The GST, or Goods and Services Tax, is an indirect tax on the sale of goods and services. Since its implementation on July 1, 2017, it has effectively reduced other indirect taxes levied on goods and services. Manufacturers, Service Providers, Retailers, and Consumers must only pay GST from their respective ends instead of VAT, excise duty, service tax, and other taxes. This article explains how to register for GST online, which is required for any company with annual revenue of more than 20,00,000 INR.
Every business with annual revenue of 20,00,000 INR or more is required to register for GST. The process is entirely online, and it must be completed through the GST portal on the Indian government’s website. Upon registration, firms are assigned a unique 15-digit GSTIN registration number based on their PAN and state of registration. This unique number can be used to apply for refunds and loans. It also facilitates the verification procedure.
The Goods and Service Tax website allows you to verify your GSTIN online.
The following is online GST registration process step by step breakdown:
The second part of registration starts. You need to complete this within 15 days of completion of Step 4. You will need the following documents in this part:
You can also track the progress of your registration online by using the Application Reference Number by visiting this portal.
The following is a list of people who are qualified to register for GST:
The online portal of Goods and Service Tax does not charge any fees for the GST registration procedure. Upon completion of the process, you will receive the Application Reference Number or ARN on your registered phone number and email address.
GST eligible individuals and companies must register for the same on the due date. In case of not registering or late registering, certain penalties are imposed.
Any individual or company who registers late or fails to register for GST must pay the highest amount between 10,000 INR or the amount of evaded tax as a penalty. This penalty is applicable under Section 122 of the CGST Act.
Mr A failed to register for GST and owes a total of 9,000 INR in unpaid taxes. As his avoided tax amount does not exceed 10,000 INR, he must pay a penalty of 10,000 INR.
Mr B also failed to register for GST, resulting in total tax evasion of 11,000 INR. As a result, he must pay a penalty of 11,000 INR because his avoided tax amount surpasses 10,000 INR.
A GST Registration Certificate is a legal e-document that verifies a person’s GST registration. It is only given out following a successful GST registration, and it is not a tangible copy. The certificate must be displayed at the registered organization’s principal business location, as well as any secondary sites if there are any. Failure to do so will result in a 25,000 INR fine.
The Registration Certificate does not have an expiration date; it will expire when the holder’s GST Registration expires.
A primary certificate including Annexure A and B make up the GST registration certificate. The contents of each of them are listed below.
The Primary Certificate holds:
Annexure A holds:
Annexure B holds:
Here is a step by step procedure for downloading the GST registration certificate
It’s a good idea to print the certificate because it will need to be displayed at your business locations.
There are four major GST registration types namely,
This category holds most of the businesses. To register as a regular taxpayer, you don’t have to put down any money as a deposit. In addition, people who fit under this group have no expiration date.
This category holds the individuals who are looking to start a new stall business. During the time the stall or seasonal store is open, you have to deposit an advance amount equivalent to the estimated GST liability. The GST registration is valid for 90 days for those under this category. However, it can be extended or renewed after expiry.
This category holds the people who are looking to receive the GST Composition Scheme. You have to deposit a flat under this category.
However, you won’t be able to get the Input Tax credit.
This category holds non-resident individuals who provide database access and online information to non-registered taxable individuals in India. Same as casual taxable individuals, you have to deposit an advance amount equivalent to the estimated GST liability for the period the GST registration is valid. The period of validity is 90 days that can be extended or renewed after expiry.
Following are a few of the GST benefits that can be obtained after registration:
GST offers a lower total tax burden than the old system of several indirect taxes on services and commodities. The fundamental goal of the GST is to consolidate all of these indirect taxes and tax the whole amount of money spent on services and commodities.
Most states had a minimum registration barrier of 5,00,000 INR for VAT before July 1, 2017. The threshold was raised to 20,00,000 INR when the GST went into force. As a result, businesses having a turnover between the amounts benefit from non-mandatory tax registration.
Small companies benefit from GST registration through a composition scheme. The company is qualified for the plan if it has a turnover of between 20 – 75,00,000 INR. It gives such growing companies the stability of a lower tax burden and more flexibility to expand. However, there are certain exclusions such as ice cream or pan manufacturers, interstate suppliers, non-resident or casual taxable individuals, and businesses that use e-commerce operators.
The Goods and Service Tax site makes the procedure for registration under GST simple and quick online. It’s undoubtedly more preferable than registering for various taxes on products, such as VAT, Excise, and Service Tax, all over again.
In comparison to the pre-GST era, GST provides a single unified return rather than the several compliances and returns provided by VAT, Excise, and Service Taxes.
E-commerce was given a distinct status under GST, which eliminated inter-state disputes.
Companies throughout India won’t have to build and manage warehouses in multiple states to avoid CST and State Entry Taxes thanks to GST’s increased logistical efficiency. The interstate goods transportation businesses made greater money as a consequence.
GST also reorganized the textile and construction industries, which were previously unorganized as of July 1, 2017. It helped the business while also bringing responsibility and regulation to these sectors.
According to the Government of India, the following taxpayers are excluded from GST registration:
People making supplies under reverse charge – People who make supplies under reverse charge are excluded from GST registration, according to Notification No. 5/2017 issued by the Central Government on June 19, 2016.
The GST registration process is totally free online. The Application Reference Number, or ARN, will be sent to your registered phone number and email address. However, if you used a CA to help you with GST registration, you must still pay his or her costs.
Yes. A copy of the GST registration certificate must be displayed in each business location listed on Form GST REG-06.
It is required that all promoters/partners submit aadhaar authentication throughout the registration procedure. If the authorized signatory opts for authentication, officers will not need to physically verify the stated business location unless specific difficulties emerge.
GST composition plan is available to businesses with a turnover of between 20 and 75,00,000 INR. However, there are certain exclusions such as ice cream or pan makers, interstate suppliers, non-resident or casual taxable persons, and businesses that use e-commerce operators.