Under the new GST system, every business or individual who supplies good and services, and having an annual turnover exceeding Rs. 20 lakhs must register under the Good and Services Tax. Only after completing the online GST registration process does the business get a GSTIN number. This number is a unique 15-digit number. Every taxpayer needs the GSTIN number at different stages of filing returns, bill generation and GST invoice processing. To complete the GST registration process, one must go to the official GST registration online website.
The following are the categories and eligibility criteria for the GST registration process:
Any business providing a service value of more than 20 lakhs annually has to register under GST. Any business engaged in the supply of goods whose value exceeds Rs. 40 lakhs annually has to register under GST.
Any business providing inter-state services must go through the GST registration process only if their annual turnover is more than 20 lakhs annually. Any business supplying good from one state to another has to register under GST irrespective of their turnover.
Any business supplying goods or services through an e-commerce platform like Amazon, Flipkart, etc., must register under GST irrespective of their turnover.
The following are the categories of the types of GST registration:
Any taxpayer operating a business in India has to register under GST. These types of taxpayers do not require a deposit and are also provided with unlimited validity date.
Individuals can register as a composite taxpayer under the GST Composition Scheme. Those registered under this scheme have to pay a flat GST rate, however, they cannot claim the input tax credit.
Individuals located outside India who supply goods and services to residents in India has to register under GST as a non-resident taxpayer.
The following list of documents are required for the GST registration process:
The ministry of finance has simplified the online GST registration process. Follow the below steps for a hassle-free GST registration process:
Visit the GST portal
Under the Services tab, click on ‘Registration,’ then click on ‘New Registration’
Once verified, a Temporary Reference Number (TRN) will be received. Next, move to Part B
Once submitted, you will receive Application Reference Number (ARN) via SMS or email to confirm the registration.
The 39th GST Council Meeting of August 2020 enabled the GST registration process through Aadhar authentication. GST registration through Aadhar substantially enhances the ease of doing business as it introduces a robust and faster means of verification of taxpayers. All Indian citizens can avail this facility of authenticating through Aadhar. Here is a step-by-step guide for the GST registration process through Aadhar authentication:
When registering online for GST through the government portal, the government does not charge any registration fees. Once all the necessary documents have been uploaded in the portal, applicants will receive an Application Reference Number (ARN) via email and SMS to confirm the registration. However, if applicants seek the assistance of professionals like CA firms to guide them through the GST registration process, they would have to pay a professional fee to such firms.
GST Certificate is issued to businesses or individuals registered under GST. Those having GST registration certificate are mandatorily required to display that certificate prominently at their place of business. Downloading the GST certificate is a straightforward process. Here are the steps to download the GST Registration Certificate:
After applying for GST registration, applicants receive an Application Reference Number (ARN). This registration is processed after 15 days of application, but the GST registration status can be checked online on the GST Portal. Following are the steps to check the status:
The penalty for late filing is Rs. 100 per day per the GST Act, i.e., Rs. 100 under CGST & Rs. 100 under SGST, totalling to Rs. 200/day, the maximum is Rs. 5,000. In addition to the late fee, interest to the tune of 18% per annum has also to be paid. This amount has to be calculated by the taxpayer on the tax to be paid. The time period is calculated from the next day of filing to the date of payment.
If GST return for a period is not filed, then subsequent returns cannot be filed. For example, if GSTR-2 return of September is not filed, the next return GSTR-3 and subsequent returns of October cannot be filed. Hence, filing GST returns late filing can have a cascading effect, thereby leading to heavy fines and penalty.
1) Why should a business register under the GST Act?
2) Can a business claim GST Input Tax Credit if not registered under GST?
3) What businesses or individuals have to compulsorily register under GST?
A) Any business involved in the interstate supply of taxable goods and services
B) E-commerce operators
C) Non-resident individuals making taxable supply
D) Casual taxable persons making taxable supply
E) Individuals who are required to pay tax under reverse charge
F) Individuals required to deduct tax under section 51 irrespective of whether they have registered under this Act or not
G) Businesses that make taxable supply of goods and services or both on behalf of other taxable individuals
4) What is the time limit to register under GST?
5) Can a business operate in different states with the same PAN number and a single registration?
6) Can a business entity having multiple business verticals in a state obtain different registrations for each of them?
7) Is there a provision for an individual or business to get themselves voluntarily registered even if they are not liable to pay GST?