GST Registration

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.

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. Businesses must 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.

What is GST registration?

The process by which a taxpayer gets registered under Goods and Service Tax (GST) is GST registration. Once the registration process has been completed, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15-digit GSTIN is provided by the Central Government and helps to determine whether a business is liable to pay GST.

Who is eligible to register under GST?

GST Registration must be completed by the following individuals and businesses:

  1. Individuals who have registered under the tax services before the GST law came into effect.
  2. Non-Resident Taxable Person and Casual Taxable Person
  3. Individuals who pay tax under the reverse charge mechanism
  4. All e-commerce aggregators
  5. 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.
  6. Input service distributors and agents of a supplier
  7. Individuals who supply goods through an e-commerce aggregator.
  8. 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

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. The 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.

Key Facts about GST Registration

Some of the important points that you must know about GST registration are mentioned below:

  • No 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

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:
    • 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

Here are the documents required to complete GST Registration:

  1. PAN card
  2. Aadhaar card
  3. Business address proof
  4. Bank account statement and cancelled cheque
  5. Incorporation Certificate or the business registration proof
  6. Digital Signature
  7. Director’s or Promoter’s ID proof, address proof, and photograph
  8. Letter of Authorisation or Board Resolution from Authorised Signatory

GST Registration Via Authentication of Aadhaar

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:

  1. When you apply for GST registration, you will be provided with an option to choose Aadhaar authentication.
  2. Select ‘YES’. The authentication link will be sent to the registered email ID and mobile number.
  3. Click on the authentication link.
  4. Enter the Aadhaar number and select ‘Validate’.
  5. Once the details have been matched, an OTP will be sent to the registered mobile number and email ID.
  6. Enter the OTP to complete the process. You will get the new GST registration within three working days.

Online 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 Registering or Late Registering Under GST

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.

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.

Check GST Registration Status

  1. Visit GST official portal at https://www.gst.gov.in/.
  2. Click to 'Services’ > ‘Registration’ > ‘Track Application Status’.
  3. Enter your ARN number and Captcha code. Next click on SEARCH button.
  4. 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

Advantages of GST Registration

The main benefits of GST registration are mentioned below:

  1. Big projects can be accepted from Multinational Corporations (MNCs).
  2. Goods can be sold online.
  3. Goods can be sold across the country.
  4. GST registration acts as valid proof as it is a legal entity registration.
  5. Input tax credit can be availed when any goods or services are being purchased.
  6. With the help of a GSTIN, a current bank account can be opened.
  7. The GSTIN helps in increasing the brand value of the business.

GST Registration Exemption

The below-mentioned individuals and entities are exempt from GST registration:

  1. Businesses that manufacture supplies that come under reverse charge.
  2. 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.
  3. Businesses that make non-GST/ non-taxable supplies. Examples are aviation turbine fuel, electricity, natural gas, high-speed diesel, and petrol.
  4. Businesses that make exempt/ nil-rated supplies.
  5. Businesses that fall under the threshold exemption limit.
  6. Agriculturists.

FAQs on GST Registration Process

1. Is gst registration free?

Yes, gst registration can be done online at Nil charges

2. Is bank account mandatory for GST registration?

No, The bank account not mandatory at the time of GST registration.

3. How can I get the GST registration number?

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.

4. How much does a GST number cost?

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.

5. 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

News About GST Registration

  • Doing WFH due to Covid no reason to cancel of GST registration

    The High Court in Calcutta high has set aside the order by GST authority to cancel the registration of a company on the ground that the organization did not have an operating office at the time of investigation due to Covid-19.

    The court ordered the tax authorities to grant a hearing opportunity to the petitioner, International Value Retail Pvt Ltd, and submit all relevant documents and evidence in support of its submissions and pass a reasoned order within a month.

    A petition had been filed by the company following rejection of its application for revocation of GST registration.

    The company’s application was rejected by ignoring the materials which proved that at the time of inspection, they were following a work-from-home (WFH) model due to the outbreak of Covid-19 and hence, their office was temporary closed at its registered place of business.

    Rajat Mohan, senior partner AMRG & Associates, said it is important that in the digital age, businesses are permitted to function on ‘WFH’ basis. The cancellation of GST registration on such grounds is not the way forward as it will stagnate the growth of the Indian industry.

    12 October 2021

  • Registration of taxpayers to be suspended immediately by GST officers in case of ‘significant anomalies’ in sales returns

    As per the new regulations, GST officers will be suspending the registration of taxpayers immediately in case of “significant anomalies or differences” noted in the sales returns which are filed through GSTR-1. This move has been welcome to make sure that tax evasion can be curbed and the revenue can be protected.

    The Central Bank of Indirect Taxes and Customs (CBIC) has issued a Standard Operating Procedure (SOP) for the suspension of registration of a person on observance of such anomalies which indicate the violation of the GST Act. As per the SOP, registration of the specified taxpayers will be suspended and a system generated intimation for the suspension and a notice for the cancellation of the same will be issued to the taxpayer through GST REG-31. This will consist of all the reasons for the suspension and will be sent to the email ID which is registered with the CBIC.

    26 February 2021

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