The GST, or Goods and Services Tax, is an indirect tax on the sale of goods and services. Since its implementation on July 1, 2017, it has effectively reduced other indirect taxes levied on goods and services. Manufacturers, Service Providers, Retailers, and Consumers must only pay GST from their respective ends instead of VAT, excise duty, service tax, and other taxes. This article explains how to register for GST online, which is required for any company with annual revenue of more than 20,00,000 INR.
What is GST registration?
Every business with annual revenue of 20,00,000 INR or more is required to register for GST. The process is entirely online, and it must be completed through the GST portal on the Indian government’s website. Upon registration, firms are assigned a unique 15-digit GSTIN registration number based on their PAN and state of registration. This unique number can be used to apply for refunds and loans. It also facilitates the verification procedure.
The Goods and Service Tax website allows you to verify your GSTIN online.
How to complete the GST registration process online?
The following is online GST registration process step by step breakdown:
- Visit the GST portal. Click on ‘Service’ and then ‘New Registration’ under the ‘Registration’ Tab.
- Fill in the information about your company. You must enter your company’s PAN number as well as the legal name of your firm as it appears on your PAN card. OTPs will be sent to the supplied email address and phone number. When you’re finished, click ‘Proceed.’
- Input the two OTPs you got in the previous step. If you don’t get the OTP, click the ‘Resend OTP’ button. After you’ve entered your OTPs, click the ‘Continue’ button.
- A 15-digit Temporary Reference Number will be assigned to you (TRN). It will also be sent to the registered phone number and email address. Make a note of it.
- Step 1 is repeated, but instead of clicking on ‘New Registration,’ click on ‘Temporary Reference Number’ under the ‘Registration’ Tab.
- Enter the Temporary Reference Number (TRN) you were given. Complete the captcha and click the ‘Proceed’ button.
- Another OTP will be sent to your registered phone number and email. Click on ‘Proceed’ after entering the OTP.
- Your application will appear as a draft. Click on the Edit icon.
The second part of registration starts. You need to complete this within 15 days of completion of Step 4. You will need the following documents in this part:
- Tax payer’s Constitution
- Address proof of the organization
- Details of Bank Account
- Aadhaar authentication of partners/promoters and authorized signatory.
- You must submit a trade name, business constitution, and district under the Business section. You must also indicate if you want to participate in the composition in the area “Option for composition” and your registered person category. After that, you must state the date of the business’s inception as well as the date on which liability begins. You must also choose whether you will register as a common taxable person or not. If that’s the case, create the challan by giving tax information in advance. You must also indicate your reason for registration and fill out the areas that arise as a result of your reason for registration.
- When you’re finished, the ‘Save and Continue’ button will become blue. Click on it.
- You may add up to 10 Promoters or Partners under the Promoters/Partners page. Personal information, such as name, address, and PAN and Aadhaar numbers, as well as photographs of the individuals, must be given. If the promoter or partner is an authorized signatory, another selection is required. When you’re finished, click ‘Save and Continue.’
- Similar to Step 9, you must submit data of the approved signatory under Authorized Signatory.
- You must give details about your business location, contact information, and the sort of work performed at that location under Principal Place of Business Details. Make the appropriate selections and add data if you have a second company location. When you’re finished, click ‘Save and Continue.’
- Under Goods and Services, you need to add a maximum of 5 goods and services with HSN codes or SAC.
- Under Bank accounts, you need to add details of the taxpayer for up to 10 bank accounts. Click on ‘Save and Continue’ after you are done.
- You must give the Professional Tax employee code number, Professional Tax Registration Certificate number, State Excise License number, and Name of the Person Holding the State Excise License under specific information. When you’re finished, click ‘Save and Continue.’
- You must confirm the promoters/partners’ and authorized signatory’s Aadhaar information under Aadhaar authentication. Unless there are exceptional circumstances, physical verification of the location is not necessary if the authorized signatory opts in for authentication.
- You must verify your information using one of the methods listed under Verification. Organizations and businesses must use DSC. Individuals can obtain OTP in their Aadhaar-linked phone number using e-Sign or in their registered phone number using EVC.
- You’ll receive an email and a text message confirming your registration, as well as the Application Reference Number (ARN).
You can also track the progress of your registration online by using the Application Reference Number by visiting this portal.
Who is eligible to register under GST?
The following is a list of people who are qualified to register for GST:
- Individuals who have registered under tax services before July 1, 2017
- Non-Resident and Casual Taxable Individuals
- Individuals taxed under the Reverse Charge mechanism
- Aggregators of e-commerce
- Business with an annual turnover exceeding 40,00,000 INR. (The limit is set to 10,00,000 INR for Jammu & Kashmir, Himachal Pradesh, Uttarakhand and other states in the North-East of India)
- Distributors and agents that provide input services to a provider
- Individuals who provide products via aggregators of e-commerce
- Individuals from outside India who provide database access and online information to non-registered taxable individuals in India.
GST Registration Fees
The online portal of Goods and Service Tax does not charge any fees for the GST registration procedure. Upon completion of the process, you will receive the Application Reference Number or ARN on your registered phone number and email address.
Penalty for not registering or late registering under GST
GST eligible individuals and companies must register for the same on the due date. In case of not registering or late registering, certain penalties are imposed.
Any individual or company who registers late or fails to register for GST must pay the highest amount between 10,000 INR or the amount of evaded tax as a penalty. This penalty is applicable under Section 122 of the CGST Act.
Mr A failed to register for GST and owes a total of 9,000 INR in unpaid taxes. As his avoided tax amount does not exceed 10,000 INR, he must pay a penalty of 10,000 INR.
Mr B also failed to register for GST, resulting in total tax evasion of 11,000 INR. As a result, he must pay a penalty of 11,000 INR because his avoided tax amount surpasses 10,000 INR.
GST Registration Certificate
A GST Registration Certificate is a legal e-document that verifies a person’s GST registration. It is only given out following a successful GST registration, and it is not a tangible copy. The certificate must be displayed at the registered organization’s principal business location, as well as any secondary sites if there are any. Failure to do so will result in a 25,000 INR fine.
The Registration Certificate does not have an expiration date; it will expire when the holder’s GST Registration expires.
Contents of GST Registration Certificate
A primary certificate including Annexure A and B make up the GST registration certificate. The contents of each of them are listed below.
The Primary Certificate holds:
- Taxpayer’s GSTIN
- Legal Name of the Organization
- Trade Name of the Organization
- Business Constitution Type
- Primary Business Location
- Liability Date
- Validity period
- Registration type
- Details of the approving authority
Annexure A holds:
- Secondary Business Locations (if provided during registration)
Annexure B holds:
- List and Details of the persons in charge of the Taxpayers.
Steps to download the GST registration certificate
Here is a step by step procedure for downloading the GST registration certificate
- Visit the GST portal and log in.
- Click on ‘User Services’ under the ‘Services’ Tab. Next, Click on ‘View/Download Certificate’.
- Click on the Download icon.
It’s a good idea to print the certificate because it will need to be displayed at your business locations.
Types of GST Registration
There are four major GST registration types namely,
- Normal Taxpayer
This category holds most of the businesses. To register as a regular taxpayer, you don’t have to put down any money as a deposit. In addition, people who fit under this group have no expiration date.
- Casual Taxable Individual
This category holds the individuals who are looking to start a new stall business. During the time the stall or seasonal store is open, you have to deposit an advance amount equivalent to the estimated GST liability. The GST registration is valid for 90 days for those under this category. However, it can be extended or renewed after expiry.
- Composition Taxpayer
This category holds the people who are looking to receive the GST Composition Scheme. You have to deposit a flat under this category.
However, you won’t be able to get the Input Tax credit.
- Non-Resident Taxable Individual
This category holds non-resident individuals who provide database access and online information to non-registered taxable individuals in India. Same as casual taxable individuals, you have to deposit an advance amount equivalent to the estimated GST liability for the period the GST registration is valid. The period of validity is 90 days that can be extended or renewed after expiry.
Advantages of GST registration
Following are a few of the GST benefits that can be obtained after registration:
- Overall Low Tax Amounts:
GST offers a lower total tax burden than the old system of several indirect taxes on services and commodities. The fundamental goal of the GST is to consolidate all of these indirect taxes and tax the whole amount of money spent on services and commodities.
- Higher registration threshold:
Most states had a minimum registration barrier of 5,00,000 INR for VAT before July 1, 2017. The threshold was raised to 20,00,000 INR when the GST went into force. As a result, businesses having a turnover between the amounts benefit from non-mandatory tax registration.
- Small Business Composition Plan:
Small companies benefit from GST registration through a composition scheme. The company is qualified for the plan if it has a turnover of between 20 – 75,00,000 INR. It gives such growing companies the stability of a lower tax burden and more flexibility to expand. However, there are certain exclusions such as ice cream or pan manufacturers, interstate suppliers, non-resident or casual taxable individuals, and businesses that use e-commerce operators.
- Online hassle-free procedure:
The Goods and Service Tax site makes the procedure for registration under GST simple and quick online. It’s undoubtedly more preferable than registering for various taxes on products, such as VAT, Excise, and Service Tax, all over again.
- Fewer Compliances
In comparison to the pre-GST era, GST provides a single unified return rather than the several compliances and returns provided by VAT, Excise, and Service Taxes.
- E-commerce treatment
E-commerce was given a distinct status under GST, which eliminated inter-state disputes.
- Improved Logistics
Companies throughout India won’t have to build and manage warehouses in multiple states to avoid CST and State Entry Taxes thanks to GST’s increased logistical efficiency. The interstate goods transportation businesses made greater money as a consequence.
- Organization of Previously Unorganized Sectors:
GST also reorganized the textile and construction industries, which were previously unorganized as of July 1, 2017. It helped the business while also bringing responsibility and regulation to these sectors.
Exemption on GST Registration
According to the Government of India, the following taxpayers are excluded from GST registration:
- Agriculturists – People who supply products out from their cultivating land are exempt from GST registration.
- People below the threshold limit – It is non-mandatory for companies with a turnover of less than 20,00,000 INR to register for GST. The limit is 10,00,000 INR in multiple north-eastern states including Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and many others.
- People making exempt supplies – GST registration is not required for those who provide exempt and nil-rated supplies. Unprocessed food, education, local and overnight train travel, healthcare without medications, hotel and lodge stays for less than 1,000 INR rent, colouring books for youngsters, and accessories like bangles, bindis, and sindoors are among the exempt and Nil rated products and services.
- People making non-taxable supplies – GST registration is not required for those who provide non-taxable and non-GST supplies. Crude Petroleum, Petrol, High-speed diesel, Natural Gas, Electricity, Alcohol for Human Consumption, and Aviation Turbine Fuel are among the items on the list.
- People with activities not considered as service or supply of goods – GST registration is not required for persons who provide services to any organization, any court or tribunal, funerals, property and building sales, auctions, or those who hold political positions
People making supplies under reverse charge – People who make supplies under reverse charge are excluded from GST registration, according to Notification No. 5/2017 issued by the Central Government on June 19, 2016.
The GST registration process is totally free online. The Application Reference Number, or ARN, will be sent to your registered phone number and email address. However, if you used a CA to help you with GST registration, you must still pay his or her costs.
Yes. A copy of the GST registration certificate must be displayed in each business location listed on Form GST REG-06.
It is required that all promoters/partners submit aadhaar authentication throughout the registration procedure. If the authorized signatory opts for authentication, officers will not need to physically verify the stated business location unless specific difficulties emerge.
GST composition plan is available to businesses with a turnover of between 20 and 75,00,000 INR. However, there are certain exclusions such as ice cream or pan makers, interstate suppliers, non-resident or casual taxable persons, and businesses that use e-commerce operators
The GST registration of a non-resident taxpayer is valid for 90 days. When it expires, it can be extended or renewed.