According to the GST rules introduced in 2017, a GSTIN number is essential for any individual or business that meets the requirements for GST regulations. GST was introduced to replace all existing taxes to create a structured and centralized taxation policy all over the country, simplifying the process of the way taxes are levied on businesses. Operating a business or not filing your GST on time can lead to a heavy penalty and even be registered as a criminal offence.
So if you are a business or an individual with a turnover of over Rs. 20 lakh, then having a GST number and filing GST is mandatory for you. In this blog, we will cover everything you need to know about how to get a GSTIN number in India.
Who Should Register for GST?
As per the GST laws, it is mandatory to register for a GSTIN if:
- Any business with an aggregate turnover over Rs. 40 lakh (for normal category states) or over Rs. 20 lakh (for special category states)
- Any individual has an annual income exceeding Rs. 20 lakh (for normal category states) or exceeding Rs. 10 lakh (for special category states)
- Any business entity or e-commerce company operating in India must have a GST Registration. In case some rules do not apply, the business can still register using Voluntary Registration to get GST claims.
Documents Required for GST Registration
To register for a GSTIN number, the documents required are as follows:
- PAN Card of the business or individual (Mandatory as the GSTIN number is based on the PAN card number)
- Aadhaar Card
- Proof of registration of the business or incorporation certificate
- Bank details for the account associated with the business or individual
- Passport Size Photograph
- Proof of business address
- Digital signature
In addition to the documents mentioned above, the GST council can ask for additional documents or details based on the requirement. It takes 2-6 days for the GST registration process to be completed, within which the registered email or mobile number will get communication from the GST council on any additions required. After that, all documents and forms need to be submitted to the authority as per the deadline provided.
What Are the Fees for GST Registration?
Registration for GSTIN is entirely free of charge, and you may not have to pay anything to have your business registered under GST. However, trying to evade GST or making short payments for GST can incur a penalty of 10% of the tax amount due if you have paid a minimum of Rs. 10,000 or 100% if you have tried to evade tax completely. You can easily calculate the tax amount due using Razorpay’s GST Calculator.
A Step-By-Step Guide to Obtaining a GST Number
Now that we have discussed all about the GST registration process, let us go over the step-by-step process on how to get a GSTIN number in India:
- Log in to the GST Online Portal
- Click on the ‘Services’ tab, and then click on ‘Registration’ > New Registration.
- Once you click this option, you will be taken to the Registration form where you need to fill out your details like name, PAN, contact number, email ID, state, and type of entity that applies to you (Tax deductor, payer, or tax collector, GST Practitioner, Non-Resident Taxable Person, Consulate or Embassy of Foreign Country, or a Non-Resident Service Provider)
- Once you have filled out these details, the portal will verify it by sending you an OTP on your email address and mobile number provided
- Input the correct OTP, and you will receive an Application Reference Number (ARN) on your mobile and email.
- Next, you have to complete Part B of the application process by putting in your ARN. Once you put this in, you will be asked to upload the documents for the application.
- After submitting your Part B of the application, the GST officer will verify your details within 3 working days and communicate if any additional details are required. This must be provided within 7 working days.
- Once all the details and documents are received and approved, the authority can approve or reject the application for reasons provided as per Form GST-REG-05
Advantages of GSTIN
- Registers your business entity as a supplier of goods or services, helping bring more credibility to your business among customers and partners
- Any individual or business having a GSTIN can file their GST on the portal and take input credit on their business purchases.
- With GST, there are no restrictions to interstate sales and operations all over India.
- Having a GSTIN for an e-commerce website or business will help enhance the seller’s reputation and the scope of the business.
- It simplifies the GST filing process since businesses can file their GST claims on the portal and get a good rating for compliance.
GST has now replaced all local and central government taxes (leaving few commodities that still have VAT and state duties applicable), making the process of tax payment and GST claim settlement straightforward. Suppose you are an individual or business and meet the GST criteria. In that case, getting your business registered and using your GSTIN number for all your business transactions is highly recommended.
Not only helps you stay compliant with regulations but it also adds credibility to your entire operations. Plus, your customers can easily verify your business using a GST Verification Tool and be sure they are dealing with an official business entity. It helps minimize cases of fraud or any wrongdoings in the name of your business entity.