GST Registration in India

Corpbiz makes the GST Registration Process Simple and Easy

GST Registration: In India, a GST is levied on 90% of the goods sold in the market and also on the services for domestic consumption. Corpbiz is a leading consultancy firm that provides an all-inclusive service for offline and online GST registration in India. To ease the burden on our clients, we handle all the tedious tasks and compliances related to the GST registration process on our client's behalf. Our team of experts have hands-on experience in providing best-in-class service for the same. All you have to do is call Corpbiz, and all your needs related to GST registration will be fulfilled.

How will Corpbiz help in the GST registration procedure?

Corpbiz provides a comprehensive package to cover all your needs for GST registration online. Our services are tailored to make the experience seamless and hassle-free. Here are services offered by us forthe procedure for registration under GST -

Filing the Application

Our experts will fill out the application on your behalf. All you need to do is provide all the necessary documents to apply. In case an individual does not have a particular document, our experts will assist in procuring that.

Securing GSTIN

On successful application submission, a GSTIN or GST Identification Number will be reflected. A GSTIN is a 15-digit unique identification number based on PAN, given to every individual who has successfully registered under GST.

Dedicated Expert

An expert will be allocated to you who will be in charge of solving all your queries as well as assisting in document aggregation. The person will be responsible for filing the application on your behalf.

At Home Service

You can file the GST registration online form from the comfort of your home. The process will be done online, and the updates shall be conveyed to you wherever required.

CA Assistance

Corpbiz will also provide assistance of a CA for GST Filing. We believe in giving quality services and expect customer satisfaction every time.

What are the Challenges in the GST Registration Process in India?

Navigating the Goods and Services Tax (GST) registration process in India is a significant step for businesses, yet it comes with its own challenges. Addressing and understanding these challenges is required to maintain a smooth and proficient registration experience. Here are some of the challenges associated with obtaining a GST registration number-

Complex Registration Process

The process to obtain the new registration number and complete the process involves many steps and documentation that could prove to be complex for businesses, especially the MSMEs.

Technical Glitches

Technical glitches on the GST portal or the registration page may hinder the process to get the GST number, leading to delays and frustration.

Documents Requirement

Online GST Registration process requires gathering and submitting business related documents and other documents like- email id and mobile number, address proof of place of business, business turnover details or aggregate turnover details, etc. which can be challenging.

Digital Literacy

Some businesses, especially those that supply goods to rural areas, may face challenges related to digital literacy. It may get difficult for them to enter all the requested details on the GST portal online.

State Specific Needs

Understanding and meeting the specific requirements of different states to obtain GST registration can be challenging for businesses to get GST numbers when the business operates in multiple states.

Verification Delays

The verification process may take time, causing delays in obtaining the temporary reference number in the process of GST registration.

Input Tax Credit

Managing and claiming input tax credit correctly can be a challenge, as it involves proper documentation and compliance.

Complex Business Structure

Businesses with complex structures, such as franchises or joint ventures, may find it challenging to determine the appropriate registration structure.

The transition from the Previous Tax Regime

Businesses transitioning from the previous tax regime or GST regime may face challenges in reconciling and migrating their existing data to comply with GST requirements.

Continuous Compliance

Staying continuously compliant with GST regulations, including filing regular returns, can be a challenge for businesses.

GST Software Implementation

Implementing and integrating GST-compliant software can pose challenges, especially for small businesses with limited resources.

Amendment Requests

Businesses may need to make changes to their registration details, and the process for making changes can be tedious.

Inter-state Transactions

Complying and understanding the form GST regulations for inter-state transactions can be complex, most prominently for businesses engaged in e-commerce.

Reverse Charge Mechanism

Comprehending and correctly applying the reverse charge mechanism can be a challenge for many businesses.

Compliance for Service Providers

Businesses operating in the service sector may face challenges in establishing the place of supply and HST compliance regulations applicable to their services.

GST Rates and Classification

Correctly classifying goods and services under the appropriate GST rate can be challenging due to regular changes in GST rates and classifications.

Annual Return Filing

Filing the annual GST return involves comprehensive reporting, and businesses may find it challenging to compile and submit the required information.

GST Audit

Larger businesses may undergo GST audits, and ensuring compliance with audit requirements can be a complex process.

GST Network Issue

Technical issues or downtime on the GSTN portal may disrupt businesses' ability to file rerun and fulfil other compliance obligations.

What are the Advantages of GST Registration?

There are many advantages associated with GST registration. Some of the perks of GST registration are listed below

Simple and Online Process

The process is fairly simple and is entirely online. With the help of a prudent service provider, any business owner can get their GST registration done right from the comfort of their home.

Increased Threshold

GST registration provides a threshold value of up to 20 Lakhs. This is one of the many significant benefits of GST registration. Prior to this, VAT provided a threshold value for Tax registration of only 5 Lakhs.

Composition Scheme

The scheme is applicable to small businesses whose annual turnover is less than 1.5 crores. As per this, small businesses have the ability to escape from the tiring GST processes and can pay GST at a fixed amount of annual revenue generated.

Tax Evasion

GST registration offers a particular structure for paying the tax and decreases corruption significantly. There are many pursuable and strict rules that have been put in place with the introduction of GST.

Legal Recognition

A GST registration marks the image of a business as a goods and service provider. It provides credibility to the business in the eyes of the consumers.

Input Tax Credit

Input Tax Credit can be claimed through GST Registration. The process also helps in reducing the overall tax liability.

Inter-State Trade

If a business wants to do inter-state trade, they have to get a GST registration done. This helps expand the business's overall operations.

Business Expansion

With proper GST registration, businesses have the ability to enter new markets and avail themselves of new business opportunities.

Competitive Benefits

It has been observed that a business with proper GST registration is preferred over other non-registered businesses. This gives a competitive benefit to the business.

Diverse Suppliers

GST Registration also provides businesses with the opportunity to engage with other registered suppliers, which leads to availing better options for the supply.

Compliance Advantages

When a business has successfully gone through the process of GST registration, it allows them to stay compliant with the tax authorities.

GST Registration Process in India

The process of filing GST registration application is fairly simple and can be done correctly if all the necessary documents are present while filing the application. The process for new GST registration is mentioned below

• In order to obtain the GST number, the first step will be to create an account on the GST portal and apply online. Our experts will do that on your behalf.
• Once the account is created, log in and select the ‘New Registration’ button.
• After this, a category or type of business has to be selected.
• Once the type of business is selected, the port will direct you to an application form.
• Fill out the application form with appropriate and correct information. The form will need details about the company as well as the person filing it.
• After this, you will have to upload all the required documents.
• After paying the registration fee, you will have to submit the application form.

Corpbiz's Package Inclusions for GST Registration

Our inclusions are listed below

• GST Registration Form Filing
• Account Creation
• Document Aggregation
• Submission of the application
• Document Upload
• Compliance
• End-to-end support
• Expert Service

What is GSTIN?

GSTIN refers for the Goods and Services Tax Identification Number. Every taxpayer registered under the GST system in India is granted a unique 15-digit number. The GSTIN is used to identify and monitor taxpayers' transactions.

The GSTIN is organized as follows

• The first two numbers indicate the state code.
• The following 10 numbers are the taxpayer's PAN card number.
• The thirteenth digit represents an entity code that distinguishes between various sorts of taxpayers.
• The fourteenth digit is the fixed alphabet 'Z'.
• The fifteenth digit serves as a check digit, verifying the GSTIN's correctness.

What is the GSTN (Goods and Service Tax Network)?

The Goods and Services Tax Network (GSTN) is a non-profit, non-governmental organization that offers shared IT infrastructure and services to the Central and State Governments, taxpayers, and other parties involved in the implementation of the Goods and Services Tax (GST) in India.

The GSTN is in charge of building and operating the GST portal, an online platform that taxpayers use to register for GST, submit returns, and make payments.

The GSTN also offers various more services, including:

• E-invoicing
• E-Way Bill
• Input tax credit reconciliation.
• GST Compliance Reporting

The GSTN is a vital component of India's GST system. It offers the IT infrastructure and services that allow taxpayers to follow GST legislation and the government to manage the GST system.

What is a GST Certificate?

A GST certificate is a document provided by the Indian government to a GST-registered taxpayer or organization. It is evidence of registration and authorizes the taxpayer to collect GST from clients on behalf of the government.

The GST certificate includes the following information

• GST Identification Numbers (GSTIN)
• Name of the taxpayer.
• Taxpayer details include address, registration date, and registration type (regular, composite, or non-resident).
• Business category
• Signature of the authorized official.

Key Components of GST

The GST (Goods and Services Tax) in India is organized on three basic components:

Central Goods and Services Tax (CGST): The Central Government levies this tax on the supply of goods and services within a state. CGST applies to transactions that take place wholly within the limits of one state.

State Goods and Services Tax (SGST): It is levied by the state government on the supply of goods and services within its jurisdiction. SGST, like CGST, is confined to transactions inside a given state.

Integrated Goods and Services Tax (IGST): The Central Government imposes this tax on the supply of goods and services between states or between a state and a union territory. IGST is applicable to transactions involving goods or services that transcend state or Union Territory borders.

Who is Required to Register for GST?

GST registration is necessary for the following individuals

Business Entities: Any firm having a total yearly revenue of more than Rs. 40 lakh. The threshold for special category states under GST is Rs. 20 lakh.

Service Providers: Those having an aggregate yearly revenue of more than Rs. 20 lakh. For special category states, the maximum is Rs. 10 lakh.

Exemptions: It's worth noting that these levels do not apply for GST registration to organizations that only sell GST-exempt products or services.

Previously Registered Entities: Entities that were registered under previous tax regimes (such as Excise, VAT, and Service Tax) must migrate and register under the GST regime.

Inter-State Suppliers: Any company or person engaged in the supply of commodities across state lines.

Casual Taxable Entities: Those that make taxable supplies on occasion.

Entities subject to the Reverse Charge Mechanism: Businesses compelled to pay tax via the reverse charge.

Input Service Distributors & Agents: Distributors of input services and their representatives.E-commerce Platform Operators or Aggregators

Non-Resident Taxable Entities: Non-resident individuals or entities that make taxable supplies in India.

Supplier's Agents: Individuals who provide on behalf of a primary supplier.

E-Commerce Suppliers: People or businesses that sell products or services via an e-commerce aggregator.

Online Service Providers: Entities that provide online information, database access, or retrieval services from outside India to individuals in India, except those already registered for GST.

GST Registration Turnover Limit

GST registration may be acquired voluntarily by any individual or organization, regardless of revenue. If a person or company sells more than a particular tax amount of goods or services, they must register for GST.

Service Providers: Any person or company that performs services with an aggregate revenue of more than Rs.20 lakhs per year is needed to seek GST registration. In special category states, the GST turnover ceiling for service providers is set at Rs.10 lakhs.

Goods Suppliers: Under notice No.10/2019, every person engaged in the sole supply of goods with an aggregate turnover of more than Rs.40 lakhs per year is obliged to seek GST registration. To qualify for the Rs.40 lakhs turnover cap, the supplier must meet the following eligibility requirements:

• Should not provide any services.
• The provider shall not be involved in intra-state (supplying commodities inside the same state) supplies in the following states: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand.
• Should not give ice cream, pan masala, or tobacco.

If the standards listed above are not satisfied, the provider of products must seek GST registration when their turnover exceeds Rs.20 lakhs and Rs.10 lakhs in special category states.

Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand are classified as special category states under the GST law.

Aggregate turnover is calculated as (taxable supplies + exempt supplies + exports + inter-state supplies) minus (taxes + value of inward supplies + Value of goods taxable under reverse charge + value of non-taxable supplies).

Aggregate turnover is determined using the PAN. As a result, even if a single individual owns many businesses, the total revenue must be calculated.

Objectives of GST

The Goods and Services Tax (GST) in India aims to

Create a uniform and simple tax system

GST is a single tax that replaces many indirect taxes imposed by the federal and state governments. This simplifies tax compliance for companies and lowers their operating costs.

Eliminate the cascading impact of taxes

The cascading impact of taxes happens when a tax is imposed on a product or service that already has other taxes. This may result in increased pricing for customers. The GST avoids the cascading impact of taxes by enabling firms to claim input tax credits for taxes paid on their inputs.

Promote economic growth and development

GST is supposed to stimulate economic growth and development in India by establishing a single market for goods and services. This will make it simpler for firms to trade across state lines and result in reduced pricing for consumers.

Increase the tax revenue

GST is projected to raise government income by broadening the tax base and eliminating tax evasion. This will enable the government to support critical public services.

GST Registration Threshold Limits

The GST registration threshold limits for goods and services are mentioned below

GST Compliances

The GST Compliances to be followed are mentioned below

GST Status Codes

GST status codes are mentioned below

What are the documents required to register for GST?

Documents required to register for GST are listed below

• The supplier who works in the same state also has to sign up for GST.
• The process of GST registration offers efficiency in the tax collection procedure.
• Businesses enjoy lower tax liability because of the alteration in the indirect tax slabs in accordance with the Goods and Services Tax Act.
• GST Registration acts as the rudimentary initiation to the effective management of a business.
• It aids in establishing a brand or company’s image as reliable and genuine, leading to the legally attested operation of the business.

GST Registration Fees

The registration fee for GST in India varies based on the type of business and the state in which it is located. As of now, the registration fee starts from Rs. 1000 and goes up to Rs. 5000. It is important to note that these fees are subject to change, and businesses are advised to check the latest fee structure or consult our professionals for accurate information.

Penalty for not obtaining GST registration

The penalty for not obtaining GST registration in India is a fine of Rs. 10,000 or an amount equal to the tax evaded, whichever is higher. Additionally, the person or business may also be charged with imprisonment for a term that may extend to six months for certain offences. It is essential for individuals and businesses in India to comply with the GST registration requirements to avoid facing penalties and legal consequences. Moreover, the penalties for failing to register for GST in India

• Late fees are Rs. 100 per day, per Act (₹200 per day for CGST and SGST).
• Penalty of 10% of tax owed, with a minimum of ₹10,000.
• Willful avoidance of GST may result in imprisonment for up to six months.

What are the Categories of GST Registration?

GST registration can be of different types based on the domain and revenue generated by the business. Some of the categories of GST registration are listed below

Normal Scheme Registration

The most common type of GST registration is for businesses in which their annual turnover exceeds the threshold limit of 40 Lakh per annum on the goods they sell, and if the business is in the service provider domain, the GST registration has to be done if the annual turnover exceeds the threshold of 20 Lakhs per annum on the services they sold.

Composition Scheme Registration

In this, a small business whose annual turnover is not more than 1.5 crores for the goods they sold and if the business is from the service provider domain, then the annual turnover is not more than 50 lakhs are given the option to pay taxes at a fixed rate and file quarterly GST returns.

Casual Taxable Person Registration

This type of Registration is for business owners who do not conduct regular trade of goods and services to a state they don't belong to. The GST registration will be valid for 90 days or till the trade is going.

Input Service Distributor Registration

This is a registration for the offices of a supplier who receives tax invoices for input services and distributes the input tax credit to other branches of the same supplier. The purpose of this Registration is to ensure that the tax credit is accurately distributed and claimed by the relevant branches.

Non-resident Taxable Person Registration

This is for people who live outside India but supply taxable services and goods in India. The Registration is valid for a period of 90 days or the duration of supply.

Documents Required for GST Registration

The list of essential documents required for GST registration are listed below-

• Certificate of Incorporation of the business
• PAN Card
• ID proof- Aadhaar Card, Voter ID, Passport, etc.
• Passport-sized photographs
• Address of the business- Electricity bill, water bill, rent agreement, etc.
• Bank account statements

Documents required for New GST Registration of Sole Proprietorship businesses

The list of documents required for sole proprietorship businesses are listed below

• PAN Card of the business owner
• The Aadhaar Card of the business owner
• Passport-sized photographs of the business owner
• Proof of the Address
• Bank Statements

Documents required for GST Registration of LLPs or Partnership Firms

The list of documents required for GST Registration of LLPs are listed below

• Partnership Deed
• PAN Card of the business owners
• Passport-sized photographs of the partners
• Address proof of the partners
• Aadhaar card of the partners
• Signatory proof of appointment
• LLP registration certificate
• Bank Details
• Business address

Documents required for GST registration of HUFs

The list of documents required for GST Registration of HUFs is given below

• PAN Card of the HUF
• PAN Card of the Karta
• Passport-sized photo of the owner
• Bank account details
• Business address

Documents are required for GST registration of Pvt. Ltd. Companies

The list of documents required for GST Registration of Pvt. Ltd. Companies is mentioned below

• Business PAN Card
• Incorporation Certificate given by the Ministry of Corporate Affairs
• Signatory PAN Card
• Signatory Aadhaar Card
• Signatory appointment proof
• Bank account details
• Business address
• PAN Card of all the directors
• MOA and AOA

Documents required for GST Registration of Clubs and Societies

The list of documents required for GST registration of Clubs and societies is mentioned below

• Copy of the Registration certificate
• Copy of the PAN of the Club or society
• Passport-sized photographs of the promoters
• Bank account details
• Registered office address proof
• Authorization letter signed by signatories

What are the compliances for GST Registration?

Now that we know the process of GST registration, it is important to understand the compliance requirements for the same. The first step is to get a GST registration done, which can be done via the GST online portal and through offline means as well. Online GST Registration is more efficient and quicker than offline GST registration.

The compliances related to GST registration are fairly simple and straightforward. The significant thing that has to be kept in mind is the annual turnover of the business. The annual turnover rate plays a key role in the process of GST registration and compliance. Businesses with substantial revenue have to get a GST Registration done mandatorily. Businesses have to comply with GST guidelines; non-adherence can lead to heavy penalties. Other mandatory compliance related to GST Registration are listed below-

GST Invoicing

Issuance of GST-compliant invoices has to be given to the customers on the sale of every taxable supply.

GST Returns

Every registered business has to file GST returns regularly. The frequency of filing for GST returns is dependent on the amount of revenue generated by the business.

ITC (Input Tax Credit)

The claim for input tax credit on purchase is included in GST compliance. Businesses are required to maintain an accurate record of their purchases.

Audits and Records

Businesses are also required to maintain accurate records of all GST-related transactions.

Timely GST Payment

Every business in India is required to pay the GST collected on the purchase of their goods and services to the tax authorities.

GST Tax Rates

Take a look at the GST Tax rates applicable to different categories of products and services in India

GST Return Filing

GST return filing is the process of submitting a GST return to the government. GST returns must be submitted by all firms that are registered for GST. The frequency with which GST returns are filed varies depending on the kind of company and its revenue.

Types of GST Returns

Here are the types of GST Returns:

GSTR-1: This return needs to be submitted by all firms registered for GST. It offers information on all exterior supplies made by the firm throughout the month.

GSTR-2: This return needs to be submitted by all firms registered for GST. It includes information on all inbound supplies received by the firm throughout the month.

GSTR-3: This return needs to be submitted by all firms registered for GST. It is a consolidated report that includes information on all outbound and inbound supplies produced and received by the company throughout the month.

GSTR-4: Composition taxpayers are required to submit GSTR-4 returns. It offers information on all outbound supplies made by the firm throughout the quarter.

GSTR-5: Non-resident taxpayers are obliged to submit GSTR-5 returns. It offers information on all exterior supplies made by the firm throughout the month.

GSTR-6: This return must be submitted by input service distributors (ISDs). It offers information on all input services provided by the ISD throughout the month.

GSTR-7: This return must be submitted by taxable individuals who have chosen the reverse charge procedure. It provides information on all reverse charge supplies made by the firm throughout the month.

GSTR-8: E-commerce firms are obliged to submit GSTR-8 returns. It includes information on all monthly taxable supplies made via the e-commerce platform.

GSTR-9: This return needs to be submitted by all firms registered for GST. It is an annual return that includes information on all outbound and inbound goods produced and received by the company throughout the year.

GSTR-10: This report must be submitted by enterprises who are terminating their GST registration. It provides information on all outgoing and inward supplies produced and received by the firm between the date of cancellation and the date of submitting the return.

GSTR-11: This report must be completed by firms that need to reconcile their input tax credit (ITC) with the ITC claimed by their suppliers. It provides information on all ITC claims made by the firm throughout the month.

Ultimate Checklist for Online GST Registration 2024

• Aadhaar Card- Aadhaar Card of all the directors as well as partners involved in a business
• Address- The address proof can be in the form of an electricity bill, water bill, rent agreement, municipality tax receipt, etc.
• Address of the company- The address proof of the company can be in the form of an electricity bill, water bill, rent agreement, municipality tax receipt, etc.
• Nature of the business- Here, the person has to declare the type of business, whether it is an LLP, Pvt. Ltd., Sole proprietorship, etc.
• Certificate of Incorporation- This is the certificate that is given to a business upon successful registration.
• Letter of Authorisation- It is a legal document given to an individual who is acting on behalf of a business of an individual.
• Photograph- Passport-sized photographs of all the directors or the partners involved in a business.

What are the state-wise statistics for GST Registration 2022-2023?

Here is the state-wise statistic with respect to the number of GST registrations done

Recurring Terms

• ARN Number- A Unique number generated on successful GST registration on the GST Portal.
• GSTIN- A Unique PAN-based number provided to the business register under the GST law.
• HSN Code- It is a number that is utilized to classify goods for tax purposes.
• Non-resident taxable person- It denotes someone who doesn’t usually undertake transactions related to goods and services from one fixed place.
• GST Return- It is the returns subjected to GST paid.
• SGST- It is the GST that is levied by the state on interstate transactions.
• UTGST- It is the GST that is levied by the Union Territories on interstate transitions.
• IGST- It is the integrated tax that is levied by the Central Government on interstate transactions.
• GSTR 1- It is for details related to the outward supply of goods.
• GSTR 2- It is for giving details on the inward supply of goods.
• GSTR 3- It is the form used by an average taxable person.