Under the Goods and Services Tax (GST) norms, every individual or business who clocks a yearly turnover of more than INR 40 lakh or INR 20 lakh or INR 10 lakh, depending upon which state their business operates in, they have to register for the GST.
The GST registration is an online process which is carried out by the government via its GST website.
Once a business is registered under the GST, they are provided with a unique registration number known as the Goods and Services Tax Identification Number (GSTIN), which is a 15-digit number given by the government to the taxpayers after attaining the GST registration. However, if any business is operating from more than one state, they need to have the GST registration from those specific states as well.
Remember, it is a heavy offense to carry out business operations without registering under the GST. The registration process of the GST is quite simplified and generally takes up to fifteen working days.
Key Features of the GST Registration
- Any businesses whose turnover is more than INR 40 lakh (for entities involved in trading of goods and services) or INR 20 lakh (for entities involved in service sector) are required to register for GST under normal taxable individuals. Each state has their own threshold limit.
- The limit is INR 10 lakh if you have a business operation in the north-eastern states, Jammu and Kashmir, Himachal Pradesh and Uttarakhand, Tripura.
- Businesses having a yearly turnover of up to INR 1 crore, eligible for registration under composition scheme. Here, businesses have to pay a fixed amount of GST irrespective of their turnover.
- No registration fees for GST.
- If one is unable to file for GST will have to bear a fine of INR 10,00 or 10% of the due amount.
Who Should Apply for the GST Registration?
- Businesses with turnover above the threshold limit of INR 40 lakh or INR 20 lakh or INR 10 lakh as the case may be.
- Casual taxable person
- Non-resident taxable person
- Individuals who are registered under pre-GST law such as excise, VAT or service tax.
- Inter-state supplier and input service distributor
- Individuals paying tax under the reverse charge mechanism.
- Anyone who supplies via an e-commerce aggregator.
- Every e-commerce aggregator.
- Tax deductor or collector at source.
- Any entity can obtain GST registration voluntarily.
Documents Required For GST Registration
Below is a list of documents that one needs for registering their business under the GST:
- Permanent Account Number (PAN).
- Aadhar Card.
- Business incorporation certificate.
- Identity and address proof of each promoter.
- Canceled cheques.
- Bank account statement.
- Digital signature.
Online Process of GST Registration
The whole process of the GST registration is fully online and very simple and straightforward. Below is the step-wise-step process of the online GST registration.
- Visit the GST portal.
- Go to the “services” tab, click on “registration” and then click on “new registration”.
- Select the “taxpayer” from the dropdown list. The registration is divided into Part A and Part B.
Part A Process:
- Select your state and district for which GST registration is required from the State/Union Territory and district drop-down list.
- Fill in the details such as the legal name of the business/ entity as mentioned in the PAN database.
- Enter the details of the permanent account number (PAN) of the business or PAN of the proprietor.
- Enter more details such as registered email address and mobile number.
- Enter the captcha code and click the “proceed” button.
- After successfully submitting Part A of the registration process, move to Part B. Part B process has to be finished within 15 days.
- Post verification, you will receive a temporary reference number (TRN). The TRN will be sent to the registered email address and mobile number.
Part B Process:
- Go to “services”, then “registration” and the click on “new registration” option.
- Select “TRN” to log in and fill the required details to proceed further.
- Enter OTP sent on mobile or email and click on the “proceed” tab.
- On the dashboard, “my saved application” page will be displayed. Go to the ‘action’ column, click the edit icon.
- Then, the registration form will appear with 10 different tabs. Click on each tab to enter the details such as business details, promoter and partner details, authorized signatory, state information, Aadhaar authentication and verification and so on.
- Click on “save and continue”. Once the application is submitted, sign it digitally and click on “proceed”.
- Then, you will receive an Application Reference Number (ARN) via email or SMS to confirm your registration process.
- Remember, the GST registration application will be processed post 15 days of submission. To check your registration status, you can visit the GST portal.
Benefits Of The GST Registration
- Beneficial for customers, businesses and government.
- Fully online process.
- Helps reduce tax evasion
- Provides legal recognition to a business.
- Helps to bring in uniformity in accounting of taxes.
- Regularize the unorganized sectors such as construction.
Bottom Line
GST is one of the biggest reforms in the taxation system of India and there are various advantages of the GST registration under law. Do not hesitate to get the GST registration done if you are eligible for it.
You must get your business registered and should avail the multiple benefits of GST. Several businesses have become efficacious and able to enhance their growth story via the implementation of GST.
Frequently Asked Questions (FAQs)
What is the turnover limit of the GST?
As per the GST norms, the government has decided various threshold limits such as INR 40 lakh, INR 20 lakh and INR 10 lakh for suppliers of goods, service providers and for special category states respectively. However, each state government has the right to decide their own threshold limits.
