Once the turnover of the business exceeds the limits as prescribed of Rs. 40 lakhs, Rs. 20 lakhs, or Rs.10 lakhs, the business owner must register under the Goods and Services Tax system as a normal taxable entity, which is known as GST registration. In certain categories of businesses, it is mandatory to register under GST, and it is illegal for an organization to carry on business without obtaining GST registration in India.
Increase Legitimacy and Credibility: When you are doing business with other companies or clients, they often expect you to be in GST registration. It proves that your business is legitimate and that you comply with tax regulations. It gives you a good professional image.
Save Taxes with Input Tax Credit: Once you are GST registered, you have to charge GST from your customers for a few products or services. But the thing is, you can get back the GST you paid on your business expenses. This reduces your tax bill and provides your business with more working capital.
Access to More Customers: GST registration also levels the playing field with other registered business in the industry. You will not be at a disadvantage, because it is compulsory to charge GST on taxable sales. A GST-registered business also gets more customers as they prefer to opt for GST-registered companies. Major corporations and government agencies alike often prefer to hire registered suppliers.
Government Benefits: A number of countries give registered enterprises other tax reductions, such as GST vouchers or refunds. You may also be eligible to join government programs and opportunities that need GST registration for companies.
Simplified Tax Compliance: GST has simplified tax management. After registering, you are required to file periodic GST returns detailing the GST you charged and paid. This keeps you aware of your tax obligations and ensures that you comply with taxation laws. Most countries have online tools that specialize in managing GST compliance for businesses.
People Already Registered Prior to GST: If you were registered under applicable tax laws such as Excise, VAT, or Service Tax, you must obtain GST Registration.
Big Businesses with Big Sales: If you are running a business that generates heavy revenues and exceeds the turnover limits of Rs.40 lakh, Rs.20 lakhs and Rs.10 lakh, then you will need to register for GST.
Additionally, if you sell things occasionally or you’re not from the country, you must get GST registration.
Agents & Distributors: If you are working as an agent for a person or distributing the goods then also you should apply for GST number in India.
Reverse Charge Tax Payers: If taxes are paid in reverse charge method, he/she must obtain GST registration.
Online sellers: Sellers who sell goods through an e-commerce website are also required to register.
E-commerce Websites: E-commerce websites itself needs to obtain GST registration for firms and companies.
Online Service Providers: If you offer online services or access to data from another country to those in India not registered for GST, then you require registration.
Step 1: Visit the GST portal https://www.gst.gov.in, click on Register Now under the Services tab.
Step 2: Select 'New Registration' and enter these details:
Part - A
- Choose 'Taxpayer' on the drop-down menu.
- Pick your state and district.
- Enter your business name.
- Type in your business PAN.
- Provide you’re working email and phone number (you will receive OTPs here).
- Complete image puzzle and click on 'Proceed'
- Provide the OTP sent to your email and phone and click on 'Proceed.'
- Write the Temporary Reference Number (TRN) that is displayed on the screen.
Part - B
- Step 1: Return to the GST portal, and select Register in the Services menu.
- Step 2: and choose 'Temporary Reference Number (TRN)' and fill in your TRN and captcha. Click 'Proceed.'
- Step 3: A one-time password (OTP) will be sent to your email and phone. Enter it and click 'Proceed.'
- Step 4: Track the status of your application. If necessary, click on the Edit icon on the right.
- Step 5: Complete the 10 sections and attach necessary documents such as images, proof of the business address, bank details, authorization form, etc. Then, proceed.
- Step 6: Proceed to the 'Verification' page, read the declaration, and submit the application through any of the available means:
- Through generating an Electronic Verification Code (EVC) and receive it on mobile.
- If you (are a company) a Digital Signature Certificate (DSC).
- e-Sign using OTP on Aadhaar-linked mobile.
- Once completed successfully, you will get a success message with your Application Reference Number (ARN) that is sent to your email and phone.
- Note: You can also check your ARN status on GST portal.
For entities (Sole Proprietorships):
- A photograph of You (in a certain file type and size)
For LLP and Partnership Firms: LLP and Partnership Firms
- All partners (people in business) PAN cards
- Partnership agreement Copy
- All partners and Authorised Persons Photos
- Address proof for partners
- Identity proof of the Person authorized
- Authorization for Signatory to Act on Business' Behalf
For LLP, you require either the registration certificate or any document showing the decision of the LLP
- Evidence of the address of the business
- HUF (Hindu Undivided Family) :
- Karta PAN and Aadhar cards of Family head
- Evidence of the business’s address
For Companies (Indian & Foreign, Public & Private)
- Certificate of incorporation Ministry of Corporate Affairs
- Memorandum of Association and Articles of Association
- Authorized person's PAN and Aadhar cards (the one who represents the company)
- PAN along with address proof of all directors of the company
- Photographs of all the directors and the authorized individual
- A document proving that the authorized person is eligible to act on behalf of the company.
- We will also need the business proof of domicile.
Proprietorship Registration
