GST Online Registration Guide
Individual businesses with an annual turnover of more than Rs. 40 lakhs must register for GST. However, the turnover is Rs.10 lakh for businesses that are situated in North-Eastern states and hill states. All companies that are currently registered for central excise, service tax, or VAT must register under GST through a new GST registration method. The online approach makes it quite easy for business owners to register for GST just by filling out a form on the GST portal and then submitting the required documents. The GST registration process must be completed by each individual business.
By voluntarily registering for GST, a business can reap the benefits. Within 2-6 working days, the entire registration process can be finished.It is a criminal violation to do business without first registering for GST, and non-registration carries severe penalties.
What is GST?
The GST is one of the most significant tax reforms in the country’s history. It is a single tax that replaced all previous various taxes, such as Central Excise, VAT, Octroi, Entry Tax, Service Tax, and so on. GST was implemented on July 1, 2017 all over the country. The Goods and Services Tax (GST) is a destination-based tax that operates on a dual model, with both the state and central governments levying taxes on all goods and services. All firms must obtain a GST number for each state in which they are registered.
Under the GST regime, it is best to first determine whether the firm is required to register for a GSTIN, (Goods and Services Tax Identification Number) and then register accordingly.
Who is Eligible for GST Registration?
Individuals and businesses must register for GST in the following ways:
- Individuals who registered for tax services prior to the implementation of the GST law.
- Casual Taxable Person and Non-Resident Taxable Person
- Individuals who pay taxes via the reverse charge system.
- Each and every e-commerce aggregator
- Businesses with a turnover of more than Rs.40 lakh. The business’s turnover in Uttarakhand, Jammu & Kashmir, Himachal Pradesh, and the North-Eastern states should exceed Rs.10 lakh.
- Input service distributors and agents of a supplier.
- Individuals that work with an e-commerce aggregator and supply goods.
Important Points about GST Registration
Here are some key points to remember when it comes to GST registration. Continue reading:
- There is no cost associated with registering for GST.
- Every company with total yearly revenue of more than Rs. 20 lakhs are required to register for GST.
- In India, there are 11 states that have been granted special status. Arunachal Pradesh, Manipur, Jammu and Kashmir, Nagaland, Mizoram, Sikkim, Uttarakhand, Tripura, Assam, Himachal Pradesh, and Meghalaya are among the states mentioned. If a company’s yearly turnover exceeds Rs. 10 lakhs in one of these states, it must register.
- If the supply is made in more than one state, it must be registered in each one.
- If there are many branches in different states, one branch must be designated as the main branch and the others as additional. This does not apply to firms with distinct verticals, as defined in Section 2(18) of the GST Act of 2017.
- Businesses who fail to register for GST are subject to a minimum penalty of Rs 10,000, or 10% of the required amount.
Steps to do Online GST Registration Process in GST Portal (gst.gov.in)
The following is a step-by-step procedure that persons must follow to complete GST Registration:
- First of all, you need to visit the GST portal
- On the home page, you will find the ‘Taxpayers’ tab. Two options will be available under this tab. One is ‘Register now’ and another is ‘Find a GST Practitioner’. Here you need to click on the ‘Register Now’ option.
- A new window will open in front of you. Here you need to select the ‘New Registration’ option.
- Now fill in all the required details mentioned below:
- Choose the ‘Taxpayer’ option under ‘I am a’ drop-down menu.
- Then choose your respective state and district.
- Type the Legal name of your business. This is a mandatory step.
- Enter your PAN (Permanent Account Number) of the business.
- Type your email ID and mobile number in the respective boxes. Make sure the email ID and mobile number you enter is active as OTPs will be sent to them.
- Enter the image shown on the screen and click on the ‘Proceed’ option.
- Again a new page will open. Here you need to type the OTP that was sent to the email ID and mobile number in the respective boxes.
- Click on the ‘Proceed’ option once the details have been entered correctly.
- A Temporary Reference Number (TRN) will be shown on the screen. You need to make a note of the TRN.
- Now you need to visit the GST portal again and press the ‘Register’ under the ‘Taxpayers’ menu.
- Here you need to select the Temporary Reference Number (TRN)’.
- After that type, the TRN and the captcha details then press the ‘Proceed’ option.
- On the next page enter the OTP which you will receive on your email ID and registered mobile number and then click on the ‘Proceed’ option.
- Now the status of the application form will be available on the next page. There will be an Edit option present on the right side, click on it.
- Now you will see the 10 sections on the next page. You need to fill in all the required information and submit the necessary documents. Below is the list of documents that must be uploaded:
- Business address proof
- Bank details such as account number, bank branch, bank name, and IFSC code.
- Authorization form
- The constitution of the taxpayer.
- Go to the ‘Verification’ page and check the declaration, after that submit your application by using any one of the methods mentioned below:
- Electronic Verification Code (EVC). The code shall be sent to the registered mobile number.
- E-Sign method. An OTP shall be sent to the mobile number linked to the Aadhaar card.
- For companies who are registering, the application must be submitted by using the Digital Signature Certificate (DSC) method.
- Finally, a success message will be shown on the screen once completed. The Application Reference Number (ARN) will be sent to the registered email ID and mobile number.
- You can easily check the status of the ARN on the GST portal.
Procedure to do GST registration through Aadhaar authentication?
With the use of Aadhaar, new enterprises can secure their GST registration. The procedure is straightforward and quick. The new procedure went into effect on August 21, 2020. The following is the procedure for requesting Aadhaar authentication:
- You will be given the option of using Aadhaar authentication when you register for GST registration.
- Choose ‘YES’. The authentication link will be emailed to the email address and phone number provided during registration.
- Press the authentication link.
- Select ‘Validate’ after entering the Aadhaar number.
- An OTP will be given to the registered mobile number and email address once the details have been verified.
- To finish the process, enter the OTP. Within three working days, you will receive your new GST registration.
GST Registration Types
GST Registration can take many forms under the GST Act. It’s essential to understand the various types of GST Registration before deciding which one is right for you. The following are the various forms of GST registrations:
- Normal Taxpayer: This is the case for the vast majority of enterprises in India. To become a regular taxpayer, you do not need to make a deposit. There is likewise no deadline for taxpayers who fall under this category.
- Casual Taxable Person: This category is for people who want to open a seasonal shop or stall. During the time the stall or seasonal shop is open, you must deposit an advance amount equivalent to the expected GST liability. The validity of GST Registration in this category is for 3 months and can be extended or renewed.
- Composition Taxpayer: If you want to get the GST Composition Scheme, fill out this form. You will need to place a flat in this category. This category does not qualify for the input tax credit.
- Non-Resident Taxable Person: This form of GST Registration is for people who live outside of India yet sell commodities to people who live in India. During the time the GST registration is active, you must pay a deposit equal to the expected GST liability, the same as the Casual Taxable Person type. This sort of GST registration normally lasts three months, however, it can be extended or renewed at any time.
- Non-Resident Online Service Provider
- Special Economic Zone Developer
- GST TDS Deductor – Government Entities
- UN Embassy/ Body/ other notified individuals
- Special Economic Zone Unit
- GST TDS Collector – E-commerce Companies
Documents needed at the time of GST Registration
The following are the documents you’ll need to finish your GST registration:
- PAN card (a government issued identification card).
- Aadhaar card.
- Director’s or Promoter’s ID proof, address proof, and photograph.
- Letter of Authorisation or Board Resolution from Authorised Signatory.
- Bank account statement and cancelled cheque.
- Business address proof.
- Incorporation Certificate or the business registration proof.
- Digital Signature.
GST Registration Fees
There will be no fee if you finish the GST Registration process online. An Application Reference Number (ARN) will be provided through SMS and email to confirm the registration once all of the necessary papers have been uploaded.
Penalty for not completing GST Registration
If you do to pay tax or pay less than what is due, you will be charged a penalty of 10% of the amount owed (in case of genuine errors). The minimum penalty, however, is Rs.10, 000. The penalty charged if you have not registered for GST and are attempting to dodge tax is 100 percent of the due tax amount.
Procedure to download GST Registration Certificate?
The steps to obtain the GST Registration Certificate are as follows:
- Fill in the username and password on the next page.
- Select ‘Login’ from the drop-down menu.
- After that, select ‘Services.’
- Choose ‘User Services’.
- Select ‘View/Download Certificates’.
- On the following page, select ‘Download.’ The tax transactions will be detailed on the certificate.
Procedure to check GST Registration Status
- Go to https://www.gst.gov.in/ to access the official GST website.
- To track the status of your application, go to ‘Services’ > ‘Registration‘ > ‘Track Application Status.’
- Fill in your ARN number as well as the Captcha code.
- Then press the SEARCH button.
- Finally, your screen will display one of the following GST registration statuses:
- Provisional status
- Pending for verification status
- Validation against error status
- Migrated status
- Cancelled status
FAQ about GST
Businesses with a turnover of more than Rs.40 lakh are required to register for GST under GST guidelines. The total turnover for the northeastern states of Jammu & Kashmir, Uttarakhand, and Himachal Pradesh is Rs.10 lakh. Furthermore, the following items must be registered for GST in the country:
Person who provides online information and database access or retrieval services to a non-registered taxable person from a location outside India.
Every e-commerce aggregator
An individual who sells through an e-commerce aggregator.
Individuals who were previously registered under the pre-GST law.
Those who are subject to the reverse charge mechanism.
Agents who work for a supplier.
Distributor of input services
To obtain a GST number, go to the GST site, www.gst.gov.in, and fill out an application for GST registration. To get started, you’ll need a valid email address, a cell phone number, and a company PAN.
PAN, business address proof, Aadhaar, bank account statement, canceled cheque, business registration proof or the incorporation certificate, digital signature, photograph, address proof, and ID proof of the director or promoter, board resolution or letter of authorization from the state will be required to complete GST registration.
When it comes to GST registration, the government does not impose any costs. However, because the registration process is time-consuming, a chartered accountant or consultant may charge you a professional fee.
Is it possible for me to give up my GST number?
Yes, you can give up your GST number. However, you can only do so after a year has passed since your enrolment.