Process for Registration of GST
According to GST rules, a business with a turnover of above 40 lakh INR must register as a normal taxable entity. It is referred to as the process of GST registration. The turnover of 10 lakh INR for businesses that are represented in hill states and even North-Eastern states. The completion of the GST registration process can be done within 6 working days.
GST registration can be completed quickly on the GST online portal. Business owners can also fill up their forms on the GST portal and submit all the necessary documents for the registration process. Businesses need to complete their GST registration process. It is considered offensive criminal activity if enterprises carry out their operations without registering for GST, and heavy penalties can be imposed for non-registration.
What is full form of GST ?
Full form of GST is Goods and Service Tax
What is the meaning of GST registration?
The process by which a taxpayer can get registered under Goods and Service Tax (GST) is GST registration. Once the registration process is completed, the Goods and Service Tax Identification Number (GSTIN) can be received. The Central Government gives the 15-digit GSTIN to businesses which will help determine whether a company is liable for paying GST.
Who is eligible to register under GST?
The following individuals and businesses must complete GST Registration:
- Individuals who are registered under the tax services before the commission of GST law.
- Taxable Person who is taxable but considered as Non-taxable and even Casual Taxable Person
- Individuals who are paying taxes under the mechanism of reverse charge.
- Aggregator of all e-commerce.
- Businesses that are having a turnover and exceeding 40 lakh INR. In Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and North-Eastern states, the business’s turnover should exceed 10 lakh INR.
- The input of service distributors and supplier agents.
- Individuals who are supplying goods through an e-commerce aggregator.
They were provided a database by individuals to access online information from outside India and people living in India other than those considered registered taxable persons.
Various types of GST Registration:
Under the act of GST, GST Registration can be classified into various types. You should be aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:
Most of the companies in India fall under this category. There is no need to provide any deposit to become an average taxpayer. There is also no expiration date for taxpayers who fall under this category.
Casual Taxable Person
Individuals who are wishing to set up a seasonal shop or even stall can have option for this type of category. You have to be deposit for an advance amount which is equal to expected GST liability when the stall or seasonal shop is operational. The GST registration period under this category is 3 months, and it can be extended or even renewed.
Apply for this if you want to obtain the GST Composition Scheme. You have to deposit a flat under this category. The Input tax credit cannot be accepted under this category.
Non-Resident Taxable Person
If you live outside India, but supplying goods to individuals who stay in India, opt for GST Registration. Like the Casual Taxable Person type, you must pay a deposit equal to the expected GST liability when the GST registration is active. This type of GST registration duration is usually 3 months, but it can be extended or renewed at the kind of expiry.
Key points about GST Registration:
Below mentioned points are a few of the essential points that you are required to know about GST registration:
- No charges have been levied for the completion of the GST registration process.
- If businesses do not complete the registration process, 10% of the amount due or 10,000 INR will be levied. In tax evasion, 100% of the amount that is due will be charged as a fine.
- There is a compulsion for GST registration for those businesses who are having an annual turnover of 20 lakh INR and even more.
- In this case, the supply can be provided in several states of the country. GST registration should be completed in each state of the country.
Steps for completing the online process of GST registration:
Proper procedures that individuals should follow for completing the GST Registration is mentioned below-
Step 1: Search for the GST portal. (www.gst.gov.in)
Step 2: Click on the button ‘Register Now,’ which can be found under the ‘Taxpayers’ tab
Step 3: Select’ New Registration’.
Step 4: Fill in the below-mentioned details-
- Under the drop-down menu, select ‘Taxpayer.’
- Search for the state and district of your choice.
- Enter the name of your business.
- Enter the mention PAN details of your business.
- Enter the required email ID and registered mobile number in the respective boxes. The entered email ID and mobile number should be active as one OTPs would be sent to them.
- Enter the image that is displayed on the screen and click on ‘Proceed.’
Step 5: On the next page, input the received OTP, which is sent to the registered email ID and mobile number in provided respective boxes.
Step 6: Once all the details have been entered, click on ‘Proceed.’
Step 7: You can see the Temporary Reference Number on your screen. Make a note of the TRN.
Step 8: Revisit the GST portal and click on the button ‘Register’ under the menu of ‘Taxpayers.’
Step 9: Select the option ‘Temporary Reference Number (TRN).’
Step 10: Submit the TRN and the captcha details.
Step 11: Click on ‘Proceed.’
Step 12: You will also receive an OTP on your provided email ID and even on your registered mobile number. Submit the OTP on the next page and click on ‘Proceed.’
Step 13: There will be the availability of your application status and can be seen on the next page. When you look there will be an icon Edit on right side. Click on it.
Step 14: You can see 10 sections on the next page. All the relevant details should be filled in, and all the necessary documents should be submitted.
List of documents that are needed to be uploaded are mentioned below-
- Required Photographs.
- Address proof of business.
- Several details such as bank account number, bank name, bank branch, and IFSC code.
- Authorization form.
- The regulations of the taxpayer.
Step 15: Check the declaration by visiting the ‘Verification’ page. Applying can be done by using one of the below-mentioned methods-
- By way of Electronic Verification Code (EVC). The code will be received on the mobile number which is registered.
- By the method of e-Sign. OTP can be obtained on the mobile number which is linked to the Aadhaar card.
- The application should be submitted using the Digital Signature Certificate (DSC) in case companies register.
Step 16: Once the process is completed, a success message will be visible on the screen. The Application Reference Number (ARN) will be received on the registered mobile number and provided email ID.
Step 17: You can also check the status of the ARN on the official GST portal.
List of Documents that are required for the registration of GST:
Here are the documents which are necessary to complete GST Registration-
- PAN card.
- Aadhaar card.
- Business address proof.
- Bank account statement and canceled cheque.
- Certificate of incorporation or even the evidence of business registration.
- Digital Signature.
- Director’s ID proof or Promoter’s ID proof, address proof, and photographs.
- Authorization letter or Resolution board from Authorised Signatory.
Registration of GST Via Authenticity of Aadhaar:
New businesses can also secure their GST registration with the help of the Aadhaar. The process is quick and straightforward. The new approach came into effect on 21 August 2020. The procedure for opting the Aadhaar authentication is mentioned below-
When you are applying for registration of GST, you will be provided with an option to choose Aadhaar authentication.
Select ‘YES.’ The authentication link which will be sent to by registered email ID and a mobile number.
Click on the authentication link.
Enter the Aadhaar number and select ‘Validate.’
Once mentioned details have matched, an OTP will be received on the registered mobile number and even registered email ID.
Enter the OTP for completing the process. Then you will be getting the new GST registration within three working days.
Fees for online GST Registration:
In case if you have completed the online procedure of GST Registration, no fee will be required. Once the relevant documents are uploaded, an Application Reference Number (ARN) will be received via SMS and even email to confirm the registration process.
Acceptable for Not Registering or suitable for Late Registration Under GST:
If you are not paying tax or paying a lesser amount, the fine can be levied at 10% of the un in case of genuine errors paid. However, the minimum penalty is 10,000 INR.
If you have not done registration for GST and are deliberately trying to evade tax, the penalty levied can be 100% of the due tax amount.
Downloading the certificate of GST Registration:
The procedure for downloading the certificate of GST Registration is mentioned below-
Step – 1: Visit the website. (https://www.gst.gov.in/)
Step – 2: Click on the button ‘Login.’
Step – 3: Visit the next page and enter the username and password.
Step – 4: Click on ‘Login’.
Step – 5: Next, click on ‘Services.’
Step – 6: Click on ‘User Services.’
Step – 7: Select View/Download Certificates options.
Step – 8: Click on ‘Download’ on the next page. The certificate will be having the details of the tax transactions.
Check GST Registration Status:
- Visit the GST official portal at https://www.gst.gov.in/.
- Click to ‘Services’ > as ‘Registration’ > as ‘Track Application Status.
- Enter your ARN number and a Captcha code.
- Next, click on the SEARCH button.
- Finally, you can receive any of the following GST registration statuses on your screen-
- Provisional status.
- Pending for verification status.
- Validation against error status.
- Migrated status.
- Canceled status.
Various benefits of GST Registration:
The primary benefits of GST registration are mentioned below-
- Big projects can be accepted by Multinational Corporations (MNCs).
- Online Goods can be sold.
- Across the country, goods can be sold.
- Registration of GST acts as valid proof as it is a legal entity registration.
- When there is a purchase of any goods or services, the input of tax credit can be availed.
- A current bank account can be opened with the help of a GSTIN.
- GSTIN also helps the business in increasing its brand value.
Exemptions on the registration of GST:
The individuals and entities who are mentioned below are exempted from GST registration-
- Businesses that are manufacturing the supplies that are coming under reverse charge.
- Activities that are not coming under the supply of goods or services. Examples of such actions are selling a building or land, various funeral services, and services provided by an employee to its company.
- Businesses that are making supplies that are non-GST or non-taxable. Examples are turbine fuel for the aviation industry and various other petroleum products used for various other services.
- Businesses that are making supplies in exempted or nil rates.
- Businesses that are taken under the limit of threshold exemptions.
- People are working in various sectors of the agriculture industry.
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