documents required to avoid any delays or penalties. By following the above FAQs, you can ensure a hassle-free GST registration process for your business.