1 July 2017 was the date when gstin registration became mandatory countrywide. Goods and services are subject to this tax in India. Service tax, VAT, excise duty, and other indirect taxes have been merged into one tax, called GST, by the Government of India (GoI).
Every stage of the production process is subject to GST, which is a comprehensive, multi-stage tax set off against taxes paid at previous stages. This means that only the value added is subject to tax, not the end-user.
Rather than taxing the origin of a supply, this is a destination-based tax. As a result, the destination state is responsible for collecting taxes.
Depending on what type of goods and services are provided, GST rates range from 0% to 28%. Finance minister announced in the union budget 2022-2023 that the gross GST revenue collected in January 2022 was a record 1,38,394 crores, the highest collection since GST was introduced.
What Is the GST Registration Threshold Limit in Chennai?
State governments were given the option of setting new limits or continuing the same limits at the GST Council Meeting in January 2019. The threshold for the sale of goods was set at *20 lakhs at the time of inception, but the Government of Tamil Nadu has raised it to *40 lakhs with effect from April 1, 2019.
Service providers are still subject to the same threshold limit.
What Is the GST State Code to Be Used in Chennai?
Code numbers are assigned to each state. Multiple GSTNs will be associated with a single PAN number for taxpayers with businesses throughout multiple states. In spite of the fact that the taxpayer remains the same, a state code aids in determining the state where the GST registered entity is located. A registration number begins with two digits that identify the state where the business is located.
Tamil Nadu has the state code 33. There will be a GSTN starting with 33 for every GST entity registered in Chennai. ICICI bank Chennai branch’s GST number, for instance, is 33AAACI1195H1ZT. The GST state code must be mentioned on the invoices and physical premises of all businesses in Chennai.
Registration for GST in Chennai requires the following documents:
- PAN of the applicant
- A letter of authorization from the owner is required if the business is located on rented premises (utility bills, telephone bills, rent/lease agreements, etc.).
- Documents that are proof of the company’s constitution (partnership deed, registration certificate, Memorandums of Association (MoA), Articles of Association (AoA), articles of incorporation, etc.)
- Directors/promoters must provide photo IDs and address proofs.
- A copy of the bank’s documents (canceled checks, first pages of passbooks, etc.)
- The authorisation details (which specifies an authorized signatory in an authorisation letter).
How to Apply for GST Registration in Chennai?
It is now easy to apply for a GST registration. The business intending to do so must
- You can visit the GST portal here
- The application must be filled out
- Documents must be submitted
- An OTP is required to verify the details
- Signing the declaration requires a Digital Signature Certificate (DSC).
- ARNs (Application Reference Numbers) are provided to applicants
- A GSTN will be issued to you within three business days if the GST officer is satisfied with your application. Unless you respond within 7 days, they will ask you for clarification.
GST registration is mandatory for businesses in Chennai (excluding exempted businesses) that fall under the GST threshold. Failure to register could lead to severe penalties.