Overview of GST registration in Jaipur, Rajasthan
The Goods & Services Tax was introduced in the year 2017 to address the inconsistencies & complexities in the previous tax regimes and offer an inclusive environment for start-ups & businesses under its Ease of doing business scheme.
Therefore, the Goods and Services Tax is a value-added tax levied on the supply of goods or services or both, based on destination-based consumption in India. The GST system of taxation is known to offer a consolidated structure under one taxation system with single standardized rates of taxation equally applicable in the whole country to avoid any kind of confusion.
With its unique features, the GST has resolved the pre-existing problems such as different rates of taxes under central & state taxes, their cascading effect, innumerable compliances such as multiple fillings and record-keeping and audits from time to time which increased the costs of production for businesses, etc. among others. Not only this, GST reduces the costs of manufacturing or supply for the businesses by offering input tax credit on the taxes paid on the purchase of raw materials, which is later allowed as a set-off from the taxes to be paid in the final.
GST registration in Rajasthan
Located in Northern India, Rajasthan is called the ‘Land of Kings’ because of the royal and valorous history of the state. It is the largest state in India in terms of area and the 7th largest state in terms of population. The state shares an international border with Pakistan and national borders with Haryana, Uttar Pradesh, Madhya Pradesh, and Gujarat. Officially the state was formed on 30 March 1949 after the merge of Rajputana (a name given by the British Raj) into the Dominion of India. The Thar desert, also known as the Great Indian Desert, is also in Rajasthan. Jaipur, the capital of Rajasthan, is also the largest city in Rajasthan. The state stands 29th on the State Human Development Index, and it has the seventh-largest state economy in India. The major religious group in Rajasthan are Hindus, followed by Muslims, Sikhs, and Jains.
The economy of the state is primarily dependent on agriculture and pastors. The state is the largest edible oil producer and the second-largest oil seed producer in India. The states suffer from water scarcity, and irrigation is done from wells and tanks. Rajasthan is the highest wool and opium-producing state in India. After agriculture industries are the other source of economic development in Rajasthan, it is the second-largest polyester fiber and cement producer in India. Besides this, Rajasthan has various chemical and engineering companies located in Kota. The marble used in manufacturing the Taj Mahal was also mined from Rajasthan.
Capital- Jaipur
The startup ecosystem in Rajasthan
Rajasthan is entitled as the leader in the state’s startup ranking 2019. Rajasthan has successfully attracted investment in diverse sectors such as Auto and Engineering, tourism, Electronic System Design and Manufacturing (ESDM), renewable energy, mines, and minerals. Through policy incentives and a skilled workforce, the sectors like Information Technology (IT) and Information Technology Enabled Services (ITES) have gained momentum in the state, thus building a strong startup ecosystem. To ignite the entrepreneurship spirit in the people of Rajasthan, the state government outlined its startup policy in 2015. The name of the state’s startup policy is ‘Rajasthan Startup Policy 2015,’ and it aims to convert ideas into potential businesses and promote entrepreneurship spirit in people. The state government has smartly analyzed state-level challenges and tried to help startups build low-cost, indigenous, and technology-enabled solutions to those challenges. The main objectives of Rajasthan startup policy 2015 are as follows: –
The Rajasthan government aims to establish 15 incubators or incubator-like organizations through the policy.
The policy outlines to develop and facilitates 100,000 square feet of incubation space to build a robust startup ecosystem.
The Rajasthan Government targets to support and incubate 500 innovative startups through the policy.
The Rajasthan government is mobilizing angel and venture capital of 500 crores for startups to ensure a supportive startup ecosystem.
And lastly, through the policy, the state government is trying to develop an innovation and problem-solving culture in the state to overcome the regional challenges.
Top startup ideas in Rajasthan
Rajasthani ethnic wear
Rajasthan is full of color and culture. Fabrics like Leheriya, Bandhini, BarmeriBagru, Sanganeri, and Kota Doria are famous worldwide. You can set up an online Rajasthani fabric boutique with the help of local women. With the online Rajasthani fabric boutique business, you will be able to sell products all around the world. This low-investment business needs patience and effort at the initial stage.
Blue pottery business
One of the oldest recognized souvenirs from Rajasthan is blue pottery. These beautiful potteries are designed with the help of cobalt blue dyes with a local blend of Multani mitti powder, glass, and quartz stone. You can make bowls, plates, coasters, trinkets, flower pots, and vases and sell them online. You can have local, national, and international customers by setting up an online blue pottery business. A blue pottery business store is a low-investment, high-profit idea that you can start with the help of local artisans.
Rajasthani ethnic jewelry business
The jewelry of Rajasthan is as unique as its clothes and climate. The jewelry of Rajasthan has an intricate and renowned level of detail and exquisiteness that attract a lot of foreigners and local tourist. The traditional jewelry of Rajasthan is unique and explicit, so setting up an ethnic jewelry store in Rajasthan is a profit-yielding business that requires considerable investment. With the help of local artisans, you can set up an ethnic jewelry store in Rajasthan; besides, you can make your business global by setting up an online store.
Traditional spice business
The Rajasthani cuisines are so delicious because of the Rajasthani spices. You can set up a Rajasthani spice business with hand-blended spice mixes and other local spices of Rajasthan. For establishing an online Rajasthani spice store business, you need to have a good knowledge and taste of Rajasthani spices.
Rajasthani art gallery
The art of Rajasthan is unique and well known for its jewels, fabrics, and handicrafts. You can establish a local art gallery in Rajasthan to attract tourists. In your art gallery, you can showcase local artists’ art, so you need to partner with the talented local artist of Rajasthan. In a local art gallery business, you can make a profit in two ways, first by selling tickets and second by earning a commission on every sale that you make. The primary requirement of opening a local art gallery is a good network of local artists and a considerable amount of investment. If you have a good investment, you can also use the space to host workshops and exhibition handicraft fares two generate side revenue and make more income.
What is GST registration in Jaipur, Rajasthan?
Registration under the GST Act means any person who is either compulsorily liable to obtain registration or voluntarily obtains registration under the Act to collect taxes on the part of the Government and avail tax credits on inward supplies (purchases).
The process of obtaining GST registration in Jaipur, Rajasthan generally involves submission of a formal application of registering his name/name of the entity as a GST taxpayer through the GST portal made available by the GST Department under the Central Board of Indirect Taxes & Customs of India, Union Ministry of Finance.
In pursuance of the registration in Jaipur, Rajasthan, the registered person is allotted a 15-digit unique identification number i.e. GST Identification number on the registered email address of the sole proprietor or authorized person in case of company/LLP/ partnership firm. Once received such a unique identification number is received, the applicant needs to mention the same in every official publication of the applicant. In case the applicant is operating his business in more than one state, he will be required to obtain a separate registration for each state of operation.
Who is required to obtain GST registration in Jaipur, Rajasthan?
As aforesaid, some business entities need to compulsorily obtain GST registration despite not meeting the turnover-related criteria, while others may voluntarily obtain GST registration in Jaipur, Rajasthan to avail of the benefits afforded to a GST. Provided below is the person who needs to mandatorily obtain registration-
- Individuals registered under the pre-existing tax regimes such as Excise, VAT, Service Tax, etc.
- Businesses holding an average annual turnover beyond the threshold limit i.e. 40L /Rs. 20 L / Rs.10 L as the case may be;
- Non –Resident taxable person/Casual taxable person
- Supplier/Input service distributor
- Taxpayers liable to pay taxes through a reverse charge mechanism
- Person supplying goods through an e-commerce aggregator
- E-commerce aggregator
- Person supplying OIDAR (online information and database access or retrieval services) from a place outside India to a person in India, to an unregistered person.
Types of GST registration in Jaipur, Rajasthan
Primarily, there are four categories of registration under GST in Jaipur, Rajasthan which include-
i. Normal taxpayers- This is the most common category of taxpayers in the country. Businesses that have exceeded their threshold limit of Rs. 40 L/ Rs. 20 L for normal category states and Rs. 10 L for North Eastern states of Tripura, Sikkim, Meghalaya, etc hilly states of Himachal Pradesh & Uttarakhand.
ii. Casual taxable individual- Businesses who undertake a business activity for limited seasons or timings during the year, need to register for GST mandatorily under the Act irrespective of their turnover. They are also required to make a deposit equal to the GST liability from the occasional operations
iii. Non-resident taxable individual- Individuals/businesses who are resident outside India but occasionally undertake supply of goods/services or both as principal person/agent /suppliers to Indian residents are required to obtain registration mandatorily before undertaking the supply of goods/services in India. Like a Casual taxable person, they are also liable to pay a deposit equal to the expected GST liability during the GST active tenure, which is usually 3 months.
iv. Composition registration– Businesses having an annual turnover up to Rs. One crore could opt for the composition scheme of GST taxation under which they are subject to minimal compliances & further required to pay a fixed sum as GST tax irrespective of their actual turnover.
Benefits of GST Registration in Jaipur, Rajasthan
i. Elimination of cascading effect of Taxes
GST is an integrated taxation regime that has eliminated the cascading effect of taxation, which was prevalent under previous taxes, where there were different taxes applicable at the same time, but no set-off was available, which increased the business costs.
ii. Reduced Costs of Goods & Service
Since the Government has introduced the concept of ITC under GST, the manufacturers are allowed tax credits for the taxes paid during the purchase of raw materials and do not add the same in their costs to be ultimately borne by the final consumer leading to a remarkable reduction in the prices of goods and services.
iii. Higher threshold for registration
Unlike the previous taxation systems under VAT, CST, and Excise duty, where the threshold limit for mandatory registration was as low as Rs 5L, which again was not uniform throughout the country, the threshold limit for registration under GST is Rs. 40L/Rs. 20L and Rs.10 Lakhs for special category states, which exempts many small traders and service providers.
iv. Lesser Compliances
GST has been launched under the “One nation one tax” system which eliminates the need to obtain separate registration under each taxation system, to manage compliances and make tax payments at varying rates. Thus, under GST the taxable person is required to file only unified returns periodically. Not only this, the taxpayer’s with an annual turnover of up to Rs. 2 crores are exempted from the requirement of GST Audit.
v. Simple & Convenient Processes
The Govt has launched GST online portal which facilitates the entire process from registration to managing compliances and is simple, convenient & secure to involve fewer steps. This is especially advantageous for start-ups that could complete processes within their due time through the online portal and use their time to focus on business activities.
vi. Standardized Rates of Taxation
Under the GST regime, there are only four standardized rates of taxation for each good and service that are the same throughout India i.e. 5%, 12%, 18%, and 28% under GST, which avoids confusion & saves time.
vii. Reduces burden under Composition Scheme
Under GST, small businesses (with turnover up to Rs. 1 crore) have the option to avail registration as a composition dealer and pay taxes at a fixed amount irrespective of the turnover with minimal compliance requirements. This move has relieved smaller businesses by bringing down their compliance burden
viii. Concept of Input Tax Credit
Input Tax Credit means claiming the credit of the GST paid on the purchase of Goods and Services which are used for the furtherance of business, which reduces the burden of taxes to be paid by the manufacturer/supplier on the purchase of raw materials. The introduction of the Input tax credit mechanism is one of the unique features of GST and is often hailed as the ‘backbone of GST’.
Process of GST Registration in Jaipur, Rajasthan
GST Registration is a simple & convenient process that is facilitated through the GST portal and the whole process takes around 5-7 days. Irrespective of a normal taxpayer or a composition dealer under the GST regime, the process of GST registration in Visakhapatnam, Andhra Pradeshis the same for all.
Provided below is the step–by–step process to be followed in order to complete GST online registration in Jaipur, Rajasthan-
Step 1- Access the GST portal to create a user Profile in Jaipur, Rajasthan
Access the GST Portal by logging on to www. Gst.gov.in and clicking Registration & selecting the New Registration option.
Step 2- Generation of Temporary Request Number (TRN) in Jaipur, Rajasthan
On the ‘New GST’ Registration page, provide basic details related to the applicant of the GST including communication details such as – Taxpayer Type, State for which GST registration is required’, Legal Name of the Business entity, PAN details of the business entity or PAN number of sole proprietor, etc. Next, provide communication details such as the mobile number and email address of the Primary Authorized Signatory and Click ‘Proceed’.
Step 3- OTP Verification & TRN Generation in Jaipur, Rajasthan
On submission of the information submitted earlier, two OTPs will be generated on the provided email address and mobile number which will be valid for only 10 minutes. On receiving OTP, enter in the field after which a TRN will be generated for GST online registration purposes.
Step 4-Form Submission with TRN in Jaipur, Rajasthan
Now, after login with the TRN, start the process of GST registration by filling in details related to the following-
i. Details of the Business- Trade name, type of entity, registered address, Opt for the Composition Scheme, if necessary, date of commencement of business, and the date when the liability to register arisen, etc. or the date when the business crossed the aggregate turnover threshold for GST registration.
ii. Business Promoter Details-Insert details of the promoters and directors of the company (or proprietor in case of sole proprietorship) which includes their names, date of birth, DIN, proof of residence, etc. The form allows filling in details of up to 10 Promoters/Partners through the application
iii. Authorised Signatory Information– In the case of a partnership firm/company/LLP, the business entity will be required to nominate an authorized signatory who will be responsible to manage GST-related compliances.
iv. Details related to the Principal Place of Business/Branch-Here applicant will be required to fill in details related to the principal place/branch including-
- Official registered address & contact details
- Nature of possession of premises & and, in case the business is located in an SEZ or where the applicant acts as an SEZ developer, the applicant will be required to attach necessary documents/certificates issued by the Government of India, by choosing ‘Others’ like Possession of business premises.
- Documents/attachments for ownership of property such as utility bills Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- In case the property is rented, a copy of the valid rent agreement/lease deed must be attached along with any supporting document for the ownership of the holder of property with proofs like the Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- If the premises are not covered above, then a copy of the consent letter with any documentary support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. In the case of jointly owned properties, the same documents could be uploaded online.
v. Details of Additional Place of Business- In this section, the applicant shall be required to provide details of any additional place of business. For instance, in the case of an e-retail business that uses any seller warehouse, the details should be provided as an additional place of business.
vi. Details of Goods and Services– the taxpayer will be required to provide details of goods & services supplied or to be supplied along with the HSN code food goods & SAC code for services.
Step 5- Enter Bank Accounts Details in Jaipur, Rajasthan
In this section, the applicant will be required to provide the details related to the business bank accounts held by the applicant including other details like bank account number, IFSC code, and type of account. Lastly, upload a copy of previous bank statements in the prescribed section.
Step 6- Verification of Application & ARN Generation in Jaipur, Rajasthan
In this step, check the details submitted thoroughly once & after verification, select the verification checkbox, and select the name of the authorized signatory from the drop-down list and digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC, before finally applying. Where the applicant has provided his e-Aadhaar, he could use the same for verification purposes, instead of using a digital signature online.
On successful submission, a success message followed by an acknowledgment of the registered e-mail address and mobile phone number containing an Application Reference number will be generated. The ARN number could be used to track the status of the application.
Time Involved & Validity for GST Registration in Jaipur, Rajasthan
In case the approval authority needs any additional document/information required, it will issue an e-form GST REG-03 outlining the requirement for further documents, for which a response could be submitted by using the form GST REG-04 within seven working days of receipt of the form GST REG-03. However, if the information supplied through the form is not satisfactory or found to be missing adequate information, it may be rejected by issuing intimation in form GST REG-05.
However, if the authority gets satisfied via form GST REG-01 / GST REG-04 and considers it genuine & complete in all respects, the approval authority may issue a GST certificate containing 15 digits unique GSTIN number in the prescribed form GST REG-06 within 3-4 working days of the receipt of the request in form GST REG-01 / GST REG-04.
The GST certificate comes with lifetime validity and doesn’t require renewal until & unless it is canceled or suspended. But, in the case of a casual taxable person, it has a validity period of only 90 days which will be subject to renewal.
Documents Required for GST Registration in Jaipur, Rajasthan
Different sets of documents will be required depending upon the constitution of the business or the type of GST registration in Jaipur, Rajasthan that is obtained.
- Proof of identification such as PAN & Aadhaar for sole proprietor/partner or authorized signatory in case of company/LLP including foreign entities or branch registration.
- Proof of constitution of business (MOA & AOA in case of a company, LLP Deed in case of LLP), etc.
- Certificate of Incorporation/Registration(For Company/LLP)
- Proof of residence for all directors/partners/proprietors of Company/LLP
- Proof of registered office through utility bills such as Electricity Bill, Legal ownership document, Municipal Khata copy, Property Tax Receipt, Rent / Lease agreement, or Rent receipt with NOC (In case of no/expired agreement)
- Letter of Authorisation or Copy of a valid resolution passed by BoD/ Managing Committee, for the nomination of authorized signatory in case of Company/LLP
- Passport-sized photographs of promoters/partners/proprietors signed & attested
- Digital signature certificate of director in case of company/designated partner for LLP.
- Bank details- a copy of the canceled cheque or extract of the passbook/bank statement (containing the first and last page) must be uploaded.
Penalty for failure to Obtain Registration in Jaipur, Rajasthan
Failure to obtain GST registration within 30 days from the date of arising of the liability to register under GST (aggregate turnover exceeds the prescribed limit) will attract a penalty up to Rs. 10,000 and no input tax credit for the default period.
Conclusion of GST registration in Jaipur, Rajasthan
Therefore, the process of GST registration in Jaipur, Rajasthan is a simple & convenient process that could be received in a maximum of 7-10 days. Though, it is also important to obtain proper guidance regarding registration processes & post-registration GST compliances applicable to the registered person. Choose a reliable source to complete your GST registration as any error or discrepancy in the application may further delay the process or even lead to rejection of the application.
