Obtain GST Registration in India: Explore Online Process, Advantages, and Types
Online GST registration is th? formal proc?dur? through which an individual or taxpay?r obtains official recognition. Without GST r?gistration, individuals ar? prohibit?d from coll?cting tax?s from th?ir custom?rs, and th?y ar? also unable to claim any tax th?y may hav? submitt?d. Registering for GST is an essential step when initiating any business. Upon successful r?gistration, the government assigns a unique identification number known as GSTIN (Goods and S?rvic?s Tax Id?ntification Numb?r) to the registered entity. This GSTIN serves as a distinctive identifier for th? bus?n?ss, allowing it to ?ngag? in lawful transactions and comply with tax r?gulations. Thus, GST r?gistration not only facilitates tax coll?ction but also ensures businesses can participate in th? formal ?conomy, enhancing transparency and compliance within th? taxation framework.
This article provides an in-depth ?xploration of GST registration. It is a complete GST registration guide, including who should r?gist?r, th? n?c?ssary documents for GST registration, typ?s of r?gistration, th? r?gistration proc?ss, and the advantages and penalties associated with it.
What is GST Registration?
Online GST registration is th? proc?ss by which a busin?ss or individual is officially r?cogniz?d by the government as a taxpayer und?r th? GST r?gim?. Online GST registration is mandatory for busin?ss?s with a sp?cifi?d turnover to register for GST. Onc? r?gist?r?d, th? entity is provided with a unique Goods and S?rvic?s Tax Id?ntification Numb?r (GSTIN) that serves as its identity for all GET-related transactions.
Who should Register for GST?
GST registration process must be followed by every business in India that supplies goods with a turnov?r ?xc??ding INR 40 lakh in a financial year must r?gist?r as normal taxabl? ?ntiti?s. How?v?r, in th? north-?ast?rn stat?s, J&K, Himachal Prad?sh, and Uttarakhand, th? thr?shold is INR 20 lakh. For s?rvic? provid?rs, th? turnov?r limit is INR 20 lakh and INR 10 lakh in special category stat?s. Mandatory GST registration applies to various entities, including casual taxabl? p?rsons, Input S?rvic? Distributors (ISD), non-r?sid?nt taxabl? p?rsons, int?r-stat? suppli?rs, ?-comm?rc? portal goods suppli?rs, all s?rvic? provid?rs, that und?r th? reverse charge mechanism, TDS/TCS d?ductors, and onlin? data acc?ss or r?tri?val s?rvic? provid?rs. Understanding th?s? thresholds and mandatory categories is vital for busin?ss?s to comply with GST India regulations.
Advantages of GST Registration
Here are a few advantages of Online GST registration:
Increase Threshold for Registration
Und?r th? previous VAT syst?m, businesses w?r? mandated to register for tax when th?ir turnov?r cross?d 5 lakhs p?r annum. However, GST has substantially increased this thr?shold to 20 lakhs. This high limit gives businesses a more l?ni?nt and conducive operational environment, reducing the burden on small enterprises.
Simplified Online Registration Process
Online GST Registration offers a us?r-fri?ndly and efficient online process. Eligibl? busin?ss?s can compl?t? th? r?gistration ?asily by following a s?ri?s of simpl? st?ps. This process eliminates the need for extensive physical visits to various offic?s, enhancing accessibility and efficiency. From generating a Temporary R?f?r?nc? Number (TRN) through OTP validation to submitting ?ss?ntial busin?ss d?tails and und?rgoing application v?rification, th? onlin? process streamlines th? registration procedure.
Reduction in Tax Evasion Cases
GST introduc?s strict, specific, and transpar?nt rules that ?nhanc? tax complianc?. The structured framework for tax payment not only reduces the likelihood of tax evasion but also contributes to curbing corruption. Th? syst?m provides businesses with a specified structure for paying tax?s, fost?ring a mor? compliant and accountabl? busin?ss ?nvironm?nt. In ?ss?nc?, Online GST registration contributes to a transpar?nt and accountabl? taxation ?cosyst?m.
Types of GST Registration
Th?r? ?r? different types of GST registration process based on th? natur? ?f th? bus?n?ss and th? typ? of supply. The primary types include:
R?gular GST R?gistration:
This GST registration process is for busin?ss?s with a turnov?r ?xc??ding th? pr?scrib?d thr?shold limit.
Composition Sch?m?:
Under this GST registration process, busin?ss?s with a turnov?r of up to INR 1.5 Crore and INR 75 Lakh in special category states can opt for th? composition sch?m?, which involv?s low?r tax rat?s but r?stricts th? busin?ss from claiming input tax cr?dit.
Casual Taxabl? P?rson:
Individuals or busin?ss?s und?rtaking occasional transactions in a different stat? from their usual plac? of busin?ss n??d to r?gist?r as casual taxabl? p?rsons.
Non-R?sid?nt Taxabl? P?rson:
Under this GST registration process, foreign individuals or ?ntiti?s making taxabl? suppli?s in India must r?gist?r as non-r?sid?nt taxabl? p?rsons.
How to Register for GST India Online?
H?r?'s a simpl? guid? to h?lp you compl?t? th? Online GST registration proc?ss on th? GST Portal st?p by st?p.
Step 1:
Visit th? GST portal, click on "S?rvic?s," then choose the 'Registration' tab, and finally, s?l?ct 'N?w R?gistration.'
Step 2:
In Part A, follow th?s? st?ps
1. Choose the 'N?w Registration' radio button.
2. Und?r 'I am a' s?l?ct 'Taxpay?r' from th? drop-down m?nu.
3. Pick your Stat? and District from th? provid?d drop-down options.
4. Fill in th? Busin?ss Nam? and PAN d?tails.
5. Enter your Email Address and Mobile Number. [Note: If your contact details are linked with PAN, skip this st?p].
6. OTPs will be sent to your registered email ID and mobil? number or PAN-link?d contact details.
7. Enter the Captcha code and click on 'Proc??d.'
Step 3:
Input th? two OTPs r?c?iv?d via ?mail and mobil? or PAN-link?d contact d?tails. Click 'Continu?' If you haven't r?c?iv?d th? OTP, click 'R?s?nd OTP'.
Step 5:
R?turn t? th? GST portal and choose th? 'N?w Registration' tab.
Step 6:
Opt for the Temporary R?f?r?nc? Number (TRN) option. Enter the TRN and the captcha code, then click 'Proc??d'.
Step 7:
You'll get an OTP on your registered mobile and email or PAN-link?d contact details. Input th? OTP and click 'Proc??d'.
Step 8:
Ch?ck that th? application status is displayed as drafts. Click on the Edit Icon.
Steps to fill Part-B of the GST registration application
Step 9
Part B consists of 10 s?ctions. Compl?t? all th? details and submit the required documents for GST registration. Not? that in 2020, th? Aadhaar authentication became a new section, and th? bank account s?ction is no longer mandatory.
Here is the list of documents you should have ready when applying for Online GST Registration
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Photographs
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Constitution of the taxpayer
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Proof of the place of business
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Bank account details*
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Verification and Aadhaar authentication, if chosen
You can read this guide to understand all about GST registration documents for GST registration further details.
Bank account details have been non-mandatory for GST registration since December 27, 2018.
Step 10:
In th? Busin?ss D?tails s?ction, provid? th? trad? nam?, busin?ss constitution, and district. [Note Th? trad? n?m? is distinct from th? l?gal n?m? ?f th? bus?n?ss.]
N?xt, indicat? 'Y?s/No' to participat? or not in the composition scheme und?r th? field "Option for Composition." Additionally, specify th? typ?s of registered person, such as manufactur?rs, s?rvic? provid?rs of work contracts, or any oth?r p?rson ?ligibl? for th? composition sch?m?.
Moving forward, input the date of business comm?nc?m?nt and when liability begins. Also, choose 'Yes/No' for th? registration types as a casual taxabl? p?rson. If 'Yes' is selected, proc??d to g?n?rat? th? challan by ?nt?ring th? d?tails for advance tax payment in accordanc? with th? GST law for casual taxabl? p?rsons.
Mor?ov?r, in th? 'R?ason to obtain r?gistration' s?ction, pick 'Input s?rvic? distributor' if applicabl? at this point. Alt?rnativ?ly, th?r? ar? various oth?r options to choos? from.
Depending on your selection, provide details in the corresponding fields. For instance, if you choose 'SEZ unit,' input th? SEZ nam?, d?signation of th? approving authority, approval ord?r numb?r, ?tc., and upload th? n?c?ssary supporting docum?nts.
In the 'Indicate Existing Registration' section, specify th? typ?s of an existing registration, such as C?ntral Sal?s Tax, Excis?, or S?rvic? Tax. Ent?r th? registration number and date of registration. Th?n, click th? 'Add' button.
R?f?r to the screenshot below for a visual representation of the mentioned fields.
Aft?r ?nt?ring th? d?tails, you'll obs?rv? that th? til? turns blu?, signaling th? succ?ssful compl?tion of filling up information in that s?ction.
Step 11
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In th? Promot?rs/Partn?rs tab, input d?tails for up to 10 promot?rs or partn?rs. Include personal information like name, addr?ss, mobil? numb?r, dat? of birth, ?mail addr?ss, g?nd?r, and identity details such as D?signation/Status and Dir?ctor Id?ntification Numb?r (if th? taxpay?r is a company). Indicat? wh?th?r th? individual is an Indian citiz?n and provid? PAN and Aadhaar numb?rs.
Compl?t? th? residential address details and upload a photograph of th? stak?hold?r. Allow?d fil? formats for upload ar? PDF or JPEG, with a maximum fil? siz? of 1 MB.
Suppose th? promot?r is also th? primary authoriz?d signatory, m?k? th? necessary s?l?ction. Click on the 'SAVE & CONTINUE' button to proc??d.
Step 12
Input d?tails for th? Authoriz?d Signatory, mirroring th? information provid?d for promot?rs/partn?rs in St?p 10.
Suppose you ar? a GST practition?r, provid? th? ?nrollm?nt ID. For an authorized representative, input the required basic details as prompted.
Step 13
Input th? d?tails for th? Principal Plac? of Busin?ss.
Th? taxpay?r's principal plac? of busin?ss is th? main location within th? stat? wh?r? business activities are conducted. Typically, it's the address where the company's books of accounts and documents for GST registration are stor?d and where top management is based.
Provid? th? addr?ss, district, s?ctor/circl?/ward/charg?/unit, commission?rat? cod?, division cod?, and rang? cod?. Includ? th? official contact number of the taxpayer and specify the possession of the premises (r?nt?d, own?d, shar?d, ?tc.).
Additionally, upload supporting documents for GST registration, such as the consent l?tt?r or NOC for rented premises, and if applicabl?, upload th? proof of SEZ Unit/SEZ D?v?lop?r approval for the premises. Ch?ckmark the nature of business activities on the premises and add any additional places of business. Compl?t? th? proc?ss by clicking the 'SAVE & CONTINUE' button.
Step 14
Proceed to th? n?xt tab and submit d?tails of goods and s?rvic?s. Includ? HSN cod?s or SAC for a maximum of 5 goods and 5 s?rvic?s at th? top of your list.
If you are a composition scheme taxpayer, the following screen will appear.
Step 15
Provid? th? bank d?tails of th? taxpay?r for up to 10 bank accounts. Submitting bank account details has been optional since December 27, 2018. Suppose you choose not to report these details during GST registration. In that case, a prompt will appear upon your first login to th? GST portal after GSTIN is grant?d, prompting you to fil? a non-cor? am?ndm?nt application to submit th? bank d?tails.
Additionally, upload supporting documents for GST registration along with th? d?tails.
Step 16
Navigate to th? St?t? Specific Information tab and input th? professional tax employee code number, PT r?gistration c?rtificat? numb?r, and State Excise License numb?r along with th? nam? holding th? lic?ns?. Compl?t? th? proc?ss by clicking on 'SAVE & CONTINUE.'
Step 17
Proc??d to choos? wh?th?r you ar? willing to und?rgo Aadhaar auth?ntication. For more information about th? proc?ss and availabl? options, r?f?r to our pag? titl?d "All you n??d to know about Aadhaar auth?ntication and st?ps."
Not? that if th? authoriz?d signatory opts for Aadhaar auth?ntication, physical verification of the premises or sit? will not be necessary, except in specific cases. In such instances, the Application R?f?r?nc? Number (ARN for GST registration) will be g?n?rat?d imm?diat?ly after compl?tion.
Step 18
Aft?r filling in all th? d?tails, navigat? to th? V?rification pag?. Check the declaration box and submit the application using one of the following methods.
- Compani?s and LLPs must submit their application using DSC.
- Us? ?-Sign, where an OTP will be sent to the Aadhaar r?gist?r?d numb?r.
- Us? EVC, where an OTP will be sent to the registered mobil?.
Step 19
Upon successful submission, a message confirming the application's success will be displayed, and the ARN for GST registration will be sent to the registered email and mobil?.
You can verify the status of your registration by entering the Application R?f?r?nc? Number (ARN) on the GST Portal.
GST Registration Status
Following the submission of your Online GST registration application, you will be assigned an ARN for GST registration. Whil? th? proc?ssing of a GST r?gistration application typically tak?s 15 days, you hav? th? conv?ni?nc? of ch?cking th? status of your GST r?gistration onlin? through th? GST portal.
?Conclusion
GST r?gistration is an indisp?nsabl? process for individuals and busin?ss?s, s?rving as a gat?way to official recognition and complianc? with tax r?gulations. Without it, th? ability to coll?ct tax?s and claim submitt?d tax is r?strict?d. The unique GSTIN assigned post-registration becomes a vital identifier, ?nabling lawful transactions and fost?ring transpar?ncy. We trust you found this GST registration guide helpful in comprehending the process. Stay informed by regularly checking your GST Registration, enabling proactive tax planning management. Share this GST help book with colleagues to extend the benefits of online GST Registration. Additionally, consider utilizing TaxxSavvy GST registration services for any unc?rtainti?s regarding GST R?gistration.
Frequently asked questions
Q
Is GST Registration Mandatory?
A
Ind??d, GST r?gistration is compulsory and should be acquir?d by taxpayers if their business turnover surpass?s th? sp?cifi?d thr?shold limit.
Q
Is GST Registration Free?
A
Absolut?ly, Online GST registration can be done at no additional cost.
Q
Can Unregistered Individuals Collect GST?
A
No, only those registered for GST can collect it. Unr?gist?r?d individuals ar? not p?rmitt?d to claim input tax cr?dit for GST paid.
Q
Can I Have Two GST Registrations with th? Same PAN Card?
A
No, a singl? PAN card is valid for only one GST r?gistration. How?v?r, during th? GST r?gistration proc?ss, you can add multipl? busin?ss?s und?r th? sam? PAN card.
Q
How to download GST registration certificate?
A
To download GST r?gistration c?rtificat?, on? n??ds to visit th? GST portal and go to th? S?rvic?s tab. Th?n, click on User Services and s?l?ct View/Download Certificate. The GST registration certificate will be displayed on th? scr??n. Click on the Download icon to download th? c?rtificat? in PDF format. The GST registration certificate can also be accessed from the dashboard of the registered p?rson
Q
How to cancel GST registration?
A
To canc?l GST r?gistration, on? n??ds to visit th? GST portal and go to th? S?rvic?s tab. Th?n, click on R?gistration and s?l?ct Application for Canc?llation of R?gistration. Fill up th? GST REG-16 form with th? required details and reasons for cancellation and submit it along with th? r?l?vant documents. Th? GST offic?r will v?rify th? application and issu? an ord?r for canc?llation of r?gistration within 30 days from th? date of receipt of the application.
Q
What are the consequences of not registering under GST?
A
Not registering und?r GST wh?n required can lead to severe consequences, such as:
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Imposition of p?nalty of 10% of th? tax du? or Rs. 10,000, which is high?r
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Imposition of p?nalty of 100% of th? tax due in case of deliberate evasion of tax
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Canc?llation of r?gistration and r?vocation of input tax cr?dit.
Q
What ?r? th? benefits of GST registration?
A
GST registration offers several b?n?fits to th? registered p?rson, such as:
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Ability to coll?ct GST from customers and pass on th? cr?dit of tax?s paid on purchas?s
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Eligibility to avail various schemes and b?n?fits und?r th? GST regime, such as composition sch?m?, input tax cr?dit, ?tc.
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Compliance with the legal requirements and avoidance of penalties and fines.
Q
How long does it take to get GST registration?
A
Th? GST r?gistration proc?ss usually tak?s 3 to 6 working days from th? dat? of submission of th? application.
Q
How to renew GST registration?
A
GST registration does not require renewal as it is valid until it is canc?ll?d or surrendered by the registered person. How?v?r, if the GST registration is suspended due to non-filing of r?turns or non-paym?nt of tax?s, th? registered person needs to fil? th? p?nding returns and pay th? cu?s to restore the registration.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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