GST Registration Process

GST (Goods and Services Tax) Bill was approved by the Government of India, to replace all State and Central Government imposed indirect taxes. It is now compulsory for entities engaging in the supply of goods and services across States, to do GST registration online. GST stands for Goods and Services Tax. It will replace most indirect taxes.

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GST registration process

What is GST Registration?

An entity that has a turnover of over Rs 20 lakhs a year is required to register under GST.

For certain businesses, registration under GST is compulsory. If the organization carries on business without the registration, it will be an offence under GST and heavy penalties apply.

Who Should Register for GST?

• Every e-commerce aggregator.
• A supplier through e-commerce websites
• Individuals paying tax under the reserve charge mechanism
• Residential Taxable persons or non-residential taxable person
• Agent of a supplier
• Input service distributor
• Businesses with a turnover of Rs 20 Lakhs for all states in India and Rs 10 Lakhs for north eastern states and hill states.
• Individuals registered under excise duty, service tax or VAT.
• Individuals supplying online information, database access and retrieval service.

SEE ALSO:Education Loan Eligibility

Eligibility Criteria:

The eligibility criteria for GST registration are listed below:

• Turnover criteria: Individuals or companies involved in supplying goods and services with a turnover of more than Rs 20 Lakh in states should mandatorily register for GST.
• Interstate supply: Registration under GST is mandatory for entities undertaking inter-state supply of goods and/or services.
• E-commerce sellers: Entities involved in the supply of goods or services through e-commerce platforms are mandatorily required to be registered under GST, irrespective of aggregate annual turnover. 
• Existing taxpayer: All entities having service tax or VAT or central excise registration must be registered under GST.
• Casual taxable persons: A casual taxable person is someone who occasionally undertakes supply of goods or services having no fixed place of business. 

Documents Required for GST Registration Process:

An individual who wishes to register himself under GST must submit the following documents:

• PAN card of the business or applicant
• Aadhaar card of the applicant
• Business registration document
• Address proof of the place of business
• Bank statement
• Digital signature
• Identity and address proof of the Director or Promoters along with photograph.
• Letter of authorization or board resolution for authorized signatory.

SEE ALSO: Input Tax Credit Under GST

How to Register for GST Online?

This is a step by step process on how to complete registration process online on GST portal:

1. Go to the GST portal. Click on register now
2. Enter the details in part A:  Select New Registration

In the drop-down under I am a – select Taxpayer

• Select State and District from the drop down
• Enter the Name of Business and PAN of the business
• Key in the Email Address and Mobile Number. The registered email id and mobile number will receive the OTPs.
• Click on Proceed

3. Enter the OTP received. Click on continue.

4.  You will receive a temporary reference number (TRN)

5.  Go to the GST portal and click on register now.

6.  Select TRN. Enter TRN and type the captcha code.

7.  You will receive an OTP on the registered mobile number. Enter the OTP and click on Proceed.

8. You will see the status of the application shown as drafts. Click on Edit Icon.

       9.  Part B has 10 sections. Fill in all the details and submit the appropriate documents.

This is the list of documents you need to keep handy while applying for GST registration:

• Photographs
• Constitution of the taxpayer
• Proof for the place of business
• Bank account details
• Authorization form

10. Once all the details are filled in go to the Verification page, Tick on the declaration and submit the application using these methods:

• Companies must submit application using DSC
• Using e-Sign – OTP will be sent to Aadhaar registered number
• Using EVC – OTP will be sent to the registered mobile number.

11.  A success message is displayed and Application Reference Number (ARN) is sent to registered email and mobile.

12. You can check the ARN status for your registration by entering the ARN in GST Portal.

SEE ALSO:Certificate of Deposit

GST Registration Process Fees:

GST Registration is a tedious 11 step process which involves submission of many business details and scanned documents.
GST Registration is free of cost. You can get registered under GST without paying any Government Fees. However, in some cases, you must digitally sign the GST application and the Digital Signature costs between Rs 1,000 to Rs 1,500. You need to be careful while uploading the supporting documents and filling the details for registration.

GST Registration Types:

Given below are the types of GST registration:

• Regular dealer
• Composite dealer
• Foreign non-resident taxpayer
• Input service distributor
• E-commerce operator
• Government department and UN bodies.

GST penalty:

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs 10,000.

The penalty is 100% of the tax amount due when the offender has deliberately evaded paying the taxes.

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