written by khatabook | December 6, 2019

A Detailed Brief on the Process of GST Registration in India

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Table of Content


GST is a broad-based tax on the consumption of goods and services in India. It is a destination-based tax levied on goods and services at the place of consumption. GST is set on the supply of goods and services at each stage of the supply chain, from manufacture to final sale. GST is collected by the Central Government and is shared with the state governments. GST is an indirect tax, meaning that the tax is not directly levied on the taxpayer but is instead set on selling goods and services.

Did you know? In India, there were more than 13.5 million taxpayers with GST registration as of February 2021.

Eligibility Criteria for GST Filing and Registration

1. All businesses with a turnover of more than ₹20 lakhs (₹10 lakhs for NE States, Sikkim, and hill states) must register for GST.

This threshold was implemented to ensure that only businesses with a significant turnover are required to register for GST. This ensures that smaller companies can handle the compliance requirements of GST.

2. Businesses with a turnover below ₹20 lakhs (₹10 lakhs for NE States, Sikkim, and hill states) may register for GST voluntarily.

This provision allows businesses to choose whether or not they want to register for GST. This benefits companies that may still need to reach the ₹20 lakhs threshold but still want to avail themselves of the benefits of GST.

3. Businesses engaged in the interstate sale of goods and services must register for GST, regardless of turnover.

This provision ensures that businesses engaged in interstate trade are required to register for GST. This is to prevent companies from avoiding GST by only selling goods and services within their state.

4. Businesses engaged in importing or exporting goods and services must register for GST.

This provision ensures that businesses engaged in international trade are required to register for GST. This is to prevent businesses from avoiding GST by only dealing in domestic work.

5. Special economic zones and SEZ units are required to register for GST.

This provision ensures that businesses in special economic zones and SEZ units must register for GST. This is to ensure that these businesses are compliant with GST.

6. Businesses engaged in e-commerce are required to register for GST.

This provision ensures that businesses engaged in e-commerce are required to register for GST. This is to ensure that these businesses are compliant with GST.

Also Read: Impact Of GST On Works Contracts

Types of GST Registration

GST registration is necessary for any business entity that wants to avail of the benefits of GST. The registration process is quite simple and can be done online. However, it is essential to understand the different types of GST registration before starting the process.

1. Regular Registration:

 This is the most common type of GST registration and is suitable for businesses registered under the VAT or Central Excise. The registration process is quite simple and can be done online; however, it is essential to have all the required documents before starting the process.

2. Composite Scheme Registration: 

This registration type is suitable for small businesses with a turnover of less than 1.5 crores. The main advantage of this registration is that it allows companies to pay a single tax rate on their supplies. The registration process is quite simple and can be done online. However, it is essential to have all the required documents before starting the process.

3. Special Registration:

 This registration type is suitable for businesses that supply goods or services exempt from GST. The registration process is quite simple and can be done online; however, it is essential to have all the required documents before starting the process.

4. Voluntary Registration: 

This type of registration is suitable for businesses that are not required to register under GST but want to avail themselves of the benefits of GST. The registration process is quite simple and can be done online; however, it is essential to have all the required documents before starting the process.

Also Read: GST Number Search by PAN - Step-by-step Guide to Search GSTIN Number by PAN

What is the List of Documents Required for GST Registration?

The following documents are required for GST registration:

1. PAN Card: All businesses applying for GST registration must have a PAN card.

2. Address Proof: Businesses must submit proof of their business address, such as a utility bill or lease agreement.

3. Bank Statement: Businesses must submit a copy of their most recent bank statement.

4. Canceled Cheque: Businesses must submit a cancelled cheque or bank letter confirming their account details.

5. Authorisation Letter: If the business is applying for GST registration on behalf of another person or entity, it must submit an authorisation letter from that person or entity.

6. Partnership Deed: If the business is a partnership, they must submit a copy of the partnership deed.

7. Memorandum of Association: If the business is a company, it must submit a copy of the Memorandum of Association.

8. Certificate of Incorporation: If the business is a company, it must submit a copy of the Certificate of Incorporation.

9. Articles of Association: If the business is a company, it must submit a copy of the Articles of Association.

10. List of Directors: If the business is a company, it must submit a list of its directors.

Step-by-Step Guide to File for GST

1. Go to the GST Portal: The first step to filing your GST return is to visit the GST portal. You can do this by going to www.gst.gov.in.

 

2. Generate a TRN by Completing OTP Validation: Once you are on the GST portal, you will need to generate a Temporary Reference Number (TRN). To do this, you will need to complete an OTP validation. This can be done by providing your GSTIN, email address, and mobile number. Once you have provided this information, you will receive an OTP on your registered mobile number. Enter this OTP on the GST portal to generate your TRN.

3. OTP Verification & TRN Generation: Once you have entered the OTP, you will be taken to a new page where you will need to verify your TRN. You must enter your GSTIN, email address, and mobile number on this page. Once you have provided this information, you will receive an OTP on your registered mobile number. Enter this OTP on the GST portal to verify your TRN.

4. Login & Fill out the GST Return Form: Once you have verified your TRN, you can log in to the GST portal. Once logged in, you will need to complete the GST return form.

Also Read: Where Can Input Tax Credit under GST Not Be Availed?

5. Select the Filing Frequency: The first step in filling out the GST return form is to select the filing frequency. The options for filing frequency are monthly, quarterly, or annual.

6. Select the Return Filing Type: The next step in filling out the GST return form is to select the return filing type. The options for return filing type are original, amended, or revised. If you are filing your GST return for the first time, you must select the “original” filing type. If you have already filed your GST return and need to make changes, you must choose the “amended” filing type. If you have already filed your GST return and need to make changes, you must select the “revised” filing type.

7. Fill in the GST Return Form: The GST return form will ask for information such as your name, address, GSTIN, and the period for which you are filing the return.

  • Your name: You must enter your name in the GST return form.
  • Your address: You must enter your address in the GST return form.
  • Your GSTIN: You must enter your GSTIN in the GST return form. The GSTIN is a 15-digit number assigned to you by the GST council.
  • The period for which you are filing the return: You will need to enter the period for which you are filing the recovery in the GST return form. This period can be monthly, quarterly, or annual.

8. Save & Preview the GST Return Form: Once you have filled in the GST return form, you will need to save and preview it. To do this, you must click the “Save & Preview” button at the bottom of the page.

9. Submit the GST Return Form: Once you have saved and previewed the GST return form, you will need to submit it. To do this, you must click the “Submit” button at the bottom of the page.

Also Read: Know About ITC reversal under GST

10. GST Return Form Submitted Successfully: Once you have submitted the GST return form, you will see a confirmation page. This page will confirm that your GST return form has been successfully submitted.

Conclusion

The GST return form is a simple way to file your GST return. The process is quite simple and can be done online. However, it is essential to understand the different types of GST registration before starting the process. Regular registration is the most common type of GST registration. The registration process is quite simple and can be done online. However, it is essential to have all the required documents before starting the process.

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FAQs

Q: How can I file my GST returns?

Ans:

GST returns can be filed online on the GST portal.

Q: What are the penalties for not filing GST returns?

Ans:

If you do not file your GST returns, you will be liable to pay a late fee and a penalty of 10% of your tax liability. This penalty is capped at ₹5,000.

Q: What is the late fee for filing GST returns?What is the late fee for filing GST returns?

Ans:

If you file your GST returns late, you will have to pay a late fee of ₹100 per day. This late fee is capped at ₹5,000.

Q: When should GST returns be filed?

Ans:

GST returns should be filed monthly or quarterly, depending on your turnover. Returns must be filed even if there is no transaction in a particular month.

Q: Who needs to file GST returns?

Ans:

Businesses that have registered for GST need to file GST returns. You must file GST returns if your business still needs to be registered but received a GST invoice for the purchase.

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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.