GST Registration for Courier

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Haren (Querist)
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18 February 2022 10 month ago I took a courier franchisee , Now I want to get a New GST Registration for our company name , show please clear My Quarry-
1) Can I apply for Composition Scheme? 2)
If Composition Scheme NA for me then which type of input taken when I fillup GSTR3B Return because we provided only service not good.
3) What is our GST SAC Code Note that My turnover not cross 20 Lac , so can I voluntary apply for GST registration.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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07 July 2024 Based on the information provided, here are answers to your queries regarding GST registration and compliance for your courier franchise business:

1. **Composition Scheme Eligibility**:
- The Composition Scheme is available for businesses whose aggregate turnover does not exceed Rs. 1.5 crore (Rs. 75 lakhs for special category states) in the preceding financial year. Since your turnover has not crossed 20 lakhs and assuming it's not expected to exceed Rs. 1.5 crore, you can consider applying for the Composition Scheme.
- Under the Composition Scheme, you pay a fixed percentage of turnover as tax and cannot collect tax from your customers. You are not eligible for input tax credit (ITC) under this scheme.

2. **GSTR-3B Return Filing**:
- If you opt for the Composition Scheme, you do not need to fill GSTR-3B because Composition Dealers file GSTR-4 quarterly instead. This return includes details of outward supplies and payment of tax.
- However, if you are not under the Composition Scheme, you will need to file GSTR-3B monthly or quarterly based on your turnover.

3. **GST SAC Code for Courier Services**:
- The SAC (Services Accounting Code) for courier services is SAC Code 996901. This code is used for services related to the delivery and transportation of goods.

4. **Voluntary GST Registration**:
- If your turnover is below the mandatory threshold of Rs. 20 lakhs (Rs. 10 lakhs for special category states), registration under GST is not mandatory. However, you can voluntarily register for GST even if your turnover is below the threshold.
- Voluntary registration allows you to claim input tax credit (ITC) on your business inputs and expenses, which can be beneficial for your business.

**Steps to Apply for GST Registration**:
- Visit the GST portal (https://www.gst.gov.in/) and navigate to the 'Services' > 'Registration' > 'New Registration' section.
- Fill out the required details including business name, PAN, business address, bank account details, and authorized signatory information.
- Upload necessary documents such as proof of business address, identity and address proof of promoters, and bank account details.
- Choose the appropriate SAC code (996901 for courier services) and provide other relevant information.
- Submit the application and await approval. Once approved, you will receive your GSTIN and can start complying with GST regulations.

It's advisable to consult with a GST professional or accountant to ensure all steps are completed correctly and to understand the implications of choosing the Composition Scheme versus regular GST registration based on your business needs and future growth plans.