According to GST rules, it is mandatory for a business that has a turnover of above Rs.40 lakh to register as a normal taxable entity. This is referred to as the Goods and Service Tax (GST) registration process. The turnover is Rs.10 lakh for businesses that are present in hill states and North-Eastern states. The GST registration process can be completed within 6 working days.
GST registration can be easily done on the online GST portal. Business owners can fill a form on the GST portal and submit the necessary documents for registration. Businesses must complete the GST registration process. It is a criminal offense to carry out operations without registering for GST and heavy penalties are levied for non-registration.
What is GST Registration?
GST Registration is the process by which a taxpayer gets registered under Goods and Service Tax (GST) is known as GST registration. Once the registration process has been completed, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15-digit GSTIN is provided by the Central Government and helps to determine whether a business is liable to pay GST.
What are the Types of GST Registration?
Under the GST Act, GST Registration can be of various types. You must be aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:
1. Normal Taxpayer
Most businesses in India fall under this category. You need not provide any deposit to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this category.
2. Casual Taxable Person
Individuals who wish to set up a seasonal shop or stall can opt for this category. You must deposit an advance amount that is equal to the expected GST liability during the time the stall or seasonal shop is operational. The duration of the GST Registration under this category is 3 months and it can be extended or renewed.
3. Composition Taxpayer
Apply for this if you wish to obtain the GST Composition Scheme. You will have to deposit a flat under this category. The Input tax credit cannot be obtained under this category.
4. Non-Resident Taxable Person
If you live outside India, but supply goods to individuals who stay in India, opt for this type of GST Registration. Similar to the Casual Taxable Person type, you must pay a deposit equal to the expected GST liability during the time the GST registration is active. The duration for this type of GST registration is usually 3 months, but it can be extended or renewed at the type of expiry.
Eligibility to Register for GST
GST Registration must be completed by the following individuals and businesses:
- Individuals who have registered under the tax services before the GST law came into effect.
- Non-Resident Taxable Person and Casual Taxable Person
- Individuals who pay tax under the reverse charge mechanism
- All e-commerce aggregators
- Businesses that have a turnover that exceeds Rs.40 lakh. In the case of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and North-Eastern states, the turnover of the business should exceed Rs.10 lakh.
- Input service distributors and agents of a supplier.
- Individuals who supply goods through an e-commerce aggregator.
- Individuals providing database access and online information from outside India to people who live in India other than those who are registered taxable persons.
- GST registration is mandatory for businesses that have an annual turnover of Rs.20 lakh and more.
Documents Required for GST Registration
- PAN card
- Aadhaar card
- Bank account information
- Proof of address
- Digital Signature
- Photograph (JPEG format, maximum size – 100 KB)
- Articles of Association/Memorandum of Association
- Certificate of incorporation issued by Ministry of Corporate Affairs
- Proof of appointment of authorised signatory
- For LLP, the registration certificate/LLP Board resolution
Steps to Register for GST Online in India
The step-by-step procedure that individuals must follow to complete GST Registration is mentioned below:
Part - A
Step 1: Visit the GST portal and Click on the 'Register Now' link which can be found under the 'Taxpayers' tab (Below the News update section).
Step 2: Select 'New Registration' and Fill the below-mentioned details
- Under the 'I am a' drop-down menu, select 'Taxpayer'.
- Select the respective state and district.
- Enter the name of the business.
- Enter the PAN of the business.
- Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them.
- Enter the image that is shown on the screen and click on 'Proceed'.
Step 3: On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes and Click on 'Proceed'.
Step 4: You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN (Which helps in further Steps).
Part - B
Step 1: Now, Visit the GST portal again and click on 'Register' under the 'Taxpayers' menu.
Step 2: Select 'Temporary Reference Number (TRN)'. Now, Enter TRN number and the captcha details. Click on 'Proceed' button.
Step 3: You will receive an OTP on your email ID and registered mobile number. Enter the OTP and click on 'Proceed'.
Step 4: The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it.
Step 5: In the Next Step, There will be 10 sections which must be filled and has to submit the required documents. The list of documents that must be uploaded are:
- Photographs
- Business address proof
- Bank details such as account number, bank name, bank branch, and IFSC code.
- Authorisation form
- The constitution of the taxpayer.
Submit the documents and move to Next Step.
Step 6: Visit the 'Verification' page and check the declaration, Then submit the application by using one of the below mentioned methods:
- By Electronic Verification Code (EVC). The code will be sent to the registered mobile number.
- In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
- By e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.
Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.
Note: You can check the status of the ARN on the GST portal.
New Online GST Registration Fees
- No charges are levied to complete the GST registration process.
- In case businesses do not complete the registration process, 10% of the amount that is due or Rs.10,000 will be levied. In the case of tax evasion, 100% of the amount that is due will be levied as a penalty.
- Once the relevant documents have been uploaded, an Application Reference Number (ARN) will be sent via SMS and email to confirm the registration.
How to Get GST Number?
In order to get the GST number follow the simple steps:
Step 1: Visit the official GST Portal at www.gst.gov.in.
Step 2: Select 'Services' under Services tab and Click on 'Registration'.
Step 3: Now, Click on "New Registration" and enter all the requested details like valid email address, mobile number and a PAN for the business.
Step 4: Click on Proceed after submission of details to get GST Registration Number.
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