GST Certificate: What is it? Who needs it and how to download it?

Since the start of the Goods and Services (GST) tax in 2017, the indirect taxation system in India has undergone a significant change when it comes to computation of dues. To ensure greater compliance with the tax laws, GST certificates are issued to businesses that exceed a certain threshold in terms of annual turnover and registered with the government under the tax laws. GST certificates are a valid proof that the business in question is registered under the laws of the country.

Here is everything you need to know about GST certificates, who needs it and how one can download it.

What is a GST certificate?

A GST certificate is issued to a business and serves as proof of its compliance with the country’s tax laws. A unique GST Identification Number (GSTIN) is provided on every document for business entities to engage in GST transactions, claim Input Tax Credit (ITC) and participate in inter-state trade.

Who needs a GST certificate?

Any business with a turnover of Rs 20 lakh (Rs 40 lakh or Rs 10 lakh in certain states and for certain industries).

Any firm engaged in inter-state trade.

Every e-commerce aggregator.

Agents of suppliers and Input service distributors.

Individuals supplying online information, retrieval services or database access from abroad to a person in India.

What is the process to download a GST certificate?

– Visit gst.gov.in and login.

– Click on ‘Services. Then choose the ‘View/ Download Certificate’ under the ‘User Services’ option.

– Click on download to get your GST certificate.

What are the benefits of having a GST certificate?

Claim ITC: Businesses can claim input tax credit and lower their tax burden. Firms can use input tax credit to balance the GST paid against the liabilities due on sales.

Access to government tenders: Only businesses with GST certificates can bid for many government contracts. This gives them the chance to increase their customer base and secure valuable deals.

Compliance with e-commerce portals: Since it is mandatory to have a GST certificate to sell products on e-commerce platforms, compliant firms can get the opportunity to sell their products on these portals and give their trade a boost.

Easier financial assistance: GST-compliant firms can get financial assistance more easily compared to those who don’t have a certificate. Many lenders ask for a GST certificate to get assurance that the service provider is complying with the laws.

Easier to engage in inter-state trade: The unique GSTIN number on the certificate makes it easier to conduct business activities across state borders. 

GST certificates have several benefits and ensure that firms can comply with tax laws while making it easier for them to do business.