Goods and Services Tax (GST) is a tax on the supply of goods and services in India. It’s important for businesses to register under GST to follow the law and enjoy benefits like input tax credit. By registering, a business can legally operate without worrying about penalties. One big advantage is that registered businesses can claim input tax credit, which means they can reduce the tax they pay on their sales by the amount of tax they paid on their purchases. This helps lower their overall tax burden and improves cash flow. GST registration also boosts a business’s credibility, making it easier to build trust with customers and suppliers.
Understanding the GST Registration Process
GST Registration Process Time
The time taken for GST registration can vary depending on the accuracy and completeness of the documents submitted. Typically, the process can take anywhere from 2 to 6 working days. However, delays can occur if there are discrepancies in the information provided or if additional documents are required.
Who is Eligible for GST Registration?
GST registration is mandatory for businesses whose turnover exceeds the threshold limit set by the government. As of now, businesses with an annual turnover of over ₹40 lakh (₹20 lakh for special category states) are required to register for GST. Additionally, certain businesses, regardless of their turnover, such as those involved in inter-state supply of goods, e-commerce operators, and those paying tax under the reverse charge mechanism, must also register for GST.
How to Get GST Number for Business
To obtain a GST number, a business must complete the GST registration process on the GST portal. This involves submitting the necessary documents and details, which will be verified by the GST authorities. Once approved, the business will be issued a unique GST Identification Number (GSTIN).
Step-by-Step GST Registration Procedure
Step 1: Access the GST Portal
The first step in the GST registration process is to visit the official GST portal (www.gst.gov.in). Click on the ‘Register Now’ button under the ‘Taxpayers (Normal)’ section.
Step 2: Fill in the Preliminary Details
In this step, you need to select ‘New Registration’ and fill in the required details such as:
- Type of taxpayer (e.g., Individual, Company)
- State and district
- Legal name of the business (as per PAN)
- PAN of the business
- Email address and mobile number
You will receive an OTP on your registered email and mobile number for verification. Enter the OTP to proceed.
Step 3: Generate a Temporary Reference Number (TRN)
Upon successful verification of your email and mobile number, you will receive a Temporary Reference Number (TRN). Use this TRN to log in to the GST portal and complete the registration process.
Step 4: Fill in the Business Details
Log in with your TRN and fill in the additional details about your business, including:
- Business name
- Constitution of business (e.g., Proprietorship, Partnership)
- Address of the principal place of business
- Details of additional places of business (if any)
- HSN/SAC codes for goods/services supplied
Step 5: Provide Promoter/Partner Details
In this step, you need to provide details of the promoters/partners of the business, including their personal information, identity proof, and photograph.
Step 6: Add Authorized Signatory
You will need to designate an authorized signatory who will be responsible for signing and submitting the GST application. Provide their details and upload the necessary documents.
Step 7: Upload Documents
This step involves uploading the required documents for GST registration. The documents required for GST registration for individuals and companies are slightly different. Here is a list of commonly required documents:
Documents Required for GST Registration for Individual
- PAN card of the individual
- Aadhar card
- Photograph
- Proof of address (e.g., electricity bill, rental agreement)
- Bank account statement/cancelled cheque
Documents Required for GST Registration of Company
- PAN card of the company
- Certificate of incorporation
- Memorandum of Association (MOA) / Articles of Association (AOA)
- PAN card and Aadhar card of the directors
- Proof of address of the company (e.g., electricity bill, rental agreement)
- Bank account statement/cancelled cheque
- Board resolution authorizing a director to sign the documents
Step 8: Verification and Submission
After uploading all the required documents, review the application form and submit it using one of the following verification methods:
- Electronic Verification Code (EVC)
- e-Sign (using Aadhar OTP)
- Digital Signature Certificate (DSC)
Step 9: ARN Generation
Upon successful submission, an Application Reference Number (ARN) will be generated. You can use this ARN to track the status of your application on the GST portal.
Step 10: GSTIN Allotment
Once the application is processed and verified by the GST authorities, a unique GST Identification Number (GSTIN) will be allotted to the business. This GSTIN can be used for all GST-related transactions.
Know About GST Apply Fees
GST Registration Fees
There is no fee for GST registration on the government portal. The entire process is free of charge. However, if you seek assistance from a third-party service provider or a Chartered Accountant, they may charge a fee for their services.
New GST Registration Fees
As mentioned earlier, there are no government fees for new GST registration. The only potential cost involved is if you opt for professional help to complete the registration process.
Conclusion
GST registration is important for businesses in India to follow tax rules and benefit from input tax credit. The process is simple if all required documents are ready and accurate. Knowing the GST registration process time, documents needed for GST registration for individuals and companies, eligibility criteria, and the fees can help make the process smooth and ensure timely compliance. If in doubt, seeking professional help can be beneficial to navigate the GST registration process.
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Frequently Asked Questions
How Long Does the GST Registration Process Take?
The GST registration process usually takes 2 to 6 working days if all documents are accurate and complete. Delays may happen if there are errors or additional information is needed.
What are the Documents Required for GST Registration for an Individual?
Documents needed for GST registration for individuals include PAN card, Aadhar card, photograph, proof of address (e.g., electricity bill, rental agreement), and bank account statement or cancelled cheque.
Who is Eligible for GST Registration?
Businesses with yearly sales over ₹40 lakh (₹20 lakh for special category states) need to register for GST. Some businesses, like inter-state suppliers, e-commerce operators, and those under reverse charge, must also register regardless of sales.
How to Get a GST Number for Your Business?
Complete the registration process on the GST portal by submitting the required details and documents. The GST authorities will check and verify them, then issue a unique GST Identification Number (GSTIN).
How Much Fees For Applying GST?
There are no government fees for applying for GST registration. The process is free if done through the GST portal. Professional service providers may charge a fee for their help.
What happens if my GST application is rejected?
If your GST application is rejected, you will receive a notification explaining the reasons for rejection. Common reasons include incomplete or incorrect information, missing documents, or discrepancies in the details provided. To resolve this, review the rejection notice, correct any errors, and resubmit your application with the necessary changes. If you need help, you can seek assistance from a professional to ensure your application meets all the requirements and gets approved.
What are the penalties for not registering under GST?
If you are required to register for GST but fail to do so, you may face penalties. The penalty is 10% of the tax due, subject to a minimum of ₹10,000. If the tax evasion is intentional, the penalty can be 100% of the tax due. To avoid penalties, ensure you register for GST if your business meets the eligibility criteria.
How do I cancel my GST registration?
To cancel your GST registration, log in to the GST portal and navigate to the ‘Application for Cancellation of Registration’ option under the ‘Services’ tab. Provide the reason for cancellation and upload any necessary documents. Once submitted, the GST authorities will review your application. If approved, your GSTIN will be canceled, and you will need to file a final return.
Can I claim input tax credit under GST?
Yes, you can claim input tax credit (ITC) under GST for the tax paid on your purchases, provided the goods or services are used for business purposes. To claim ITC, you must have a valid tax invoice, and the supplier must have paid the GST to the government. Ensure you maintain proper records and file your GST returns accurately to claim ITC.
How can I track my GST application status?
To track your GST application status, log in to the GST portal and navigate to the ‘Track Application Status’ option under the ‘Services’ tab. Enter your Application Reference Number (ARN) to check the current status of your application. The status will indicate whether your application is under process, approved, or rejected.
