Every person or business that generates a yearly turnover of more than INR 40 lakh, INR 20 lakh, or INR 10 lakh, depending on which state their business is located in, is required by the Goods and Services Tax (GST) regulations to register for the GST.
The government conducts the online GST registration process through its GST website.
A unique registration number known as the Goods and Services Tax Identification Number (GSTIN), which is a 15-digit number given by the government to taxpayers after achieving GST registration, is given to a business once it has registered for GST. However, if a business operates in more than one state, it must also be registered for GST in each of those states.
Remember that operating a business without registering for the GST is a serious offense. The GST registration procedure is very straightforward and typically takes up to fifteen working days.
Principal Elements of GST Registration
- Businesses must register for GST under normal taxable individuals if their annual revenue exceeds INR 40 lakh (for entities engaged in trading of goods and services) or INR 20 lakh (for entities engaged in the service sector). Every state has a different upper bound.
- If you operate a business in one of the northeastern states—Jammu and Kashmir, Himachal Pradesh, Uttarakhand, or Tripura—the limit is INR 10 lakh.
- Businesses eligible for registration under the composition scheme have annual revenue of up to INR 1 crore. Businesses are required to pay a set amount of GST in this instance, regardless of their revenue.
- There are no GST registration costs.
- If one is unable to file for GST, one must pay a fine of INR 10,000 (10% of the amount owed), whichever is greater.
Who Should Apply for the GST Registration?
- Businesses whose annual revenue exceeds the applicable threshold limit of INR 40, INR 20, or INR 10 lakh.
- Casual taxable person
- Non-resident taxpaying individuals
- people who are registered under laws like excise, VAT, or service tax that were in place before the GST.
- Distributors of input services and interstate supplier
- people make tax payments using the reverse charge mechanism.
- whoever makes a supply through an e-commerce aggregator.
- every aggregator for e-commerce.
- the source-based tax collector or deductor.
- Any organization may voluntarily register for GST.
Documents Required For GST Registration
Below is a list of documents that one needs for registering their business under the GST:
- Permanent Account Number (PAN).
- Aadhar Card.
- Business incorporation certificate.
- Identity and address proof of each promoter.
- Canceled cheques.
- Bank account statement.
- Digital signature.
Online GST Registration Process
The entire GST registration process is entirely online and is very easy to understand. The online GST registration process is described in detail below.
- Visit the GST portal.
- Go to the “services” tab, click on “registration” and then click on “new registration”.
- The “taxpayer” should be chosen from the drop-down menu. Parts A and B of the registration are separated.
Part A Process:
- From the State/Union Territory and district drop-down list, choose the state and district where GST registration is required.
- Include information like the legal name of the company or entity as it appears in the PAN database.
- Enter the information for the permanent account number (PAN) of the company or the owner’s PAN.
- Add additional information, such as your registered email address and phone number.
- Click “proceed” after entering the captcha code.
- Proceed to Part B of the registration process after completing Part A. The Part B process must be completed in 15 days.
- You will be given a temporary reference number following verification (TRN). The registered email address and mobile number will receive the TRN.
Part B Process:
- Select “services,” “registration,” and then “new registration” from the menu.
- To log in and fill out the necessary information to continue, select “TRN.”
- Enter the OTP that was sent to your phone or email, then select “proceed.”
- The “my saved application” page will be visible on the dashboard. Click the edit icon in the “action” column.
- Ten different tabs will then appear on the registration form. To enter details like business information, promoter and partner information, authorized signatory, state information, Aadhaar authentication and verification, and so forth, click on each tab.
- Save and continue by clicking. After the application has been submitted, click “Proceed” and digitally sign it.
- A confirmation of your registration will then be sent to you via email or SMS along with an Application Reference Number (ARN).
- Keep in mind that the GST registration application will be processed after 15 days. You can go to the GST portal to find out how your registration is going.
Advantages Of GST Registration
- Advantageous to consumers, businesses, and the government.
- 100% online procedure.
- Decreasing tax evasion
- Gives a business legal recognition.
- Brings about uniformity in tax accounting.
- Regulate unorganized industries like construction.
To sum up
There are many benefits to registering for the GST, which is one of the most significant tax system reforms in India. If you qualify, don’t wait to complete your GST registration.
You must register your business and take advantage of the many GST benefits. Through the implementation of GST, a number of businesses have improved their efficiency and were able to continue their growth trajectory.
Frequently Asked Questions
What is the turnover limit of the GST?
The government has established a number of threshold limits in accordance with the GST regulations, including INR 40 lakh, INR 20 lakh, and INR 10 lakh for suppliers of goods, service providers, and special category states, respectively. Each state government, however, is free to set its own threshold upper limits.
Are there fees associated with GST registration?
No fees are involved in completing the GST registration process.