The northeastern state of Sikkim is famous for its beautiful nature. In recent years, the state’s economy has grown a lot. Implementing the Goods and Services Tax (GST) in Sikkim has been crucial in making taxes easier to understand and doing business easier. Many small businesses now have to follow a single tax system, thanks to the introduction about Sikkim in the GST framework. This replaced many complicated tax systems with a single, easier-to-understand process. Because of this, it is now easier for businesses in Sikkim to follow tax laws.

Who is Required to Get GST Registration?

If a business in Sikkim meets certain requirements, it must get GST registration. Here’s a full breakdown:

• Aggregate Turnover:
• Service Providers: If a service provider in Sikkim makes more than 20 lakh a year, they have to register for GST.
• Goods Suppliers: Any business that supplies goods and has yearly sales more than Rs. 40 lakh needs to register for GST.
• Interstate Business: If a company sells goods or provides services to other states, it must register for GST. For instance, if a company in Sikkim does business with other states, it need to register for GST using the Sikkim GST Code, which represents the state.
• E-Commerce Platform: No matter how much money they make, people or companies that sell goods or services through e-commerce platforms need to register for GST. Before starting any e-commerce activities, you have to get GST registration.
• Casual Taxable Person: Those who set up temporary shops or stalls in Sikkim for seasonal business must also register for GST. It doesn’t matter how much money the business makes; it still must be registered even if it’s only running for a short time.
• Voluntary Registration: Entities can register for GST even if their turnover don’t reach the required level. Previously, people who registered for GST on their own couldn’t give up their registration for at least a year. But new rules mean that applicants can cancel their registration at any time.

Key Requirements for GST Registration in Sikkim

You need to meet certain documents and criteria to apply for GST registration in Sikkim. Here are the essentials:

• PAN Card: Individuals, businesses, LLPs, trusts, and other organizations need a Permanent Account Number (PAN) in order to register for GST. However, this rule does not apply to foreign companies.
• Sikkim State Code: When registering for GST, businesses in Sikkim must use the Sikkim State Code, which is “11.” For tax purposes, this code is needed to show where the business is located in the country.
• Sikkim GST Code:The Sikkim GST Code is essential for the registration process because it tells the government which state the business is registered in for tax purposes.
• Temporary Registrations: For non-resident or casually taxable individuals, the GST registration is temporary and has a set expiration date. The moment their registration expires, these people have to reapply.

Steps for GST Registration in Sikkim

1. Visit the GST portal and log in with the required credentials.
2. Enter the required details, including your PAN card, business information, and documents.
3. Use the correct Sikkim State Code (11) and Sikkim GST Code during the application process.
4. You will receive your GSTIN (Goods and Services Tax Identification Number) after submitting and verifying your application.

Summary

GST implementation in Sikkim simplified the tax system and made it easier for companies to comply with tax regulations. To maintain smooth operations, obtaining GST registration is crucial for small businesses, interstate traders, and e-commerce operators alike. Businesses can use the Sikkim State Code and the Sikkim GST Code. to make sure compliance with the new tax structure.