written by khatabook | December 6, 2019

A Step-by-Step Guide to GST Registration Procedure in India

In March 2019, the union government of India introduced a new system of taxation, Good & Service Tax (GST), reverting the earlier system, which will be applicable from July 01, 2017. As the name suggests, GST applies to all individuals and entities supplying goods or services in India. Further, one needs to opt for GST registration if the aggregate value of the supply amount exceeds 20 lakhs. Moreover, any entity operates in a special category state, GST registration is compulsory if its turnover exceeds the amount of 10 lakhs per annum. The Finance Ministry has smoothened the GST registration procedure to ease out the process of tax filing. Have a look at the details of the new taxation system and how to file for online GST registration in India:

On the basis of the transaction, there are 4 categories of GST:

    

                                                                                               

  • CGST: Stands for Central Goods and Service Tax and is applicable at the time of the intra-state transaction of goods and services.
  • SGST: Acronym for State Goods and Service Tax. It is charged on sales of services or products within any state.
  • IGST: It is Integrated Goods and Service Tax and applied on inter-state transactions of products and services.
  • UTGST: Stands for Union Territory Goods and Service Tax. These taxes are levied on sales of products or services in any union territory, viz. Lakshadweep.

GST Rates:

The new taxation system has just been a year old and reviewing & re-calibrating of slabs happens time and again. However, there are broadly 6 slabs of GST: 0.25%, 3%, 5%, 12%, 18% and 28%. Notably, several products that were taxable earlier have kept tax free under the new system. You can check the details of taxes on various goods and services under the GST regulations on the CBIC website here.

Eligibility Criteria for GST Registration:

Turnover Criteria

Any entity, in order to file for online GST registration in India, needs to access its “Aggregate turnover”. It is a cumulative sum of the aggregate value of all taxable supplies that include:

Exempt supplies while leaving out inward supplies on which is taxable on reverse charge basis Exports of goods, services or both and Individuals or enterprises having sales of products or services between States having the same PAN.

Taking all of the above things into consideration, if aggregate annual turnover values above 20 lakhs (in general) & 10 lakhs (in case of special category state), the entity should register for GST.

Inter-State Supply

Any supplier that transfers goods from one state to another and has an annual turnover of more than 20 lakhs also needs to opt for online GST registration. It is applicable for both interstate or intrastate services.

Supply through E-commerce Platforms

If you are someone selling products or services on any e-commerce portal like Flipkart, Amazon and other e-commerce or have your own platforms, you must obtain GST registration irrespective of the turnover.

Casual Taxable Persons

Similarly, an individual who periodically orders or collects goods or services through a temporary stall or shop must go for online GST registration. There is no mention of turnover in this category as well.

Voluntary Registration

Besides all of the above-mentioned criteria, any entity can file for online GST registration in India voluntarily. After the latest revision of regulations, voluntary GST registration can be surrendered at any time, which earlier needed to be kept for at least a year.

Types of GST Registration

  • Normal Taxpayer:

If you are operating your business in India. In this category, one doesn’t need to pay any deposit and registration is valid for an unlimited time.

  • Composition Taxpayer:

One needs to opt for the GST Composition Scheme to avail the benefits of this category. It has a flat GST slab but you won’t be allowed to claim the input tax credit.

  • Casual Taxable Person:

If you own a stall or run any seasonal business, this slab is for you. Here, you need to pay a deposit equal to GST liability to opt for this option. Once the deposit is made, you will remain registered for a period of 3 months.

  • Non-Resident Taxable Person:

This category is for NRIs who have taxable income but live outside of the country.

Coming to the process of online GST registration, you need to visit the official website first. Once the application is submitted, the portal generates a GST ARN which can be used further to track the status of the application. One needs to wait for a maximum of 7 days after receiving the ARN to acquire the GST registration certificate and GSTIN. Here is a stepwise guide to the online registration:

Step 1: Open the portal

Enter the website address: https://www.gst.gov.in/ into your browser. And click: Services > Registration > New Registration option.

Step 2: TRN Generation and Authentication using OTP

In the new GST registration window, “New Registration” radio button for a fresh start. If you filled the application in the past and left it in-complete and select “Temporary Reference Number (TRN)” option. Afterwards:

  • Pick the type of taxpayer from the dropdown menu.
  • Next, choose the state of your resident or the state where your business is located.
  • Enter the appropriate legal name of the business/entity (same as mentioned in the PAN). Afterwards, an automated verification will be done by the portal.
  • Enter the details of the Permanent Account Number (PAN) in the next field. You need to enter the PAN of the business/Proprietor. In case you don’t have one, there is a direct link for applying for PAN number.
  • Next, fill the email ID and mobile number of the Primary Authorized Signatory. An OTP will be sent on both of those for verification.
  • Click the PROCEED button.

                                                                                        

Step 3: OTP Verification & TRN Generation

Once you click the ‘PROCEED’ button, the next window will ask for OTP verification. You will have a time span of 10 minutes fill in the credentials sent on your Email and Mobile. Enter both the OTPs in the designated space provided on the page and proceed further.

Step 4: TRN Generated

Once the OTP is verified, your TRN will be generated which will aid you in completing all of the steps henceforth.

Step 5: Log in with TRN

Now you need to log in again using the TRN to start online GST registration. You need to pick the “Temporary Reference Number (TRN)” radio button on the New Registration page. Fill in the TRN generated and enter the captcha text as shown on the screen. The next window will show your GST registration procedure is in a queue. Click on the icon below the “Action” field to proceed further.

Step 6: Submission of Business Information

In the next field, you need to enter the details of your business including;

  • In the Trade Name field, enter the trade name of the business.
  • Select the Constitution of the Business in the next field.
  • Fill in the complete address afterwards including District, Sector, Circle, Ward or Charge.
  • Enter appropriate details of “Commissionerate Code”, “Division Code” and “Range Code”.
  • You can opt for the Composition Scheme (Not Compulsory).
  • Fill in the date of commencement of business.
  • In the next field, you need to pick the date on which your business fulfilled the criteria for eligibility to fill online GAT registration in India i.e. the day your business crossed the aggregate turnover threshold. As an owner, you need to apply for registration within 30 days of eligibility.
  • Click “Save and Continue” to go ahead.

Step 7: Submit Information of Stakeholders

On this page, the details of promoters and directors are required to be filled. You can submit as many as 10 Promoters or Partners in the GST registration application. The required information includes:

  • Name, date of birth, address, mobile number, email address and gender of stakeholders.
  • Their designation.
    • DIN of the Promoter, if the application is for:
    • Private Limited Company
    • Public Limited Company
    • Public Sector Undertaking
    • Unlimited Company
    • Foreign Company registered in India
  • Details of citizenship
  • PAN & Aadhaar
  • Residential address
  • Click “Save and Continue” to proceed further.

Step 8: Fill Authorized Signatory Information

Next, you need to fill info about the authorized signatory of the company. It is a person nominated by the promoters of the company and is responsible for filing GST returns. He / She is also liable to maintain the necessary compliance of the company. The person will have access to the GST Portal.

Step 9: Main Address of the Business

Here, you need to fill the primary location of where you will conduct your business. In the case of any organization or LLP, the registered office is the principal place of business. These are a few things that you need to look after:

  • Address of the place.
  • Official contact information that includes Email address, telephone number, mobile number field, and fax number.
  • Nature of the premises where your registered office is situated. You also need to produce and upload the necessary documents in order to support your claims. Some valid documents are:
    • Property Tax ReceiptMunicipal Khata copy
    • Electricity Bill
    • Copy of the valid Rent / Lease Agreement
  • Click “Save and Continue”.

Step 10: Enter Additional Place of Business

If you have offices at multiple venues, enter details of those in this tab. For example, if you are an e-commerce seller and store products at various warehouses, you can add those here.

Step 11: Details of Products and Services You Offer

Here, you need to mention the top 5 goods and services that you deal with. You need to add HSN code (for goods) and SAC code (for services). The details about HSN and SAC code can be found here.

Step 12: Bank Account Details

On this page, you are required to submit the details and the number of bank accounts. Account details include info related to account number, IFSC code and type of account and lastly upload the copy of bank statement or passbook in the appropriate space given there.

Step 13: Verification of Application

This is the last step of the online GST registration procedure. Here, you must verify all the details and information prior to the final submission.

  • Once you are done with it, tick the verification checkbox.
  • Select the “Name of Authorized Signatory”
  • Enter the place.
  • And lastly, digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC (mandatory for LLP Companies).

Step 14: ARN Generated

A success message will be displayed. You will get an acknowledgement mail and message on the registered phone number. Additionally, an Application Reference Number (ARN) will be sent to the registered email address and mobile phone number.

Lastly, as mentioned above, you need to wait for a week to receive your GST registration and GSTIN. If you face any issue, you can always register your queries using the ARN number.

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