GST REGISTRATION

GST REGISTRATION

Every supplier making taxable supplies of goods and services or both has to get registered as per Goods and Service Tax Act.

BRIEF BACKGROUND

GST REGISTRATION

GST stands for Goods and Service Tax Identification Number . GST Registration of business means obtaining a 15 digit unique code assigned to each taxpayer which is state-wise and pan-based. The format of this GST unique code is as follows:

  • First 2 digits is state code as per Indian Census 2011
  • Next 10 digits is the PAN Number of the business entity 
  • 13th  digit indicates the number of registrations a business entity has within a state for the same PAN 
  • 14th digit will be by default as Z
  • 15th digit will be a check code which will be used for detection of errors.
     

GST is a consumption based tax which is levied on the supply of goods and services.

ELIGIBILITY

As per the Section 22 of the GST Act 2017, every supplier making taxable supplies of goods and services or both has to get himself registered as per the applicability of the scenarios mentioned below:

Person supplying goods and services: Aggregate turnover in a financial year exceeds Rs. 20 lakhs and for special categories which is specified under the act he/she shall be liable to be registered under GST 

Person supplying goods: Aggregate turnover in a financial year exceeds  20 lakhs and for categories which is specified under the act he/she shall be liable to be registered under GST 

Persons opted for the composition scheme: The threshold limit for annual turnover in this case has been increased to Rs 1.5 crore and Rs. 75 lakhs for the special category states

Persons exempted from GST Registration: Persons supplying exempted goods or services which are not liable for tax under GST & An agriculturist to the extent of supply of produce out of cultivation of land

Persons compulsorily required to be registered irrespective of threshold limit: The following category of persons are compulsorily required to get registered under GST

  • Persons making any interstate taxable supply
  • Casual taxable persons
  • Persons who are required to pay tax under reverse charge
  • Every electronic commerce operators
  • Non resident taxable persons
  • Input service providers
  • Supplier of online information
  • Deductor of tax collected at source (TCS);
  • Government organization deducting TDS on GST of contractors

DOCUMENTS REQUIRED

The following is the list of the documents are required for GST Registration for any category of business like Company/ LLP/ Partnership Firm/ Proprietorship: 

In case of Proprietorship Firm:
  • PAN Card of the proprietor
  • Address proof of the proprietor (Adhar Card/ Bank Statement not older than 2 months) 
  • Passport size photo of the proprietor ( should be in JPEG Format)
  • Registered office address proof ( in case of rented premises, copy of rent agreement duly notarized and stamped , NOC from the owner and  latest utility bill in the name of owner, in case of consented premises, a consent letter alongwith utility bill in the name of the person giving his consent and in case of owned premises signed NOC along with the latest electricity bill not older than 2 months)
     
In case of Private Limited/Public Limited Company:
  • PAN Card of the company
  • Certificate of Incorporation of the company
  • Memorandum of Association/ Articles of Association of company 
  • Copy of Board Resolution (signed) or Authority Letter
  • PAN & ID Proof of the directors
  • Passport Size Photo of all directors
  • Registered office address proof ( in case of rented premises, copy of rent agreement duly notarized and stamped , NOC from the owner and  latest utility bill in the name of owner, in case of consented premises, a consent letter alongwith utility bill in the name of the person giving his consent and in case of owned premises signed NOC along with the latest electricity bill not older than 2 months)
     
In case of Limited Liability Partnership:
  • PAN Card of the LLP
  • Certificate of Incorporation of the LLP
  • LLP Partnership Agreement
  • Copy of Board Resolution (signed)
  • PAN & ID Proof of the designated partners 
  • Passport Size photo of all designated partners
  • Registered office address proof ( in case of rented premises, copy of rent agreement duly notarized and stamped , NOC from the owner and  latest utility bill in the name of owner, in case of consented premises, a consent letter alongwith utility bill in the name of the person giving his consent and in case of owned premises signed NOC along with the latest electricity bill not older than 2 months)
     
In case of Partnership Firms:
  • PAN Card of the Partnership Firm
  • Partnership deed 
  • PAN & ID Proof of the  partners 
  • Passport Size photo of all partners
  • Registered office address proof ( in case of rented premises, copy of rent agreement duly notarized and stamped , NOC from the owner and  latest utility bill in the name of owner, in case of consented premises, a consent letter alongwith utility bill in the name of the person giving his consent and in case of owned premises signed NOC along with the latest electricity bill not older than 2 months)

INFORMATION REQUIRED

The Following information is required for GST Registration:
  • Email id of the applicants;
  • Phone no of the applicants; 
  • Digital Signature of the authorized signatory in case of Private limited Company/ Public Limited Company/ LLP;
  • State or Union Territory of the business entity to incorporated in ;
  • Business activity to be carried on.

PROCESS OF GST REGISTRATION

For Proceeding with the Process of GST Registration with can follow the Following Steps:

Step-1 :  Visit the gst website gst.gov.in 

Step-2 :  On the home page under the head services you can see an option for New Registration. Enter all details and press proceed button. You will receive OTP on registered Mobile No. and Email ID. Once OTP is verified, 15 digit TRN will be generated and it will be valid for 15 Days. 

Step-3: You will see Proceed button. After proceeding you are again taken back to the New Registration form. Temporary Reference Number (TRN) button is pre-selected      

Step-4: On clicking on the edit tab for New Registration there opens a window that shows the various details to be filled in. 

Step-5: After the required details are being filled in the columns given in the window you can save and submit the application

Step-6: If all information filled is correct, select the name of authorized signatory and submit the application by entering OTP in case of proprietorship and partnership firm and with DSC in case of company.

Step-7: After submitting the application, window will appear that application successfully submitted and intimation will be received in 15 minutes on registered mail.

If no objection is raised by department, ARN will be generated sent over registered email ID. In case of any discrepancy, show cause notice will be served by reflecting the error and same has be submitted within 15 days after rectifying the error.

Step-8: Once the application is approved by the GST Department , GST Certificate is issued by the department to the applicant on registered e-mail and registered Mobile Number . 

GST Certificate can be downloaded from the login credentials provided along with the approval of the application by GST department.

ADVANTAGES OF GST REGISTRATION

Various advantages of GST Registration to the entity registering itself are: 
  • Eligibility to avail various benefits provided by government to the registered suppliers such as availing the input tax credit on the goods purchased and setting off the same by the liability which has to be paid by the supplier;
  • With the GST Registration you can make interstate supplies without any restrictions;
  • GST invoice always acts as a valid proof of purchase and sale;
  • A registered supplier is trusted more by the customer despite of an unregistered supplier
  • There are many stages and persons through which a good passes by and earlier at every level tax was levied , impact of which was to be borne by the consumer because consumer is the end consumer 
  • Earlier there were different types of taxes and for that various compliances were also there which increased the cost to the businessman  . With the advent to GST now the compliance cost and compliances have decreased comparatively

TIME INVOLVED IN GST REGISTRATION

Time involved in GST Registration is about 4-5 working days, depending upon the approval by the respective authorities.

FAQS ON GST REGISTRATION

Can a person get voluntarily registered under GST even if he is not liable?

Yes, a person can voluntarily get registered under GST as per the section 25 (3) of the Act. Once the applicant is registered all the provisions shall be applicable to him as applicable to a registered person.

Is PAN mandatory for registering under GST? 

Yes, PAN is mandatory for registering under GST. However PAN is not mandatory for non-resident taxable persons obtaining GST Registration.

Can a person without GST Registration claim ITC and collect tax?

No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him. If done so, same will be treated as a violation of GST law and will be a punishable offence.

What is the time limit for taking registration under GST?

Any person who becomes liable to get registered under GST after the attainment of the limit or any other criteria mentioned under the law shall get itself registered within 30 days of becoming liable for registration.

Can a single GST number will be sufficient for all branches of a Company in various parts of the country?

No , GST is statewise. So, an entity operating in different states will have to take GST statewise. 

Can a single GST be used to deal pan India, if an organization is having a single place of business?

Yes, any company who is not having offices in multiple states and is confined only to a single state then a single GST number will be sufficient in this case.

Who is Non-Resident Taxable Person ?

As per the GST law, non – resident taxable person means any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

What is the validity of the Registration certificate granted to any entity  ?

The registration certificate once granted is permanent, until suspended, cancelled or surrendered.

CONCLUSION

Hence, GST Registration  overall has certain benefits. But in purview of the fact that if any organization wants to be a eligible supplier of any particular goods or services, in that case it should get itself registered under the GST regime.
 

Edited by Kanika Gupta