Your Complete Guide to the GST Registration Process
Goods and Service Tax popularly known as GST is simply an indirect tax on the supply of goods and services. The implementation of GST replaced many different types of indirect tax like value added tax, purchase tax, service tax, excise duty, and much more. It is applicable throughout India and India imposes GST on specific supply of products and services.
Many different types of state and central taxes got abolished after the introduction of GST. The problem of different rules and regulations systems in states also vanished because of the GST imposition. Furthermore, the GST replaced many different additional taxes.
Through the GST registration process a taxpayer gets registered, once the taxpayer gets registered under GST, a unique Tax Identification Number of 15 digits is asserted to them which is known as Goods and Services Tax Identification Number (GSTIN). This Tax Identification Number is provided by the central government to the registered taxpayer.
Types of GST in Detail
In India there are many different types of GST namely CGST, SGST, IGST, and UTGST.
- Central Goods and Services Tax or CGST is a type of tax that is charged on the supply of products and services within the center. This type of tax is collected by the central government of India.
- State Goods and Services Tax or SGST is a type of tax that is charged within a state on the supply of products and services. SGST comes under the tax Act, 2017.
- Integrated Goods and Services Tax or IGST, this type of tax is charged on products and services of inter-state transactions.
- Union Territory Goods and Services Tax or UTGST is a type of tax that is charged on the supply of products and services in the Union Territories of India.
A Closer Look at the Pros: Advantages of GST
- GST has abolished many different taxes of state and central and has brought various indirect taxes under one umbrella.
- The introduction of GST reduced the cost of products and services in the long run.
- GST has become a relief for the lower turnover service providing companies and has helped in avoiding lengthy taxation procedures for small business owners.
- GST has put a curb on corruption and has reduced the fraud of sales without receipts.
- GST provides Legal recognition of a business.
- After the implication of GST uniformity in account taxes is seen.
- Under the GST regime, businesses saw several benefits.
Eligibility for GST registration
GST Registration is for the businesses and individuals, and following entities must register for GST:
- All Individuals and businesses who are a part of E-commerce aggregators and supply through it.
- Those who are registered candidates of tax service before the imposition of GST law.
- Taxable persons like Non-Resident and Casual should register for Goods And Services Tax.
- Taxpayers under reverse charge mechanism.
- Agents who are associated with input service distribution and supply.
- Businesses with annual turnover of Rs.20 lakh or above.
- Online information and database access providers.
what are the documents required for GST registration
Below mentioned is the list of documents that one requires for the registration of GST:
- GST registration starts with applicants Permanent Account Number (PAN).
- Aadhaar card copy of the applicant.
- Applicants Bank account information.
- Address proof.
- Business registration proof or applicants incorporation certificate.
- Digital signature.
- Authorization letter or authorized signatory proof.
Types of GST Registration
Normal registration: In India most businesses come under the Normal taxpayers category. In order to become a normal taxpayer you need not to provide any kind of deposit. Such taxpayers have no expiry date and businesses with Rs 40 lakh turnover annually or more come under this type of GST registration. For northeast states with business turnover Rs 10 lakh are required to register as normal taxable people.
Casual registration: Individuals or businesses who set up occasional or seasonal shops come under this category, such sessional setup businesses can register their business under Casual taxable GST. Inorder to become a Casual taxable person you need to deposit an advance amount that is equal to the GST liability at the time of occasional business operation. It expires after 3 months but individuals or businesses can apply for the renewal or extensions term.
Non-resident registration: Agents who live outside but supply goods or services to the people living in India such type of agents need to register themselves under this type of GST registration. Non-resident taxable types are following the same deposit procedure as in case of Casual taxable person, meaning you need to deposit an advance amount that is equal to the GST liability from the time of the activation of GST. It expires after 3 months but individuals or businesses can apply for the renewal or extensions term at the time of expiry.
Composition registration: This type of GST registration is for those who have an annual turnover of Rs 1 crore and who wish to obtain GST Composition Scheme. For a Composition registration one has to pay a fixed amount of GST no matter what the actual turnover of the business will be.
GST Registration Procedure Step-by-Step
Mentioned below are the step by step guidelines for the registration of GST, interested applicants need to follow these instructions in order to get registered. The registration process is divided into two parts, part A and part B.
Registration process Part A
- First click here to Visit GST registration portal
- Click on the “Registration” that is under the services tab.
- Click on “New Registration”.
- Select “Taxpayer” from the drop-down menu for ‘I am a’.
- Select your respective state/ UT and district from the drop-down list for which registration is required.
- Enter the legal name of the business as per your PAN.
- Enter your PAN (Permanent Account Number)
- Now fill the email address section and confirm it with the OTP that will be sent to the email address.
- Enter your mobile number and confirm it with the OTP that will be sent to the mentioned number.
- Enter the characters that you will be able to decode from the given image and click on the proceed.
- Wait till the verification is done, you will receive your Temporary Reference Number (TRN) on your mentioned email and phone number. Note it down.
Registration process Part B
- Go to GST registration portal again
- Click on the Registration under the services tab.
- Select your TRN number.
- Type the captcha details and proceed.
- Fill the Box with the exact OTP that you will receive on your email and phone number and proceed.
- My Application page will provide an action column, click on the Edit icon.
- Next step will display 10 sections of Business Details, Promoter/Partners, Authorized Signatory, Authorized Representatives, Principal Place of Business, Additional Place of Business, Goods and Services, State Specific Information, Aadhar Authentication and Verification.
- Fill these 10 sections with required documents like Photographs, Address proof, Bank details, Authorization form, Taxpayer constitution.
- Move to the next step of verification.
- Submit the application By Electronic Verification Code (EVC) or Digital Signature Certificate (DSC) click and proceed.
- Application Reference Number (ARN) will be sent on your email and mobile number.
Once you are done with your GST Registration process you will get an Application Reference Number (ARN). You need to wait for 15 days of submission for the proceeding of application, but you can check out GST registration status on the GST portal.
GST Registration Facts
Below mentioned are some facts that you must know about GST Registration:
- GST registration is mandatory for a Rs.20 lakh turnover business or more.
- If you are a supplier of goods and are supplying goods in more than one state then you need to register for GST in your respective supplier state.
- GST registration does not require any kind of fee.
- In case one fails to pay the GST, then the person has to pay a fine of Rs.10,000 or 10%.
GST registration is based on two parts and can be easily done and it does not require any kind of fee. Applicants need to fill the GST form and fill all necessary details with required documents. The GST registration process is important for businesses and operations that are carried out without GST registering are illegal and the business have to face heavy penalties.
What kind of taxes were replaced by GST?
The implementation of GST replaced many different types of indirect tax like value added tax, purchase tax, service tax, excise duty, and much more.
Who provides Goods and Services Tax Identification Number (GSTIN)?
Goods and Services Tax Identification Number (GSTIN) is provided by the central government to the registered taxpayer.
Name different types of GST Registration?
The different types of GST Registration are Normal registration, Casual registration, Non-resident registration and Composition registration.
In how many parts is the GST registration process divided?
The GST registration process is divided into two parts, part A and part B.
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