GST Registration is the process through which a taxpayer can get themselves registered with the GST council as one through the official government-run portal dedicated to the tax regime.
When the taxpayer takes care of the GST Registration process, they will receive what is known as the Goods and Service Tax Identification Number (GSTIN). This particular 15-digit GSTIN is essentially issued by the Central Government, which helps them determine whether or not a business must pay any GST.
The types of entities who must carry out the GST registration process are:
Individuals that have registered under tax services prior to the GST Law being put into effect.
Non-Resident Taxable People as well as Casual Taxable People.
People who are liable to pay tax under the mechanism of reverse charge.
Every e-commerce aggregator portal.
Businesses that have a turnover of more than Rs. 40 Lakhs. In the case of states that are in the northern region of the country, such as Uttarakhand, Himachal Pradesh, Jammu & Kashmir and several North-Eastern states, the minimum turnover requirement is Rs. 10 Lakhs.
Input service distributors along with a supplier’s agents.
People who sell goods via an e-commerce aggregator.
People who live outside of the country but provide database access and online information to people who live in India other than those who are registered taxable persons.
After being registered, the GST council assigns a particular category to the entity. The kind of category that will be assigned will depend on the nature of their business as well as the scale of operation. Those can be found below.
Most Indian businesses fall under this category. One does not have to provide any deposit in order to become a normal taxpayer. Additionally, there is no expiry date for such businesses who are essentially termed as Normal Taxpayers.
People who aspire to set up a seasonal shop or stall tend to opt for this particular category. If an individual is a casual taxable person, they must deposit an advance amount equivalent to the expected GST liability at the time the stall or seasonal shop becomes operational. The validity of GST registration is 3 months by default but it can be extended or altered.
If one wishes to obtain the GST Composition Scheme, one must go for this option. They will be required to deposit a flat amount if they are doing the same. However, it must be noted that such taxpayers cannot obtain Input Tax Credit.
If an individual resides outside India but they supply goods to Indian residents, they have to opt for this type of GST Registration. Much like in the case of Casual Taxable Persons, they will be needed to pay a deposit which should be equal to an estimate of the expected GST liability during the time the GST registration is active.
Additionally, much like in the case of Casual Taxable People, the validity of the same is set at three months by default, but the same can be changed or renewed at any given point in time.
The procedure to apply for GST Registration is mentioned below:
Step 1: Visit the GST portal online at (www.gst.gov.in)
Step 2: Then, you must click on the button that reads ‘Register Now’, which you will find once you click on the tab that reads ‘Taxpayers’.
Step 3: Post that, select the option that reads ‘New Registration’.
Step 4: You must then fill in the details that have been mentioned below:
In the textbox under the, ‘I am a’ drop-down menu, you must select ‘Taxpayer’.
Then, select your state and district.
Then, mention the name of your business.
Type in the PAN details pertaining to the business.
Post the same key in the email ID and mobile number in the boxes that the text on the page leads you to. It is important to keep this email ID and mobile number active, as they will soon receive OTPs from the portal.
Enter the Captcha and then click on ‘Proceed’.
Step 5: The page that you will now see will require you to enter the OTP received by you on your email ID as well as mobile number (Which will then become one of your RMNs) in the respective boxes.
Step 6: Click on ‘Proceed’ once the details in question have been entered.
Step 7: The page which will follow will show you a numerical figure that will go by the name of your Temporary Reference Number (Or TRN). This is something that you will need to make a note of.
Step 8: Then, visit the GST portal once again and click on the button that reads ‘Register’, which you will find under the ‘Taxpayers’ menu.
Step 9: Click on ‘Temporary Reference Number (TRN)’.
Step 10: Enter the aforementioned TRN and the case-sensitive captcha.
Step 11: Move further by clicking on ‘Proceed’.
Step 12: You will once again receive an OTP on your points of contact. You must then enter the OTP on the page that follows, and then click on ‘Proceed’.
Step 13: The status of your GST Registration application will be available on the next page. On the right-hand side, you should be able to see an “Edit” icon, which you should click.
Step 14: You will then see 10 sections on the following page. All of the relevant details must be duly filled and necessary documents submitted. The list of documents that must go along with the form in question goes as follows:
Your Passport-Size Photographs
Proof of business address
Banking information such as your account number, the name of your bank, which branch is it along with their respective IFSC code
A form of authorisation
The taxpayer’s constitution
Step 15: You must then visit the page that reads ‘Verification’, post which, you have to check the declaration. Conclude this process by submitting the application form through one of the following methods:
Through an Electronic Verification Code (EVC). This will be sent to the mobile number entered by you previously, which is now the registered mobile number, or RMN.
By signing the same digitally: This method will require you to enter an OTP to the number you have registered with UIDAI, the government body that gets the first say on all things Aadhaar.
In the case of registering companies, the application form must be accompanied by the Digital Signature Certificate (DSC).
Step 16: Once the aforementioned step has been completed, a success message will be shown on the screen. You will receive what is known as an Application Reference Number (ARN) on the phone number that you have registered with the GST council as well as the email ID.
Step 17: You can then check the status of the ARN on the GST portal up until the time it goes through. Note that the new GST registration application form may take some time to go through.
Following are the eligibility criteria for GST registration:
As per the Goods and Service Tax Act of 2017, any business sector having a turnover of Rs. 40 Lakhs or more should register for GST.
Any business sector supplying goods from one state to another should apply for GST registration.
Casual/non-resident taxable persons or those who provide taxable goods or services within the taxable territory of the country need to get GST registration.
Individuals offering goods or services via e-commerce platform wherein the total sales exceed Rs. 20 Lakhs should obtain GST registration.
You will find below a list of documents that are required to complete the GST registration.
A proof of business address
The statement of your bank account along with a cancelled cheque
The Incorporation Certificate of your business or proof of its registration
A picture of your Signature as well as a Digital Signature Certificate, if you plan on doing the same through the DSC method
ID proof of the directors as well as the promoter, their address proof and a photograph
An Authorisation Letter or a Resolution from the Board signed by the Authorised Signatory
Step 1: Visit the GST portal online at (www.gst.gov.in)
Step 2: Start filling in part –A of the registration form 1
Step 3: You will now receive an application reference number on your mobile and via email
Step 4: Fill in the second part of the registration form and upload the required documents according to the business type
Step 5: Obtain a registration certificate from the GST portal
Step 6: Submit the required documents within 7 working days along with GST REG-04
Step 7: Go through the email and look for errors. In case of any errors, your application may get rejected, and you will be notified about the same in form GST REG-05 of registration under GST.
Please keep in mind that there are no GST registration fees. While you needn’t make any payments for registration under GST, defaulting on your GST payments or making short payments will result in GST penalties. Currently, the penalty for defaulting GST payments is 10% of the tax amount, subject to a minimum of ₹ 10,000.
New businesses can quickly have their GST registration secured with the assistance of the Aadhaar Card issued in the name of the establishment. It is indeed a simple and quick process that only recently came into effect (21st August 2020). What you will find below is a step-by-step guide that one can follow to have their GST Registration authenticated through the Aadhar Card.
When you apply for your GST registration through the portal dedicated to the regime, you will be able to see a page that goes by the name of “Choose Aadhaar Authentication.”
Then, you must select ‘YES.’ After clicking the same; you should receive an authentication link on the Email ID and the cell phone number provided.
You will then need to click on the link in question.
Then, enter the Aadhaar Number printed on the physical copy of the same and then click on the button that reads ‘Validate’.
Once the portal recognises that the details match, you will receive OTPs in the manner mentioned previously.
Finally, you must then enter the OTP to complete the process. Post the same; you will then get the new GST registration number within a matter of three working days.
It must be noted that non or late registration of an individual’s business with the GST council attracts 10% of the due amount in the case of errors that are genuine. However, the minimum penalty is Rs.10,000. However, if the powers that be suspect that an individual is deliberately trying to evade tax, the penalty that will be levied on them will be a total of 100% of the due tax amount. Hence, it is extremely important for an individual to carry out the due diligence as soon as they can.
Now that you have successfully completed the GST registration process, you must download the certificate which states that you are now a registered taxpayer with the GST council.
Step 1: You must first visit www.gst.gov.in
Step 2: Then, you must click on ‘Login’.
Step 3: Post the same, on the page that will follow, enter the username and password you created at the time of making an ID on the portal.
Step 4: Then, click on ‘Login’.
Step 5: After that, you must click on ‘Services’.
Step 6: Shortly after, you will need to click on ‘User Services’.
Step 7: After that, you should be able to see a link that reads ‘View/Download Certificates’. You must click on it.
Step 8: On the page that will follow, you will have to click on ‘Download’. This particular certificate will have all of the necessary details pertaining to tax-related transactions.
There is a set of easy steps that an individual will have to follow in order to check their GST Registration status. You will find a step-by-step guide to the same below.
Firstly, you must visit the official portal of the GST council (www.gst.gov.in).
Secondly, you must then click your way through a handful of buttons in the following order: ('Services’ > ‘Registration’ > ‘Track Application Status’).
Thirdly, you will then be needed to enter your ARN number along with the case-sensitive Captcha code. Post that, you must click on the “SEARCH” button.
Finally, you will be able to see any of the following messages, which will be a clear indication of your GST Registration application status:
The “Provisional” status
The “Pending for Verification” status
The “Validation Against Error” status
The “Migrated” status, or
The “Cancelled” status
Everything comes with a few exceptions, including even in the terms of the kind of people/businesses/entities that need to have themselves registered with the GST council. You will find a list of the same below:
Businesses that make supplies that are covered under the reverse charge subsect of the GST law.
Activities that are not explicitly categorised as a transaction involving a supply of either a good or service. Examples for the same include the likes of conducting funeral services, the selling of a piece of property and the services that are provided by employees as professional obligations towards the firms they are working for.
Ventures which make supplies that are deemed to be non-GST and/or non-taxable. Examples of the same are the likes of electricity, aviation turbine fuel, Natural Gas, Petrol and high-speed diesel, among others.
Establishments/Manufacturers which make supplies that are either attracting 0% as GST or are exempt.
Entities that fall under the “Threshold Exemption Limit.”
People that are a part of the agriculture sector.
The act of having yourself registered with the GST council, like almost every other thing provided by the government, comes with its own fair share of benefits. You will find a list of the same below:
Big projects can be accepted from Multinational Corporations (MNCs) that are registered with the council.
Goods can be sold online by registered establishments.
Those who have registered can sell goods across the country.
GST registration certificate in itself is valid proof as it is issued by a legal entity.
The input tax credit can be availed at the time of goods and services being purchased or rendered.
With GSTIN’s assistance, one can open a current bank account in the name of the venture as well.
The GSTIN registration number is instrumental in increasing a business’ brand value.
Here are some essential factors that you must understand about GST registration.
There is no payable fee upon registering for GST.
Every business with an annual aggregate turnover of over Rs. 20 Lakhs must register for GST.
11 states in India are configured with the special status. These states include Arunachal Pradesh, Jammu and Kashmir, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, Himachal Pradesh, Assam, and Meghalaya. A business must register in these given states if the annual turnover is Rs. 10 Lakhs.
In case of a supply in more than one state, it must be registered in each state.
In multiple branches across states, one of the branches must be registered as the main branch and the rest as additional. However, this does not apply to businesses with separate verticals as listed in Section 2(18) of the GST Act, 2017.
A minimum penalty of Rs. 10,000, or 10% of the due amount, is levied on those businesses that fail to register for GST. If the authorities flag intentional tax evasion, a penalty of 100% is levied on the total taxes owed.
These are important facts and must be kept in mind to ensure a hassle-free GST registration experience.
If you would like to know more about GST and the various kinds of forms that a registered individual needs to fill at the time of filing GST returns, you can do so on Bajaj Markets.
The e-invoicing system is extended to those business sectors that have an AATO of above Rs. 10 Crores from 1st October 2022.
The due date for claiming ITC, and making sales or debit-credit note amendments of a financial year has been extended upto 30th November of the next financial year.
Circular 181 was issued to clarify that refund related amendments will apply prospectively.
Circular 182 was issued to provide the verification procedure for allowing transitional credit claims made by taxpayers during the period ranging from 1st October 2022 up to 30th November 2022.
The full form GSTIN is Goods and Services Tax Identification Number. It is a 15-digit unique registration number for taxpaying businesses registered under GST.
Under Section 25(1) CGST Act, 2017, a business owner can register their business under GST in every State or Union territory in which he/she is liable to be registered. In case if you have your business set up from two different locations, you need to obtain a separate GST registration for your business for each place.
The composition scheme under GST is a simple and easy scheme for small businesses. This scheme was introduced to bring relief to SMEs to lift the burden of compliance provisions under the law. Under the composition scheme, the small business owner can pay a fixed percentage of turnover and be relieved from the detailed compliances.
A taxpayer with business turnover below Rs. 1.5 Crores can opt for the Composition Scheme. In the North-Eastern states and Himachal Pradesh, the limit has come down to Rs. 75 Lakhs.
Following are the ones who can create GST registration:
Those who have registration under earlier tax services before introduction of GST law.
Businesses with a turnover over Rs. 40 Lakhs. The turnover is limited to Rs. 10 Lakhs for businesses in Himachal Pradesh, Uttarakhand, Jammu and Kashmir, as well as North-Eastern states.
Casual/Non-Resident Taxable Person
Businesses supplying goods via any e-commerce aggregator
Individuals paying tax as per reverse charge system
Agents of any supplier or input service distributors
GST registration is also compulsory for businesses with yearly turnover of Rs. 20 Lakhs or more.
Following are those who need GST Registration:
Businesses engaged in supplying goods whose annual turnover crosses Rs. 40 Lakhs. In some states, the limit is Rs. 10 Lakhs.
Service providers providing services of over Rs. 20 Lakhs.
Individuals supplying goods inter-state, or crossing state irrespective of the total turnover. Service provider offer inter-state services exceeding turnover of Rs. 20 Lakhs.
Businesses that supply goods and services occasionally and don’t have any specific location for their operations.
Suppliers come under reverse charge mechanism
Input service providers
All e-commerce business operators, regardless of business turnover
Business being registered under the previous tax rule
The benefits of GST registration are as follows:
Simplifying the ‘Tax on Tax’ system.
Small businesses will get benefited from this scheme.
Easy and simple online system
More efficient logistics
Increase government revenue while preventing illegal business activities
Those who are not required to do a GST registration are as follows:
Individuals under the verge of exemption limit
Individuals making only supplies covered under reverse charge
People making Non-Taxable/ Non-GST supplies of goods and services
Persons making Nil-Rated/ Exempt supplies of goods and services
Activities related to neither supply of goods nor services
The steps to complete GST Registration in India are:
Step 1: Visit the office GST website and then choose the link 'Register Now' link.
Step 2: Choose 'New Registration' and then in the 'I am a' section of drop-down menu, press 'Taxpayer'. Fill out the form by choosing your district and state, name of your business, its PAN number, Email ID as and mobile number in relevant boxes. Complete the CAPTCHA and choose 'Proceed'.
Step 3: Enter the OTP that you will receive in your mobile number on the next page and press 'Proceed'.
Step 4: Make sure to note the TRN number as viewed on the screen.
Step 5: Then return to GST portal again and choose 'Register' in 'Taxpayers' menu.
Step 6: Select and put number and complete the captcha details. Now press 'Proceed' tab.
Step 7: Again, an OTP will be received on your email and mobile number. Put the OTP and click on ‘Proceed’.
Step 8: Now, you will find your application status on the following page. Then click on Edit button seen on the right side.
Step 9: You will see ten sections that you have to fill up and submit the relevant documents required. The documents to be uploaded include photographs, business address proof, bank details, taxpayer’s constitution etc.
Step 10: Go to the 'Verification' page to verify the declaration, and thereafter submit your application by Electronic Verification Code (EVC) or Digital Signature Certificate (DSC). Then you will get an OTP to your Aadhaar linked mobile number.
Once completed, a notification of successful completion of process will be displayed on the screen. The ARN or Application Reference Number will go to your registered mobile number as well as email ID.
No, there is no need for registration under GST for selling goods online.
While rejecting a GST registration application, a notice will be issued to the taxpayer by the GST officer. According to the GST rules, the applicant will receive a written notice from the authorised officer regarding the rejection.