Finding it hard to go through the online GST registration process? If the answer is yes, we can help you. Knowing the correct procedure can make the task easy-breezy for you. Read this article and get answers to all your questions related to the online GST registration process.
What is GST?
Also known as the Goods and Services Tax, GST is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words, Goods and Service Tax (GST) is imposed on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, destination-based tax that is levied on every value addition.
What is GST Registration?
The process through which a taxpayer gets registered under Goods and Service Tax (GST) is known as GST registration. Once the registration process is complete, the Goods and Service Tax Identification Number (GSTIN) will be provided. This 15-digit GSTIN provided by the Central Government helps to determine whether a business is liable to pay GST.
According to the GST rule, if a business has a turnover of more than 40 lakhs, it is mandatory for them to register as a normal taxable entity. This is known as the GST registration process. If someone is present in hill states and North Eastern states, the turnover is 10 lakhs for them. The GST registration process should be completed within 6 working days.
If you want to do GST registration, you can do it through the online GST portal. You need to fill a form on the GST portal and submit the necessary documents for registration. It is necessary to complete the GST registration process, else heavy penalties will be levied for non-registration.
Who is Eligible to Register Under GST?
GST Registration must be completed by the following individuals and businesses:
- Individuals who have registered under the tax services before the GST law came into effect.
- Non-Resident Taxable Person and Casual Taxable Person
- Individuals who pay tax under the reverse charge mechanism
- All e-commerce aggregators
- Businesses that have a turnover that exceeds Rs.40 lakh. In the case of Uttarakhand, Himachal Pradesh, 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 providing database access and online information from outside India to people who live in India other than those who are registered taxable persons.
Types of GST Registration
Under the GST Act, GST Registration can be of various types. You must be aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:
Normal Taxpayer
The major chunk of businesses in India falls under this category. You don’t have to provide any kind of deposit to become a normal taxpayer. No expiry date is there for the taxpayers who fall under this category.
Casual Taxable Person
Individuals who want to set up a seasonal shop or stall fall under this category. An advance amount equal to the expected GST liability during the time the stall or seasonal shop is operational should be deposited. The duration of the GST Registration under this category is 3 months and it can be extended or renewed.
Composition Taxpayer
In case, you want to obtain the GST Composition Scheme, you need to apply for this. You will have to deposit a flat under this category. The Input tax credit cannot be obtained under this category.
Non-Resident Taxable Person
If you reside outside India, but supply goods to individuals who stay in India, you need to opt for this type of GST Registration. Similar to the Casual Taxable Person type, you must pay a deposit equal to the expected GST liability during the time the GST registration is active. The duration for this type of GST registration is usually 3 months, but it can be extended or renewed at the type of expiry.
Key Facts about GST Registration
Let’s take a look at some of the important points about GST registration:
- No amount of charges are levied to complete the GST registration process.
- 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.
- GST registration is mandatory for businesses that have an annual turnover of Rs.20 lakh and more.
- In case the supply is provided in several states, GST registration must be completed in each state.
Steps to Complete GST Registration Process Online
Let’s take a look at some of the steps that you must follow to complete GST Registration:
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’ tab
Step 3: Select ‘New Registration’.
Step 4: Fill in the below-mentioned details:
- Under the ‘I am a’ drop-down menu, select ‘Taxpayer’.
- Select the respective state and district.
- Enter the name of the business.
- Enter the PAN of the business.
- Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them.
- Enter the image that is shown on the screen and click on ‘Proceed’.
Step 5: On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes.
Step 6: Once the details have been entered, click on ‘Proceed’.
Step 7: You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.
Step 8: Visit the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.
Step 9: Select ‘Temporary Reference Number (TRN)’.
Step 10: Enter the TRN and the captcha details.
Step 11: Click on ‘Proceed’.
Step 12: You will receive an OTP on your email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’.
Step 13: The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it.
Step 14: There will be 10 sections on the next page. All the relevant details must be filled in, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below:
- Photographs
- Business address proof
- Bank details such as account number, bank name, bank branch, and IFSC code.
- Authorisation form
- The constitution of the taxpayer.
Step 15: Visit the ‘Verification’ page and check the declaration, then submit the application by using one of the below-mentioned methods:
- By Electronic Verification Code (EVC). The code will be sent to the registered mobile number.
- By e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.
- In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
Step 16: Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.
Step 17: You can check the status of the ARN on the GST portal.
Documents Required for GST Registration
Let’s take a look at the documents required to complete GST Registration:
- PAN card
- Aadhaar card
- Business address proof
- Bank account statement and cancelled cheque
- Incorporation Certificate or the business registration proof
- Digital Signature
- Director’s or Promoter’s ID proof, address proof, and photographs
- Letter of Authorisation or Board Resolution from Authorised Signatory
GST Registration Via Authentication of Aadhaar
With the help of Aadhaar, new businesses can secure their GST registration. The process is simple and quick. The new process came into effect on 21 August 2020. The procedure to opt for Aadhaar authentication is mentioned below:
- 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.
- Enter the OTP to complete the process. You will get the new GST registration within three working days.
FAQs on GST Registration Process
What is Online GST Registration Fees?
If you complete the GST Registration procedure online, there will be no fee. Once the relevant documents have been uploaded, an Application Reference Number (ARN) will be sent via SMS and email to confirm the registration.
What is the Penalty for Not Registering or Late Registering Under GST?
If you do not pay tax or pay a lesser amount than the due amount, the penalty that is levied is 10% of the due amount (in case of genuine errors). However, the minimum penalty is Rs.10,000.
If you have not registered for GST and are deliberately trying to evade tax, the penalty levied is 100% of the due tax amount.
How to 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: On the next page, enter the username and password.
Step - 4: Click on ‘Login’.
Step - 5: Next, click on ‘Services’.
Step - 6: Click on ‘User Services’.
Step - 7: Select ‘View/Download Certificates’.
Step - 8: On the next page, click on ‘Download’. The certificate will have details of the tax transactions.
How to Check GST Registration Status?
- Visit the 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 the SEARCH button.
- Finally, you will receive any of the following GST registration statuses on your screen:
- Provisional status
- Pending for verification status
- Validation against error status
- Migrated status
- Cancelled status
What are the Advantages of GST Registration?
Let’s take a look at the important benefits of GST registration:
- You can easily accept big projects from Multinational Corporations (MNCs) if you have done GST registration.
- You can easily sell goods online.
- You can sell goods across the country.
- GST registration acts as valid proof as it is a legal entity registration.
- The input tax credit can be availed when any goods or services are being purchased.
- With the help of a GSTIN, a current bank account can be opened.
- The GSTIN helps in increasing the brand value of the business.
What are the GST Registration Exemption?
There are few individuals and entities that are exempted from GST registration. Let’s take a look:
- Businesses that manufacture supplies that come under reverse charge.
- Activities that do not come under the supply of goods or services. Examples of such activities are the sale of a building or land, funeral services, and services provided by an employee.
- Businesses that make non-GST/ non-taxable supplies. Examples are aviation turbine fuel, electricity, natural gas, high-speed diesel, and petrol.
- Businesses that make exempt/ nil-rated supplies.
- Businesses that fall under the threshold exemption limit.
- Agriculturists.
Is GST registration free?
Yes, there are no charges for GST registration online.
Is a bank account mandatory for GST registration?
No, a bank account is not mandatory at the time of GST registration.
How can I get the GST registration number?
If you want to get the GST number, you will have to apply for GST registration by visiting the GST portal i.e., www.gst.gov.in. To begin the process, you will need to have a valid email address, mobile number, and a PAN for the business.
How much does a GST number cost?
When it comes to GST registration, the government does not charge any fees. However, if you contact a chartered accountant or a consultant, he may charge you a professional fee as the entire registration process is a tedious one.
Can I surrender my GST number?
Yes, you can surrender the GST number. However, you can do so only after one year from the date of registration.
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Key Takeaways
- The process through which a taxpayer gets registered under Goods and Service Tax (GST) is known as GST registration.
- Once the registration process is complete, the Goods and Service Tax Identification Number (GSTIN) will be provided
- Visit the GST portal - https://www.gst.gov.in for Online registration
- Documents Required for GST Registration : PAN card, Aadhaar card, Business address proof, Bank account statement and cancelled cheque, Incorporation Certificate or the business registration proof, Digital Signature, Director’s or Promoter’s ID proof, address proof, and photographs, Letter of Authorisation or Board Resolution from Authorised Signatory
- Types of GST Registration: Normal Taxpayer, Casual Taxable Person, Composition Taxpayer
- GST Registration can be done Via Authentication of Aadhaar
