Under the present GST regime, every individual or company that supplies goods and services must register under Goods and Services Tax (GST). So, if you run a business with an annual turnover that exceeds Rs. 20 lakh (in all Indian states, other than north-eastern states), you will have to register with GSTN (Goods and Services Tax network).
Once you have registered under this regime, you will receive a unique GSTIN (Goods and Services Tax Identification Number). The Central government issues a state-wise, 15-digit number to you once you complete registration. There are many advantages of GST registration, one of which is getting a legal identity as a supplier. You can also avail of the input tax credit and collect GST from recipients of goods and services.
Who should register for GST?
In India, any business whose annual turnover exceeds Rs. 40 lakh (or Rs. 20 lakh for businesses operating in north eastern states) is required to register under Goods and Services Tax (GST). Additionally, businesses involved in e-commerce, regardless of their annual turnover, are also required to register for GST. Service providers and suppliers who supply goods or services from one state to another are also required to register for GST, regardless of their turnover. However, some businesses such as agricultural producers or small-scale cottage industries are exempt from GST registration.
Documents required for GST registration
Look at the documents that you will need to upload while registering under GST.
- PAN card of the applicant.
- Partnership deed or incorporation certificate.
- PAN cards, voter IDs, or Aadhaar cards of promoters and/ or partners.
- Address proof of the business in the form of an electricity bill, rent, or lease agreement or for an SEZ, documents issued by the government.
- Bank account statement of the company, firm, or individual.
Online GST registration process
You can register for GST online through a government portal or register at a GST Seva Kendra.
Look at how to register for GST online in a few easy steps
- Go to the GST portal.
- Click on ‘registration’ under the ‘services’ tab and click on ‘New registration’.
- Select ‘taxpayer’ from the drop-down menu.
- Now, fill form GST REG-01 for your new registration and enter details such as the legal name of your business, state, email address, mobile number, and PAN card.
- Verify that your information by entering the one-time password sent to your mobile number and email ID, and click on ‘Proceed’.
- After verification, you will receive a Temporary Reference Number (TRN) when you complete the process and move to Part B. Note down this number.
GST registration – PART B
- To start with part B, log in with your TRN and enter the CAPTCHA code. Complete the OTP verification with the OTP sent to your email id and registered mobile number. You will then be redirected to the GST registration page.
- Submit business information such as your company's name, PAN, the state where you are registering your business, date of business commencement. Here, you have to mention if you have any existing registrations.
- Then, submit details of up to 10 promoters or partners of your business. In the case of a proprietorship firm, you will have to submit the details of the proprietor. You will have to provide personal details, designation, DIN (document identification number), PAN, and Aadhaar number.
- Next, submit the details of the person you have authorised to file GST returns.
- Add the principal place of business, enter the address, official contact details, and nature of possession of premises.
- Add details of any additional places of business, details of goods and services to be supplied, and the company's bank account details.
- Upload the required documents based on the type of business that you are registering.
- Now click on ‘Save and continue’. Once you submit the application, you will need to sign it digitally.
- Click on ‘Submit’ to save your details.
- After submission, you will receive an Application Reference Number (ARN) via email or SMS to confirm your registration.
Additional Read: How to calculate GST
How to check GST registration status online?
To check the GST registration status online, follow these steps:
- Visit the official GST portal at https://www.gst.gov.in/ and click on the 'Services' tab.
- From the drop-down menu, click on 'Registration' and then choose 'Track Application Status.'
- Enter your Application Reference Number (ARN) in the required field and provide your captcha code.
- Click on the 'Search' button, and the status of your GST registration application will be displayed.
If you have not applied for GST registration yet, you can apply online by visiting the same official GST portal and selecting the 'New Registration' option under the 'Services' tab. Follow the instructions provided and fill in all the required details as per your business registration documents. Once submitted, you will receive an ARN, which can be used to track the status of your GST registration application online following the aforementioned steps.
Benefits of GST registration online
GST registration online offers several benefits for businesses, including:
- Legitimacy: GST registration is a legal requirement for businesses with an annual turnover beyond a certain limit. Registering online not only ensures compliance but also assures legitimacy to the business.
- Tax credit: Online GST registration enables businesses to claim tax credit on any purchases made for business purposes. This can provide significant cost savings for the business.
- Inter-state business: With GST registration online, businesses can carry out inter-state business operations without any additional taxes or levies.
- E-commerce: Online sellers can benefit from GST registration by being able to sell on e-commerce portals without worrying about compliance issues.
- Competitive edge: Online GST registered businesses enjoy a competitive edge over their unregistered counterparts, thus enhancing their business opportunities.
Overall, GST registration online streamlines the tax process, empowers businesses, and translates into cost savings, leading to growth opportunities and increased profitability.
GSTN is a unique number quoted on all invoices supplied to the input tax credit mechanism. It helps you avail of the input tax credit, register your business, and improve your credibility in the industry. You need to become GST compliant and file GST returns on time. Once you register, you can also download the registration certificate from the GST portal.
Additional Read: Impact of GST
Additional Read: GST Council