GST Registration Process

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.

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:

1. In the textbox under the, ‘I am a’ drop-down menu, you must select ‘Taxpayer’.

2. Then, select your state and district.

3. Then, mention the name of your business.

4. Type in the PAN details pertaining to the business.

5. 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.

6. 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:

1. Your Passport-Size Photographs

2. Proof of business address

3. Banking information such as your account number, the name of your bank, which branch is it along with their respective IFSC code

4. A form of authorisation

5. 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:

1. 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.

2. 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.

3. 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.

• PAN card

• Aadhaar card

• 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.

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.

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.