GST Registration: A Comprehensive Guide for Better Understanding of the GST System.

Last modified on : February 3rd, 2024 at 11:41 am

GST Registration: A Comprehensive Guide for Better Understanding of the GST System.

Explain GST Registration

GST registration is the registration of a business entity as a taxable individual in the event of having a turnover of more than the threshold limit of Rs. 40 lacs for goods and Rs. 20 lacs for services.

Several businesses are required to register for GST. However, if the business ignores the registration procedure, it will be termed illegal and charged with heavy penalties for the same.

Who should be registering for GST?

  • Those who are registered under the Pre-GST law (Excise, VAT, Service Tax, etc.)
  • Businesses with a turnover of more than Rs. 40 lacs, Rs. 20 lacs.
  • 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.

GST Registration process

The registration can be done from the GST portal. For applying for GST registration, the individual must fill the Form REG-01 on the GST portal.

Online GST Registration Process

The following steps for the GST registration process are as follows.

  • Step 1: Visit https://www.gst.gov.in and Click the ‘Register Now’ link under the ‘Services’ tab. This is the website of the GST registration portal.
  • Step 2: Click on ‘New Registration’ and fill in the details mentioned below.

Part – A

  • Below the “I am a”, drop-down, select ‘Taxpayer’.
  • Select your state and district.
  • Provide the name of the business.
  • Provide the PAN of the business.
  • Provide the email ID and mobile number in the respective boxes. The email ID and mobile number will be used for receiving OTP for verification.
  • Select the image shown on the screen and click ‘Proceed’.
  • Next, enter the OTP received in the email ID and mobile number in the given boxes and Click ‘Proceed’.
  • A Temporary Reference Number (TRN) will be shown on the screen. Keep a note of it for further use.

Part – B

  • Step 1: Now, Visit the GST portal and click ‘Register’ under the ‘Services’ menu.
  • Step 2: Select ‘Temporary Reference Number (TRN)’, enter the TRN number, and the captcha details then click the ‘Proceed’ button.
  • Step 3: An OTP will be sent to your email ID and registered mobile number. Enter the OTP and click ‘Proceed’.
  • Step 4: Your application status will be available on the next page. Then click the edit icon on your right-hand side.
  • Step 5: In the Next Step, 10 sections need to be filled, and must submit the required documents. The list of documents required are:
    • Photographs
    • Business address proof
    • Bank details
    • Authorization form
    • The constitution of the taxpayer.
  • Click Submit
  • Step 6: Visit the ‘Verification’ page and check the declaration, then apply through one of the below-mentioned ways:
    • Through Electronic Verification Code (EVC). This code will be texted to your registered mobile number.
    • In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
    • Through the e-Sign method. An OTP will be sent to the mobile number which is linked to the Aadhaar card.
    • 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: The status of the ARN can be checked on the GST portal.

What are the documents required for GST registration?

  • Pan card
  • Aadhaar Card
  • 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.

GST Registration Fees

Note that there are no GST registration fees involved in the process.

Penalties to be Charged for Failing the Registration Process

To pay the taxes, the individual need to have GST registration. If the taxpayer fails to pay the taxes mistakenly or pays in smaller amounts which are taken as a genuine error, he/she will be charged 10% of the tax amount or a minimum of Rs. 10,000.

However, this charged percentage could go as high as 100% of the tax amount, if the taxpayer is found to neglect paying the taxes deliberately.

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GST Registration FAQs

Yes, it is permissible for businesses to apply for any number of GST registrations within a state.

Aggregate turnover is considered for calculating the turnover

In the case of normal registered businesses

  • Can get an input tax credit
  • Can have interstate business barring restrictions.

In the case of composition dealers

  • Less compliance
  • Low tax liability
  • Low impact on working capital

In the case of businesses with a turnover of less than Rs. 40 lacs

  • They Can available input tax credit
  • Can have interstate business barring restrictions
  • Easy registration on online and e-commerce websites
  • Could get a competitive advantage over other businesses.

All taxpayers are allotted an individual 15-digit PAN-based identification number which is known as the Goods and Services Tax Identification Number. It is provided to the taxpayer based on the state they would be operating. It is a part of the GST registration process. The GSTIN is provided after the verification of the GST registration and approved by the GST officer.

GST registration must be done within 30 days from the date when it is eligible for registration.

When the applicant receives a rejection mail, they will get an option to reply to the mail. For re-applying for the registration, the applicant must wait for the final rejection which will take up to 10 days.

Yes, a PAN is mandatory for the registration process.

Once the individual is registered successfully, the taxpayer will receive a GST certificate in Form GST REG-06 and a valid GSTIN.