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GST Registration is a process by which a taxpayer gets himself registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration.
Please note – If you are operating from more than one state, then you will have to take separate registration for each state you are operating from.
Now, you must be wondering if every business is required to register under GST? Let’s understand GST registration and its procedure in detail.
Who should register for GST?
All the businesses supplying goods whose turnover exceeds INR 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is INR 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.
The turnover limit is INR 20 lakh, and in the case of special category states, INR 10 lakh, for the service providers.
Also, here is the list of certain businesses for which GST registration is mandatory irrespective of their turnover:
- Casual taxable person / Input Service Distributor (ISD)
- Non-resident taxable person
- Inter-state supplier of goods and services
- Supplier of goods through an e-commerce portal
- Any service provider
- Liable to pay tax under the reverse charge mechanism
- TDS/TCS deductor
- Online data access or retrieval service provider
To find out how much GST you must pay for your goods or services, simply use an online GST calculator.
What are the documents required for GST registration?
Take a look at the list of documents that you will need for registering your business under GST:
- Permanent Account Number (PAN) of the applicant
- Copy of the aadhaar card
- Proof of business registration or incorporation certificate
- Identity and address proof of promoters/directors with a photograph
- Bank account statement/cancelled cheque
- Authorisation letter/board resolution for authorised signatory
- Digital signature
Types of GST registration
Most businesses in India fall under this category.
Businesses whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand.
Casual taxable individual
Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations.
The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.
Non-resident taxable individual
Individuals who reside outside India but occasionally supply goods or services as agents, principals, or in other capacities to Indian residents are liable to file for registration under this category.
The business owner must pay a deposit equal to the expected GST liability during the GST active tenure. The normal tenure is 3 months. However, individuals can extend or renew the registration if required.
Businesses with an annual turnover of up to Rs 1 crore are eligible for registration under composition scheme. Under this scheme, businesses have to pay a fixed amount of GST irrespective of their actual turnover.
Procedure for GST registration
The procedure to obtain a GST registration is easy and free. A taxpayer seeking a normal registration can visit the GST portal and fill the registration Form GST REG-01.
- Visit GST portal
- Click on ‘Registration’ under the ‘Services’ tab and then click on ‘New registration’
The application form is divided into 2 parts – Part A and Part B.
- Select the ‘Taxpayer’ as the type of taxpayer from the ‘I am a’ drop-down list
- From the State/UT and District drop-down list, select the state and district for which registration is required
- In the Legal Name of the Business field, enter the legal name of the business/ entity as mentioned in the PAN database
- In the Permanent Account Number (PAN) field, enter PAN of the business or PAN of the Proprietor
- In the email address field, enter the email address of the primary authorised signatory
- In the mobile number field, enter the valid mobile number of the primary authorised signatory
- Enter the captcha and click the ‘Proceed’ button
- After completing the process, move to Part B. After verification, you will receive a Temporary Reference Number (TRN). The TRN will be sent to the registered email address and mobile number
- Click on ‘Services’ > ‘Registration’ > ‘New Registration’ option and select the Temporary Reference Number (TRN) button to log in using the TRN
- In the TRN field, enter the TRN generated and the captcha text shown on the screen. Then, click on ‘Proceed’
- Enter OTP sent on mobile or email in the verify OTP page. And, click on the ‘Proceed’ button
- The My Saved Application page is displayed. Under the Action column, click the Edit icon
- On the top of the page, registration application form with 10 tabs open. Click on each tab to enter the details like business details, promoter/partner details, authorised signatory, principal & additional place of business, goods & services detail, state information, aadhaar authentication and verification
- Now click on ‘Save and continue’. Once the application is submitted, sign it digitally using DSC and click on ‘Proceed’
- After submission, you will receive an Application Reference Number (ARN) via email or SMS to confirm your registration
Penalty for not registering under GST
All the businesses required to register under GST mandatorily will have to pay a penalty of 10% of the tax amount payable up to a maximum of INR 10,000.
Frequently asked questions
How do I know my GST details?
To get complete access to your GST profile, you have to: 1. Visit the GST homepage at www.gst.gov.in 2. Login to the GST Portal with valid credentials. 3. On the top right corner of the page, click the down arrow appearing next to your username, and then click on the “My Profile” option to see your credentials.
What happens if I don’t register for GST?
Any taxable individual who fails to register under GST even if they are legally bound as per the GST Act needs to pay a penalty of INR 10,000 or the amount of tax evaded whichever is higher according to section 122 of CGST Act.
Can we find the GST number by name?
No, it is not possible to find the GST number by name for all taxpayers. You can only find details of taxpayers shared by state governments and the details of businesses who have shared GSTIN on their websites.
Can I do GST registration on my own?
Yes, GST registration can be easily done on the GST portal online. Business owners can fill a form on the GST portal and submit the necessary documents for registration.
What type of tax is GST?
GST is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc.
What are the documents required for the GST number?
* Company PAN card * The Ministry of Corporate Affairs incorporation certificate * Memorandum/ Articles of Association * Signatory's appointment proof * Signatory's PAN card * Signatory's Aadhaar card * PAN card of all directors * Address proof of all directors
What is the process of GST registration?
Step 1: Go to the GST Portal Step 2: Generate a TRN by Completing OTP Validation Step 3: OTP Verification & TRN Generation Step 4: TRN Generated Step 5: Log in with TRN Step 6: Submit Business Information Step 7: Submit Promoter Information Step 8: Submit Signatory Information Step 9: Fill in details of the Principle of Business Step 10: Details of Goods and Services Step 11: Details of bank account Step 12: Verification of application