Goods and Service Tax (GST) is an indirect tax applicable in India for the supply of goods or services. To do business in India you must get GSTIN (Goods and service tax identification number) except exempted categories.
GSTIN is a unique 15-digit code that’s allocated to each taxpayer that has valid GST registration in India. It is based on PAN and the State of the taxpayer.
What is GST and how does it work?
Excise and service tax was previously levied on the supplies of goods and services. In 2001, when the Group of Ministers was constituted, it recommended a new indirect tax that should replace these taxes and should be more efficient and effective.
The Goods and Services Tax (GST) was formulated by the GST Council, chaired by the Union finance minister and comprising of representatives from all the States.
GST was introduced on 1 July 2017. So, all the vendors and service providers were required to register themselves with the tax officials. The registration would be done based on the GSTIN (GST identity number).
GST would replace several taxes levied by the central and state governments. It would offer a single tax rate under which all goods and services would be taxed
Who needs to register for GST?
GST Registration is compulsory for the following individuals and businesses:
- Business owner who has registered under the Service Tax/Excise before the GST law came into effect.
- NRI (Non-Resident Indian) Taxable Person and Casual Taxable Person
- Person taxable under the reverse charge mechanism
- All e-commerce aggregators
- Businesses that have the following turnover:
Manufacturing Sector – 40 lakhs
The Service sector – 20 lakhs
In North-Eastern states – 10 lakhs
- (For North-Eastern states, Uttarakhand, Himachal Pradesh & Jammu & Kashmir, the turnover of the business should be more than Rs.10 lakh.)
- Distributors and agents of a supplier who is providing Input services.
- Persons who supply goods through an e-commerce aggregator.
- Persons providing database and online information from outside India to people who live in India other than those who are registered taxable persons.
Exempted Categories Under GST
Following Persons/Entity are exempted from GST registration:
- Businesses that manufacture supplies that come under reverse charge.
- Activities that do not come under the supply of goods or services.
- E.g., funeral services, sale of land and services provided by an employee.
- Businesses that make non-GST/ non-taxable supplies to employer
- E.g., electricity generation & supply, natural gas, high-speed diesel, and petrol.
- Businesses that make exempt/ nil-rated supplies.
- Businesses that fall under the threshold exemption limit.
CGST | SGST | IGST
CGST– Central Goods and Service Tax: levied by Central Government for the Intra-State Supply
SGST– State Goods and Service Tax: levied by State Government for the Intra-State Supply
IGST– Integrated Goods and Service Tax: levied by Central Government paid for Inter-State Supply
Online GST Registration Process
Following steps are to be followed for completing the online GST registration process:-
- Step 1: Visit the GST portal – https://www.gst.gov.in
- Step 2: Click on the ‘Register Now’ link which can be found under the ‘Taxpayers (Normal/TDS/TCS)’ tab
- Step 3: Select ‘New Registration’.
- Step 4: Fill the below-mentioned details:
- First in ‘I am a’ drop-down menu, you have to select ‘Taxpayer’.
- Select your state and district.
- Enter the name of the business.
- Enter the PAN of the business.
- Enter the email ID and mobile number in appropriate boxes. You should use only active email-id and mobile number as OTP will be sent on such number.
- Enter the image(captcha) that is shown on the screen and click on ‘Proceed’.
- Step 5: On the next page, enter the OTP (One Time Password) that was sent to the email ID and mobile number in the respective boxes.
- Step 6: After entering details, click on ‘Proceed’.
- Step 7: You will get the TRN (Temporary Reference Number) displayed on the screen. Note down TRN.
- Step 8: Revisit the GST portal and click on ‘Register’ under the ‘Taxpayers (Normal/TDS/TCS)’ tab.
- Step 9: Choose ‘Temporary Reference Number (TRN)’.
- Step 10: Enter the TRN and the image(captcha) details.
- Step 11: Click on ‘Proceed’.
- Step 12: After getting OTP on your email ID and registered mobile number,enter the OTP and click on ‘Proceed’.
- Step 13: On next page status of your application will be displayed. On the proper side, there’ll be an Edit icon, click thereon.
- Step 14: On next page there will be 10 sections. Fill details and submit necessary documents. Documents are to be uploaded are as follows: -:
- Address Proof of place of Business
- Bank details will be required( such as account number, name of bank, bank branch name, and IFSC code of bank branch.
- Authorisation form
- The constitution of the taxpayer.
- Step 15: Check the declaration on verification page, then submit the application by using one of the below mentioned methods:
- By Electronic Verification Code (EVC). You will get code on your registered mobile number.
- By e-Sign method. An OTP is going to be sent to the mobile number linked to the Aadhaar card.
- The application must be submitted by using the Digital Signature Certificate (DSC), in case of companies.
- Step 16 You will get application submitted successfully on screen after successful verification. The Application Reference Number (ARN) is going to be sent to the registered mobile number and email ID.
- Step 17: Check your status of the ARN on the GST portal.
Documents required for GST Registration
For Proprietor/ Individual
Bank Account details
For Partnership Firm or LLPs
Partnership Deed / Article of Partnership
In the case of LLP its registration Proof
PAN Card of all Partners
Address Proof of all Partners
AADHAR Card of any authorised signatory
Appointment proof of signatory
Photograph 0f Partners
Address Proof of Business Principal place
For Hindu Undivided Families
HUF PAN card
Karta PAN card
Address Proof of Business Principal place
For Private Limited Company
Company PAN Card
Proof of Constitution of Business: Certificate of Incorporation
Memorandum/Article of Association
Photo of the Promoter/Directors
PAN card of all Directors
AADHAR card of all Directors
Address Proof of all Directors
Photo of the Authorised Signatory
Proof of Appointment of Authorised Signatory: Letter of Authorisation
Copy of Resolution passed by BOD/ Managing Committee and Acceptance letter
Authorised Signatory PAN Card & AADHAR CARD
Proof of Principal Place of business
PAN card of society and its members
Photo of Stakeholder
Photo of the Authorised Signatory
Proof of Appointment of Authorised Signatory
Proof of Principal Place of business (Any One)
GST Registration Via Authentication of Aadhaar
New businesses can secure their GST registration with the assistance of the Aadhaar. The process is simple and quick. The procedure to opt for Aadhaar authentication is as follows:
- When you apply for GST registration, you will be provided with an option to choose Aadhaar authentication.
- Select ‘YES’. The authentication link will be sent to the registered email ID and mobile number.
- Click on the authentication link.
- Enter the Aadhaar number and select ‘Validate’.
- Once the details have been matched, an OTP will be sent to the registered mobile number and email ID.
- Submit the OTP to complete the process. New GST registration will be given within three working days if no additional information is required by department.
Online GST Registration Fees
No fees are charged for online GST Registration
Penalty for Not Registering or Late Registering Under GST
For failure of payment of tax or amount of tax paid is less than actual due amount, the penalty that is levied is 10% of the due amount subject to a minimum penalty of ₹100000 (in case of genuine errors and default is not willful).
If you have not registered for GST and are deliberately trying to evade tax, the penalty levied is 100% of the due tax amount.
Download the GST Registration Certificate
The procedure to download the GST Registration Certificate is mentioned below:
- Step – 1: Visit https://www.gst.gov.in/
- Step – 2: Click on ‘Login’.
- Step – 3: Enter the username and password.
- Step – 4: Click on ‘Login’.
- Step – 5: Next, go to ‘Services’.
- Step – 6: Go to ‘User Services’.
- Step – 7: As per your requirement select ‘View/Download Certificates’.
- Step – 8: On the next page, click on ‘Download’. The certificate will have details of the tax transactions.
Check GST Registration Status
- Visit GST official portal at https://www.gst.gov.in/.
- Click to ‘Services’ > ‘Registration’ > ‘Track Application Status’.
- Enter your ARN number and Captcha code. Next click on SEARCH button.
- Finally, you will receive any of the following GST registration status on your screen:
- Provisional status
- Pending for verification status
- Validation against error status
- Migrated status
- Cancelled status
IMPORTANT KEY POINTS
- There are no charges for GST registration process.
- GST registration is mandatory for businesses that have an annual more than threshold limit
- GST registration must be completed in each state, where supply is provided.
- In case businesses do not complete the registration process, 10% of the amount that is due or Rs.10,000 will be levied. In the case of tax evasion, 100% of the amount that is due will be levied as a penalty
You can easily get registered yourself on GST Portal by following the above steps
To avoid penalties, you should get yourself registered on GST Portal.
FAQ ( Frequently Asked Questions)
Q1. What is the prescribed time limit to obtain a GST certificate as per GST law?
Ans. Each person who is liable to be enrolled under GST will apply within 30 days from the date on which he becomes obligated to get registered under GST Law.
Further, a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days preceding the initiation of business.
Q2. Regardless of whether an individual having various business verticals in a State or Union region can get various registration for every one of such verticals?
Ans. Indeed, an individual having numerous business verticals in a State or Union region may get a different registration for every business vertical, subject to such conditions as might be prescribed.
Q.3 Is there an arrangement for an individual to get himself intentionally registered however he may not be liable to pay GST?
Ans. Indeed, an individual, however not obligated to be enrolled under GST, may get himself registered intentionally.
Q.4 Is it is necessary to have PAN(Permanent Account Number) for GST registration.
Ans. Yes. Each individual ought to have a Permanent Account Number gave under the Income Tax Act, 1961 to be qualified to get registered under GST
Q.5 Whether the appropriate Officer can dismiss an Application for Registration?
Ans. . Yes. The proper officer can reject the Application for registration if after filling the Application of registration, the proper officer issued notice for further clarification and no response or no satisfactory response is given by the applicant.
Q6. Whether the GST Registration obtained by any person is permanent?
Ans. Yes, the registration once granted to any person is permanent except for non-resident taxable person and casual taxable person unless surrendered, cancelled, suspended.
Q.7 What will be the effective date of registration?
Ans. Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be the date on which he becomes liable for registration.
Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
In case of suomoto registration, i.e. registration according to any survey, enquiry, inspection, search or any other proceedings, the effective date of registration shall be the date of order of registration.
Q.8 Whether Amendments to the Registration Certificate is permissible?
Ans. Yes. In terms of Section 28, the proper officer may based on such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration.