GST registration is the procedure by which a taxpayer registers for Goods and Service Tax (GST). After the registration process is successfully completed, a Goods and Service Tax Identification Number (GSTIN) is given. To help determine whether a company must pay GST, the Central Government provides the 15-digit GSTIN.
To make the process of reporting taxes simpler, the Ministry of Finance (MoF) has streamlined the GST registration process. Let’s examine the requirements for obtaining a GST registration in this article.
Who needs to register under GST?
- Individuals who are registered under Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
- For a supplier of services, the threshold Turnover limit for GST Registration is Rs. 20 lakh. For the states of Manipur, Mizoram, Nagaland, and Tripura, the limit is Rs. 10 lakh. Therefore, as soon as the service provider exceeds this threshold, he or she must register for GST and pay the applicable tax. Additionally, he must submit all GST returns in accordance with the law.
- For a supplier of goods, the minimum Turnover Limit for GST Registration is Rs. 40 lakh. For the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand, the limit is Rs. 20 lakh. Therefore, as soon as the supplier of goods exceeds the aforementioned limit, he must register for GST and pay regular tax. He must also submit all GST returns in accordance with the law as it stands.
- E-commerce operators that collect tax at source are required to register for GST.
- Any person that provides services through e-commerce platforms. However, if the services are for a turnover of up to Rs. 20 lakh, they are exempt from registering for GST.
- Non-Resident taxable person and casual taxable person.
- Input service distributors and Agents of the suppliers.
- Individuals who pay taxes under the reverse charge mechanism.
- Anyone who offers online information and database access or retrieval services from a location outside of India to a person in India who is not a registered taxable person.
Criteria for GST Registration
Anyone providing services with an annual turnover of more than Rs. 20 lakhs is required to register for GST. This cap is set at Rs. 10 lakhs in states that fall under the special category. Any business that sells only goods and has a combined annual income of more than Rs. 40 lakhs is required to register for GST.
Regardless of their total annual revenue, any company that ships goods across state or from one state to another must register for GST. Only businesses that conduct interstate business and have an annual turnover of more than Rs. 20 lakhs are required to register for GST. The maximum amount is Rs. 10 lakhs (in states that fall under a specific category).
Online Store Platform
Every person who sells goods or services on an online platform must register for GST. Regardless of turnover, the person must register. Therefore, in order to start selling on Flipkart, Amazon, and other e-commerce websites, businesses must register.
Any company is free to register for GST. Any organization’s voluntary GST registration used to be impossible to cancel for up to a year. However, the applicant may at any time revoke their voluntary GST registration after revisions.
Guide to GST Registration Process
The MoF has streamlined the procedures needed to complete an online GST registration. Through the GST Portal, the applicant can complete the GST registration process. The website generates a GST ARN as soon as an application is submitted. The applicant can monitor the status of their application and, if necessary, post inquiries using the GST ARN. The taxpayer has seven days after the ARN’s production to obtain a GSTIN.
Step 1: Go to the GST Portal.
Go to the GST Portal. Click on the Services > Registration > New Registration option on the GST Portal.
Step 2: Request for a TRN by finishing OTP Validation.
The GST registration page appears. Choose the option for New Registration. The applicant must continue with the application using the TRN number if the GST registration application is still pending.
- Select the appropriate category of taxpayer from the list of options.
- Considering the requirements, choose the state.
- Enter the business’s legal name exactly as it appears in the PAN database. The applicant should provide the information exactly as it appears on the card because the site quickly examines the PAN.
- In the Permanent Account Number (PAN) field, enter the PAN of the business or the owner. GST registration and PAN are connected. If a company or LLP is involved, enter its PAN.
- Click on Proceed.
Step 3: OTP Verification.
When the aforementioned information is entered, the OTP Verification screen appears. Only 10 minutes remain before the OTP expires. Enter the two different OTPs that were given in order to confirm the email address and mobile number.
A TRN will be created if the OTP verification is successful. To finish and submit the GST registration application, TRN will now be used.
Step 4: Log in with TRN.
The applicant must start the GST registration process as soon as they have their TRN. Enter the generated Temporary Reference Number (TRN) and the captcha text exactly as they appear on the screen .Use the OTP to validate your phone and email.
Step 5: Submit Business Details.
The company’s information must be entered into the first tab.
- Enter the company’s trade name in the Trade Name field.
- Select the Business Constitution from the drop-down menu and enter the details.
- From the drop-down list, choose the District and Sector/Circle/Ward/Charge/Unit.
- Choose the appropriate Commissionerate Code, Division Code, or Range Code from the drop-down menus.
- In case it’s required, choose the compositional scheme.
- Enter the company’s commencement date.
- Choose the day that registration becomes necessary. The company reached the amount of overall turnover required for GST registration on this day. The taxpayer has 30 days from the day they are required to register to submit a new GST registration application.
Step 6: Provide Information regarding the Promoters or Founders.
Give producers and directors information in the next tab. Information on the owners must be provided in cases of proprietorship. An application for GST registration may list up to ten Promoters or Partners.
Step 7: Select the Authorized Signatories.
A person designated by the company’s promoters is an authorized signatory. The designated individual is in charge of submitting the GST returns on the business’s behalf. The individual must continue to uphold compliance for the business as required. The GST Portal will be fully accessible to the authorized signature. The individual will carry out several business transactions on the promoters’ behalf.
Step 8: Primary Place of Business.
The applicant must describe the main place of business in this section. The taxpayer conducts the majority of its internal business operations at the Principal Place of Business. As a result, the registered office of the company or LLP serves as its principal place of business.
Step 9: Additional Place of Business.
Update this page when your business opens a second location with details on the building. For instance, if the applicant uses the seller’s warehouse to fulfil orders placed on Flipkart or another e-commerce website, that location might be counted as an additional place of business.
Step 10: Details of Product and Services.
The taxpayer is required to list the top five goods and services that the application provided under this heading. Give the SAC code for the services rendered as well as the HSN code for the goods that were delivered.
Step 11: Bank Account Details.
Indicate the number of bank accounts the applicant has in this field. Enter 5 if there are 5 accounts. Give the account information, including the account number, IFSC code, and account type. Last but not least, include a copy of your wallet or bank statement.
Step 12: Submit the Application.
Check the information you provided once more before submitting the application. Finally, use a Digital Signature Certificate (DSC), E-Signature, or EVC to digitally sign the application. Businesses and LLPs must employ a DSC digital signature.
Step 13: ARN Generated.
Upon successful application submission, a success message is displayed. Both the registered email address and mobile phone number must receive the acknowledgement. The provided mobile phone number and email address receive the Application Reference Number (ARN) receipt. The GST ARN Number can be used to monitor the progress of the application.
Fees for GST Registration
Taxpayers should be aware that there are no registration fees for the GST. As a result, there is no fee associated with GST registration.
However, there will be a GST penalty if you pay your taxes late or insufficiently. The GST penalty is 10% of the tax amount, but only if the amount is at least Rs. 10,000. If tax evasion is done on purpose, the fine is 100% of the tax.
Get in touch with CAnest for hassle free GST registration for your new business.