Ever since the Government of India imposed the goods and services tax in India on July 1, 2017, it has become important for taxpayers to understand GST rules and obligations. So, whether you’re a business or an individual, it’s time you get an in-depth overview of registration on GST. Welcome to this comprehensive post, where you can get an understanding of registration on goods and services tax. So, without further ado, let’s learn further.
Why Is GST Registration Important? Things to Discover
The first thing that a taxpayer needs to understand is what exactly is the process of registration on GST. For them, this post covered everything. To begin with, GST registration is the process where the taxpayer gets registered under the goods and services tax. Soon after it gets registered under GST, the business or individual gets the registered number. This number is better referred to as the GSTIN or GST number.
Note that the GSTIN is a 15-digit number that the central government assigns after the taxpayer obtains the registration. One can verify the GST number to learn the details.
Under GST, for taxpayers whose turnover is more than Rs. 40 lakhs, the business or individual needs to opt for registration process of GST. There are certain businesses where GST registration is compulsory. When the organisation carries on the business without GST registration, it may be penalised by the government. The registration process for GST usually takes 2 to 6 working days. Mentioned below are the types of businesses that should register for GST:
Types of Taxpayers Eligible for GST Registration: Who Must Register?
Businesses that supply goods above Rs. 40 lakhs in one fiscal year must register under GST. But note that the threshold limit of businesses in Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and north-eastern states is Rs. 10 lakhs. Even these businesses need to register under GST. In addition to that, special category states where the threshold limit is Rs. 20 lakhs must also opt for GST registration. The following are the types of businesses that need to opt for registration on GST:
- ISD (Input Service Distributor) or Casual taxable person
- Taxable individual (Non-resident)
- Supplier of services or goods (Inter-state)
- Supplier of goods via the e-commerce portal
- Businesses that are liable to pay tax under the reverse charge mechanism
- Service providers, irrespective of the business type
- TCS or TDS deductor
- Retrieval service provider or online data access
Understanding the Documents Required for GST Registration
Before you proceed with the GST registration steps, it is imperative to collect the required documents. On that note, the following are the documents that you need when you intend to apply GST registration:
- The applicant’s (PAN) or Permanent Account Number card
- Business proof and certificates
- Address proof
- A photocopy of the Aadhaar card or downloaded version of both sides of your Aadhaar card
- Identity proof with Photographs
- Address proof of the physical location of your business
- Bank Account statement
- A cancelled cheque
- Letter of Authorization for Authorized Signatory
- Digital Signature of the founder (and co-founders)
Outlining the Procedure (Part A and Part B) for GST Registration: Here’s What You Should Consider
Obtaining online GST registration is quite simple. The best part is that you don’t have to spend a single penny while performing the steps. A taxpayer who wants to opt for registration on GST may visit the GST portal and fill out the GST register form: Form GST REG-01. After this, you need to follow these steps:
Firstly, you need to visit the GST portal
After this, you need to find the option that mentions “Registration”. You need to click on it and choose the “Services” tab. After this, choose the option that mentions: “New registration”.
Now, coming to the most important part. The GST application form comprises two different parts. The steps for Part A are mentioned below:
PART A:
Firstly, you need to choose the ‘Taxpayer’ option. This is the type of taxpayer from the drop-down list: ‘I am a’
After this, you need to find the State/UT & District drop-down list.
Choose the state as well as the district for the GST online registration.
While entering the legal name in your business field, all you need is to type the legal name of your entity or business. Look for the spelling mentioned in the PAN database.
In your PAN field, you must enter the business’s PAN as well as the proprietor’s PAN.
Next comes the email address field, where you need to type the primary authorised signatory’s email address.
After this, it’s time to enter a valid mobile number. Give the primary authorised signatory’s phone number in that section.
Next, you need to wait for the captcha to come. Enter the captcha and tap on the button that mentions: ‘Proceed’.
As soon as you complete this process, you are set to move to the next part. Note that you can only perform the following steps after verification. You get a TRN or Temporary Reference Number sent to the registered mobile number and email address.
Part B:
Now, you need to follow these steps to complete the procedure:
Tap on Services >> Registration >> New Registration >> Choose the TRN or Temporary Reference Number button >> Log in with the TRN
After you log in, you need to enter the generated TRN and captcha that pops up on the screen
Soon after you complete filling these sections, you must tap on ‘Proceed.
After this, you need to enter the OTP sent to the email address or mobile number. This verifies the OTP page.
Soon after completing this step, you must tap on ‘Proceed.’
After completing this, you will see “My Saved Application page” displayed on the screen
Under the column that mentions “Action”, click on the Edit icon.
You will see the registration application form at the top of the page. Tap on every tab to enter the details such as the following:
- Business details
- Partner/promoter details
- Authorised signatory
- Additional information like place of business, details on the goods & services, aadhaar authentication, verification, and state information
After this, you need to tap on ‘Save and continue’.
As soon as your application is submitted, you need to sign it using the DSC digitally. Tap on the ‘Proceed’ button.
After submission, you get the ARN or Application Reference Number via SMS or email. In the last step, you need to confirm your registration on GST.
So, this post has presented the most significant details on registration for GST, the types of businesses that should register, and important steps.
FAQs
1. Do you need your PAN card for GST registration?
Most importantly, you need your PAN for registration on GST. If you don’t have a Permanent Account Number card, you must obtain it before registering. Alternatively, if you opt for TDS registration under GST, you can use your TAN.
2. What’s next after you obtain your GST registration?
As soon as the taxpayer obtains the registration on GST, they need to get the certificate in Form GST REG-06. That’s how you can get your valid GST ID Number. After receiving the number, you can avail of an input tax credit and raise the GST-compliant invoices. Or you may begin to file the GST returns quarterly or monthly.
3. How do you file for GST registration cancellation?
If you have GST registration, you may opt for cancellation only during special conditions. The cancellation is only initiated by the registered person or department. If the registered individual has expired, the legal heirs can only opt for cancellation.
4. Is there any penalty for not obtaining GST registration?
The offender who does not pay tax or make their payments has to pay 10% of the penalty of their tax amount due, subject to Rs.10,000. The penalty is 100% of their tax amount due if the offender deliberately evades paying the tax amount.
5. Do you need to pay a fee for GST Registration?
The registration on GST involves no fees. The business needs to follow the steps with details and essential documents. But no fees are necessary to pay under the law for obtaining GST registration.
6. Who should obtain the GST registration?
People registered under Pre-GST (i.e., VAT, Excise, and Service Tax) can obtain the registration. Businesses having more than Rs.40 lakh (or Rs.20 lakhs or Rs.10 lakhs in specific states) are liable to register under GST. In addition, casual taxable individuals, non-resident taxable people, agents of suppliers and input service distributors, and an e-commerce aggregator supplier can obtain the registration on GST.