GST Registration

What do you mean by GST Registration?

GST registration is an online registration for a business operator who qualifies as a taxable entity, meeting the prescribed turnover thresholds of Rs. 40 lakhs for goods, Rs. 20 lakhs for services, or Rs. 10 lakhs under specific circumstances. Certain businesses must undergo GST registration as a mandatory step. Failure to comply with this requirement can lead to legal repercussions and substantial penalties. This process involves providing essential business information, such as turnover, business category, and other necessary details, to obtain a unique GST identification number. Once registered, businesses must levy GST on their sales, file regular GST returns, and remit the collected taxes to the government. The GST registration portal on India’s official website facilitates this process, typically taking 2-6 working days to complete. Once you complete your GST registration, you can easily manage all your tasks in our GST Billing software.

Types of GST Registration

Normal Taxpayers: Businesses or individuals registering under the normal taxpayer category do not need to make a deposit and are granted indefinite validity periods. Most businesses in India fall under this category.

Casual Taxable Person: Taxpayers with stalls or seasonal businesses are mandated to register under the Goods and Services Tax (GST) with a corresponding deposit covering their GST liability. Initially, the registration process spans over three months with the option to renew or extend. Individuals conducting intermittent business activities must also submit a deposit equivalent to their GST liability within the active period. Registration duration remains three months, with the possibility of renewal or extension.

Non-Resident Taxable Person: This category applies to non-resident taxable individuals situated beyond the borders of India. Such taxpayers are permitted to sell taxable goods or services exclusively to residents within India only after securing registration. To register as a non-resident taxable individual, one must remit a deposit equivalent to their GST liability, aligning with the active registration periods. This registration validity extends for three months.

Composition Registration: Businesses having an annual turnover of up to Rs 1 crore are required to register under the composition scheme. In this scheme, businesses must pay a fixed GST amount regardless of their annual turnover.

Who should be registering for GST?

Businesses that exceed an annual turnover of INR 40 lakhs are mandated to register for GST according to the new GST regime. However, if you operate as a regular taxable entity in the northeastern states such as Uttarakhand, Himachal Pradesh, and Jammu & Kashmir, the threshold is lowered to INR 10 lakhs.

Any business operators fulfilling the specified criteria below are obliged to register for GST
as per the Goods and Services Act:

• Those who are registered under the Pre-GST law (Excise, VAT, Service Tax, etc.)
• Businesses with a turnover of more than Rs. 40 lakhs (Rs. 20 lakhs for special category states)
• Casual or Non-Resident taxable individuals
• A supplier’s agent and an input service distributor
• Individuals taxed under the reverse charge mechanism
• A supplier through an e-commerce aggregator
• All e-commerce corporates
• A person who supplies online data and database access or retrieval services from abroad to India, except for any registered taxable person

What are the documents required for GST registration?

Applicants must bring some documents for their identification to move ahead with their GST registration process successfully. Businesses must carry the following documents for GST registration:

• PAN of the applicant
• The Aadhaar Card of the applicant
• Business registration document proof or incorporation certificate
• Address proof of promoters/directors along with photographs
• Address proof of the business
• Bank transaction statement/canceled cheque
• Digital Signature
• Authorization letter/Board Resolution for Authorized Signatory

Online GST Registration Process

Businesses or Individuals can register for GST through the government’s official GST portal. There are no fees for GST registration. There are two parts to submitting the application form successfully Part A and Part B. Following is the step-by-step guide for you to easily register GST and obtain the GSTIN:

Part A:

1. Go to the GST registration portal and Click the ‘Register Now’ link under the ‘Services’ tab.
2. Click on ‘New Registration’ and fill in the details mentioned below:
• Click on the ‘Taxpayer’ from the ‘I am a’ drop-down list.
• Select your residential state and district.
• Enter the legal name of the business/ entity in the ‘Legal Name of the Business Field’.
• Enter the PAN number of the business.
• Enter the email address and mobile number in the respective boxes. The email ID and mobile number will be used for receiving OTP for verification.
• Click the image shown on the screen and hit ‘Proceed.’
• You will receive 2 OTP in your registered email address and mobile number.
• Enter the OTPs and the portal will generate a 15-digit Temporary Reference Number (TRN). Keep a note of it for further use.

Part B:

1. Go back to the home page and log in to your GST account using the TRN.
2. Click on the ‘Register’ option from the ‘Services’ menu and select TRN.
3. Now enter your 15-digit TRN number and captcha details then click the ‘Proceed’ button.
4. You will receive another OTP on your email and registered mobile number. Enter the OTP and hit ‘Proceed’.
5. Once you’ve successfully logged in to your application, you can view the status available on the next page. From there you need to edit the application to move ahead.
6. Next, 10 tabs will open, where you need to upload the required documents and submit them. Here’s what you will need to upload:
• Original Photographs
• Business address proof
• Bank details
• Authorization form
• The constitution of the taxpayer
7. Once you have uploaded all the documents hit submit.
8. Head to the ‘Verification’ page and check the declaration,
9. After submitting all the details, check out the declaration tab and apply through one of the following ways:
1. Through Electronic Verification Code (EVC). This code will be texted to your registered mobile number.
2. In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
3. Through the e-sign method. An OTP will be sent to the mobile number which is linked to the Aadhaar card.
10. Once the process is completed, a success message will be displayed on the screen. The Application Reference Number (ARN) will be received by the individual on their registered mobile number and email ID.

Note: Our GST E-invoicing software does not allow users to fill out GST registration directly. However, you can complete your GST registration HERE.

GST Registration Fees

There are no fees for submitting your GST registration form. So, you don’t need to pay anything.

Penalties to be Charged for Failing the Registration Process

Those who are eligible for GST but fail to fulfill their tax obligations may be subject to penalty charges. The amount of penalty charged depends on whether the failure to pay taxes is intentional or unintentional. If the failure to pay taxes was unintentional, the individual or business will be required to pay a penalty of 10% of the total tax amount, provided that the tax liability exceeds Rs. 1 Lakh. This penalty is imposed to encourage timely payment of taxes and to discourage non-compliance.

However, if the failure to pay taxes was deliberate, the responsible party will be required to pay the entire outstanding amount as a penalty. This is a more severe penalty and is imposed to deter fraudulent activities and tax evasion. To avoid penalty charges and maintain compliance with GST regulations, individuals and businesses are required to fulfill their tax obligations.