GST is a multi-dimensional system of taxation that is inclusive in nature. It is generally applicable when goods and services need to be sold under any category of business. The primary goal of this particular tax system is to limit the surge of indirect taxes. This process of registration for GST is applicable all over India.
The GST registration procedure is applicable to all the entities and people who are responsible for supplying goods or services within the country. Registration of goods and service tax is mandatory when the combined value of goods and service supply exceeds the amount of INR 40,000.
The MoF, that is, the Ministry of Finance, has streamlined the method of registration under GST to simplify the intricacies of tax filing. In case the entity is operating a specific state of subdivision and the value surpasses the amount of 20 lakhs per annum, the registration gets active, and one can apply for it. In this piece, you will tap into the crucial information on the fundamentals and the right way to use the GST registration procedure. Here, you can find out about the details on registering for GST online easily.
What Is GST Registration?
Suppose the annual and total turnover rate of a venture surpasses the threshold of ten, twenty or forty lakhs. In that case, the firm owner needs to register for GST as an average taxable individual. It is a mandatory procedure for specific organizations. It can be counted as wrongdoing if such organizations continue business without registering for GST.
Before proceeding to the detailed process of registration for GST, you must be informed about its fundamentals. Whether you are aiming to start a new venture or manage your finances wisely, you need to understand the significance of GST.
Various Categories of GST Registration in India
There are a range of categories of goods and services tax under the GST Act. Therefore, the registration for GST can vary in terms of types. If you are a beginner in the procedure of GST, you must gather enough information on them. The following categories of GST registration will help you settle for the right one.
1. Normal Taxpayer
Most ventures in India are considered under the category of normal taxpayers. One does not need to make any deposit for being eligible for this category. One of the advantageous features of this category of registration for GST is that it does not have a date of expiry. Taxpayers under this group do not need to abide by any particular date of process termination.
2. Casual Taxable Individual
People looking forward to introducing a seasonal stall or a shop can go for this category. One must deposit an amount in advance that equalizes with the probable liability of GST. This is applicable while the seasonal store is operational. The registration for GST under this subdivision is usually three months. However, one can renew or extend it.
3. Composition Taxpayer
One can choose this category of GST registration procedure if they want to attain the goods and services tax composition scheme. You need to deposit an apartment under this particular category as per the terms and conditions of this category. The input taxation credit cannot be attained under this subdivision of GST.
4. Non-Residential Taxable Person
In case you dwell outside of India but often have to deliver goods to people living in India, you can choose this process of registration under GST. The fundamentals of this procedure are almost similar to the casual taxable individual process. This procedure falls under the casual taxable individual category.
In this type, one needs to pay an amount of deposit that matches the expected liability amount. One needs to complete the payment until the registration process is active. This process extends after three months as per the taxpayer’s perquisites. If the process has expired, one can renew the process of registration under GST all over again.
How to Register For GST in India?
The online process of registration for GST comes with multiple details and can be completed on the government webpage. It would help if you visited gst.gov.in to get started with the process. All dealers whose yearly turnover surpasses INR 20 00000 need to register for goods and service tax.
If you have been hesitating to understand how to register for goods and services tax in India, the following step-by-step guide can be of much help.
Steps for filling the Section-A of registration under GST
Step 1
Visit the portal of GST and select the ‘services’ option. Proceed by selecting the tab of ‘registration’ and click on ‘new registration.’
Step 2
Key in the following information in Part A of the process of GST registration and follow these steps.
- Choose the tab of the Registration radio
- Select the ‘type of taxpayer’ with the help of the drop-down menu
- Choose the district and the state by using the drop-down
- Key-in the PAN identification number and official name of your business
- The next step of the process of GST registration is to enter the Mobile Number and the email address. However, if your phone number and email IDs are linked to your PAN identity, you do not need to enter the details again.
- Once you are done with that, you will get an OTP on your registered cell number and email ID.
- Once you have completed all of these steps, you will need to click on proceed.
Step 4
In the next step, you are going to get a TRN that is an impermanent number of references. It is going to be a fifteen-digit number sent as a text to your contact number or email address. Make sure that you save or write down this TRN number. You are going to require this number for completing the part-B formalities of the process of registration for GST. These formalities need to be completed within the next fifteen days.
Step 5
In step 5 of the process of GST registration, you will need to revisit the GST portal once again and choose the tab that says ‘new registration.’
Step 6
Then, choose the TRN number and key in the captcha code that is displayed on your screen. Once you are done with entering the captcha, click on ‘proceed.’
Step 7
Then, you are going to get an OTP on your given email address and mobile number. Follow the same step by entering the OTP details and clicking the ‘proceed’ option.
Step 8
You can automatically see that the application status is displayed as a draft. Continue by clicking on the ‘edit’ option.
Steps for Completing Part-B of The Application Of Registration For GST
Section B of registration under GST comprises ten sections in total. You will need to fill in the required information and submit the correct documents. One of the updates that you will need to keep in mind is that the bank account section has become optional. On the other hand, the section of Aadhaar authentication has been added back in the year 2020. Submit the list of the following documents to proceed further.
- Banking information as required
- Business address proof of your business
- Photographs
- The taxpayer’s constitution
- Form of Authorization
Step 9
In the process of GST registration – Section B, key in your business name, business district and constitution under the business details section. Proceed by choosing the category of registered individual, such as a service provider or a manufacturer. Follow the instructions and keep filling in the further details, such as the business commencement date or the date from which the liability has risen.
You will also be asked for details such as the reason for obtaining registration. Select the option based on your current situation. Once you have finished filling up all mandatory details, the tile shall turn blue, and you can proceed to the next step.
Step 10
Visit the ‘Verification’ page and check the declaration. Then submit the application by using one of the below-mentioned methods:
The next important step is to go to the verification tab and review the declaration. Then, you can submit your application. You can choose the DSC, EVC or OTP method at your convenience.
As you have completed submitting the application, you will receive a message that says the GST registration procedure was successful. A reference number for your GST application shall be instantly sent to your phone number or email ID. With the help of that, you can track the current application status on the same GST portal.
Checking the Application Status of Registration under GST Online
- Go to the official site https://www.gst.gov.in/
- Then select the service option followed by the registration option
- Click on ‘Track Status of Application.’
- Key in the ARN information along with the captcha code and select the browsing tab
- As you click the ‘search’ tab, the status of your application will immediately be displayed on your screen.
A More Detailed List of Documents Required For GST Registration
Here is a list of the documents you will need for the process of GST registration:
- Aadhaar card
- PAN card
- Digital Signature
- Bank account details
- Address proof
- Photograph in JPG format with a maximum size of 100KB.
- Articles of Memorandum/Association
- Incorporation certificate issued by the Corporate Affairs Ministry
- Evidence of authorized signatory appointment
- Board resolution and the registration certificate for LLP
Keys to Know About Eligibility In The Process Of GST Registration
If you are looking forward to registering for GST, you will also need to be quite clear about the eligibility criterion. You will need to sign up for the GST if you are selling goods within a similar state. The same condition applies if your yearly return is more than twenty lakhs. If your annual turnover is around forty lakhs, the same criterion applies to you. If you are a supplier for the same state, you will still need to complete the registration for GST.
However, if an individual is exclusively engaged in the business of supplying services and goods that are not accountable for taxation, they are not eligible for GST registration. However, it depends on the extremity of a candidate’s circumstances. There is no GST registration fees required when registering a venture with the help of the GST Registration Portal.
The Final Words
The inclusive structure and nature of GTS aim to keep the significant impact of tax cascading away. This impact refers to the taxation liability that is conveyed at every step of the transaction. Because of this, the price of goods undergoes a significant spike. Registration for GST helps in reducing this adverse effect as taxation imposes a direct impact on the cost of goods and services. Being informed about the GST intricacies is paramount for one and all to enhance logistics efficiency and avoid compliance issues.
FAQs
Q1. Who needs to register for GST?
All businesses with annual turnover above Rs. 40 lakhs (Rs. 20 lakhs for North Eastern states) must register for GST. Voluntary registration is also allowed.
Q2. What documents are required for GST registration?
PAN card, business address proof, bank account details, authorized signatory details, photos etc. are required. Sole proprietors also need Aadhaar.
Q3. How do I apply for new GST registration?
You can apply for new GST registration online through the Government’s GST portal. Just log in and navigate to Services > Registration > New Registration.
Q4. Is there any registration fee for obtaining GSTIN?
No, there is no registration fee or charges for obtaining a new GSTIN. The GST registration process is free.
Q5. What information do I need to provide for GST registration?
You must provide business details, promoters/partners details, authorized signatory details, address proof, PAN, bank details etc.
Q6. How long does it take to get GST registration certificate?
You will get GST registration generally within 3 working days if all documents are in order. The certificate will be sent to your email.
Q7. When do I need to apply for GST registration?
You should apply for registration at least 5 days before starting a new business. For existing businesses, registration deadline is within 30 days.
Q8. How do I convert my current tax registrations to GSTIN?
Existing VAT, CST, Service Tax payers need to enroll on GST portal and provide relevant details to migrate to GSTIN.