GST REGISTRATION IN INDIA

GST REGISTRATION IN INDIA

On 29th March 2017, the Goods and Service Tax Act was passed in the Parliament and the Act came into existence from 1st July 2017.


Overview

Goods and Service Tax (GST) is an Indirect Tax that is applicable on the whole country. GST has replaced numerous indirect taxes that were applicable in India before its introduction. Goods & Services Tax Law in India is an extensive, multi-stage, destination-based tax that is levied on every value addition.
 

An Indirect Tax that is levied on the supply of goods and services, is known as Goods and Service Tax (GST). As per the GST rule, GST Registration is must for those business units whose estimated annual turnover exceeds Rs. 40 Lakh.
 

However, for some specific states, GST registration is just in case the annual turnover exceeds Rs. 20 Lakh in a financial year. Once the entities or the individuals get registered under GST, they get a 15-digit alpha-numeric PAN-based unique code.
 

This unique GST number will be issued state wise. By getting registered under GST, one gets legal identity in the eyes of law. 

The introduction of the GST regime has made it obligatory for eligible individuals or business entities to do GST registration in case they provide or deal in goods or services. In this article, we will see the eligibility to get registration, taxation limit, benefits of GST registration, Documents required, procedure to register under GST etc.
 

Applicability for GST Registration

Following people are required to get GST registration:

  1. Businesses or People who are liable to deduct TDS or collect TCS.
  2. Every taxpayer who does interstate supplies
  3. One who is registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  4. One who is dealing in casual supply of taxable goods or services
  5. Agents who are making supplies on behalf of other registered taxpayers
  6. In case the Proprietor dies or if there is a transfer of business or a merger/demerger has occurred, then the new owner becomes eligible for registration.
  7. One who is liable to pay tax under Reverse Charge Mechanism
  8. Input Service Distributors
  9. Those business units whose estimated annual turnover exceeds Rs.40 lakhs. However, for some specific states, GST registration is must in case the annual turnover exceeds Rs. 20 lakhs in a financial year. Non-resident taxable suppliers of goods/services
  10. One who operates and supplies E-commerce portal.
  11. UN bodies and embassies
  12. Other notified bodies, including Government bodies
     

Taxation Limit under GST
 

A.  For Normal Category states, the limit is:

-In case of sale of goods, Annual Turnover must be Rs. 40 lakh or more

-In case for providing services, Annual Turnover must be Rs. 20 lakh or more
 

B.  For Special Category states, the limit is:

-In case of sale of goods, Annual Turnover must be Rs. 20 lakh or more

-In case for providing services, Annual Turnover must be Rs. 10 lakh or more

Note: The special category states under GST includes Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand, Jammu & Kashmir.

For particular businesses such as Export and Import, E-commerce, Casual Dealers, Market Place Aggregator, GST registration is mandatory irrespective of the annual turnover of the business.
 

Benefits of  GST Registration

  • The entity gets the legal identity as supplier of goods or services.
  • Proper accounting of taxes to be paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services by taxpayers.
  • Various other benefits and privileges under the GST laws can be availed by the Taxpayers.
  • Lower tax rates under composition scheme.
  • The entities will get relief from the double taxation system.
  • Entities will get improved logistics by way of E-way Bill.
  • Less compliance to be followed by the entities.
     

Documents required for GST registration
 

A.  In case of Individual and sole proprietor
  • PAN card of the Individual/Sole Proprietor
  • Aadhaar card of the Individual/Sole Proprietor
  • Photograph of the Individual/Sole Proprietor
  • Address proof of the Individual/Sole Proprietor such as rent agreement, lease deed, Tax receipt, electricity bill, telephone bill etc
  • Details of Bank account of the Individual/Sole Proprietor
     
B.  In case of Private Limited Company or Public Limited Company
  • Company’s PAN Card 
  • Company’s Certificate of Incorporation 
  • Memorandum of Association and Articles of Association of company 
  • A certified true copy of Board Resolution signed or Authority Letter
  • PAN of the Directors
  • Address Proof of the Director
  • A Passport Size Photo of all the directors
  • Proof of registered office address such as rent agreement, lease deed, Tax receipt, electricity bill, telephone bill etc.
  • Details of the business Activities
     
C.  In case of Limited Liability Partnership:
  • A copy of Pan Card of Limited Liability Partnership 
  • Certificate of Incorporation of the LLP
  • Limited Liability Partnership Agreement
  • A certified true copy of Board Resolution signed or Authority Letter
  • PAN of the Designated Partners Identification Number
  • Address Proof of the Designated Partners Identification Number
  • A copy of Passport Size photo of all designated partners
  • Proof of registered office address such as rent agreement, lease deed, Tax receipt, electricity bill, telephone bill etc.
  • Details of the business Activities
     
D.  In case of Partnership Firm
  • A copy of Pan Card of the Partnership firm
  • Proof of registration of partnership firm
  • Partnership Deed
  • Authority Letter.
  • PAN of the Partners
  • Address Proof of the Partners 
  • A copy of Passport Size photo of all partners
  • Proof of registered office address such as rent agreement, lease deed, Tax receipt, electricity bill, telephone bill etc.
  • Details of the business activities
     
E.  In case of Hindu Undivided Family
  • PAN card of HUF’s
  • PAN card of the Karta’s (head of family)
  • A copy of photo of owner
  • Bank account detail
  • Registered address proof
  • Details of the business activities
     

Key documents required for GST registration

  • A copy of PAN card
  • Proof of business registration i.e. certificate of Incorporation etc.
  • Proof of registered place of business
  • Authorized signatory’s appointment proof
  • Photograph of authorized signatory
  • Details of business activities
  • Applicant’s Email id 
  • Applicant’s Phone number
  • Digital signature certificate of the applicant or authorized signatory
     

Procedure for GST registration

The GST registration form comprises of 2 parts i.e., Part A and Part B. The registration process is as follows:

Step 1: The applicant has to visit the GST website gst.gov.in 

Step 2: In case of Part A - On the home page of GST under the head services one can see an option for New Registration. Then enter all the required details and press the proceed button. The applicant will receive an OTP on the registered Mobile No. and Email ID.

The validity of OTP is 15 minutes. Once the verification of OTP is done, 15 digit Temporary Reference Number (TRN) will be generated and it will be valid for 15 Days. The applicant will receive the TRN number on their respective email id as well as on their phone.

Step 3: In case of Part B - The applicant again will have to go to the home page of GST. Under the head services you will see an option Temporary Reference number. The applicant has to select the TRN and there you have to enter the TRN generated and the captcha as shown.

Step 4: Then the My Saved Applications page is displayed. Under the Action column, click the Edit icon. 

Step 5: On clicking on the edit tab for New Registration, a window appears that shows the requisite details to be filled in.  After the required details are being filled in the columns given in the window one can save and submit the application.

One has to select the name of authorized signatory and submit the application in case of proprietorship and partnership firm, just by entering OTP and with DSC in case of company.

Step 6: After successful verification of your GST application for registration, one will receive an acknowledgement within 15 minutes on their registered e-mail address and mobile phone number. An Application Reference Number (ARN) receipt is sent on your e-mail address and mobile phone number.

Step 7: If the department finds that the details provided by the entity is true and correct, the department will grant the GST number. Certificate of GST can be downloaded with the login credentials provided along with the approval of the application by GST department.

Note : GST registration takes about 4-5 working days, depending upon the approval by the respective authorities.
 

Penalties 

The one who fail to register under GST even if they fall into mandatory category, will have to pay a penalty equal to 10% of the tax amount or Rs. 10,000, whichever is more.

A penalty of 100% of tax amount will be levied if the applicant has deliberately evaded in paying taxes.
 

Frequently Asked Questions (FAQ,s)

What is GST?

Goods & Services Tax Law in India is a extensive, multi-stage, destination-based tax that is levied on every value addition. An Indirect Tax that is levied on the supply of goods and services, is known as Goods and Service Tax (GST).
 

In which year GST came into existence?

On 29th March 2017, the Goods and Service Tax Act was passed in the Parliament and the Act came into existence from 1st July 2017
 

Who are eligible for GST registration?
  1. Businesses or People who are liable to deduct TDS or collect TCS.
  2. Every taxpayer who do interstate supplies
  3. One who is registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  4. One who isdealing in casual supply of taxable goods or services
  5. Agents who are making supplies on behalf of other registered taxpayers
  6. In case the Proprietor dies or if there is a transfer of business or a merger/demerger has occurred, then the new owner becomes eligible for registration.
  7. One who is liable to pay tax under Reverse Charge Mechanism
  8. Input Service Distributors
  9. Those business units whose estimated annual turnover exceeds Rs.40 lakhs. However, for some specific states, GST registration is must in case the annual turnover exceeds Rs. 20 lakhs in a financial year. Non-resident taxable suppliers of goods/services
  10. One who operates and supplies E-commerce portal.
  11. UN bodies and embassies
  12. Other notified bodies, including Government bodies
     
Can anyone opt for voluntary registration under GST?

Yes, one can opt for voluntary registration under GST.
 

What are the key documents required for GST registration?

The key documents required for GST registration is a copy of PAN card, Proof of business registration i.e. certificate of Incorporation etc, Proof of registered place of business, Authorized signatory’s appointment proof, Photograph of authorized signatory, Details of business activities, Applicant’s Email id, Applicant’s Phone number, Digital signature certificate of the applicant or authorized signatory.
 

What are the penalties involved in GST registration?

The one who fail to register under GST even if they fall into mandatory category, will have to pay a penalty equal to 10% of the tax amount or Rs. 10,000, whichever is more.

A penalty of 100% of tax amount will be levied if the applicant has deliberately evaded in paying taxes.
 

What is GST number?

GST is a 15-digit alpha-numeric PAN-based unique code. This unique GST number will be issued state wise.
 

Conclusion

One who opt for GST , will be saved from all the different types of taxes imposed on them , as GST tax is one single indirect tax. GST is said to be one tax for one nation. By getting the GST registration, one gets the legal identity in the eyes of law.
 

Edited by Minu Mishra