treeviewThe GST is an indirect tax on selling goods and services in India. It changed the tax structure for firms around the country. Understanding the GST registration procedure is critical for small company owners to maintain compliance and avoid fines. Thus, the blog article will simplify the GST registration procedure and walk you through the necessary stages.
What is GST?
On July 1, 2017, the President of India and the Government of India jointly introduced GST. It attempts to update our taxation system by combining all current taxes, such as VAT (Value Added Tax) and ST (Sales Tax), into a single tax sector.
The GST law that was implemented consists of the following provisions:
- The 2017 Central Goods and Services Tax( CGST) Act was issued.
- The 2017 State Goods and Services Tax( SGST) Act
- The State Goods and Services Tax Act( SGST) of 2017
- Integrated Goods and Services Tax( IGST) Act of 2017
- Act 2017 Goods and Services Tax (State Compensation)
This law allowed all company owners to register for GST. In this section, we will go through the GST registration procedure and its associated fees.
What exactly is GST registration?
The GST Law requires all company owners with a revenue of more than Rs. 40 lahks to register as a regular taxable entity (Rs. 10 lakh for hilly and North-Eastern regions).
GST registration is the procedure through which any taxpayer registers for GST. This is done to assess whether they must pay the government’s GST. This is done online by going to the GST portal and following simple procedures. Thus, the registration process takes roughly six working days. When you register, you are assign a 15-digit.
Eligibility criteria for GST registration
The persons listed below must complete their GST registration.
- Aggregators of e-commerce
- Individuals who have been register with tax services since before the adoption of the GST Law
- Non-residents and temporary taxpayers
- Reverse charge method taxpayers
- Businesses having a turnover of more than Rs. 40 lakh (Rs. 10 lacks for hilly and north-eastern states)
- Distributors of input services
- Supplier agents
- Individuals that use an e-commerce aggregator as a distribution channel
Fees for GST registration
If you register for GST online, the government will not charge you any fees. If you want to write with the assistance of a chartered accountant or consultant, they may charge a professional fee.
GST registration procedure
- You can register for GST registration online or with the assistance of a professional accountant or consultant. This section will show you how to apply for GST registration online.
- To register for GST online, follow the procedures outlined below:
- Visit the GST site online.
- Go to the GST portal, then to ‘Services,’ then to ‘Registration,’ and finally to the ‘New Registration’ option.
- Enter all required information, such as legal name, taxable status, PAN number, etc.
- Submit and validate the supplied information by validating the OTP to generate a Temporary Reference Number, or TRN.
- Log in with your TRN and enter your company’s information, such as its name, the district in which it operates, the date it was found, and so on.
- Submit the Promoter’s details.
- Submit the authorized Signatory’s details.
- Choose your company’s primary location, including the office address, phone number, email address, etc.
- Enter information about your company’s products and services.
- Enter your banking information.
- When you validate the information supplied by uploading your signature, an ARN, or Application Reference Number, is produced that may be used to follow the status of your application.
Documentation is necessary to complete GST registration
To complete your registration, you must submit the following documents:
- PAN number
- Photo identification (Aadhar card)
- Details about the bank (account number, bank name, bank branch name, and IFSC code)
- Proof of business address
- Statement of bank account and cancelled cheque
- Authorization form/letter from the Authorized Signatory or Board resolution
- Proof of incorporation or company registration
- Electronic signature
- ID verification for the director or promoter, address proof, and images
- The Constitution of the Taxpayer
What are the steps required for GST registration?
Hence, you may register for GST online at the GST website. This is a free process; however, you may hire a tax expert to conduct it for you. The steps to follow are as follows:
Step 1) When accessing the site, navigate to Services > Registration > New Registration.
Step 2) Click the ‘New Registration’ button on the following screen. Select ‘Taxpayer’ from the first option, fill out the remainder of the form, and then click the ‘Proceed’ button.
Step 3) When you receive the OTP, enter it on the following screen. If you did not get an OTP on your phone or email, click the Resend OTP option to request one.
Step 4) A TRN, or Temporary Reference Number, will be produced. It will also be emailed and delivered as an SMS to your mobile phone number. Make a mental note of it.
Step 6) You’ll have to do the OTP verification once again.
Step 7) A new application is created, which may be amended to include the necessary information.
Step 8) You must include the required data and documentation in sections.
Step 5) Return to the GST website > Services > Registration > This time, create a new registration and choose the radio box Temporary Reference Number. Fill in the blanks with the information from the previous step.
Step 9) In the Verification section, tick the box next to the declaration. Then, to finish the application, submit the form.
When you submit your application, an Application Reference Number, or ARN, is produce. So you can use this number to follow your application on the GST portal.
FAQ’s
1. What is GSTIN?
Once your GST registration is complete, an officer will review your application. If they accept it, they will provide you with a unique GST Identification Number, or GSTIN, which you must include on all your invoices.
The entire procedure, from registration to receipt of GSTIN, takes two to six days.
2. When do you need to apply for several GST registrations?
- There are several circumstances under which you may register for numerous GST numbers:
- If your firm operates from more than one state, such as transporting items to many states, you must register for GST in each state.
- If your company operates from a single state but has various verticals, you can register for multiple GSTs to streamline your accounting procedure.
- So, if a company operates from a single state yet provides products and services to all states in India, it does not need to register for multiple GST registrations.
Conclusion
The government enacted the GST law to shift the taxation system, which had previously consisted of various taxes imposed in multiple ways across different states in India. Thus, the GST law aims to reform the previous taxing structure by combining several types of taxes into a single category. Following its introduction, company owners were forced to register under the legislation to assist the government in keeping track of the people due to pay taxes.
Yet, the government does not charge a fee for registering under the GST statute. It’s as simple as going to the online GST site and following a few basic procedures. For expert guidance on GST and other legislation, contact your financial advisor.