Goods and Services Tax or GST Registration includes all the individuals or entities supplying goods and services in India. GST Registration becomes necessary once the value of the supply increases Rs. 40 lakh (Rs. 20 lakh for hill and North Eastern States). To ease down the tax filing process, the Ministry of Finance simplified the procedure for GST Registration. Non-compliance with GST registration rules would consequence in the cancellation of GST registration as per the notification from the government. Aadhaar Authentication: Any individual be relevant for a new GST registration needs to get Aadhaar authentication done, with both biometrics and a photograph.
GST Registration helps in envisaging the creation of a single market by removal of state boundaries and by eliminating the effect of cascading of taxes. It takes 6 working days to complete the GST registration process. In this article, we will discuss the process of GST Registration to be followed in India.
What do you mean by GST?
The Goods and Services Tax or GST is a value-added tax which is levied on all the individuals and entities carrying out the business of supply of goods and services for domestic consumption.
The consumers pay GST, but it remitted by the government from the businesses selling the goods and services to the consumers. The GST Act was passed in Parliament on 29th March 2017, and the GST came into effect on 1st July 2017. The GST Registration is made mandatory under the GST Act; if not done, penal consequences have to be faced by the individuals or entities. There are three types of GST in India are; Central Goods and Service Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST), and Integrated Goods and Services Tax (IGST)
What are the Different Types of GST Registration?
Under the GST Act, there are different types of GST Registration. Before selecting a particular type of GST Registration, it is very important that one should know about the different type of GST Registration available under the GST Act. The various types are as under:
The majority of businesses are registered under this category in India. The taxpayer in this category does not require a deposit and also have an unlimited validity date.
The person establishing a shop or any seasonal shop should register under this category. The amount equal to the GST liability is deposited for registration under this category.
One should get enrolled under the GST Composition Scheme to get registered under this category. A person under this category needs to deposit a flat. The GST registration process can be completed within 6 working days.
If someone is living outside India, but supplying goods to a person residing in India, then one must get registered under this category. Like Composition Taxpayers, one has to deposit the GST liability as associated with this category. The active duration of this type of GST is 3 months, which is expendable on demand.
- GST TDS Collector – E-commerce Companies
- Non-Resident Online Service Provider
- Special Economic Zone Developer
- GST TDS GST TDS Collector – E-commerce Companies
- GST TDS Deductor – Government Entities
- Collector – E-commerce Companies
- Special Economic Zone Unit
- UN Embassy/ Body/ other notified individuals
Read our article:GST Taxpayers can file their GSTR-3B Returns in an easy way
What are the steps followed for the GST Registration in India?
What are the Steps followed for the GST Registration in India?
- Go to the GST portal and click on the Services tab.
- There will be four options: Registration, Payment, User Services and Refunds.
- Select the Registration tab and opt for ‘New Registration.’
- A new page will be opened. Fill in the details asked in all the columns.
- Once done, click on Proceed.
- Enter the OTP send to your Email and mobile number and click on Continue.
- A Temporary Reference Number (TRN) will be given to you. Take note of that number.
- Now go to the GST Portal again. Click on ‘Register Now’.
- Choose the Temporary Reference Number (TRN) and proceed. Fill in all the details and click on ‘Proceed’.
- Enter the OTP which is sent to your Email Id and mobile number and proceed further.
- There will be draft column where you can see the status of your application. Now proceed further in Part B.
- Part B will contain certain sections in which you have to fill the required information as asked and upload the necessary documents.
- Now visit the Verification Page and check the Declaration, now submit the application by anyone methods below:
- Electronic Verification Code (EVC). This code is sent to the registered mobile number.
- By e-Sign method in which an OTP is sent to the mobile number linked to the Adhaar Card.
- If a Company is registering, then register through the Digital Signature Certificate (DSC).
- Once completed, a success message will be shown on your screen. The Application Reference Number (ARN) will be sent to the registered mobile number and Email id.
- To track the status of your application, you can enter the ARN on the GST Portal.
What are the Documents Required for GST Registration in India?
- PAN Card of the Applicant
- Adhaar Card of the Applicant
- Address proof of place of business
- Digital Signature of the Applicant
- Certificate of Incorporation of the entity
- Bank Account Statement or a cancelled cheque of the company, firm or an individual
- Letter of Authorisation or Board Resolution from Authorised Signatory
- Directors or Promoters Id Proof, address proof and photograph
What are the Penalties if GST Registration is not done?
If a person fails to take a GST Registration in India, then the following consequences are to be faced:
- A Penalty that is levied is 10% of the due amount in case of genuine errors and minimum amount of penalty is Rs. 10,000
- The penalty levied is 100% of the due tax amount where the person has not registered for GST and intentiobally trying to evade tax.
- No eligibility for the issue of tax invoice
- No eligibility for the input tax credit
- Detention of Goods and Conveyance
- Confiscation of Goods
- Confiscation of Conveyance, as per the applicability.
What are the benefits associated with GST Registration?
- More competitiveness as compared to other unregistered competitors as you have a valid tax registration number.
- There will be common procedures for tax payer’s registration and refund of taxes, while the tax return format will be uniform.
- The taxpayers will have a common portal, i.e. GSTN for all the queries related to the tax.
- There will be elimination of Cascading effect of taxes.
- By the introduction of the Composition Scheme, there will be positive benefits to the small scale industries.
- With the coming of GST, the registered tax assesses pay a single uniform tax on goods and services across the country.
GST Registration nowadays is mandatory for doing business in India. Every business registered under GST has to file GST Returns as well. If not done, a penalty will be imposed, and consequences are to be faced by the person. The businesses in different states must be registered separately under GST. It is better to consult an expert to understand the process of GST Registration. We at Corpbiz have professionals who can help you in sailing through the GST registration process.
Read our article: GST Registration: Aadhaar Verification To Be Effective From April 1, 2020