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Introduction
Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It is a comprehensive multi-stage, destination-based tax: comprehensive since it has incorporated nearly all indirect taxation, with the exception of a few state taxes; multi-stage as the GST is levied at various levels of the manufacturing process, but is supposed to be refunded to all parties during various points of production, other than the final customer, because as a destination-based levy, it is collected from the point of consumption and not from the point of origin, as in the case of previous taxes.
How to register for GST?
One can register for GST under the following norms;
- Normal Taxpayer
- Composition
- Casual Taxable Person
- Input Service Distributor
- SEZ Developer
- SEZ Unit
- Tax Deductor at Source or Tax Collector at Source
Registering on the GST website consists of two parts:
- Submitting the Registration Application
- Aadhaar Authentication (E-KYC)
The steps to register yourself as a Normal Taxpayer/ Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit, is the same. Please follow the below steps:
- Logon to the GST website. The Home page will be displayed.
- Go to Services > Registration > New Registration option. Or, you can also click on the REGISTER NOW link.
- In the ‘New Registration’ page, select your registration type, select the State or Union Territory you belong to, the legal name of your business, PAN number and various other details as requested.
- Enter your current mobile number to receive the confirmation OTP
- Enter the Captcha Code and click ‘Proceed’
- It will now display all the GSTINs / Provisional ID’s / UINs / GSTP IDs mapped to the same PAN across India. Click on ‘Proceed’
- You will now be sent an OTP on your mobile phone and your email address, which you need to enter in the correct fields. Then click PROCEED.
- A Temporary Reference Number (TRN) is created under your name. The next step is filling up all other details pertaining to your business and the Aadhaar verification.
- Login to the GST Portal with your TRN.
- Once you login, go to the MY SAVED APPLICATIONS tab.
- Open the saved application form to fill in the following details:
- Business Details
- Promoter/ Partners
- Authorized Signatory
- Authorized Representative
- Principal Place of Business
- Additional Places of Business
- Goods and Services
- State Specific Information
- Aadhaar Authentication
- Verification
- Once you have submitted all the details, you will come to the Aadhaar verification tab. You can opt to do the Aadhaar verification of the Promoters/ Partners, Authorized Signatories.
- If you do not want to go for Aadhaar verification, you can opt for E-KYC by uploading all the relevant documents in PDF format
- If you have opted for Aadhaar verification, you will receive the authentication link on your registered mobile number or email. Aadhaar verification will be processed and approved within 3 working days without the need for site visit.
- In case of non-Aadhaar verification, the applications can take up to 21 business days for processing and approval. Site visit is also mandatory for non-Aadhaar verifications.
- The last tab, Verification tab is for authorized signatory on your GST application.
- You can choose one of the Promoters/ Partners, Authorized Signatories from the drop down box to be nominated as the Authorized Signatory.
- You then have to digitally sign the application using the DSC utility or the EVC or the E-Signature options.
- Once you have verified the application through any one of the above methods, you will receive a SUCCESS message.
- The application is then processed and your new GSTIN is allotted to you.
Who are required to register under GST?
GST Registration is mandatory for the following individuals and businesses:
- Individuals who were enrolled under tax facilities before the legislation on the GST came into force.
- Non-resident taxable individual and non-resident taxable person
- Individuals that pay taxes under the reverse fee mechanism
- Both aggregators in e-commerce
- Businesses with a turnover above Rs.40 lakhs. In the case of Uttarakhand, Himachal Pradesh, Jammu & Kashmir and the North-Eastern Regions, the revenue of the company should be more than Rs.10 lakhs.
- Production distribution providers and manufacturers' agents
- Individuals that distribute goods through an e-commerce aggregator.
- Individuals supplying access to databases and internet information from outside India to people residing in India other than those who are registered taxable individuals.
Different Types of GST Registration
One can register for GST under the following norms;
- Normal Taxpayer
- Composition
- Casual Taxable Person
- Input Service Distributor
- SEZ Developer
- SEZ Unit
- Tax Deductor at Source or Tax Collector at Source
Normal Taxpayer: Most corporations in India fall under this group. You don't need to make a deposit to become a regular taxpayer. There is also no expiry deadline for taxpayers who fall into this group.
Casual Taxable Person: Individuals wishing to set up a seasonal shop or stall can opt for this group. You must deposit an advance balance equal to the estimated GST liability during the duration of service of the stand or seasonal store. The period of the GST Registration in this form is 3 months and can be extended or renewed.
Composition Taxpayer: You can apply under this category if you wish to receive a GST Composition Program. You're going to have to deposit a flat rate in this category. Input tax credit cannot be expected in this segment.
Input Service Distributor: The Input Service Provider (ISD) is a corporation that collects invoices for the services used by its subsidiaries. It shall allocate the tax paid to certain branches on a proportionate basis by issuing an ISD invoice. The divisions may have separate GSTINs, but they must have the same PAN as the ISD.
SEZ Developer: The Special Economic Zone (SEZ) is a designated zone where companies experience simplified tax and smoother legal enforcement. SEZs are situated within the national boundaries of a region. However, they are considered as overseas territories for tax purposes. That is why supplies from and to special economic zones are handled slightly differently from normal supplies. Simply put, even though SEZs are situated in the same region, they are deemed to be located in a foreign territory. SEZs are not regarded to be part of India.
On this basis, it can be explicitly established that, under GST, any supply to or from a Special Economic Zone Operator or Special Economic Zone Unit is deemed to be an Inter-State Supply and Integrated Goods and Service Tax (IGST) will apply.
SEZ Units: These special economic units enjoy the following benefits under GST; Duty-free import/domestic purchase of products for SEZ unit’s production, service and maintenance. 100% Income Tax deduction on the SEZ export income for the first five years, 50% for the next five years, and 50% on the rebound export benefit for the next five years, according to section 10AA of the Income Tax Act. SEZ supplies attract zero% rate under IGST Act 2017. Such charges as levied by the governments of the respective States. They are allowed a single Central and State approvals window clearance.
Tax Deductor at Source or Tax Collector at Source: A TDS deductor must register without any threshold limit on a compulsory basis. The deductor has the right to file under GST without the need for PAN. They can use their TAN (Tax Deduction and Collection Account Number) issued under the Income-Tax Act, 1961.
TCS is TDS-like. The product/service price/consideration is obtained by the consumer's operator and transmitted to the actual provider after commission is deducted by the operator. An amount measured at 1% of the net worth of taxable supplies, if the consideration for those supplies is to be obtained and to pay it to the Government, is collected by each electronic commercial operator and is not an agent.
What are the documents required to complete GST Registration?
- PAN card
- Aadhaar card
- Business address proof
- Bank account statement and cancelled cheque
- Incorporation Certificate or the business registration proof
- Digital Signature
- Director’s or Promoter’s ID proof, address proof, and photograph
- Letter of Authorisation or Board Resolution for Authorised Signatory
How to check GST Registration Status?
- Visit the official GST portal
- Click to 'Services’ > ‘Registration’ > ‘Track Application Status’
- Enter your ARN number, Captcha code and click on SEARCH button
- The screen will display the following details pertaining to your GST registration:
- Provisional status
- Pending for verification status
- Validation against error status
- Migrated status
- Cancelled status
How to download the GST Registration Certificate?
Once your GST Registration has been successful, you can download the certificate within 3-5 business days. You can download it by logging in using your valid credentials on the GST Portal.
- Use your username password to login to the GST Portal
- Go to 'Resources' > 'User Services' > 'Certificate View/Download’
- Tap on the "Download” icon
- All organisation specifics are found in the certificate
- Basic information such as name, address and date of company registration are shown on the first tab
- The second page is 'Annex A' containing information regarding some additional location or place of business
- The third page 'Annex B' includes information about the individuals responsible for the venture
GST Registration FAQs
1. If a person trades only on ‘GST exempted items’, will he be required to register for GST irrespective of his turnover?
Not necessary. A person trading only with ‘GST exempted items’ is not required to register for GST irrespective of his turnover.
2. Does an entity, involved in both trading and manufacture, require separate registrations?
Not necessary. A single GST registration is sufficient for trading and manufacturing.
3. How long do I have before I have to register in GST?
An unregistered person has 30 days from its date of liability to obtain registration to complete its registration formalities.
4. Is there any penalty for not registering in GST?
Yes, if you have not applied for GST and are purposely seeking to avoid taxes, the penalty imposed is 100% of the amount of the tax owed. In the case of genuine errors, or if you pay a tax amount lesser than what is actually owed, the penalty imposed would be 10%. The minimum penalty, however, is Rs. 10,000.
5. When is registration in another state required? Do I need a separate registration for that?
Inter state supply does not require a separate registration. IGST to be paid on inter-state supplies only.
6. Do I need to register on the GST Portal to claim a GST Refund?
Yes, registered GST taxpayers have to register on the GST portal to submit a refund claim.
7. Who all can apply for GST registration and the GSTIN number?
GSTIN, short for Goods and Services Tax Identification Number is a unique 15-digit identification number assigned to each taxpayer, primarily dealers and suppliers or other business entities registered under the GST regime.