Goods & Services Tax-GST Registration

Overview

Some businesses must sign up for GST. If they don't, it's against the rules. They will face big fines.

What is GST registration?

If a business's turnover surpasses the prescribed thresholds of Rs. 40 lakhs Rs. 20 lakhs, or Rs. 10 lakhs, the business owner is obligated to enroll as a standard taxable entity under the Goods and Services Tax (GST) system, commonly referred to as GST registration. For specific types of businesses, GST registration is compulsory, and it is a legal violation for an organization to engage in business activities without proper GST registration.

Benefit

Boost Legitimacy and Credibility: When you are doing business with other companies or clients, they often expect you to be registered for GST. Registering shows that your business is genuine and follows tax rules. It makes you look professional.

Save on Taxes with Input Tax Credits: After GST registration, you need to charge GST to your customers on certain products or services. But the good news is, you can also claim back the GST you paid on your business expenses. This helps lower your tax bill and gives your business more money to work with.

Stay Competitive: GST registration levels the playing field with other registered businesses. It's a requirement to charge GST on taxable sales, so you won't be at a disadvantage. Being GST-registered can also attract more customers and boost your business.

Access to More Customers: Many big companies and government organizations prefer to work with registered suppliers. So, by registering for GST, you open doors to more potential clients. It's a sign that you're following the rules and can be trusted.

Government Benefits: Some countries offer benefits like GST credits or refunds to registered businesses, reducing your overall tax burden. You might also qualify for government programs and opportunities that require GST registration.

Simplified Tax Compliance: GST makes managing taxes simpler. When you're registered, you need to submit regular GST returns that show the GST you collected and paid. This helps you keep track of your tax obligations and ensures you follow tax rules. Many countries provide online tools to help businesses manage their GST responsibilities.

Who Should Get GST Registration?

People Registered Before GST: If you were already registered under the old tax laws like Excise, VAT, or Service Tax, you should get GST registration.

Businesses with Big Sales: If your business makes a lot of money and crosses the turnover limits of Rs. 40 lakh, Rs. 20 lakhs, or Rs. 10 lakh (depending on the type of business), you need to register for GST.

Occasional Sellers: Even if you sell things occasionally or you're not from the country, you should get GST registration.

Agents and Distributors: If you work as an agent for someone or distribute goods, you also need GST registration.

Reverse Charge Tax Payers: If you pay taxes through the reverse charge method, you must get GST registration.

Online Sellers: If you sell things through an e-commerce website, you have to register.

E-commerce Websites: E-commerce websites themselves must get GST registration.

Online Service Providers: If you provide online services or access to data from another country to someone in India who isn't registered for GST, you need GST registration.

Tax & Process

Step 1: Go to the GST website at https://www.gst.gov.in and click on 'Register Now' under the 'Services' tab.

Step 2: Choose 'New Registration' and provide these details:

Part - A

Select 'Taxpayer' from the drop-down menu.

Pick your state and district.

Enter your business name.

Type in your business PAN.

Share your active email and phone number (you'll get OTPs here).

Solve the image puzzle and click 'Proceed.'

Enter the OTP sent to your email and phone, then click 'Proceed.'

Note down the Temporary Reference Number (TRN) shown on the screen.

Part - B

Step 1: Go back to the GST portal, and click 'Register' in the 'Services' menu.

Step 2: Select 'Temporary Reference Number (TRN)' and enter your TRN and captcha. Click 'Proceed.'

Step 3: You will get an OTP on your email and phone. Enter it and click 'Proceed.'

Step 4: Check the status of your application. If needed, click the Edit icon on the right.

Step 5: Fill in the 10 sections and upload required documents like photos, business address proof, bank details, authorization form, and more. Then, proceed.

Step 6: Go to the 'Verification' page, review the declaration, and submit the application using one of these methods:

By getting an Electronic Verification Code (EVC) sent to your phone.

If you're a company, by using a Digital Signature Certificate (DSC).

Using e-Sign with an OTP sent to your Aadhaar-linked phone.

Once done, you'll see a success message with your Application Reference Number (ARN) sent to your email and phone.

Note: You can check your ARN status on the GST portal.

Documents Required

For Individuals (Sole Proprietors):

• PAN card (your tax ID)
• Aadhar card (ID card)
• Your photo (in a specific file format and size)
• Bank account details
• Proof of your address
• For LLP and Partnership Firms:

PAN cards of all partners (people in the business)

• Copy of the partnership agreement
• Photos of all partners and authorized people
• Address proof for partners
• Aadhar card of the authorized person
• Proof that the authorized person is allowed to represent the business
• For LLP, you need the registration certificate or a document showing the LLP's decision
• Bank account details
• Proof of the business's address

For HUF (Hindu Undivided Family):

• HUF's PAN card
• PAN and Aadhar cards of the head of the family (Karta)
• Karta's photo
• Bank account details
• Proof of the business's address

For Companies (Indian and Foreign, Public and Private):

• Company's PAN card
• Certificate of incorporation from the Ministry of Corporate Affairs
• Documents like Memorandum of Association and Articles of Association
• PAN and Aadhar cards of the authorized person (who represents the company)
• PAN and address proof of all company directors
• Photos of all directors and the authorized person
• A document showing that the authorized person is allowed to represent the company
• Bank account details
• Proof of the business's address

Procedure

FAQ's