Online GST Registration - Process, Eligibility & Benefits

Eligibility to Register for GST

GST Registration must be completed by the following individuals and businesses:

1. Individuals who have registered under the tax services before the GST law came into effect.
2. Non-Resident Taxable Person and Casual Taxable Person
3. Individuals who pay tax under the reverse charge mechanism
4. All e-commerce aggregators
5. Businesses that have a turnover that exceeds Rs.40 lakh. In the case of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and North-Eastern states, the turnover of the business should exceed Rs.10 lakh.
6. Input service distributors and agents of a supplier.
7. Individuals who supply goods through an e-commerce aggregator.
8. Individuals providing database access and online information from outside India to people who live in India other than those who are registered taxable persons.
9. GST registration is mandatory for businesses that have an annual turnover of Rs.20 lakh and more.

Online GST Registration Process

The step-by-step procedure that individuals must follow to complete GST Registration is mentioned below:

Step 1: Visit the GST portal at https://www.gst.gov.in and Click on the 'Register Now' link which can be found under the 'Services' tab

Step 2:  Select 'New Registration' and Fill the below-mentioned details

GST Registration – Part A

1. Under the 'I am a' drop-down menu, select 'Taxpayer'.
2. Select the respective state and district.
3. Enter the name of the business.
4. Enter the PAN of the business.
5. Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them.
6. Enter the image that is shown on the screen and click on 'Proceed'.

1. On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes and Click on 'Proceed'.

1. You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN (Which helps in further Steps).

GST Registration – Part B

Step 1: Now, Visit the GST portal again and click on 'Register' under the 'Services' menu.

Step 2: Select 'Temporary Reference Number (TRN)'. Now, Enter TRN number and  the captcha details. Click on 'Proceed' button.

Step 3: You will receive an OTP on your email ID and registered mobile number. Enter the OTP and click on 'Proceed'.

Step 4: The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it.

Step 5: In the Next Step, There will be 10 sections which must be filled and has to submit the required documents. The list of documents that must be uploaded are:

1. Photographs
2. Business address proof
3. Bank details such as account number, bank name, bank branch, and IFSC code.
4. Authorisation form
5. The constitution of the taxpayer.

Submit the documents and move to Next Step.

Step 6: Visit the 'Verification' page and check the declaration, Then submit the application by using one of the below mentioned methods:

1. By Electronic Verification Code (EVC). The code will be sent to the registered mobile number.
2. In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
3. By e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.

Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.

Note:  You can check the status of the ARN on the GST portal.

Documents Required for GST Registration

The following is the list of documents required for GST registration:

1. PAN card
2. Aadhaar card
3. Bank account information
4. Proof of address
5. Digital Signature

1. Photographs
2. Articles of Association/Memorandum of Association
3. Certificate of incorporation issued by Ministry of Corporate Affairs
4. Proof of appointment of authorised signatory
5. For LLP, the registration certificate/LLP Board resolution

New Online GST Registration Fees

1. No charges are levied to complete the GST registration process.
2. In case businesses do not complete the registration process, 10% of the amount that is due or Rs.10,000 will be levied. In the case of tax evasion, 100% of the amount that is due will be levied as a penalty.
3. Once the relevant documents have been uploaded, an Application Reference Number (ARN) will be sent via SMS and email to confirm the registration.

How to Get GST Number?

In order to get the GST number follow the simple steps:

Step 1: Visit the official GST Portal at www.gst.gov.in.

Step 2: Select 'Services' under Services tab and Click on 'Registration'.

Step 3: Now, Click on "New Registration" and enter all the requested details like valid email address, mobile number and a PAN for the business.

Step 4: Click on Proceed after submission of details to get GST Registration Number.

How to Check GST Registration Status Online

1. Visit GST official portal at https://www.gst.gov.in/
2. Click to 'Services' > 'Registration' > 'Track Application Status'.
3. Enter your ARN number and Captcha code. Next click on SEARCH button.
4. Finally, you will receive any of the following GST registration status on your screen:
   1. Provisional status
   2. Pending for verification status
   3. Validation against error status
   4. Migrated status
   5. Cancelled status

Different Types of GST Registration

Under the GST Act, GST Registration can be of various types. You must be aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:

Normal Taxpayer: Most businesses in India fall under this category. You need not provide any deposit to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this category.

Casual Taxable Person: Individuals who wish to set up a seasonal shop or stall can opt for this category. You must deposit an advance amount that is equal to the expected GST liability during the time the stall or seasonal shop is operational.

Composition Taxpayer: Apply for this if you wish to obtain the GST Composition Scheme. You will have to deposit a flat under this category. The Input tax credit cannot be obtained under this category.

Non-Resident Taxable Person: If you live outside India, but supply goods to individuals who stay in India, opt for this type of GST Registration. Similar to the Casual Taxable Person type, you must pay a deposit equal to the expected GST liability during the time the GST registration is active.

How to Download GST Certificate Online?

The procedure to download the GST Registration Certificate is mentioned below:

1. Step - 1: Visit Official Site
2. Step - 2: Click on 'Login'.
3. Step - 3: On the next page, enter the username and password.
4. Step - 4: Click on 'Login'.
5. Step - 5: Next, click on 'Services'.
6. Step - 6: Click on 'User Services'.
7. Step - 7: Select 'View/Download Certificates'.
8. Step - 8: On the next page, click on 'Download'. The certificate will have details of the tax transactions.

Advantages of GST Registration

Given below are the advantages of GST Registration:

1. Your business will be recognised legally.

1. Tax is accounted in a uniform manner.

1. Your business will be able to avail all the benefits that comes under the GST rule.

1. Authorisation from the law to collect taxes on sales.

Who is Exempt from GST Registration?

The below-mentioned individuals and entities are exempt from GST registration:

• Businesses that manufacture supplies that come under reverse charge.
• Activities that do not come under the supply of goods or services. Examples of such activities are the sale of a building or land, funeral services, and services provided by an employee.
• Businesses that make non-GST/ non-taxable supplies. Examples are aviation turbine fuel, electricity, natural gas, high-speed diesel, and petrol.
• Businesses that make exempt/ nil-rated supplies.
• Businesses that fall under the threshold exemption limit.
• Agriculturists.

Important Features of GST Registration

Some of the features of GST registration are as follows:

1. GST registration is PAN-based and state-specific.

1. An individual who is registered in one state is termed an ‘unregistered person’ in another state.
2. Suppliers must register in every state or union territory from which they supply services.
3. In case a person owns a unit in a Special Economic Zone (SEZ) or is a SEZ developer and also owns a unit in a domestic tariff area (outside the SEZ) within the same state, they must register the SEZ unit separately.
4. All registered people are expected to display their registration certificates and GSTIN at their primary place of business and also at every additional business location.
5. A particular PAN-based legal organisation will have one GSTIN per State, which implies that a business company with branches in many states would have to register separately in each state. However, a person with several business locations in a State or Union territory may be given a separate registration for each location.

1. GST registration is not tax-specific, which implies that there is just one registration for all taxes, including IGST, CGST, SGST/UTGST, and cesses.

Key Benefits of GST Registration

1. Eliminates the Cascading Effect of Tax: GST's comprehensive nature intends to avoid the cascading tax impact. The cascading effect refers to a tax on tax in which the tax liability was transferred at each level of the transaction. Due to this, the cost of the item increases. GST eliminates this cascading effect since the tax has a direct impact on the price of goods and services. 
2. Transparent in Nature: GST is a transparent tax system with no costs or hidden charges for registered retailers. This makes the expenses involved in business lesser.  
3. Tax evasion: The input credit is accessible to the receiver if the supplier includes the data in its return. This encourages the suppliers hence reducing tax evasion. 
4. Composition Schemes for Small Firms: Many small businesses are now under less of a tax and compliance burden. Additionally, small firms, defined as those with a turnover of Rs.20 lakh to Rs.75 lakh might profit from the use of composition schemes. 
5. Higher Registration Threshold: Under previous tax laws, businesses with an annual turnover of more than Rs.5 lakh were subject to VAT. Various states had different limits. However, in the GST system, the threshold is raised to Rs.20 lakh thereby exempting small businesses and service providers.  

1. Reduced Number of Compliances: Previously, each tax had its own returns and compliances. However, the compliances have decreased after GST was implemented. There is only one unified return that must be filed. 
2. Treatment Guidelines for Online Merchants: The e-commerce industry had no established definition of the supply of goods prior to the introduction of GST. A few states would view these as mediators or facilitators, exempting them from the need to register for VAT. The GST has eliminated all of these unequal treatment practises. 
3. Unorganised Sector is Regulated: The textile and construction industries were mostly disorganised and unregulated. Online compliance and payment options are covered by the GST. Therefore, these industries will now be held accountable and regulated. 
4. Improvement in logistics Efficiency: Due to the GST, which has reduced obstacles to the free movement of goods between states, logistics efficiency has grown. Warehouses are choosing to locate their units in major cities rather than any other location. 

GST Registration Via Authentication of Aadhaar

New businesses can secure their GST registration with the help of the Aadhaar. The process is simple and quick. The new process came into effect from 21 August 2020. The procedure to opt for Aadhaar authentication is mentioned below:

• When you apply for GST registration, you will be provided with an option to choose Aadhaar authentication.
• Select 'YES'. The authentication link will be sent to the registered email ID and mobile number.
• Click on the authentication link.
• Enter the Aadhaar number and select 'Validate'.
• Once the details have been matched, an OTP will be sent to the registered mobile number and email ID.
• Enter the OTP to complete the process. You will get the new GST registration within three working days.

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