According to the Government of India mandate, businesses with a turnover of over Rs.40 Lakh (except in northeastern states) should be registered as normal taxable entities. These businesses should file their Goods and Services Tax (GST) on time.
But before that, they need to undergo the GST registration process, which determines which business is entitled to a payment of the GST. We will discuss the new GST registration process step by step in this article.
GST was introduced in 2017, although the taxation system in India had undergone several reforms years ago. However, the introduction of the GST changed the tax regime completely. GST created a uniform tax filing process by unifying various taxes like VAT, service tax, luxury tax, etc.
Businesses or individuals above the threshold limit need to pay GST at every stage of the supply chain to avoid problems and penalties with their operations. This can be done online via the GST registration portal.
The GST registration process is a government-mandated registration that all businesses, aggregators, and suppliers meeting certain criteria ought to fulfill to register themselves as taxable entities.
This process has been simplified and made entirely digital so that businesses and individuals can register themselves without hassle. There is an online GST Portal where businesses should fill up a form and submit the necessary documents to be considered eligible for new GST registration.
If business activities above the threshold limit are carried out without GST registration, then it can be considered a criminal offense. As a result, heavy penalties like jail custody and monetary penalties may apply.
The GST registration process is required to consider a taxpayer eligible under the Government of India’s GST mandate and provide him with a valid Goods and Services Tax Identification Number (GSTIN).
The central government provides the 15-digital GSTIN and determines whether a business should pay GST. A GST registration process via the online GST Portal might take an average of 2 to 6 days.
Under the GST Act of 2017, multiple categories were created to make GST registration effortless and hassle-free. It was also created so that people who belong to a particular category of GST do not incur losses by filling in the GST registration process of the other categories.
The following individuals and businesses are eligible for the GST registration procedure online -
Most businesses operating in India fall under this category. It is mandatory for businesses with a turnover above the threshold limit of Rs.40 Lakh / Rs.20 Lakh / Rs.10 Lakh, according to the GST laws of the state or the region.
There is no expiry date for the GST registration under this category.
This category is for small businesses whose turnover is within Rs.1.5 Crore.
This category consists of people who are either non-resident Indians or are involved in occasional interstate trade.
For this category, the duration of the GST registration is only 3 months. However, that can be renewed or extended by visiting the online portal and following the necessary processes.
This refers to non-resident Indians who trade in taxable goods or services. For this category of GST registration, the active time of registration is 3 months. Once the expiry of the GST registration, it can be extended or renewed.
This category is for those who distribute input tax credits within the organization.
This category is for those who are required to deduct or collect tax at source.
Under this category, UN Bodies and embassies must register for GST.
Under this category, every e-commerce aggregator should register for GST. It will also involve individuals who supply goods and services via an e-commerce aggregator.
All individuals or agents who supply goods and services on behalf of registered suppliers.
For GST registration processes online, the following key facts should be considered -
The GST registration process online involves no charges
In the case a business or individual supplies goods and products in various states, GST registration should be completed in each of the states.
Eligible businesses failing to complete the online registration process will have to pay a due of 10% of the due amount or Rs.10,000
If there is a case of tax evasion or tax fraud, then 100% of the due amount will be imposed as a penalty.
To perform GST registration online, you must furnish soft copies of some essential documents as mentioned below -
Identity proof of the individual such as PAN card, Aadhar Card
Business incorporation certificate
Address proof of the business premise
Current bank details of the individual and company
Address proof, ID proof, and photographs of Directors and Promoters
Canceled cheque along with the bank account statement of the company
Appointment proof of authorized signatory
Digital signatures of the business partners and directors also need to be furnished wherever applicable.
Following is the step-by-step process to complete the GST registration procedure online.
STEP-1: First, you need to visit the official portal of GST - https://www.gst.gov.in
STEP-2: Go to ‘Services’ → ‘Registration’ → ‘New Registration’ → ‘Taxpayer’.
STEP-3: Fill out Form GST REG-01 by entering details like your business name, email address, mobile number, PAN card, etc.
STEP-4: Enter the OTP sent to your mobile and email to verify the information. Click on ‘Proceed’.
STEP-5: Once verification is over, you will receive a Temporary Reference Number or TRN. Note it down for future reference.
STEP-6: Then, log in using your TRN. Enter the OTP sent to your mobile number and email ID to be redirected to the GST registration page.
STEP-7: Fill out your business information like name, state, PAN, etc. Also, mention if you have any other registrations.
STEP-8: Enter details of the business partners or proprietors. You can enter information about up to 10 partners. Provide their personal information, designation, PAN, Aadhaar, etc.
STEP-9: Submit details of the person authorized to file GST returns.
STEP-10: Add details about the business's premises, including location and nature of possession. Enter the official contact details as well.
STEP-11: Add relevant information about the nature of the business, products, services offered, and bank account details.
STEP-12: Upload scanned copies of the required documents. It will depend on the type of business you are registering.
STEP-13: Click on the ‘Save and Continue’ button, and sign the application digitally.
STEP-14: Click ‘Submit’ finally. You will receive an Application Reference Number or ARN via email or SMS. Note it down as you will need it to track your application.
After 21 August 2020, new businesses can secure their GST Registrations online by opting for their Aadhaar Authentication. The detailed process is given below.
While applying for the GST registration, you will have the option to choose Aadhaar Authentication.
If you select ‘YES’, then the authentication link will be sent to the registered mobile number and email ID.
You need to click on the authentication link.
On the next field that appears, enter the Aadhaar number and select ‘Validate.’
Once there is a match in the details, you will get another set of OTPs to your registered mobile number and email IDs.
You have to enter the OTP to complete the process.
The GST registration will arrive within 3 working days.
Once you have submitted your online registration for GST, here is how you can check the application status -
STEP-1: Visit the official portal of GST - https://www.gst.gov.in and click on the ‘Services’ tab.
STEP-2: Choose ‘Registration’ → ‘Track Application Status’.
STEP-3: Enter your Application Reference Number or the ARN that you received when you completed your application.
STEP-4: Enter the captcha and click on the ‘Search’ button.
Apart from the subsumption of multiple indirect taxes, there are several advantages to completing your GST registration process online. Some of them are -
The stand-out point for GST registration is that it saves you money. In the Pre-GST regime, you had to pay tax at every step of the supply chain, and it was added to the next tax value causing double taxation.
But with GST registration, you can eliminate this hassle and pay only one type of tax throughout the business thereby, saving unnecessary expenses.
With an authentic GST registration, small businesses can take big projects from multinational companies by displaying their valid GSTIN. E-commerce and online stores can sell goods online without any hassle.
Any business or individual can sell goods across the country through various states without worrying about the individual taxes to be paid to each of the state governments.
The GST registration process is simple, and it brings all the businesses from multiple industrial sectors directly under a single umbrella of the taxation process. It is more convenient for small businesses as they can file tax returns once every quarter and avoid financial burdens at the company's nascent stage.
Another advantage of GST registration is the annual turnover limit. Before the advent of GST in India, all individuals having an annual turnover of over Rs.10 Lakh were liable to pay the tax.
However, according to GST rules, companies or individuals with an annual turnover of less than Rs.40 Lakh are exempt from the taxation system. However, in certain states, the annual turnover for businesses eligible to pay GST should be Rs.10 Lakh and Rs.20 Lakhs.
Once an individual or a business body completes a GST registration online, the registration itself acts as valid proof of the legal entity of the business or the individual. With an authentic GSTIN, a current bank account can be opened along with the effortless availability of an input tax credit, when any goods or services are being purchased. Thus, an authentic GSTIN increases the brand value of the business and helps it prosper.
The GST registration online format is easy and seamless. It ensures ease of doing business including transactions from one state to another and abroad without any restrictions. So you should follow the steps in detail and complete it as soon as it is possible for you and your business.
There is no fee for GST registration. It is free of cost.
Yes, you can apply for a GST registration without a shop.
Depending on the state of the business, any business with an annual turnover over Rs.40 Lakh, Rs.10 Lakh, or Rs.20 Lakh has to register for GST.
You can start an online business to sell handmade or artisanal products without GST. These products are exempted from the GST tax slab.
You can download your GST certificate from the GST official portal. Just go to ‘Services’ → ‘User Services’ → ‘View/Download Certificates’. Enter the required details and click on ‘Download’ to get a PDF copy of your certificate.
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