According to GST rules, it is mandatory for a business that has a turnover of above Rs.40 lakh to register as a normal taxable entity. This is referred to as the GST registration process. The turnover is Rs.10 lakh for businesses that are present in hill states and North-Eastern states. The GST registration process can be completed within 6 working days.
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GST registration can be easily done on the online GST portal. Business owners can fill a form on the GST portal and submit the necessary documents for registration. It is mandatory for certain businesses to complete the GST registration process. It is a criminal offense to carry out operations without registering for GST and heavy penalties are levied for non-registration.
Step by step Guide for GST Registration process Online in GST Portal
The step-by-step procedure that individuals must follow to complete GST Registration is mentioned below:
- 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 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, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below:
- 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.
How to do GST registration through Aadhaar authentication?
New businesses can secure their GST registration with the help of the Aadhaar. The process is simple and quick. The new process came into effect from 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.
Who should Complete GST Registration?
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 who 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. It is vital that you are aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:
- Normal Taxpayer: Most businesses in India fall under this category. You need not provide any deposit to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this category.
- Casual Taxable Person: Individuals who wish to set up a seasonal shop or stall can opt for this category. You must deposit an advance amount that is equal to the expected GST liability during the time the stall or seasonal shop is operational. The duration of the GST Registration under this category is 3 months and it can be extended or renewed.
- Composition Taxpayer: Apply for this if you wish to obtain the GST Composition Scheme. You will have to deposit a flat under this category. Input tax credit cannot be obtained under this category.
- Non-Resident Taxable Person: If you live outside India, but supply goods to individuals who stay in India, 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.
- 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
Documents required to Complete GST Registration
Here are 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 photograph.
- Letter of Authorisation or Board Resolution from Authorised Signatory.
GST Registration Fees
In case you complete the GST Registration procedure online, no fee will be levied. Once the relevant documents have been uploaded, an Application Reference Number (ARN) will be sent via SMS and email to confirm the registration.
Penalty for not completing GST Registration
If you do not pay tax or pay a lesser amount than what is due, 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 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 SEARCH button.
- Finally, you will receive any of the following GST registration status on your screen:
- Provisional status
- Pending for verification status
- Validation against error status
- Migrated status
- Cancelled status
FAQ's on GST Registration
- Who needs to register for GST in India?
As per GST rules, businesses which has a turnover of above Rs.40 lakh needs to mandatorily register for GST. For the north-eastern states, Jammu and Kashmir, Uttarakhand and Himachal Pradesh, the turnover is Rs.10 lakh. In addition to that, the following also needs to be register for GST in the country:
- Person supplying online information and database access or retrieval services from a place outside India to a person who is not a registered taxable person.
- Every e-commerce aggregator.
- Person who supplies via an e-commerce aggregator.
- Individuals registered under the pre-GST law.
- Those paying tax under the reverse charge mechanism.
- Agents of a supplier.
- Input service distributor.
- A non-resident taxable person or a casual taxable person.
In order to get the GST number, you need to apply for GST registration by visiting the GST portal i.e., www.gst.gov.in. To start the process, you will need to have a valid email address, mobile number and a PAN for the business.
To complete GST registration, you will be needing the documents like PAN, Aadhaar, business address proof, cancelled cheque, bank account statement, business registration proof or the incorporation certificate, digital signature, photograph, address proof and ID proof of the director or promoter, board resolution or letter of authorisation from the authorised signatory.
The government does not charge you any fees when it comes to registration for GST. However, if you approach a chartered accountant or consultant, they may charge you a professional fee as the entire registration process is a tedious one.
Yes, you can surrender the GST number. However, you can do so only after one year from the date of registration