Obtaining GST Registration In Mumbai

Mumbai is considered the financial and business capital of the country. The city is also one of the largest which has thousands of citizens thronging to it in order to fulfill their entrepreneurial dreams, thus justifying the name given to Mumbai, that is, “city of dreams”. However, one of the vital requirements for these aspiring entrepreneurs to keep in mind, while starting their business is to obtain their GST registration in Mumbai. To understand what is GST in India or Goods and Service Tax, it’s a revolutionary taxation scheme that has brought about a change in the way businesses operate, throughout the country. The GST ensures a uniform taxation structure across the country and therefore the GST registration procedure is the same in Mumbai as well as across the rest of the country.

Many small businesses feel that GST is only for larger organisations and businesses. But that is far from the truth and all types of goods and service related businesses can benefit from registering under GST.  The GST scheme has several advantages for the business owners, such as-

• Since the GST is the same across the country,  a single product is taxed at the same rate in every corner of the country. This helps businesses keep track of the GST levied for the product type and is beneficial for businesses as well as consumers. 
• Before GST the country faced the problem of several unorganised businesses, especially in a city like Mumbai. With the introduction of GST there has been a regulation of these unorganised businesses.

Additionally, several businesses benefit from GST as-

• The GST paid on input goods or services can be utilized by the business at the  time of payment of GST that is due on supply of goods or services or both, thus being beneficial for businesses.
• GST can  legally be collected from purchasers and the credit of the taxes paid on the goods or services supplied can be passed on to purchasers or recipients only if you have GST registration. This benefit can be availed only by businesses registered under GST, thus adding to the advantages of GST registration.
• The Composite Scheme under GST and its tax benefits can be availed by the entrepreneurs whose turnover is within the prescribed limit.
• Businesses registered under GST can avail the benefit of Input Tax Credit wherein business owners will have to pay only the difference between GST paid and payable by the other business.

Thus GST registration must be carried out by all the businesses, whether starting out or established.

Salient Features Of GST

Maharashtra is the State generating the highest GST revenue in the country, with the collection figures for the time frame April 2019 to December 2019 being Rs 1.4 lakh crore. This figure revealed a 9.3% increase compared to the previous year’s collection. These figures potray the growing acceptance of GST within the State, including Mumbai, which is the biggest business hub in the State. 

For new entrepreneurs too to register for GST, it is important for them to know about GST and its features in detail. This will help them see the advantages of the scheme and make the registration process also easier.

• GST stands for the indirect tax levied in India on the sale and purchase of goods and services.
• It is a comprehensive, multistage, destination-based tax. GST is termed as comprehensive because it has subsumed almost all the indirect taxes except a few State taxes.
• GST is divided into CGST, IGST and SGST. CGST and IGST is levied by the Central Government, whereas SGST is levied by the State Government.
• CGST and SGST is to be paid for the Intra-State Supply, whereas IGST is to be paid for Inter-State Supply.
• The GST registration process is a simple process, and involves lesser compliances as compared to the previous taxation structure.
• The GST registration portal acts as a common portal for various requirements, thus helping save time and resources. Additionally it becomes convenient for businesses to take care of their various GST and related requirements at a single portal.

These are just some of the salient features of GST registration that businesses can keep in mind.

Businesses That Can Apply For GST

All types of goods and service businesses that can procure GST registration in Mumbai. Business owners must keep in mind that GST is levied on sale of goods and services and is thus applicable for all businesses dealing in the sale of goods and services.

Businesses whose annual turnover is Rs. 40 lakhs or more have to compulsorily apply for GST registration. However, a business can voluntarily get GST registration even if their turnover is not Rs. 40 lakhs or more.

Further, entrepreneurs must note that under the GST scheme there is no requirement for re-registration or renewal as GST has no expiry.

GST Registration in Mumbai

The process of obtaining GST registration in Mumbai and throughout the country is the same and is entirely online. The steps for obtaining the registration are as follows-

• Douments Required

• Registration Procedure

• • Step 1– Login to https://reg.gst.gov.in/registration/ website.
  • Step 2– Fill Form A for “New Registration”.
  • Step 3– Verify via OTP sent on the mobile number and email address shared.
  • Step 4– Obtain “Temporary Reference Number (TRN)” upon verification.
  • Step 5– Complete Part B of the GST registration process and complete the steps under the “Temporary Reference Number (TRN)” option.
  • Step 6– Check the status of the application and fill the 10 sections for various categories on the Form.
    • Section 1: Business Details 
    • Section 2: Promoter/Partner details 
    • Section 3: Authorized Signatory
    • Section 4: Authorized Representative
    • Section 5: Principal place of business 
    • Section 6: Additional place of business 
    • Section 7: Goods and Services 
    • Section 8: Bank account 
    • Section 9: State specific information
    • Section 10: Verification

The steps and detailed procedure for GST Registration in Mumbai can be found in the GST Registration Checklist.

Business owners can easily register their business for GST via the online portal, following the steps and the list of documents required. However, if businesses feel the need to physically visit an office then the GST office in Mumbai is at-

• Physical Location For GST Office in Mumbai

  • GST Kendra Mumbai, 27 Nesbit Road Mazgaon, Tadwadi, Maharana Pratap Chowk, Mumbai, 400010
  • Contact- 022 2371 2121/ 0120 4888999
  • Help Desk Number: 1800-103-4786

• GST Return Dates

GST further has different norms and return dates, which have varying submission dates. These dates too are subject to change as per the Government decisions. Below are the return form types which are classified according to their submission type, that is, monthly, quarterly or yearly. The non-payment of the returns within the said time frame can result in  incurring an interest as well as penalties. The penalties that result due to non-payment are also mentioned below.

GST returns to be submitted MONTHLY

• • GSTR-1
  • GSTR-3B
  • GSTR-5
  • GSTR-6
  • GSTR-7
  • GSTR-8
  • GSTR-11

GST returns to be submitted QUARTERLY

• • CMP-08 (previously GSTR-4)

GST returns to be submitted ANNUALLY

• • GSTR-9
  • GSTR-9A
  • GSTR -9B
  • GSTR– 9C

GST returns to be submitted only ONCE

• • GSTR-10

• GST Penalties

The penalties for the businesses that do not comply under GST are discussed below. 

• • If a business is found selling goods or services without GST registration, then the business will be penalised with 100% tax due or Rs 10,000 whichever is higher.
  • If the business is found not giving GST invoices, they will be penalised with 100% tax due or Rs 10,000 whichever is higher.
  • In case of any kind of incorrect invoicing, the business will be penalized with Rs 25,000.
  • If the business is not filing GST tax returns, they will be penalized with Rs. 20 per day for nil return or Rs. 50 per day for regular returns.
  • If the business is found choosing composition schemes even if not eligible, then the business will be penalized with 100% tax due or Rs. 10,000, whichever is higher.

Mumbai is a big city with a growing number of businesses. For these businesses to be organised and to follow the taxation scheme of the country, they need to register for GST. These establishing businesses can consult deAsra Foundation for further help regarding GST registration for Mumbai or other parts of the State as well.