How GST registration works for service providers

Registration of GST has been made easier for service providers by implementing modified rules in the 23^rd GST Council Meeting.

Turn Over limit remains the same for service providers as well

• Service providers to register for GST must have a turnover of Rs.20 lakhs or more per annum in all states and Rs.10 lakhs in some special category states.

GST Registration for Inter-State Sales Service Provider

• GST registration becomes mandatory for all businesses irrespective of annual turnover if the business involves the supply of goods from one state to another. Service providers, however, don’t require GST registration while doing inter or intra-state business with a turnover within Rs.20 lakhs or 10 lakhs in the case of special category states.
• Business by service providers through the means of e-commerce platforms are also exempted from GST registration requirements.

Mandatory GST Registration for specific service providers

• Though service providers get a lot of exemption from GST registration yet certain specific types have been kept under the mandatory requirement of GST registration irrespective of the annual turnover.
• Under this category are the OIDAR Service Providers, E-Commerce Operators, Non-Resident Taxable person supplying services to Indian residents and Casual Taxable Person.

When to do the GST Registration

• A service provider with a service tax registration will have to change the same over to GST registration. In the case of a new business, the GST registration must be obtained within 30 days of starting the business.
• GST registration must be done within 5 days of commencing the business in the case of a casual taxable person or non-resident taxable person.

Providing GST invoice for Services

• In the event of GST registration being not done a supply bill can be issued in which GST will not be mentioned. Without GST registration you are not entitled to collect the tax from customers as well. A tax invoice must be provided for services within 30 days of providing the services when a GST registration has been done already.
• The invoice must contain certain details which will mention the services provided, invoice date, the GSTIN of the customer, the invoice date and number, SAC code, applicable GST rate and also the applicable GST.

GST Registration Process for Service Providers who are required to obtain the same

The procedure is quite simple and hassle-free. The steps are given as under –

1. Log into your service tax account and a provisional ID and password will be given to you to register for GST.
2. You will be given two choices on the GST portal and you have to select the “New User Login”
3. You have to log in with the ID and password given
4. You will be directed to a page where you have to fill in your email id and mobile number.
5. OTPs will be sent to your number and email. Using these you can create your username and password accordingly.
6. You will also be required to set the security questions.
7. Your GST registration enrolment will be complete.

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