GST refers to Goods and Services Tax which subsumes all taxes such as Sales tax, Service tax, Excise duty etc. into GST. GST registration is required primarily if your annual sales are more than Rs. 20 Lakh. Even if your sales are less than Rs. 20 Lakh, we suggest that you voluntarily opt for GST registration because:
- You will not get any tax refunds on purchases (e.g. if you buy goods worth Rs 1 lakh in a year, and tax rate is 28% – you will lose tax refund of Rs. 28,000).
- You cannot sell outside your state
GST registration typically takes between 2-6 working days. You need to file your application with the department and sign it with your digital signature. GST Registration can be done through LegalRaasta in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.