According to GST rules, it’s mandatory for a business that contains a turnover of above Rs.40 lakh to register as a standard taxable entity. This is stated as the GST registration process. The turnover is Rs.10 lakh for businesses that are there in bluff states and North-Eastern states. The registration process will be completed within 6 working days.
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About GST Registration
GST registration will be done easily at the net GST portal. Business owners can fill a form on the GST portal and submit the required documents for registration. It is mandatory for positive businesses to complete the GST registration process. It is a criminal offense if these businesses perform operations without registering for GST and heavy penalties are levied for non-registration.
What is the easy and simple step-by-step procedure to complete GST Registration?
The step-by-step procedure that individuals must follow to finish GST Registration is mentioned below:
- First, individuals must visit the GST portal (https://www.gst.gov.in/).
- Next, the individual must click on the ‘Register Now’ link which will be found under the ‘Taxpayers’ tab.
- Next, the individual must select ‘New Registration’.
- On an equivalent page, the individual must fill the below-mentioned details:
- Under the ‘I am a’ drop-down menu, select ‘Tax payer’.
- Select the respective district and the state from the drop-down menu.
- Enter the name of the business.
- Enter the PAN of the business.
- Enter the e-mail ID and mobile number within the respective boxes. The entered email ID and mobile number must move as OTPs are sent to them.
- Enter the image that’s shown on the screen within the respective box and click on on ‘Proceed’.
- On following page, enter the OTP that was sent to the e-mail ID and mobile number within the respective boxes.
- Once the main points are entered, click on ‘Proceed’.
- Individuals are going to be shown the Temporary Reference Number (TRN) on the screen. It is vital that they create a note of the TRN.
- Next, individuals must visit the GST portal again and click on on ‘Register’ which is present under the ‘Taxpayers’ menu.
- Next, select ‘Temporary Reference Number (TRN)’.
- Next, individuals must enter the TRN and therefore the captcha details.
- Once the main points are entered, click on ‘Proceed’.
- Individuals will receive a verification code on their email ID and registered mobile number. Enter the OTP on following page and click on on ‘Proceed’.
- The status of your application will be available on the next page. On the right hand side side, there’ll be an Edit icon, click on that.
- There will be 10 sections on the next page. All the relevant details must be filled, and therefore the necessary documents must be submitted. The list of documents that has got to be uploaded are mentioned below:
- Address proof where the business is located.
- Bank details such as account number, bank name, bank branch, and IFSC code.
- Authorisation form
- The constitution of the taxpayer.
- Once all the above-mentioned details are entered, individuals must visit the ‘Verification’ page. Once individuals check the declaration, they need to submit the appliance by using one amongst the below mentioned methods:
- By using an Electronic Verification Code (EVC). The code will be sent to the registered mobile number of the applicant.
- By using the e-Sign method. An OTP will be sent to the mobile number that has been linked with the Aadhaar card.
- In case companies are registering, the appliance must be submitted by using the Digital Signature Certificate (DSC).
- Once the above step is completed, a success message are going to be shown on the screen. The Application Reference Number (ARN) are sent to the registered mobile number and email ID.
- Individuals can check the status of the ARN on the GST portal.
Types of GST Registration
Under the GST Act, GST Registration will be of varied types. It is vital that the taxpayer is conscious of the various sorts of GST Registration and selects the acceptable one. The different sorts of GST Registration are mentioned below:
- Normal Taxpayer: Most of the companies in India fall into this category. The applicant need not provide any deposit so as to become a standard taxpayer. There is also no expiry date for taxpayers who fall into this category.
- Casual Taxable Person: Individuals who wish to line up a seasonal shop or stall can choose this category. An advance amount that is equal to the expected GST liability during the time the stall or seasonal shop is present must be deposited by the taxpayer. The duration of the GST Registration under this category is 3 months and it are often extended or renewed.
- Composition Taxpayer: Taxpayers who wish to obtain the GST Composition Scheme can opt for this type of GST Registration. A flat GST rates must be deposited by taxpayers who opt for GST Registration under this category. Input tax credit cannot be obtained by taxpayers who come under this category.
- Non-Resident Taxable Person: Just in case individuals live outside India, but supply goods to individuals who stay in India, must choose this sort of GST Registration. Similar to the Casual Taxable Person type of GST Registration, taxpayers must pay a deposit that is equal to the expected GST liability during the time the GST registration is active. The duration for this sort of GST registration is typically 3 months, but it are often extended or renewed at the sort of expiry.
- 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
Who should complete the GST Registration?
GST Registration will be completed by the below-specified individuals and businesses:
- Individuals who have certified under the tax services before the GST law came into effect.
- Non-Resident Taxable Person and Casual Taxable Person
- Individuals who pay income tax under the reverse charge system
- All e-commerce aggregators are required to register for GST
- Businesses who have a turnover that exceeds Rs.40,00,000. In the case of Himachal Pradesh, Uttarakhand, Jammu & Kashmir, and North-Eastern states, the turnover of the business should exceed Rs.10 lakh.
- Input service distributors and agents of a supplier
- Individuals who supply goods through an e-commerce aggregator.
- Individuals who are providing database access and online database from outside India to folks that alive in India aside from people who are registered taxable personS must complete GST Registration.
What are the documents that are required to finish the GST Registration?
The below-mentioned documents are required to finish the GST Registration:
- Permanent Account Number (PAN) of the applicant
- Aadhaar card of the applicant
- The bank account statement of the applicant, as well as a cancelled cheque, must be submitted
- The address proof where the business is found must tend
- The Incorporation Certificate or the company registration proof must be submitted
- The Digital Signature must be given
- The Director’s or Promoter’s address proof and identity proof must be submitted along with their photographs.
- The Authorised register must receive the Letter of Authorisation or Board Resolution.
What is the penalty just in case individuals or businesses don’t complete GST Registration?
In case the offender does not pay tax or makes a payment that is lesser than the amount that must be paid (due to genuine errors), the penalty that is levied is 10% of the tax amount that is due. However, the minimum penalty that has got to be paid is Rs.10,000.