Overview of GST registration in Thiruvananthapuram, Kerala
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 Kerala
Kerala is known as “God’s own country” because its enchanting houseboats on the backwaters provide composure to the tourists. Ecotourism initiatives, green scenic beauty, amazing beaches, elegant traditions incorporated with various dance forms, Ayurveda, herbal spas, and mouth watering cuisine attract many tourists to Kerela. Kerala gained its statehood on 1 November 1956 under the passage of the States Reorganization Act.
Kerala is the 21st largest Indian state in terms of area. Kerala shares its boundaries with Karnataka in the north and northeast, Tamil Nadu in the east and south, and the Lakshadweep Sea in the west. Kerala is the 13th largest Indian state in terms of population. Demographically, Malayalam is the official as well as the most widely spoken language of the state. More than half of the population follows Hinduism; other religions followed in Kerela are Islam and Christianity.
As per the survey conducted by the National Statistical Office, India, in 2018, Kerala has the highest literacy rate at 96.2%. Even the auto driver in Kerela speaks fluent English. Kerela has the lowest positive population growth rate in India at 3.44%. and it has the highest sex ratio, i.e., 1084 women per 1000 men. As per the Census of 2011, Kerala is the 2nd most metro political major state in the country, with a 47.7% population engaged in urbanization. As per the annual report of NITI Aayog of 2019, this state also won 1st rank in achieving the sustainable development goals. The economy of Kerala is the 8th-largest in India in terms of gross state domestic product (GSDP) as well as a per capita net state domestic product. The agricultural sector plays a significant role in the contribution of the GDP of the country, especially in products like coconut, tea, coffee, cashew, and spices are essential.
Capital- Thiruvananthapuram
Top business ideas in Kerala
Kerala is a beautiful state and seeks the attention of various investors and industrialists. Comparatively, Kerala has an affordable operating cost for start-up firms than other states. Kerala’s tourism sector has shown a boom in the last few years with around Rs 10 Billion annual investment and employment to more than 1 million people. Hence, Kerala tourism can provide immense opportunities for investors. Kerala is gradually becoming a knowledge-based industry as this state accolades India’s highest literacy rate. So, through this conversion, the startup companies can hire more competent, skilled, and knowledgeable candidates who can be valuable assets to the company. The most incredible and beneficial point is that Kerala is connected through every means of transport, railways, waterways, airways, etc.
Home Decoration Business
Home decoration is of lucrative business for an investor. Not only this, but also it provides employment to the women, making them self-independent. So, if one has the necessary skill set, this can be the perfect interior profitable small business option you must consider. As we move on to a more technological and scientific era, there is no need to set up small stores; instead, you can sell your products online. Products include wall arts, antique pieces, dining accessories, designer vases, and candles.
Electronics & Accessories Business
In this era of globalization, we are witnessing impressive growth in the Number of internet Users and Electronics items buyers. Nowadays, Mobile phones and laptops have become a basic necessity for every individual. These things are cheap and easily affordable by the people. Hence, this is a great business idea for investment. However, this industry has cut-throat competition in the market, both with national and international competitors. So, remember when you start this business, keep the Electronics products and accessories readily available and affordable to the reach of local buyers. Once your business grows, you can invest in high-end electronic manufacturing machines, thereby increasing your productivity. If you formulated the idea as prescribed, it is an extremely successful and cost-effective business idea.
Bakery Business
It is a lucrative and profitable small business idea as it doesn’t require much investment. Besides this, in this era of modernization and credible personalization, you can go with your creative ideas while offering or producing the products. However, to start this business in Kerala, you need to find an enough crowded location with an optimum parking facility. So, if you have the skills or skilled labor, you should invest in this bakery business.
Ayurveda tourism business
Kerala is among the favorite and attractive tourist destinations by both Indians and Foreigners. Sooner individuals across the globe are getting aware of the benefits of Ayurveda. On the other side, Kerala has a very pleasing climate with temperatures gliding between 23-29 degrees, sufficient natural wealth, and adequate rainfall. These climate conditions make Kerala preferably the best place for Ayurveda practices with tourism intact. Hence, to start this business, you will need skilled and experienced labor, property, and necessary equipment; then, you can set up the business model either in cities or countryside areas.
Startup Ecosystem in Kerala
Kerala is at its extreme point of bringing an industrial revolution. Even the youths are eager to pursue their dream by creating a new business idea rather than falling into the repetitive practice of regular employment. Various economic and demographic factors are responsible for the paradigm shift. Even the Government of Kerala has been proactively showing interest in creating various development programs for the inclusion of various plots by our young generation. The years counted from 2010 to 2021 have been proclaimed as the “Decade of Innovation” by our country. It is expected that Kerala will witness an exclusive wave of innovation and entrepreneurial enhancements from different sectors. This year, Kerala’s startup ecosystem will break the records and mark the next level of the quantum leap. Kerala acquires an eccentric business model by connecting Academics, Industries, R&D institutions, and Startups from all over the country.
The government of Kerala has planned to build a strong startup ecosystem through Kerala Startup Mission (KSUM) by constructing and enforcing a forward-looking policy for developing a robust startup ecosystem in the Kerala state to stimulate the growth of entrepreneurial business ideas. Startups in Kerala are finding unique solutions to the problems faced by society by using newer and better ways of experiments with enclosure of future technologies. Their strategy is to look beyond the conventional software production and IT sectors, as the incredible entrepreneurs and investors are being recognized in national and international level experts, forums as they explore new horizons to mark the next quantum leap.
What is GST registration in Thiruvananthapuram, Kerala?
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 Thiruvananthapuram, Kerala 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 Thiruvananthapuram, Kerala, 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 Thiruvananthapuram, Kerala?
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 Thiruvananthapuram, Kerala 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 Thiruvananthapuram, Kerala
Primarily, there are four categories of registration under GST in Thiruvananthapuram, Kerala 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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala-
Step 1- Access the GST portal to create a user Profile in Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
Different sets of documents will be required depending upon the constitution of the business or the type of GST registration in Thiruvananthapuram, Kerala 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 Thiruvananthapuram, Kerala
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 Thiruvananthapuram, Kerala
Therefore, the process of GST registration in Thiruvananthapuram, Kerala 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.
