GST Registration - All the Basics You'll Ever Need to Know

GSTIN is a symbol of authenticity for your client, it has helped simplify many processes, starting from application to filing return.

GST Registration - All the Basics You'll Ever Need to Know

GST Registration

GST registration allows your business to function legitimately and positions your brand as trust worthy and authentic. Registering GST is very simple and may be completed using the GST Portal. It usually takes 3-4 days for filing the application and you can get your GST number within a weeks span.

But, how do you know if you are eligible to register?

Applicability & Eligibility for GST

Under the GST bill, tax is payable when a taxable person crosses the threshold limit of ₹10 lakh. CGST and SGST is to be paid by the individual on all supply of goods and services within the state. IGST is payable on all interstate transactions.

Individuals who have registered under the Pre GST law, that is, VAT, service tax and excise are eligible for GST. The agents of the suppliers of goods and input distributors can register for GST. Furthermore, people who supply goods online on e-commerce platforms are required to be registered under GST.

If in any financial year annual turnover exceeds Rs. 40 lakhs then you will have to register for GST. There is no requirement for re-registration or renewal under GST, as it has no expiry. If the business is GST registered then you can avail the benefit of Input Tax Credit where in you will have to pay only the difference between GST paid and payable by the business.

Procedure To Register Under GST:

There are ten sections in the GST registration form. The applicant must validate the information using their Digital Signature Certificate (DSC) or E-signature (EVC), i.e., verification using Aadhaar, before submitting the last part and a few other sections of the form. It is required for Partnership firms, LLPs, and companies to use DSC for verification. Aadhaar can be used to verify ownership in cases of concern. Your registered cellphone number must be linked to your Aadhaar card because the system will issue an OTP to it during Aadhaar verification.

Step1: Open https://reg.gst.gov.in/registration/ website for starting the GST registration process.
Step2: First, we will have to fill Part A.

 a. Select “New Registration” option and fill in the following details: Select your identity as “Taxpayer”.

b.  Select state and district

c.  Write name of your business (As mentioned on the PAN card) (In case of Proprietorship concern if separate PAN for the business is not obtained, then mention the name of the proprietor as per PAN card)

d. PAN card number of your business/proprietors PAN number.

e. Email address and mobile number (For the purpose of OTP). Select “Proceed for OTP verification.

Step3:
- OTP will be sent on your mobile number and email address.

- On the OTP verification page, fill in the OTPs received on your mobile number and email address and click “Continue”.

Step 4:

- On successful verification of OTP, you will receive a “Temporary Reference Number (TRN)” on your mobile number and email address.

- The screen will display a message which says that you will have to file the Part B of the application before the specified date as mentioned in the same message.

 Step 5:

- Once again go to the same website to complete the Part B of the GST registration process.

Step 6:

- Select “Temporary Reference Number (TRN)” option.

- Enter the TRN and the displayed captcha image.

- Select “Proceed”

- Once again you will receive a new OTP on your mobile number and email address.

- Fill the OTP and select “Proceed” for OTP verification.

Step 7:

- Your application's status will be shown on the website as "Draft" and an edit icon will be visible. Select the icon.

- The form will now have ten sections for different types of information.

 - Enter the necessary information and upload the needed file.

Step 8:

- In the last section of the form you need to verify the details of the form and submit the form for further processing. The verification can be done either by using a  DSC or EVC.

- For business types other than Proprietorship concern i.e. Company, LLP, Partnership Firm, using Digital Signature Certificate (DSC) for verification is mandatory.

- For Proprietorship concern, the proprietor can use EVC for verification i.e. the form can be verified using proprietors Aadhaar number.

Step 9:

- After following all the above steps your application will be submitted with the department and you will receive an “Application Reference Number (ARN)”.

- You can check the status of your application by entering the ARN on the GST Portal.

Summary of contents of the sections of the registration form:

Section 1:

Business Details - In this section, you must provide information about your company, such as its name, its kind of entity, the district and state in which it is located, the date the company was founded, etc. It is mandatory to fill this section. 

Section 2:

Promoter/Partner details - Owners, Partners, or Directors should fill out this section with their personal information, such as name, address, and birthdate. It is mandatory to fill this section.

Section 3:

Authorized Signatory -Here, you must include information about the person who will sign the business's registration form and its GST returns (through DSC or EVC).It is mandatory to fill this section. 

Section 4:

Authorized Representative– This section applicable only if you are appointing a GST Practitioner or any other person as Authorized Representative of the business.

Section 5:

Principal place of business: The principal place of business is where the business is physically located. If the business's financial accounts are stored there or its top management is located there, an office can be considered the company's principal place of business. Here, you must include information such as the address and the kind of ownership of the property.

Section 6:

Additional place of business – If the business has more than one office, then here you need to provide its details.

Section 7:

Goods and Services – Here you need to mention the goods that you supply and its HSN code or the services that you offer and its service classification code.

Section 8:

Bank account – Here you need to provide bank account details such as account number, type of account and the IFSC code.

Section 9:

State specific information – Here you need to provide Profession Tax Employee Code number, Profession Tax Registration Certificate Number, State Excise License number and the name of the person in whose name excise license is. This information should be provided only if it is applicable to your business.

Section 10:

Verification This is where you verify and submit the form.

List of documents required for GST registration:

1. Photograph of the applicant

2. ID Proof (Any two)

  a. PAN CARD (Compulsory)

  b. Aadhar Card

  c. Election Card

 d. Passport

3. Constitution document:

  a. Proprietor: Shop Act Registration/Intimation.

  b. Partnership Firm: Partnership Deed, Certificate of Incorporation in case of LLP

  c. Company (Private Ltd/OPC, Public Company): Certificate of Incorporation

4. Proof of Principal Place of Business

  a. Owned: Property Tax paid receipt, Light Bill, Sale deed, Index II (Any one)

  b. Rented: Registered rent Agreement, Light bill

5. Bank Account of Business (Any one)

  a. Cancelled Cheque

  b. Copy of Bank Statement

  c. First page of Pass Book

6. Address Proof of Residence (Any one)

  a. Light Bill

  b. Telephone Bill

  c. Property Tax paid receipt

7. Digital Signature, if available

Conclusion

The introduction of GST in India has resulted in the consolidation of several indirect taxes under one law, streamlining the country's tax system. Digitalization is crucial in enabling a simple online tax payment system. GST lessens the number of taxes. These days, anyone can verify the requirements for registration themselves and register online.