GST Registration
GST registration is necessary for all Indian companies. It is essential to register in accordance with the GST regulations if your business revenue exceeds specific threshold levels or falls within specific categories that require GST registration. We will help with the process of obtaining your GST registration in a smooth and efficient manner.
What does GST Registration mean?
On July 1, 2017 (GST start date in India), India implemented the Goods and Services Tax (GST), requiring all service providers, traders, manufacturers, and even freelancers to pay it. The GST system replaced central and state-level taxes such as Excise Duty, CST, Entertainment Tax, Service Tax (GST and service tax), Luxury Tax, and VAT. This made the tax process easier. The type of business and turnover define the GST registration fees.
People who pay taxes but have a turnover of less than 1.5 crore rupees can use a composition scheme under the GST framework. This scheme makes the gst registration process easier for them and lets them pay taxes at a set rate based on their turnover.
In different parts of the supply chain, the GST works in different ways. This includes getting the raw materials, making the product, wholesale, retail, and finally selling it to the end user. Note that all of these steps apply GST. For example, when a product is made in West Bengal and then used in Uttar Pradesh, all of the GST revenue that is generated goes to Uttar Pradesh. This demonstrates that GST is based on usage.
Who needs to register for GST?
The following individuals are required to register for GST:
- Casual Taxable Entities: Those who engage in taxable supply on occasion.
- Business Entities: According to the GST registration limit, any business that generates more than Rs. 40 lakhs in turnover annually. The GST threshold for special category states is Rs. 20 lakhs.
- Exemptions: It is imperative to keep in mind that these thresholds do not apply to entities that exclusively engage in goods or services that are subject to GST.
- Service Providers: Those with a combined annual turnover of more than Rs. 20 lakhs. The gst limit is Rs. 10 lakhs for special category states.
- Inter-State Suppliers: Any entity or individual that is involved in the supply of goods across state boundaries.
- Previously Registered Entities: In order to comply with the GST regime, entities that were already enrolled under outdated tax frameworks, including Excise, VAT, and Service Tax, are required to migrate and register.
- Entities under Reverse Charge Mechanism: Businesses that are required to pay taxes under the reverse charge in GST.
- Input Service Distributors & Agents: Representatives of input service distributors also need compulsory registration under GST.
- E-Commerce Platforms: Platforms operating e-commerce sites are required to collect TCS in GST.
- Online Service Providers: Entities that provide online information, database access, or retrieval services from outside India to an individual in India, with the exception of those that are already registered under GST, are required to comply with GST information.
- Non-Resident Taxable Entities: Non-resident individuals or entities that engage in taxable supply within India.
- E-Commerce Suppliers: Entities or individuals that provide goods or services through an e-commerce aggregator.
- Supplier’s Agents: Representatives who provide services on a primary supplier’s behalf.
Types of GST Registration
Below are the types of GST registration:
- Central Goods and Services Tax (CGST): The Central Government imposes this tax on the supply of goods and services within a specific state. CGST is charged on transactions that take place completely within the borders of a single state.
- State Goods and Services Tax (SGST): When goods and services are supplied inside its borders, the State Government levies the State goods and Services Tax (SGST). SGST is also restricted to transactions that occur within a particular state, similar to CGST.
- Integrated Goods and Services Tax (IGST): The Central Government imposes this tax on the exchange of goods and services between states, or between a state and a Union Territory. The IGST applies when trading goods or services across state or union territory borders.
To learn more about these types, you can do a GST number check online or use the GST search online tool for verification.
Regular, Casual, and Non-Resident Taxable Persons
eCommerce Operators and GST
The Goods & Service Tax Act of 2017 says that all e-Commerce businesses must charge a 1% tax on the amount of cross-sales made by other e-Commerce businesses. E-Commerce operators who run digital or electronic stores that sell items must register with the Act and with TCS.
Non-Residential Taxable Person
A non-resident taxable person is someone who doesn’t live or work in India but sometimes sells goods or provides services, or both, as part of their business, whether they are the principal, an agent, or in some other role.
Regular Taxpayers
Regular taxpayers under GST have to send in GST once the sales of their business reach a certain amount in a fiscal year. When they offer items and services, suppliers must sign up with the state or union.
Casual Taxable Person
A casual taxable person is someone who does business with the delivery of goods or services, or both, on a regular basis in a state or union territory where they don’t have a set place of business. This can be as a principal, an agent, or in some other role.
Turnover Limit of GST Registration
The following table will define the GST registration turnover limit:
Category | Turnover Limit | Condition(s) |
Voluntary Registration | N/A | Any organization or individual can voluntarily register for GST, regardless of turnover. |
Mandatory Registration | When turnover exceeds a certain limit. | After specific turnover levels are reached, GST registration becomes required. |
Service Providers | Rs. 20 lakhs (Rs. 10 lakhs in states falling under special categories) | Applicable in states with an aggregate turnover exceeding Rs.20 lakhs (Rs.10 lakhs in special category states). |
Goods Suppliers | Rs.40 lakhs | The following conditions must be met: 1. The supplier must not be offering any services.
2. There is no intra-state supply in the following states: Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Puducherry, Telangana, Tripura, as well as Uttarakhand.
3. Supplier can’t have anything to do with the supply of tobacco, ice cream, or pan masala. |
Goods Suppliers (if conditions not met) | Rs. 20 lakhs (Rs. 10 lakhs in states falling under special categories) | GST registration is necessary when turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs in special category states) if the previously specified conditions are not fulfilled. |
Special Category States | Rs. 10 lakhs (for certain suppliers of goods and services providers) | Uttarakhand, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Arunachal Pradesh, Assam, Jammu and Kashmir, and Mizoram. |
Aggregate Turnover Calculation | N/A | · Aggregate Turnover = (Taxable Supplies + Exempt Supplies + Exports + Inter-State Supplies) * (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Non-Taxable Supplies)
· Aggregate turnover is calculated based on the PAN, summing up multiple places of business.
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GST Certificate
Businesses listed under the Goods and Services Tax (GST) system receive the gst certificate, an authoritative document, from the Indian government. This certificate shows that a business is properly registered for GST and clearly indicates important information like the gst identification number, business name, and official address.
Obtaining an authentic gst certificate is essential for enterprises as it offers:
- Tax Collection Authority: It gives companies the power to charge and collect GST from their clients.
- Tax Credit Claims: With this certificate, businesses can claim credits for the GST they’ve paid on their purchases and operating expenses.
Moreover, outside of its tax-related purposes, the GST Certificate is important in multiple other areas:
- Loan Applications: It may be necessary for businesses to submit their GST certificates as verification of authenticity when requesting loans or financial assistance.
- Government Tenders: Frequently, in order to be eligible for and take part in official government bids, the GST Certificate is needed as evidence of tax compliance.
- Market Reputation: The certificate improves a business’s market status by demonstrating its dedication to national tax regulations.
Voluntary GST Registration for Businesses
Anyone who runs a business that makes less than Rs. 20 lakhs can apply for GST online if they want to. Input tax credits, unrestricted interstate sales, the ability to list on e-commerce sites, and being able to compete with businesses that aren’t GST-registered are some of the benefits they can get. Although registration isn’t required, it opens the door to better growth and more money.
GSTIN
Goods and Services Tax Identification Number, or GSTIN, is a unique 15-digit alphanumeric code that is given to every Indian user who is registered under the GST framework. Companies and individuals primarily use this gst number to identify themselves when interacting with the GST system and adhering to its regulations. After you submit your application through the GST Apply online portal, you will receive your goods and services tax identification number (GSTIN). You can find GST number and check GST number online by using the gstin number search function available on the GST portal.
How to Verify GSTIN
It’s important to verify GST registration details. The gst verify tool lets you make sure that any GSTIN is real. The site has a tool called “gstin verify” that you can use to check the validity of any GST number. In the same way, companies can use a GST Dealer Search to see if another business is registered for GST.
GST Services and Verification Offered by the Portal
The gst portal online offers various GST services, including:
- GST registration login for registered users.
- GST registration certificate download options.
- GST number details searches.
- GST registration verification.
- GST portal search for tracking and verifying GST-related information.
You can also search taxpayer by GSTIN using the gst search online tool to make sure the business authenticity.
Key Features of the GST System
E-Invoicing in GST
E-invoicing under the GST is a new requirement for companies that exceed a specific turnover. Electronic invoice generation and authentication are required by the GST portal. This streamlines the return filing process and reduces fraud. Through registered software, it is effortless to incorporate e invoicing GST into your billing system.
Reverse Charge Mechanism
The reverse charge under GST is applicable when the recipient becomes responsible for paying the tax rather than the supplier. The government defines specific categories of goods and services that it affects. Understanding what is reverse charge in GST or the reverse charge mechanism is critical for compliance.
Input Tax Credit (ITC)
The input tax credit mechanism is one of the most significant benefits of GST. It enables businesses to claim credit for taxes paid on purchases or inputs, thereby reducing their overall tax liability. This feature is essential for the tax system’s smooth operation.
Documents Required for GST Registration
The following is a list of documents for GST registration:
- PAN Card: The authorized signatory’s PAN card under GST.
- Aadhaar Card: The authorized signatory’s Aadhaar card under GST.
- Electricity Bill: Latest electricity bill for the premises where GST registration is applied for.
- Telephone Bill: Obtain the most recent phone bill for the location where GST registration is being applied in some states.
- Property Tax Receipt: Provide the most recent property tax receipt for the premises where you have applied for GST registration.
- Lease/Rent Agreement: You need a lease or rental agreement if the property is rented out.
- Legal Ownership Document: A legal ownership document is necessary if someone takes the property without a rental agreement, a legal ownership document is required.
- Incorporation Certificate: If the applicant is a Company or LLP, a Partnership Deed must be submitted.
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GST Registration Fees
The government in India does not charge a fee for registering for the Goods and Services Tax (GST). If you use the official GST website, GST registration is free of cost. However, depending on how you register, there may be some GST registration charges:
- Professional fees:If you hire a tax consultant, chartered accountant (CA), or lawyer to help you with the GST process, they might charge you for their time. These fees change based on the services you need and how complicated your business is.
- Document Preparation: Some service providers may also charge your business for assistance in preparing and verifying documents.
GST Registration Process Online
The following will define the registration process of GST in India:
Procedure to Complete Part-A of the Registration of GST Application
Step 1: Go to the official GST portal India or simply search “ww.gst.portal” online. Go to ‘Registration’ > ‘New Registration’.
Step 2: Filled out Part A with the subsequent information:
- Click on New Registration.
- Under the ‘I am a’ option, click on the drop-down list and select taxpayer.
- Select the appropriate state and district from the dropdown menu.
- Provide the registered name of the business and enter the appropriate PAN of the business.
- Type the email address and mobile number in the required areas. You do not have to insert your email ID and mobile number if your contact number is attached to the PAN card.
- If applicable, OTPs will be sent to the registered email address, cellphone number, or PAN-linked contact information.
- Tap the Proceed button.
Step 3: Insert the two OTPs that you get via email and mobile number or the contact number that is linked with PAN card. Tap on the continue button. If you still did not get the OTP, you can click on the Resend OTP.
Step 4: After the above process, you will get the 15-figure Temporary Reference Number (TRN). The information regarding TRN will be received by you via email and contact number or PAN-integrated contact number. Record the TRN. You get 15 days to file the Part-B section.
Step 5: For the second time, you need to visit the gst portal. Click on the ‘New Registration’ button.
Step 6: Tap on the radio button of Temporary Reference Number (TRN). Provide the TRN and fill out the captcha, and again tap on the proceed button on the screen.
Step 7: OTP will be provided on your registered mobile or PAN-integrated contact number and email. Insert the OTP and tap on the proceed button.
Step 8: Updates of the application will be presented on the screen as drafts. Tap on the modification icon.
Procedure to fill Part-B of the GST Registration Application
Step 9: Part B consists of 10 segments. Provide the required GST details and documents that are mentioned. The Aadhar validation section was included, and the bank account segment was established as not required in 2020.
The following is the list of documents that you keep readily available while applying for GST registration procedure: –
- Photographs
- Constitution of the taxpayer
- Evidence for the location of the business
- Information of the bank account
- Validation and Aadhaar identification, if applicable
- Bank account information is not to be considered mandatory during GST registration commenced on 27th December 2018.
Step 10: In the “Business Details” section, type in the trade name, the type of business, and the district. Make sure that the trade name must be completely different from the legal name of the business.
Then, in the “Option for Composition” field, select ‘Yes/No’ to either opt in or opt out of the composition scheme. Additionally, select the type of registered person, such as manufacturers, work contract service providers, or any other eligible individual for the composition scheme.
Enter the date of business commencement and the date on which liability arises. Additionally, decide whether to register as a casual taxable person by selecting ‘Yes’ or ‘No’. If you choose ‘Yes’, proceed to create the challan by providing the necessary details for advance tax payment in accordance with the GST law for casual taxable individuals.
Furthermore, under the ‘Reason to obtain registration’ section, select ‘Input service distributor’ if applicable at this stage. As an alternative, there are a plethora of other options to select from. Enter details in the fields that appear on the basis of the selection you made.
In the Indicate Existing Registrations section, choose the type of existing registration, like Central Sales Tax, Excise, or Service Tax, registration number, as well as date of registration. Then, click on ‘Add’.
Upon entering the details, the tile will turn blue, signifying the completion of the details in that section.
Step 11: Under the Promoters/Partners tab, you can list up to 10 Promoters or Partners.
You need to enter personal details like name, address, mobile number, date of birth, email address, and gender, and identity details like Designation/Status and Director Identification Number if the taxpayer is a company. If the taxpayer is an Indian citizen, you must also enter PAN and Aadhaar numbers.
Upload the stakeholder’s photograph after filling the residential address. You can upload PDF or JPEG files, with a maximum file size of 1 MB.
Make the necessary selection if the promoter is also the primary authorized signatory. Click on ‘SAVE & CONTINUE’.
Step 12: Enter the Authorized signatory’s details.
Enter the enrollment ID for GST practitioners, and for authorized representatives, enter the basic details as requested.
Step 13: Enter all the required details for the principal place of business.
The “principal place of business” indicates the primary location in the state where an individual conducts their business. The company usually keeps its books of accounts and other important documents at its main office, which is also where the president and other top managers live.
Report the address, district, sector/circle/ward/charge/unit, range code, Commissionerate code, and division code. Also, give the taxpayer’s legal phone number and say whether the property is rented, owned, or shared.
Upload supporting documents, including a consent letter or NOC for business on premises rented out, and if applicable upload the proof of SEZ Unit/SEZ Developer approval for the premises. Also, checkmark the Nature of business activities on the premises and add any additional places of businesses. Click on the ‘SAVE & CONTINUE’ button.
Step 14: In the next tab, enter the details of the goods and services you want to sell, along with their HSN codes or SACs for up to five items and five services.
Step 15: Next, enter the taxpayer’s bank details for up to 10 bank accounts. If you fail to provide these details during GST registration, the GST portal will prompt you to submit a non-core amendment application after granting your GSTIN. Additionally, upload the supporting documents with the details.
Step 16: Enter the professional tax employee code number, PT registration certificate number, as well as the State Excise License number, along with the name of the license under the State Specific Information Tab. Click on ‘SAVE & CONTINUE’.
Step 17: Choose whether you are willing to do Aadhaar authentication.
Remember, if the authorized signatory opts for Aadhaar authentication, the officer won’t need to physically verify the premises or site, unless certain circumstances apply. In this case, the officer will generate an ARN (Application Reference Number) right away after completion. This number can be used to track the GST registration status.
Step 18: Once you have completed all the details, proceed to the Verification page. Once you have completed the declaration, proceed to submit the application through any of the following methods:
- Companies and LLPs need to submit applications using DSC.
- When using e-Sign, the Aadhaar registered number will receive the OTP.
- The registered mobile will receive the OTP via EVC.
Step 19: Successful applications display a message and send the Application Reference Number (ARN) to the registered email and mobile.
By entering the ARN in the GST Registration Portal, you can check the ARN status for your registration.
Consequences for Failing to Obtain GST Registration
- For Non-Payment or Underpayments: In the event that a taxpayer fails to pay the required tax or unintentionally underpays, an equivalent of 10% of the outstanding tax amount is assessed. It is crucial to acknowledge that penalties for noncompliance can be significant despite the absence of GST registration fees.
- Intentional Tax Evasion: The penalty is equivalent to 100% of the evaded tax amount if an individual or business willfully fails to pay the required taxes.
Benefits of GST Registration
A variety of benefits are available to enterprises that register for GST:
- Input Tax Credit: Businesses have the option to reduce their tax liability by offsetting the GST they have paid on purchases against the GST they have charged on sales.
- Elimination of the Cascading Effect: This reduces the impact of taxation on a quantity that has already been taxed, thereby reducing the overall cost of products or services.
- Inter-State Trade Ease: Allows businesses to do business across state lines without having to worry about taxes.
- Legal Compliance: Makes sure that businesses remain compliant with tax regulations, thus avoiding any potential penalties.
- Access to Larger Markets: Large companies typically prefer to collaborate with suppliers who have their GST registered.
- Competitive Edge: Potential customers will trust you more if you follow GST rules, which can lead to more opportunities for business.
- Transparent Operations: Makes sure that businesses keep correct records, which builds trust and professionalism.
- Optimized Cash Flow: Better management and fewer tax obligations can enhance a company’s cash flow.
- Legal Safeguard: A GST registration protects and upholds businesses’ rights.
- Enhanced Credit Rating: By business can improve its credit score by keeping a steady and good GST compliance record.
- Simplified Compliance: With the simplified GST method, businesses can easily file returns and pay online.
Additional Information: GST and Other Taxes
The distinctions between the VAT GST registration number and GSTIN are often a source of confusion for businesses. Prior to the implementation of GST, VAT was the tax system in existence. Since the introduction of GST, businesses no longer require a VAT number but rather a GSTIN.
What Does GST Include?
GST applies to the sale of all goods and services, with a few exceptions. Under GST, goods and services tax (GST) simplifies tax calculations by merging various state and central taxes, including VAT, service tax, and excise duty. GST includes several features such as reverse charge, input tax credit, and e-invoicing to ensure smooth tax operations.
Summary
The structure of GST in India is intended to enhance the transparency and uniformity of the indirect tax system. By registering under GST, you can guarantee compliance, claim input tax credits, and contribute to the economy’s overall expansion. The GST portal ensures a seamless process from the moment you register for a new GST registration to the moment you download the GST registration certificate.
Whether you are looking for help on how to get GSTIN number or need to conduct a gst no tracking, the official portal offers all the tools you need. Remember to stay updated with the latest guidelines and regulations to maintain compliance under the goods and services tax portal.
You can visit the www goods and services tax portal for updates, or consult local professionals for GST registration near me services for more details.
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FAQ’s
GST registration is required for businesses whose turnover exceeds the specified turnover limit for GST registration. The business receives a GST Registration Number, also known as a GSTIN (Goods and Services Tax Identification Number) once registered. This number is crucial for legal recognition as a supplier, enabling tax collection as well as remittance.
A Goods and Services Tax (GST) certificate is proof that a business is registered with the GST system. It is given out by the Indian government. India gives each business a unique number to keep track of them for tax reasons.
A GST certificate is mandatory for any enterprise that has registered for gst in India. This is applicable to enterprises that operate both online and offline.
To apply for a GST number online, follow the steps listed below:
- Visit the GST portal.
- Under Services tab, click on ‘Register Now’.
- Fill in Part A of the registration form (PAN, mobile number, and email).
- Receive an OTP and verify.
- Complete Part B by submitting business details and required documents.
- The verification process generates a Temporary Reference Number (TRN).
- Using TRN, you can track your application status and complete verification.
- You will get your GSTIN within seven working days.
In India, businesses do need to get a gst registration certificate in order to register for GST. Any company that doesn’t have a gst registration certificate won’t be able to add GST to the things they sell.
Businesses with an annual turnover exceeding Rs. 40 lakhs are required for GST registration. However, the GST registration limit is lesser for businesses in specific special category states, including Arunachal Pradesh, Manipur, and Nagaland. Additionally, businesses engaged in e-commerce are subject to different regulations, which may require GST registration despite their turnover.
People who are registered for GST are the only ones who can collect GST from customers. If someone is not registered for GST, they cannot even get the input tax credit for the GST they paid.
Each taxpayer gets a 15-digit Goods and Services Taxpayer Identification Number (GSTIN) based on their PAN in every state where they do business. When you register for GST, you will receive this number. After checking the GST registration application and giving it the all-clear, the GST officer gives the business a unique GSTIN.
The central government of India imposes the IGST (Integrated Goods and Services Tax) on goods and services transported between states. If you want to trade goods or services between states or between a state and a Union Territory, you have to follow it. The central government as well as the state governments split the IGST revenue. The IGST ensures fair taxation of interstate trade, eliminating the need for multiple tax collections at state borders.
CGST (Central GST) and SGST (State GST) are the two components of the Goods and Services Tax (GST). SGST goes to the corresponding state governments while CGST is gathered by the central government. Together, they create a complete tax on intra-state supplies.
You can apply for cancellation through the GST portal to cancel your GST registration. You need to log in to your account and navigate to the cancellation option. Also, this process requires uploading a noc for gst registration and other relevant documents.
Use the gst registration track feature on the portal for checking your application’s status. You can enter your ARN (Application Reference Number) to view the current status of your application.
Below is a step-by-step guide on how to register for GST:
- Visit the GST Portal: Go to the official GST portal India or simply search “www gst portal” online.
- Fill out the Application: Fill the complete GST registration form by providing your business details, including the PAN card, Aadhaar number, and proof of business establishment.
- Submit Required Documents: Upload the required documents such as your PAN card, proof of business registration, address proof, and bank account details. You’ll need to submit the new GST registration documents for proprietorship for proprietorship businesses.
- Verification: Once submitted, the authorities will review your application, and you can check your status through the gst registration tracking tool or gst registration check option on the portal.
- Get Your GSTIN: Upon approval, you will receive your GSTIN number. You can find GST numbers as well as check GST numbers online using the gstin number search function on the gst portal.
- Download the Certificate: Finally, you can download the GST registration certificate in PDF format from the portal.
GST stands for “Goods and Services Tax” It is a tax that is imposed on all goods and services that are supplied in India. It replaces various indirect taxes, including the good service tax and service tax. Having a clear understanding of GST is vital for businesses to maintain compliance with tax regulations, as it affects GST filing online and the process to get GST number for legitimate operations.
To apply for GST registration, businesses must fulfill specific GST registration requirements. The threshold limit for GST registration is generally ₹40 lakhs for most enterprises, but this may be lower for certain special category states. Businesses exceeding this limit are required to obtain a GST number to properly collect and remit taxes. This registration is essential for adhering to the input tax credit system.
You can easily check GST details online through the GST portal. To get GST number information, visit the gst.gov.in registration page, where you can perform a GST number check online. The GSTIN no search feature allows you to validate your GSTIN and access the necessary GST certificate online information. You can also use the GST address search option to learn more about your registered business address.