Finding it difficult to register for GST online? Whether the answer is yes or no, we can help. When you know the correct procedure, you can make this task easy-breezy for yourself. You can find answers to all your GST registration questions in this article.
How does GST work?
It is also known as the Goods and Services Tax, and it replaced many indirect taxes like excise duty, VAT, and services tax in India. Earlier this year, the Goods and Service Tax Act passed in Parliament and became effective on 1st July 2017.
Therefore, goods and services are subject to Goods and Service Tax (GST). Taxes are levied on all value additions in India under the Goods and Services Tax Law. It is a comprehensive, destination-based tax.
How does GST registration work?
It is called GST registration when a taxpayer registers under Goods and Service Tax (GST). Upon completion of the registration process, the Goods and Services Tax Identification Number (GSTIN) will be provided. GSTIN is a 15-digit number that the government provides to determine whether a business is subject to GST.
As per GST rules, a business that has a turnover exceeding 40 lakhs must register as a normal taxable entity. The GST registration process involves this step. An individual who is located in hill states or North Eastern states must have a turnover of 10 lakhs. GST registration should be completed within 6 working days.
To register for GST, visit the GST online portal. Registration requires you to fill out a form on the GST portal and submit the necessary documentation. Registration for GST is mandatory, or heavy penalties will be charged.
What are the eligibility requirements for GST registration?
Businesses and individuals must register for GST as follows:
- GST law applies to those who were registered under the tax services prior to the law becoming effective.
- An individual who is not a resident of the United States and a casual taxpayer
- Instances in which reverse charge tax is paid by individuals
- Aggregators of e-commerce
- An organization with a turnover of more than 40 lakh rupees. Uttarakhand, Himachal Pradesh, Jammu and Kashmir, and the North-Eastern States require businesses to have a turnover exceeding Rs.10 lakh.
- Distributors and agents of suppliers of input services
- Distributors who use e-commerce aggregators to provide goods.
- People who provide online, databases, and information access to people living in India but aren’t registered, taxable people.
GST Registration Types
A GST registration can take various forms under the GST Act. The various types of GST Registration must be understood before you choose the most appropriate one. GST Registration can be classified into the following types:
Taxpayers with a normal income
In India, this category accounts for the majority of businesses. As a normal taxpayer, you do not have to pay a deposit. It does not exist an expiry date for taxpayers in this category.
The taxable person on a casual basis
Individuals who wish to set up a seasonal shop or stall fall into this category. A deposit equal to the expected GST liability during the season should be made in advance. A GST Registration may be prolonged or renewed for 3 months under this category.
Taxpayer of composition
The GST Composition Scheme can be obtained by applying for it. This category requires a deposit. There is no possibility of obtaining an input tax credit under this category.
The non-resident taxpaying person
A GST registration is needed if you reside outside of India but supply goods to individuals within the country. During the duration of the GST registration, an amount equal to your expected GST liability must be paid as a deposit. Registration for this type of GST is usually valid for 3 months. However, it can be extended or renewed upon expiration.
GST Registration Facts
The following are a few important tips about GST registration:
- There are no charges involved in GST registration.
- In the event businesses fail to complete the registration process, there will be a penalty of 10% of the amount due or Rs.10,000. An amount equal to 100% of the due amount will be levied on anyone who evades taxes.
- Businesses with annual revenue of more than Rs.20 lakh are required to register for GST.
- Whenever a supply is made in several states, GST registration is required in each location.
Online GST Registration Process Steps
Following are some steps that must be followed to complete GST Registration:
The first step is to visit the GST portal – https://www.gst.gov.in/
In step 2, click the ‘Register Now’ link found under the ‘Taxpayers’ category
Select ‘New Registration’ in step 3.
The fourth step is to complete the following information:
- Select ‘Taxpayer’ from the ‘I am a’ drop-down menu.
- Ensure that the state and district are selected.
- Give your business a name.
- Your business’ PAN should be entered here.
- You must enter your email address and mobile number in the corresponding fields. You must enter an active email address and mobile number, since OTPs will be sent to these addresses.
- Click ‘Proceed’ after entering the image shown on the screen.
On the next page, enter the OTP that was sent to your email ID and mobile number.
Once the details have been entered, click on ‘Proceed’.
A Temporary Reference Number (TRN) will appear on the screen. Take note of the TRN.
In step 8, click on ‘Register’ under the menu option ‘Taxpayers’ on the GST portal.
In Step 9 you will need to select ‘Temporary Reference Number (TRN)’.
The last step is to enter your TRN and captcha information.
Click on the ‘Proceed’ button.
Upon registering, you will receive an OTP on your registered email ID and mobile number. You will need to enter the OTP on the next page, and then click ‘Proceed’ to continue.
On the next page, you can view the status of your application. Click on the Edit icon on the right side.
The next page will have 10 sections. Please complete all the required fields and submit all the necessary documents. Here is the list of documents that must be uploaded:
- Various photographs
- Address proof for business
- Please include the account number, bank name, bank branch, and IFSC code for your bank.
- Obtaining authorization
- What makes a taxpayer.
Visit the ‘Verification’ page and check the declaration, then submit the application using one of the methods below:
- The Electronic Verification Code (EVC) is used. Your registered mobile number will be sent the code.
- The e-Sign method is used. To verify the Aadhaar number, an OTP will be sent to the mobile number associated with the card.
- Applicants who are registering must use the Digital Signature Certificate (DSC) to submit their application.
Once completed, a success message will appear on the screen. A confirmation email and mobile number are sent with the Application Reference Number (ARN).
The GST portal allows you to check the status of the ARN.
GST Registration Documents
The following documents are needed to complete GST Registration:
- Card with PAN number
- Card with Aadhaar number
- Proof of business address
- Statement of account and canceled check
- Registrar’s Certificate or proof of registration of a business
- Authentication by digital signature
- Photocopies of the director’s or promoter’s identification, address proof, and biographical information
- A letter of authorization or a board resolution from the authorized signatory
Aadhaar Authentication for GST Registration
GST registration for new businesses can be secured by using Aadhaar. There is no hassle or delay in the process. New processes have been implemented since 21 August 2020. Below is the procedure to opt for Aadhaar authentication:
- It is possible to authenticate your GST registration using Aadhaar when you apply.
- Please select ‘YES’. Email and mobile IDs that are registered will receive the authentication link.
- Please click on the authentication link.
- You will need to enter the Aadhaar number and click ‘Validate’.
- The registered mobile number and email address will receive an OTP once the details are matched.
- In order to complete the process, you need to enter the OTP. It will take three working days for you to receive the new GST registration.