GST Registration
You must be confused about how to proceed for GST registration, what are the documents required, what is the eligibility criteria for the registration, why it is necessary to have the GST, its advantages and disadvantages for different types of business and more. Hence to solve all your queries let’s read more in detail as mentioned below.
What is GST Registration?
Goods and Services Tax Identification Number (GSTIN) or GST Number is termed as a unique identifier assigned to a business or person registered under the GST Act. Any supplier who carries on any business anywhere in India & whose aggregate turnover exceeds Rs.40 lakhs during a financial year is liable to get himself registered and obtain GSTIN. But, the mentioned limit is reduced to Rs 10 lakhs to the states specified in Article 279A (4)(g) of the constitution viz. Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.It is necessary to obtain GSTIN in the case of a certain category of persons. The important categories are as follows:
- Persons making any Inter-State taxable supply of Goods / Services
- Persons who are required to pay tax under Reverse Charge Mechanism (RCM) or Persons who are required to deduct tax under GST (TDS)
- Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise
- Input service distributor
- Casual taxable persons or Non-resident taxable persons
What are the features of GST Registration?
- It will be applicable on the supply of goods or services which replaces the existing system of manufacture of goods or sales of goods or provision of services.
- GST structure is made on the principle of destination-based consumption as compared to origin-based taxation.
- Dual-based GST with central and state levels.
- Import of goods and services will be included in IGST, in addition to applicable customs duties.
What are the advantages of GST Registration?
- Removes Cascading effect
Cascading effect refers to a tax on tax, it occurs when a god is taxed on every stage of its production until it is sold to the final consumer. But this GST removes this cascading effect and reduces the burden of multiple taxes on the final consumer.- Increased exemption limit
Exemption limit has been increased for small traders or service providers whereas if you consider earlier indirect tax structure, various indirect taxes had different sales turnover limits for registrations. Like, the turnover limits for registration in GST are higher but it exempts the small traders and service providers from paying GST.- Composition Scheme
Small business also gets the benefit of the composition scheme which is introduced under GST. Small business owners registered under the composition scheme are required to pay a fixed percentage of tax on their turnover.- Fewer compliances
Due to GST, there is a reduction in the number of tax compliances related to tax returns. Earlier the business registered for various indirect taxes had to bear for multiple compliances.- Online process
Registrations and filing returns under GST can be easily done through an online process. So there is no problem for a business owner that he had to get himself register separately for various indirect taxes.What are the disadvantages of GST Registration?
- The tax burden on small and medium enterprises
Earlier the small and medium enterprises had to pay excise duty when the turnover exceeded Rs. 1.5 crore every financial year but under GST, businesses whose turnover exceeds Rs 40 lakhs are liable to pay GST.- More Compliances
The GST framework mandates that companies are required to register in all states they operate in.Petroleum products do not fall under the GST slab
Petrol and petroleum products are not included under the GST slabs till now. States levy their taxes for this sector.
- Training to Tax officers
There is a need for providing adequate training to the government officers for practical usage and implementation of such a system as the GST system is based on information technology.What are the documents required for registration?
Take a look at the list of documents you'll need to register your company for GST:
- The applicant's PAN (Permanent Account Number)
- A copy of the Aadhaar card.
- Certificate of incorporation or proof of business registration
- Promoters/directors must provide proof of identity and residence and a photograph.
- Bank statement or a cancelled cheque
- For an authorised signatory, a letter of authorization or a board resolution is required.
- Digital Signature (DSC)
What is the process for GST registration?
GST registration can be done easily through the online GST portal.- You need to visit the online GST portal i.e. www.gst.gov.in.
- Now under the Taxpayer tax, click on the ‘Register Now’ link and select ‘new registration’.
- On the same page, fill in the mentioned details namely select the respective state and district, enter the name of the business, PAN of the business, email ID, and mobile number and then enter the image that is shown on the screen and click on ‘Proceed’.
- On the next page, enter OTP that was sent to the e-mail ID and mobile number.
- After filing this information click on ‘Proceed’.
- Now TRN (Temporary Reference Number) will appear on the screen. It is important to make note of TRN.
- Now select TRN to enter the captcha details and click on ‘proceed’.
- You will get an OTP on your registered mobile number and email ID. Enter the OTP and proceed on the next page.
- The status of your application will be available on the next page. And on the right side there will be an Edit icon, click on it.
- On the next page, there will be 10 sections. Here all necessary documents must be uploaded. The list of documents is:
- Photographs
- Address proof
- Bank details
- Authorisation form
- After submitting all the above information, a person must visit the ‘verification’ page. Once the person has checked the declaration, they must submit an application in any one of the following ways:
- Through electronic verification code (EVC).
- Through the e-stamp method.
- In case companies are registering the application must be submitted through Digital Signature Certificate.
- Once the above step is done, a success message will appear on the screen. The application reference number will be sent to the registered mobile number and email ID.
- Now a person can check the status of the ARN on the GST portal.
Required Documents
| Acceptable Document | Document Type | Additional Details |
|---|---|---|
| PAN card of the owner | demo | demo |
| Bank account details | demo | demo |
| Note: List of documents may vary according to the type of business | demo | demo |
| Photograph of the owner | demo data | demo data |
| Aadhar card of the owner | demo data | demo |
| Address proof of Business (Electricity Bill, Telephone bill, Rent agreement etc) | demo | demo |
FAQs
You Ask, We Answer
The taxable supplier supplying to these organizations is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier.
What will be the time of response by the applicant if any query is raised in the online application?
If during the process of verification, one of the tax authorities raises some query or notices some error, the same shall be communicated to the applicant through the GST Common Portal within 3 common working days. The applicant will reply to the query/rectify the error/ answer the query within a period of seven days from the date of receipt of deficiency intimation. On receipt of additional document or clarification, the relevant tax authority will respond within seven common working days from the date of receipt of clarification.
Yes, the cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under the other Act (i.e. SGST Act). (Section 29 (4)).
No, an individual without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.
As per Section 22 of the CGST/SGST Act 2017, every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turn over in a financial year exceeds the threshold limit of twenty lakh rupees shall be liable to register himself in the State or the Union territory of Delhi or Puducherry from where he makes the taxable supply. • In case of eleven special category states (as mentioned in Art.279A(4)(g) of the Constitution of India), this threshold limit for registration liability is ten lakh rupees. • Besides, Section 24 of the Act mentions certain categories of suppliers, who shall be liable to take registration even if their aggregate turnover is below the said threshold limit of 20 lakh rupees. • On the other hand, as per Section 23 of the Act, an agriculturist in respect of supply of his agricultural produce; as also any person exclusively making supply of non-taxable or wholly exempted goods and/or services under GST law will not be liable for registration.
No. The supplier firstly needs to obtain registration in case of Inter-State supplies irrespective of his turnover.
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