GST marked as the biggest tax reforms in India since 1947. It’s a unified tax implemented by current BJP Government with an aim to erase all state or central government indirect taxes. GST subsumes 11 Indirect taxes that were levied on the sale of goods and services by central or state Government. GST made indirect taxation process simpler for small and medium scale enterprises. It will also boost economic growth in a long run. New small businesses will be benefited from this new tax law as they have to pay less tax under composition scheme (SMEs with Rs.20 – Rs.50Lakh turnover).
As we are saying that GST made taxation easier. So, let’s have a look at its registration process. In this article we will cover all details regarding GST registration with below-mentioned points:
- What is GST Registration?
- Who needs to register under GST?
- Which business entities should register under GST regardless of turnover?
- What are the documents essential for GST registration?
- What are the GST registration charges?
- What are the disadvantages of not being registered under GST?
- What is GST registration number?
- Step-by-step guide to GST registration process
All businesses entities need to comply with GST rules and regulations for which they need go through GST registration. It’s mandatory for entities who supply goods & services to get registered under GST.
Who needs to register under GST?
All businesses whose turnover is above Rs.20 lakhs (Rs.10 for North-Eastern states) needs to register themselves under GST. Registration needs to be done within 30 days of exceeding the threshold limit.
Business entities should register under GST regardless of turnover?Businesses required to register themselves under GST through online mode. Even entities who don’t fall under GST registration law can apply for GST to impose GST tax rates on customers who purchase their goods & services; thereby they will be eligible to avail input tax credit.
- Any person or business who registered under previous tax law must register under GST
- Anyone who supplies goods across states needs to register under GST
- E-commerce companies
- NRI taxable persons
- Businesses selling goods & services through e-commerce portals
- Anyone eligible for TDS
Documents requisite for GST registration
For Sole proprietorship or individual taxpayers:
- Valid PAN Card
- Identity & address proof with Photo
- Valid bank account with same bank branch & IFSC code proof
- Electricity bill/ water bill
- Copy of rent agreement
- NOC of owner
For Private/Public limited company:
- Pan card of the company
- Company registration proof
- MOA or AOA
- Bank statement
- PAN card & ID proof of company directors
- Electricity bill/water bill
- Copy Rent agreement
- PAN card of the partnership
- Partnership deed
- Bank statement
- PAN card & ID proof of partners
- Electricity / Water bill
- Proof of rent agreement
Photos (where ever mentioned in the application form)
- Proprietary Concern – Proprietor
- Partnership Firm / LLP – Managing/Authorized/Designated Partners
- Hindu Undivided Family – Karta
- Company – Managing Director, Directors and the Authorized Person
GST registration application must be digitally signed with class 2 digital signature. Here are the details of individuals who must obtain a digital signature:
GST Registration Fees
Companies or individuals have to pay a non-refundable fee of Rs.1599/- for GST registration.
Pitfalls of not getting registered under GST
Entities or any individual persons will not enjoy the benefits of input tax credit also they have to face penalties for not registering themselves under GST.
GST registration Number
Each & every entity who registered under GST will be assigned a GST Identification Number termed as GSTIN.
GST Registration Process
GST registration needs to be done online through the Government portal. There are two types of registration depending on the profit margin of annual turnover and according to that, you need to register your business under GST.
Small businesses whose turnover is below Rs.1 crore (Rs.75 lakh for north-east states & Himachal Pradesh) they are eligible to register themselves under the composite scheme.
Here is the registration process for entities who don’t fall under composite scheme-
Step 1: Go to GST portal (https://www.gst.gov.in/)
Step 2: Click on New Registration under “service” menu
Step 3: Then fill up the details like name of state & district, PAN card number, Business name etc. then click on proceed
Step 4: You will receive an OTP on your email & registered mobile number then enter the OTP and click on continue.
Step 5: A reference number will be sent to your email and mobile number.
Step 6: Again open the same website. Click on New Registration and then enter the reference number also enter the captcha code then click on proceed.
Step 7: You will receive an OTP on your email & mobile. Enter the OTP and click on proceed.
Step 8: Now you can see the status of your application. You need to click on edit to fill up remain details for verification of your application. After filling all details go to the verification page and submit your application.
You will receive a success message with an Application Reference Number. You need to check the status of your application by entering this reference number. A GST officer will verify your application and will provide you with a GST identification number.
Composite scheme details & Registration process
Business categories those can’t opt avail composition scheme benefits:
- Supplier of services except for restaurant services
- Ice cream, pan masala & tobacco manufacturers
- NRI taxable person and general taxable person
- Businesses selling through e-commerce portals
Rules & regulations need to follow by a composite scheme taxpayer
- Taxpayer can’t claim for input tax credit
- A taxpayer can supply goods within the state not outside.
- If taxpayers have different types of businesses under one PAN then they have to register all business under one composite scheme.
- A taxpayer has to notify “composite taxable person” in every notice and on every bill issued by him as per the GST law.
Tax rates under composite scheme
|Business||CGST rate||SGST rate||Total|
Composite scheme registration process
This process is same as normal taxpayer registration. You can opt for composition scheme after registering as a normal taxpayer or you can do it before registration.
Taxpayers need to fill form GST CMP-01 or GST CMP-02 on online to opt for composition scheme.
The major benefit for composite scheme taxpayers is that they have to pay a very less amount in the form of tax with a fixed rate.
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