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GST Registration Turnover Limit in Kerala

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GST Registration Turnover Limit in Kerala

There were a lot of amendments to the GST structure after it became a law in July 2017. One such significant modification was done recently with regard to the turnover limit for GST registration. In Kerala, if you are in the business of supply of goods, then you have to mandatorily get yourself registered with GST authorities, if your annual turnover is Rs.40 lakhs or above. This limit used to be Rs.20 lakhs before, but the new amendment made it double. However, if you are providing services, then the limit is maintained at Rs.20 lakhs for your business. 

Turnover Limit in Kerala

Sale of GoodsRs. 40 lakhs or above
Providing ServicesRs. 20 lakhs 

# Who is required to get GST Registration in Kerala?

In this section, we will talk about the eligibility criteria for a business to do GST registration in Kerala. 

There are some supplier businesses that are required to register for GST irrespective of their turnover. These businesses are inter-state suppliers, casual traders, electronic commerce operators, TDS deductor, online suppliers, and non-resident taxable individuals with no fixed business address in India, etc.     

# How does GST Registration Work for you in Kerala?

The registration process starts from the point when the businessman submits his GST registration application online. This application should be submitted on the GSTN (GST Network) portal within a month after registration liability arises. You can submit this application on the official GST website that is www.gst.gov.in. If you are a non-resident taxable individual, then submit this application at least 5 days before starting the company. 

If you have more than one business in Kerala, then you will have to submit multiple different applications. Make sure to have your PAN card while doing registration and TAN as well for those businesses that have tax deductions. Though GST registration is predominantly PAN card-based, you will also have to produce a few other documents that must be uploaded at the application stage. 

These documents are as follows:

  • Certificate of incorporation of your business and partnership deed, in case of  a partnership business
  • Property documents of the land where you conduct your business operations. Rent or lease agreement in case of that property being on rent
  • Electricity bills, and telephone or internet bills for address proof
  • Bank account proof (passbook, cheque book, bank statement, etc.)
  • An affidavit in the pre-defined format
  • Photos of all the business owners

Once you upload all these documents online during the application stage and have signed using the digital signature option, then you will receive an acknowledgement of your application. In the next 3 working days, you will get the approval of your GST registration, or the authority might ask you for additional details. In the latter scenario, you will have to respond in the next 7 working days starting from that day. 

# Benefits of GST Registration in Kerala

There are multiple benefits of getting your business registered for GST in Kerala; these benefits are as follows: 

  1. GST subsumes all the indirect taxes that used to exist before July 2017 in India. This simplification has led to a reduction in the prices of many goods and services. 
  2. In the current GST system, companies with a yearly turnover of up to a maximum of Rs.75 lakhs can take advantage of the composition scheme. Thus, they will end up paying a meagre 1% tax on their turnover. 
  3. Another benefit is that the corruption by receipt-based tax collections at multiple state borders will end. 
  4. You don’t have to worry about taking care of and paying multiple indirect taxes like service tax, excise tax, value-added tax (VAT), octroi, etc.
  5. Multiple commodities and products now attract lesser tax as they fall in the lower tax bracket of GST, which was costlier before due to higher indirect taxation.
  6. Apart from subsuming all the indirect taxes, another benefit is that you have to apply for GST filing, GST returns, and everything related to GST on one common platform. 

# Checklist for Suppliers who has to register for GST in Kerala mandatorily

The basic criteria for your business to be registered for GST is the aggregate annual turnover. If your turnover is more than Rs.20 lakhs, then you are eligible to, and you should get your business registered with the GST authorities. However, if you are a farmer or in a business that supplies goods and services which are exempted from GST, then you don’t have to mandatorily register for GST. 

# How to do a GST Registration in Kerala?  

The complete GST registration process is online in Kerala. The business owner has to apply for GST registration on the official GST website. Before applying, he must collect all the aforementioned documents to upload during the process of registration. After successful submission of the application, the authority will either approve your application or will seek additional documents or details. You have to provide these details in the next 7 working days from the date of hearing back from the authorities.  

# Documents Required for GST Registration in Kerala

The main documents that are needed at the time of filing GST or registering for it are as follows:

  • PAN card of the business owner
  • Business registration certificate (ROC certificate, or incorporation certificate)
  • Address proof documents of the business (rent agreement, property tax document, electricity bill, etc.)
  • Savings or Current Bank account records (transaction statement, passbook, or cancelled cheque)  
  • LLP (Limited Liability Partnership) certificate in case of an LLP business

# GST Rates

There is no single GST rate in Indian states as the GST committee has decided to tax different goods and services at different rates. Thus, there are majorly five GST rates that are 0%, 5%, 12%, 18%, and 28%. Essential goods like milk, honey, jute, fruits and vegetables, flour, grains, salt, and services like hotel accommodation below Rs.1, 000 tariff falls under 0% tax bracket.  

Goods like packaged food, cream, footwear below Rs.500, coal, bread, medicines, frozen vegetables, sugar, spices, cottage cheese, oil,  coal, etc., falls under the 5% tax bracket. Services like railways and small restaurants, radio taxis, etc., fall under this bracket as well. 

Likewise, apparel above Rs.1,000, cheese, butter, ghee, frozen meat, computer,  tooth powder, cell phone etc. comes under the 12% GST bracket. Services such as air travel, non-air-conditioned hotel accommodation, fertilizer, contractual work fall under the 12% slab.

Goods such as biscuits, steel products, cameras and speakers, instant food mix, cornflakes, pasta, refined sugar, soap, footwear above Rs.500, notebooks, etc., come under the 18% tax slab. Telecom services, air-conditioned hotel accommodation, IT services fall under this bracket as well. 

The 28% bracket has goods like waffles, paints, deodorants, chocolates, washing machines, automobiles, etc. The services in this bracket are luxurious 5-star hotel accommodation, race club betting, movie halls, etc.   

# FAQs on GST Registration in Kerala

  • Is it necessary to have a PAN to obtain GST registration in Kerala?

Yes, it is necessary or rather mandatory to have the PAN card while applying for GST registration on the website. However, if you are a non-resident person of Kerala who is taxable, then PAN is not mandatory.

  • What is the validity of GST registration in Kerala?

There is no validity per se for GST registration in Kerala; just like business, this registration is also assumed to be a going concern. Unless the business owner cancels the registration, it does not expire by itself.

  • Is it possible for a person with no GST registration to collect GST?

No, a businessman who has not registered for GST cannot charge and collect GST from the customers. He also cannot claim the input tax credit (ITC) on the GST he paid if he has not registered his business.

  • Is it possible for a person to operate two different companies with different names under the same PAN to get two GST registrations in Kerala?

Yes, two separate businesses can operate in the same state with separate GST registration on the same PAN details. However, there are certain rules of the GST Act that the business must comply with. 

  • What is the limit of turnover for GST registration in Kerala?

The floor limit above which every business in Kerala must get registered is Rs.20 lakhs annual turnover. 

  • Is a separate registration required for the same entity involved in trade and manufacturing in one state?  

If your business vertical is separate, then you need to enroll for GST separately in that state. Otherwise, it is not required.   

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