GST Registration Process

GST Registration Process - A Complete Step by Step Guide

Searching for GST Registration process online? Follow these steps to get yourself GST registered. Find out the list of documents required to do so.

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.

 

1) Checking the eligibility criteria

The following are the categories and eligibility criteria for the GST registration process:

 

Turnover

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.

 

Interstate Business

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.

 

E-commerce Platform

Any business supplying goods or services through an e-commerce platform like Amazon, Flipkart, etc., must register under GST irrespective of their turnover.

 

2) Types of GST Registration

The following are the categories of the types of GST registration:

 

Normal Taxpayer

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.

 

Composite Taxpayer

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.

 

Non-resident Taxpayer

Individuals located outside India who supply goods and services to residents in India has to register under GST as a non-resident taxpayer.

 

3) List of Documents required for GST Registration Process

The following list of documents are required for the GST registration process:

  • PAN card of the applicant
  • Incorporation certificate or partnership deed of your business
  • Passport size photo of the applicant
  • PAN card or Aadhaar card of promoters or partners
  • Address proof of the business
  • Bank account statement of the business, firm, or individual
List of documents required for GST registration process

4) Steps by Step Guide 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’

Part A

  • In the ‘I am a’ drop-down menu, select ‘Taxpayer’
  • Fill GST REG-01 form and enter details like name of business, state, email address, mobile number and PAN card
  • Verify all the information by entering OTP sent to the registered mobile number and email ID
  • Click on Proceed

 

Once verified, a Temporary Reference Number (TRN) will be received. Next, move to Part B

 

Part B

  • Login with the TRN and enter the captcha code. Complete the verification with OTP
  • Submit business information such as company name, PAN, name of state where the business is registered, date of commencement of the business.
  • Submit details of the promoters or partners of the business; details like designation, DIN, PAN, and Aadhaar number of the proprietor in case the business is a proprietorship.
  • Next, submit the details of the person authorized for filing GST returns
  • Submit principal place of business, details of goods and services to be supplied, and bank account of details of the company
  • Upload the required documents
  • Click on “Save and continue”. After submitting the application, sign it digitally
  • Click on ‘Submit’

 

Once submitted, you will receive Application Reference Number (ARN) via SMS or email to confirm the registration.

 

5) GST Registration Process through Aadhar Card

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:

  • At the time of applying online for registration under GST, the taxpayer is presented with an option of authenticating via Aadhar, select Yes
  • On clicking Yes, authentication link will be shared on GST registered email and mobile number
  • On clicking the authentication link, the applicant will be presented a screen to enter the Aadhar number, after which he/she should click on “Validate”
  • If the details in the registration form match with those in the UAIDI, an OTP will be delivered to the registered mobile number and email
  • Enter the OTP in the provided box for validation. Message showing successful e-KYC authentication will be displayed
GST registration process through Aadhar card

6) GST Registration Fee

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.

 

7) Downloading the GST Certification

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:

  • Open the GST India portal - https://www.gst.gov.in/
  • Click ‘Login’ to access the username and password page
  • Enter the ‘Username’ and ‘Password’ credentials along with the captcha in the appropriate fields and click the ‘Login’ button.
  • Under the ‘Services’ Tab, click ‘User Services’, after which click on ‘View/ Download Certificate’
  • Click ‘Download’ button to download the certificate. The GST certificate contains all details related to tax transactions

 

8) Status of GST Registration

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:

  • Go to https://www.gst.gov.in/
  • Next, under the ‘Services’ Tab, go to ‘Registration’ and click on ‘Track Application Status’
  • Enter the ARN received. Next, enter the Captcha code appropriately and click on Search

 

9) Penalty for non-Completion of GST Registration Process

  • Taxpayers who fail to register under GST even though they are required to do so have to pay a penalty of 10% of the tax amount or Rs. 10,000, whichever is more.
  • Failure to register under GST can be seen as a deliberate attempt at fraud, the penalty for which can be as high as 100% of the tax due.

 

Penalty for late filing of GST returns

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.

 

Penalty for not filing GST returns

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.

Penalty of non-completion of GST registration process

10) FAQs on the GST Registration Process

 

1) Why should a business register under the GST Act?

  •  Registration under GST gives the business a legal right to supply good or services and gives a legal authority to collect tax from the purchaser and pass on the credit of the paid taxes to the recipients.

 

2) Can a business claim GST Input Tax Credit if not registered under GST?

  • No, any individual or business without GST registration cannot collect GST from their customers, neither can they claim any input tax credit of GST paid by them.

 

3) What businesses or individuals have to compulsorily register under GST?

  • The following category of businesses or individuals are compulsorily required to register irrespective of the threshold limit:

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?

  • Any individual or business should complete the GST registration process within 30 days from the date they become liable for registration as prescribed under the GST Act. A non-resident taxable individual or a casual taxable person should apply for registration 5 days prior to commencement of business.

 

5) Can a business operate in different states with the same PAN number and a single registration?

  •  No. Every business that is liable for GST registration has to get registered separately for each of the state where they have a business operation and are liable to pay GST as per the CGST/SGST Act.

 

6) Can a business entity having multiple business verticals in a state obtain different registrations for each of them?

  • Yes. Individuals having multiple business verticals in a state can obtain a separate registration for each of their business vertical, as prescribed by the GST Act.

 

7) Is there a provision for an individual or business to get themselves voluntarily registered even if they are not liable to pay GST?

  • Yes. As per sub-section (3) of Section 25, any business or individual, though not liable to be registered, can get themselves registered voluntarily. All provisions of the GST Act will be applicable to such business or individual.

 

Product Updates

    Have questions?