The Goods and Services Tax (GST) is an indirect tax on the supply of goods and services. It is a comprehensive, multi-stage, destination-based tax with five different tax slabs (0%, 5%, 12%, 18%, and 28%) for various types of goods and services.
The Goods and Services Tax (GST) is an indirect tax on the supply of goods and services. It is a comprehensive, multi-stage, destination-based tax with five different tax slabs (0%, 5%, 12%, 18%, and 28%) for various types of goods and services. Under the GST regime, all businesses with a turnover of over Rs.40 lakhs (Rs.10 lakhs for North Eastern and hill states) are mandatory to register as a normal taxable person. This process is called GST Registration.
The documents required for GST registration are:
• Aadhaar Card
• PAN Card
• Digital Signature
• Business Address Proof
• Bank Account Statement and a Cancelled Cheque
• Incorporation Certificate or Business Registration Proof
• Director’s or Promoter’s Photograph, ID Proof, & Address Proof
• Letter of Authorisation or Board Resolution from the Authorised Signatory
The whole process of GST Registration, though tedious, can be done online. There are heavy penalties and fines involved if the mandated individual/company has not completed the GST Registration. Any offender will have to pay 10% of the tax amount due (with a minimum of Rs. 10,000) for not paying taxes or for making short payments (in the case of genuine errors). If an offender is found to have deliberately not paid or evaded paying the due tax amount, a penalty of 100% of the total due tax amount will be fined.
The different types of GST Registration under the GST Act are:
• Normal Tax Payer
• Casual Tax Payer (For Seasonal Shops/Stalls)
• Composition Tax Payer (To obtain the GST Composition Scheme)
• Non-Resident Taxable Person (For non-residents who supply goods and services to the domestic market)
• Non-Resident Online Service Provider
• Special Economic Zone Developer
• GST TDS Deductor (Government Entities)
• UN Embassy/Body/ other notified individuals
• Special Economic Zone Units
• GST TDS Collector (E-commerce Companies)
The various steps in the registration process are given below:
• Visit the GST portal (https://www.gst.gov.in). Go to the ‘Taxpayers’ tab and click on ‘Register Now’. Select the ‘New Registration’ tab.
• Fill in the details. Enter the email id and mobile phone number. Enter the image shown on the screen and click on ‘Proceed’ (to send the OTPs to the email and the mobile phone).
• Enter the OTPs sent to the email and the mobile phone in their respective boxes. Click on ‘Proceed’.
• A Temporary Reference Number (TRN) will be shown on the screen. Make a note of it.
• Visit the GST portal again. Click on the ‘Register’ option in the ‘Taxpayers’ menu. Select TRN and enter the TRN number. Fill in the captcha details. Click on ‘Proceed’.
• An OTP will be sent to your registered email and mobile phone number. Enter the OTP on the next page and click on ‘Proceed’.
• The status of your application will be shown on the next page. Click on the ‘Edit’ button on the right side of the page. There will be 10 sections on the next page. Fill in all the relevant details. Upload and submit all the necessary documents.
• Go to the ‘Verification’ page and verify the submitted declaration.
• Submit the application by using one of the three given options. They are:
a. Electronic Verification Code (EVC): The code will be sent to the registered mobile number.
b. e-Sign method: An OTP will be sent to the mobile number linked to the given Aadhaar Card.
c. Digital Signature Certificate: To be used if the registering party is a company.
• A success message will be shown, once this is completed. An Application Reference Number (ARN) will be sent to the registered mobile number and email.
• Check the status of the ARN on the GST portal.
The registration application is usually processed in 02-06 working days. GST registration for new businesses can also be done through the Aadhaar authentication process. This method takes a time of three working days. Once the registration process is completed successfully, the applicant can download the GST Registration Certificate from the GST portal.