Get Your New GST Registration in Just One Step

Goods and Services Tax or GST Registration includes all the individuals or entities supplying goods and services in India. GST Registration becomes necessary once the value of the supply increases Rs. 40 lakh (Rs. 10 lakh for hill and North Eastern States). To ease down the tax filing process, the Ministry of Finance simplified the procedure for GST Registration. GST Registration helps in envisaging the creation of a single market by removal of state boundaries and by eliminating the effect of cascading of taxes. In this article, we will discuss the process of GST Registration to be followed in India.

What is GST?

The Goods and Services Tax or GST[1] is a value-added tax which is levied on all the individuals and entities carrying out the business of supply of goods and services for domestic consumption. The consumers pay GST, but it remitted by the government from the businesses selling the goods and services to the consumers. The GST Act was passed in Parliament on 29th March 2017, and the GST came into effect on 1st July 2017. The GST Registration is made mandatory under the GST Act; if not done, penal consequences have to be faced by the individuals or entities.

What are the different types of GST Registration?

Under the GST Act, there are different types of GST Registration. Before selecting a particular type of GST Registration, it is very important that one should know about the different type of GST Registration available under the GST Act. The various types are as under:

Normal Taxpayer

The majority of businesses are registered under this category in India. The taxpayer in this category does not require a deposit and also have an unlimited validity date.

Casual Taxpayer

The person establishing a shop or any seasonal shop should register under this category. The amount equal to the GST liability is deposited for registration under this category.

Composition Taxpayer

One should get enrolled under the GST Composition Scheme to get registered under this category. A person under this category needs to deposit a flat.

Non-Resident Taxpayer

If someone is living outside India, but supplying goods to a person residing in India, then one must get registered under this category. Like Composition Taxpayers, one has to deposit the GST liability as associated with this category. The active duration of this type of GST is 3 months, which is expendable on demand.

Read our article: GST Taxpayers can file their GSTR-3B Returns in an easy way

What are the steps followed for the GST Registration in India?

Go to the GST portal and click on the Services tab.

There will be four options: Registration, Payment, User Services and Refunds.

Select the Registration tab and opt for ‘New Registration.’

A new page will be opened. Fill in the details asked in all the columns.

Once done, click on Proceed.

Enter the OTP send to your Email and mobile number and click on Continue.

A Temporary Reference Number (TRN) will be given to you. Take note of that number.

Now go to the GST Portal again. Click on ‘Register Now’.

Choose the Temporary Reference Number (TRN) and proceed. Fill in all the details and click on ‘Proceed’.

Enter the OTP which is sent to your Email Id and mobile number and proceed further.

There will be draft column where you can see the status of your application. Now proceed further in Part B.

Part B will contain certain sections in which you have to fill the required information as asked and upload the necessary documents.

Now visit the Verification Page and check the Declaration, now submit the application by anyone methods below:

Electronic Verification Code (EVC). This code is sent to the registered mobile number. By e-Sign method in which an OTP is sent to the mobile number linked to the Adhaar Card. If a Company is registering, then register through the Digital Signature Certificate (DSC).

Once completed, a success message will be shown on your screen. The Application Reference Number (ARN) will be sent to the registered mobile number and Email id.

To track the status of your application, you can enter the ARN on the GST Portal.

What are the Documents Required for GST Registration in India?

PAN Card of the Applicant

Adhaar Card of the Applicant

Address proof of place of business

Digital Signature of the Applicant

Certificate of Incorporation of the entity

Bank Account Statement or a cancelled cheque of the company, firm or an individual

Letter of Authorisation or Board Resolution from Authorised Signatory

Directors or Promoters Id Proof, address proof and photograph

What are the Penalties if GST Registration is not done?

If a person fails to take a GST Registration in India, then the following consequences are to be faced:

A Penalty of 10,000 or tax due- whichever is higher

No eligibility for the issue of tax invoice

No eligibility for the input tax credit

Detention of Goods and Conveyance

Confiscation of Goods

Confiscation of Conveyance

What are the benefits associated with GST Registration?

More competitiveness as compared to other unregistered competitors as you have a valid tax registration number.

There will be common procedures for tax payer’s registration and refund of taxes, while the tax return format will be uniform.

The taxpayers will have a common portal, i.e. GSTN for all the queries related to the tax.

There will be elimination of Cascading effect of taxes.

By the introduction of the Composition Scheme, there will be positive benefits to the small scale industries.

With the coming of GST, the registered tax assesses pay a single uniform tax on goods and services across the country.

Conclusion

GST Registration nowadays is mandatory for doing business in India. Every business registered under GST has to file GST Returns as well. If not done, a penalty will be imposed, and consequences are to be faced by the person. The businesses in different states must be registered separately under GST. It is better to consult an expert to understand the process of GST Registration. We at Corpbiz have professionals who can help you in sailing through the GST registration process.

Read our article: GST Registration: Aadhaar Verification To Be Effective From April 1, 2020