Overview of GST registration in Kolkata, West Bengal
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 West Bengal
West Bengal is prominently known as the city of joy for its elated personification of culture, enthralling love, hidden mystery, and mouthwatering sweet delicacies. It is located along the Bay of Bengal in the eastern part of the country. This state shares the international boundary with Nepal and Bhutan in the north, Bangladesh in the east, and national boundaries with Odisha in the South-west, Jharkhand in the West, and Bihar in the North-West, Sikkim in the North, and Assam in the North-East. West Bengal is 4th in terms of population and 13th in terms of area in India. The state’s capital is Kolkata, the 3rd largest metropolitical city and the 7th largest in terms of population in India. As per the demographics, Bengalis are the main ethnic group comprising most of the population. There are many languages spoken in this region, but among them, majorly spoken languages are Bengali and English.
West Bengal possesses two world heritage sites and is the country’s 7th most visited tourist destination. This state owns a peerless and diverse geographical division with numerous natural assets, stretching from the Darjeeling mountains of the Himalayans north to the Gangetic plain south. The state shares the ultimate rhythm from exquisite and quiet beaches of the coastal plain to the world’s largest Delta(Sunderbans), which is also known for providing a natural abode for the scarce wild species of Royal Bengal Tigers. This state is known for its traits in unfolded and untold mysteries, rich cultural heritage architecture with the blend of fine arts and embroidery, brilliant folk festivals, traditional customs and rituals, delicious cuisines, and many pleased specialties about this magical land. This state has the ultimate vision to form the home of legendary freedom fighters, sinners, saints, poets, and many others concentrated as the cultural and intellectual hub since pre-colonial times.
The economy of West Bengal is based on agricultural production and small and medium-sized business models. The proportion of Agricultural land in Bihar state is the highest among all Indian states, and this state significantly contributes to India’s Rice harvest. After the economic stagnation for years, in 2020-21, the economy of West Bengal is the 6th largest in the country in terms of gross state domestic product (GSDP). It has India’s 20th highest GSDP per capita. West Bengal state has the 28th highest ranking among the Indian States on Human Development Index. Other service sectors such as trade, finance, insurance, and other related activities have also shown significant growth in the past few years.
Capital- Kolkata
Top Business Idea in West Bengal
As per the study and statistics performed in 2015-16, West Bengal is the 6th largest state (around 140.56 billion USD) that majorly contributes to the Indian economy’s GDP. This state has immense potential in the field of startup vision. Also, the state facilitates robust connectivity to the rest of India by making it one of the most demanding and lucrative platforms for initiating a profitable and productive business. Given below are the list of a top business idea that can bring a change to the realm of the business ecosystem:-
Quick Service Restaurant Business
People of this region of India are real food lovers as the recent study and research show that there is considerable growth in the number of fast-food lovers among the people living in the urban towns and cities of West Bengal. As per the region’s requirement, you should set up or buy a franchise of famous and reputed fast-food brands such as Chickblast, Kathi Junction, KFC, Dominos, etc., in the venture of the pertaining industry.
Florist shop Business
The flower-selling business has seen credible growth in the past few years, especially in West Bengal. However, there are mainly two reasons. The first reason is an increase in the purchasing power of the young generation and the second reason is citizens of this state are religiously hyped. Merely all the festivals in west Bengal are celebrated with pomp and joy, but the inclusion of flowers can fulfill the main essence of the celebrations. Companies like Ferns and Petals, Floralis, etc., offer franchise opportunities in West Bengal. Thereby building a profitable and cost-effective business idea with an optimistic future.
Diagnostic Center Business
A person who has an experience in the field of laboratory science can establish or set up a diagnostic center business idea with a considerable capital amount. These Diagnostic Center business with pathology is one of the most productive and lucrative businesses in the field of medicine and the pharms industry. The awareness of the physician and the increase in the patient’s requirements to take high-quality care services in West Bengal have increased the demand for the best quality diagnostic center. Many companies like Apollo, Thyrocare, etc., are offering franchise opportunities for the investors as per the ease of doing business.
The startup ecosystem in West Bengal
Startups have entered every expected corner of the country. Hence, by breaking many cultural biases and helping the economy to grow. The government of West Bengal has come up with an initiative to facilitate the startup to access the various required resources of the Startup Eco-System in the state. The Startup Bengal initiative majorly assists in stimulating an entrepreneurial environment in the state. The main objective of this initiative is to create an enabling environment to inspire the youth of this state and encourage them to engage with all stakeholders and investors of the Startup to strengthen the start-ups.
A comprehensive startup initiative will support the startups at all stages. These entrepreneurship programs must be added to the curriculum or syllabus of the educational institutions to foster youth to come up with new innovative business ideas. In the past few years, this state has set an example in building an environment that consistently registers new organizations throughout the state. Creating a vibrant and proper framework, including coaching by using the existing business associations like the Indian Institute of Management (IIM) Calcutta, Indian Institute of Technology (IIT) Kharagpur, Council of Scientific and Industrial Research (CSIR) labs in West Bengal, etc., thus the entrepreneurs and investors are the crucial assets as they are an essential tool for economic development and creating job opportunities throughout the state.
What is GST registration in Kolkata, West Bengal?
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 Kolkata, West Bengal 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 Kolkata, West Bengal, 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 Kolkata, West Bengal?
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 Kolkata, West Bengal 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 Kolkata, West Bengal
Primarily, there are four categories of registration under GST in Kolkata, West Bengal 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 Kolkata, West Bengal
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 Kolkata, West Bengal
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 Kolkata, West Bengal-
Step 1- Access the GST portal to create a user Profile in Kolkata, West Bengal
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 Kolkata, West Bengal
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 Kolkata, West Bengal
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 Kolkata, West Bengal
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 Kolkata, West Bengal
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 Kolkata, West Bengal
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 Kolkata, West Bengal
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 Kolkata, West Bengal
Different sets of documents will be required depending upon the constitution of the business or the type of GST registration in Kolkata, West Bengal 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 Kolkata, West Bengal
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 Kolkata, West Bengal
Therefore, the process of GST registration in Kolkata, West Bengal 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.
