India in 2017 made a major indirect tax change, as goods and services tax was introduced. It subsumed almost every other indirect tax out there (except a few). It has since then brought many bigger taxation changes and the processes have changed a lot as well. one of the biggest benefits scored out of this new tax is removing the cascade effect of taxation on the goods and services provided. Also, GST has embraced digital use, as everything related to it is completed online through GST portals. Many steps are included for a business owner bog or small, and the first step is theGST registration process.
GST registration is a step that is compulsory for all those business owners who have a turnover of 40 lakhs (2019 April onwards)or more. In hills states the minimum limit is of 10 lakhs. If the business turnover is 40 lakhs or above then it is counted as a taxable entity and thus requires registration.
As mentioned above, registration for GST is compulsory for business owners. If one fails to do so and continues doing business then it is seen as a tax offense. For those stricter actions are taken and the business is also heavily penalized.
All those needs to get themselves registered for the GST are listed below:
- Resident/ non-resident taxable person
- Businesses with 40 lakhs or more as turnover
- Those who are taxed previously under excise, service taxes and VAT
- Input service distributor and agents of supplier
- E-commerce aggregator supplier
- Taxable people under reverse charge mechanism
- Those who supply database retrieval and access services and online information
As GST registration is a governmental process, there is a certain list of documents that are mandatory and need to be uploaded during the procedure. The compulsory documents for registration are:
- Aadhaar card
- PAN card
- Address proof of business
- Business registration proof/ incorporation certificate
- Promoters or directors photographs along with identity and address proof
- Canceled cheque or bank account statement
- Letter of authorization
- Digital signature
The entire GST registration process has many steps and takes some time. one should keep the documents and their scanned soft copy ready, as they are to be uploaded at varied stages of registration.
If one does not register for the GST, they are tagged as tax evaders and will be penalized. the penalty of tax evasions and making genuine errors in the form of short payments is 10% of the pending tax amount. The minimum value of the penalty is fixed at 10,000 INR.
Process of registration
The process that one needs to follow for online registration for GST are:
- Visit the GST portal and click on the register menu of taxpayers (normal).
- Part A
- Then click on new registration and click on (I am a taxpayer).
- Choose the district and state from the drop-down menu.
- Now enter the business’s name and PAN number.
- Then entire the mobile number and emails for receiving OTPs and finally click on proceed.
- Now check the email address and mobile number for OTP and then enter them in the given box and click on proceed.
- After this, your mobile number and the Email id will receive a TRN number which should be noted down.
- After this go to the GST portal, choose the TRN ( temporary reference number) option and enter the code and the captcha. And click on proceed.
- After this again an OTP will be sent which needs to enter. Click on proceed.
- After this, the application status will be mentioned in the drafts. Click on the edit option.
- Part B (fill in various details and submit documents)
- Business address proof
- Taxpayer constitution
- Bank account details
- Authorization form
- Now got to the verification page and click on the declaration and submit the form. Submission can be done through:
- EVC (OTP on mobile number)
- DSC for companies
- E-sign (OTP on aadhaar mobile number)
- After successful submission, A reference number or ARN will be sent to registered number and email.
One can use the ARN nimber to check the application status on the GST portal itself.