GST Registration in India

GST Registration – Overview

The full form of GST is Goods Services and Tax; GST Registration is a major tax reform in India. The Goods and Services Tax (GST) replaces several indirect taxes previously imposed by central and state governments, such as excise duty, VAT, and service tax, covering all goods and services sold in the country.

GST registration is the process of obtaining a unique identification number for businesses liable to pay Goods and Services Tax (GST). According to GST law, businesses whose turnover crosses the threshold limit of Rs.40 lakh or Rs.20 Lakh or Rs.10 lakh, as the case may be, must register as normal taxpayers, commonly known as GST registration.

For certain businesses in India, obtaining a GST registration is compulsory. Failure of businesses to obtain GST registration will result in heavy penalties and liability under the concerned law. The GST system was implemented to replace central and state-level taxes such as service tax, excise duty, CST, entertainment tax, luxury tax, and VAT, thus making the tax process more streamlined and efficient.

However, GST registration charges vary depending on the type of business and turnover. Therefore, after successfully completing GST registration, the applicant will receive a unique GSTIN. The central government issues a state-wise, 15-digit number to applicants once the registration is completed; subsequently, GST registration has many benefits, such as legal identity.

Key Components of GST

GST (Goods and Services Tax) includes a number of key components that work together to streamline the taxation process effectively. Here, given below is the list of GST key components:

1. Central Goods and Services Tax (CGST)

This CGST deals with the components of taxation at the central level, and the revenue collected under CGST goes to the central government.

2. State Goods and Services Tax (SGST)

State Goods and Services Tax (SGST) is a state-level tax component, and revenue collected from SGST is directed to the respective state governments.

3. Integrated Goods and Services Tax (IGST)

IGST is one of the components of GST used for inter-state transactions; here, the central government collects the tax and later distributes it among the states.

4. Union Territory Goods and Services Tax (UTGST)

Union Territory Goods and Services Tax (UTGST) applies in Union Territories and ensures the collection of revenue for Union Territories in India.

5. Cess

Cess, on the other hand, is an additional tax imposed to fund specific government initiatives. Depending on the objectives, Cess can be either temporary or permanent.

Note: Businesses must understand this key component of GST to comply with fi efficiently.

Who is Required to Register for GST?

Here, given below is the list of individuals or companies who are required to register for GST:

• Every e-commerce aggregator
• Casual taxable person
• Non-Resident taxable person
• Persons making any inter-state taxable supplies
• Any service provider
• TDS/TCS deductor
• Individuals registered under Pre-GST law (i.e. VAT, Service Tax, etc.)
• Individuals working in the import-export industry
• Persons who sell products on e-commerce sites such as Amazon and Flipkart
• Agents acting on behalf of the registered taxpayer

Type of GST Registration

It is important to understand the different types of GST registration for anyone looking to register as a new taxpayer in India. Here, given below are some of the lists of different types of GST registration:

1. Regular GST Registration

A regular GST registration applies to a business whose total annual turnover exceeds a threshold value in a specific year. Businesses whose annual turnover exceeds Rs.40 lakhs (normal category states) and Rs.20 lakhs (special category states). Regular taxpayers who register for this type of GST can receive input tax credits.

2. Composition Scheme GST Registration

The composition scheme for GST registration is designed for small businesses or taxpayers with a turnover of less than Rs. 1.5 crore. This scheme simplifies compliance with minimal paperwork and fewer GST returns to file. Additionally, it allows businesses to pay GST at a fixed rate on their turnover, which is lower than the regular tax rates.

3. Casual Taxable Person

A casual taxable person occasionally supplies goods or services in a place where GST applies but does not have a fixed place of business there. GST registration for these individuals is temporary, not permanent.

4. Non-Resident Taxable Person

A non-resident taxable person refers to an individual or a business entity not based in India but occasionally participating in taxable activities within India, such as trade fairs or projects that offer flexibility without permanent presence. According to GST regulations, such businesses or individuals must comply with GST norms.

5. Input Service Distributor (ISD)

An Input Service Distributor (ISD) is a taxpayer who receives invoices for services used by its branches in different locations. The ISD then distributes the Input Tax Credit (ITC) to these branches based on their share, using ISD invoices. While the branches may have different GSTINs, they must all share the same PAN as the ISD. Businesses with multiple locations must obtain this type of GST registration.

6. TDS and TCS GST Registration

TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are key elements of GST compliance. TDS refers to the tax that is deducted by a buyer, such as a government department when making payments for goods or services under a business contract. This ensures that tax is collected at the source of payment. On the other hand, TCS involves the tax collected by the seller at the point of sale for specific types of transactions. Both TDS and TCS are mandatory mechanisms in many tax systems to ensure proper tax compliance and collection.

7. Special Economic Zone (SEZ) Developer/unit

Under GST regulations, both SEZ (Special Economic Zone) developers and units are required to obtain GST registration. They must apply for a new registration as a separate business unit. This registration allows them to claim input tax credit, which helps reduce their overall tax liability.

Benefits of GST Registration for Businesses

Though it is important for businesses to obtain a GST registration, it has a lot of benefits, as described below:

1. Increase the Threshold for Registration

Before GST was introduced, businesses with a turnover of over Rs. 5 lakhs had to pay VAT in most states across India. However, this limit varied from state to state. Additionally, service providers with a turnover of less than Rs. 10 lakhs were exempt from paying service tax.

Under the new GST system, the turnover limit for exemption has been raised to Rs. 20 lakhs. This change means that many service providers and small traders are now exempt from GST, simplifying their tax obligations.

2. Eliminates the Cascading Effects of Tax

With the introduction of GST, businesses no longer need to pay multiple taxes separately. Instead, GST combines all these taxes, using CGST (Central GST) or SGST (State GST). This means that with GST, you only pay one tax that covers all types of taxes, eliminating the complicated cascading effects of taxes from before.

3. Small Business Composition Scheme

Small businesses with turnovers up to Rs.1.5 crore can opt for a composition scheme. Through this scheme, such businesses can opt for fixed tax rates instead of a regular GST rate. It is indeed a very simple and easy scheme introduced by the government of India for the benefit of small business owners.

4. Lesser compliances requirement

Before the introduction of GST, both VAT and service tax had their own returns and compliances, making compliance a complex requirement. However, under GST, there are fewer returns to be filed, such as GSTR-1, which is to be filed to report the list of sales invoices and other related documents for the tax period. However, there are about 11 returns under GST, out of which four are basic returns that apply to all regular taxable persons under GST.

5. Easy Procedure

With the introduction of digital India, you can now obtain GST registration through online procedures instead of visiting many offices like in old times.

6. Enhanced Logistics Efficiency

Earlier, when goods were transported from one state to another, they had to undergo different checks due to different state tax rules, which was indeed time-consuming, however, with the introduction of GST, the number of checks to be undergone while transportation from one state to another has been reduced.

Hence, cutting down on unnecessary logistics expenses has helped businesses increase their revenues involving transportation.

7. GST has regulated the Unorganised sector

Earlier, industries like construction and textile were largely unregulated and unorganised. However, the introduction of GST has opened a door for online payments and compliance, making it accountable and easier to regulate these industries.

Documents Required for GST Registration

The list of documents required for GST registration is as follows:

1. PAN card
2. Proof of business registration
3. Proof of identity
4. Photographs
5. Address proof of persons in charge
6. Business address proof
7. Bank account statements

Note: For bank account details, a copy of a cancelled cheque or an extract from a passbook or bank statement must be uploaded. Similarly, for address proof, you may consider a property tax receipt, municipal khata copy, electricity bill copy, ownership deed, rent or lease agreement, etc.

Guide to GST Registration Process Online

The procedure to obtain GST registration online is straightforward and involves a few vital steps that must be diligently followed. Here, given below is a comprehensive guide for obtaining GST registration through the online process:

Step-1: Visit the government's official GST portal

Step-2: Next, click on services and select the new registration button (the application form is divided into two parts, i.e. Part A and Part B).

Step-3: Enter the following details in the down list in part A form:

• Now select the option taxpayer in the drop-down under I am a.
• Now select the option state and district from the drop-down list from which the GST registration is required.
• Enter the name of the business and PAN of the business
• Enter the valid email address of the primary authorised signatory.
• Enter the valid mobile number of the primary authorised signatory of GST registration.
• Enter the captcha shown in the dashboard and accordingly click on the proceed button.
• An OTP will be sent to the registered email and registered mobile number. Accordingly, enter the respective OTP received in both mobile and email IDs.

Step-4: A 15-digit Temporary Reference Number (TRN) will be sent to the registered email and mobile number or PAN-linked contact details. Applicant must note down this TRN.

Meanwhile, new registration applications can be saved in the system for 15 days from the moment the TRN (transaction Reference Number) is generated.

Step 5: Go back to the GST portal and select the 'New Registration' tab.

Step-6: Select the Temporary Reference Number (TRN) tab, and accordingly enter the TRN received earlier, enter the captcha code, and click the Proceed tab.

Step-7: An OTP will be then sent to the registered email and mobile number or PAN-linked contact details. Enter the same and click the proceed tab.

Step-8: Next, you will be directed to the dashboard of my saved application, which shows the status as Draft.

Step-9: Under my saved application's action column, click the edit icon.

Part-B of GST Registration Application

Step 10: After clicking on the edit tab, a dashboard with 10 sections will appear. Click on each tab to fill in the details, such as business details, promoter, authorised signatory, etc.

Step-11: Next, click on the tab save and continue. After applying, sign it digitally using DSC and click on the proceed tab.

Step 12: An application reference number (ARN) will be sent to the registered email and mobile number after submission.

Note: If the authorized signatory opts for Aadhaar authentication, an officer won't need to physically verify the business premises, except in special cases. After completing the Aadhaar authentication process, the ARN (Application Reference Number) will be sent to the registered email and mobile number.

GST Registration Turnover Limit

Your business turnover must meet the threshold limit to register for GST. Here are the details:

1. Manufacturing Companies with a yearly turnover of more than Rs.40 Lakhs and
2. Service-based companies with a yearly turnover of more than 20 lakhs.
3. Special category states have a minimum turnover limit of Rs. 20 Lakhs (for goods) and Rs.10 lakhs (for services).

Note: This special category includes Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Tripura and Sikkim.

Jammu, Kashmir, and Assam are two special categories of states that have chosen to have a threshold limit of Rs.40 lacs for businesses engaged in supplying goods and Rs. 20 lakhs for service providers.

Offences and Penalties under GST (Penalty for not obtaining GST registration)

The word penalty is not categorically defined under GST laws and regulations. However, a penalty under GST can be both corporal (jail term) and pecuniary(monetary), civil, or criminal. Below is a list of common offences under GST and their penalties.

1. Penalty for delay in filing GSTR

The late fee is Rs.100 per day for CGST and SGST, for a total of Rs.200. However, the maximum late fee is Rs.5,000/—, while IGST has no late fee.

2. Penalty for not filing GSTR

A penalty of 10% of the tax due or Rs.10,000/- (whichever is higher).

3. Penalty for committing a fraud

A penalty of 100% of the tax due or Rs.10,000/- whichever is higher (high-value fraud cases also have jail terms).

4. Penalty for helping a person to commit fraud

Here, the penalty can be extended up to Rs.25,000/-.

5. Penalty for opting for composition scheme, even though not eligible

Fraud case: Penalty of either 100% of the tax due or Rs.10,000/-(whichever is higher)

Non-fraud case: Penalty of either 10% of tax due or Rs.10,000/-(whichever is higher)

6. Penalty for wrongfully charging GST rate-charging higher rate

The penalty of 100% of the tax due or Rs.10,000/- whichever is higher (in case the additional GST collected is not submitted to the govt).

7. Penalty for not issuing an invoice

A penalty of 100% of the tax due or Rs.10,000/- (whichever is higher).

8. Penalty for not registering under GST

A penalty of 100% of the tax due or Rs.10,000/-(whichever is higher).

9. Penalty for incorrect invoicing

A penalty of Rs.25,000.

Voluntary GST Registration for Businesses

Voluntary GST registration happens when businesses register for GST even if they don't meet the compulsory turnover limits (Rs. 40 lakhs for regular states and Rs. 20 lakhs for special category states). Businesses not falling within these turnover limits can still voluntarily opt for GST registration to take advantage of its benefits.

Here given below is the list of benefits of voluntary registration under the GST

1. Businesses with GST registration can claim input tax credits. They can reduce their tax liability by claiming credit for the GST paid on purchases and other business expenses.
2. A GST registration certificate boosts a business's credibility, building trust with customers, suppliers, and other stakeholders.
3. GST registration simplifies business transactions and operations with other companies. Most B2B businesses prefer dealing with GST-registered companies to benefit from input tax credits.
4. E-commerce platforms often require sellers to have GST registration. Businesses that voluntarily register for GST can list their products on various e-commerce websites, reaching more customers and boosting the sales target.

GST Return Filing

In India, every business with GST registration must file monthly or quarterly GST returns, as well as an annual GST return, depending on the type of business. A GST return is a document that details all GST invoices, payments, and receipts for a specific period. These documents are submitted online through the GST portal and are used by tax authorities to calculate the net tax liability of a business.

Before filing, it is important to choose the correct form for your GST return. Some common forms include GSTR-1, GSTR-2A, GSTR-3B, and GSTR-4, each serving a different purpose and having a specific due date. Failure to file GST returns on time will result in interest and late fees as per GST laws and regulations.

GST Registration Fees

GST registration fees can differ based on the details of each case. Typically, Enterslice offers GST registration services starting from Rs. 1,299 plus GST. Due to the more complex nature of company operations, the company registration fees are generally higher than those for individuals.

How to Check GST Registration Status Online?

To check GST registration status online, one should visit the official GST portal. However, there are two ways to check your GST registration application status: one is to check before login into the GST portal and another after login into the GST portal.

Track GST Registration Status Before Login

Here given below is the process to track the status of GST registration without login to the GST portal:

• To check your GST registration status, visit the GST portal, go to the "Services" tab, select "Registration," and click on "Application Status."
• Next, enter the ARN or SRN number received for the GST registration application at the registered email and mobile number.
• This is followed by entering the captcha code and clicking the tab search.
• Accordingly, the status of GST registration is shown in the screen

Track GST Registration Status After Login

Tracking GST registration status after login is particularly useful for tracking applications other than first-time GST registrations. Given below are the steps to be followed:

• Log in to the GST portal and go to the "Services" tab.
• Click on "Track Application Status."
• Select "Registration" from the dropdown menu.
• Enter the ARN or SRN number you received via email or SMS during your GST registration application.
• Click on the "Download" link to get your acknowledgement.

How to download the GST Registration Certificate

The government of India does not provide a physical certificate of GST registration. However, the same has to be downloaded from the GST portal. The process to download the GST registration certificate is as follows:

Step-1. Login into the GST portal.

Step 2- Click on the tab services.

Step-3. Select the tab user services.

Step-4. Select the option to view/download certificates.

Step-5. Next, click on the download icon.

What is GSTIN and Its Significance

The GSTIN is a 15-digit alphanumeric code issued to every registered taxpayer in India under GST regulation. It is an important tool for tax authorities to monitor compliance and private tax evasion and to ensure smooth tax administration in India.

A GSTIN is more than just a registration number. It serves as a gateway for businesses to collect taxes, claim inputs, file income tax returns, and maintain compliance with GST laws and regulations. It also ensures uniformity in tax procedures during interstate trade. 

GST Registration Process Time

The GST Registration process usually takes 2 to 6 working days. This process includes submitting an application in the GST portal, verification, approval, or query, and, lastly, issuance of a GST registration number.

GST Registration Validity Extension

GST registration certificate issued to the regular taxpayer does not have a validity period and also does not expire unless it is cancelled by either the taxpayer or a GST officer. However, GST registration for casual and non-resident taxable persons is issued for a maximum validity period of 90 days, though the same can be extended. Therefore, GST does not have such a concept of renewal.

Here given below is the process of GST registration validity extension:

• Visit the official GST portal.
• Click on the login tab to access the username and password page.
• Enter your username, password, and captcha, then click the login button.
• Select the option to apply for an extension of the registration period by a casual/non-resident taxable person.
• Click "Business Details" and "Verification" on the dashboard, then enter the required information.
• Click the "Generate Challan" button to pay the estimated tax liability.
• After payment, the payment details will be displayed.
• Finally, click "Save and Continue." A blue tick will appear next to "Business Details," indicating the completion of the process.

Why choose Enterslice?

Enterslice is a community of professionals specializing in various fields, including GST registration. We offer a comprehensive range of cost-effective and timely services, delivering the best results for our clients' businesses. Our experts, including CAs and lawyers, are always ready to assist with GST-related queries and cases.

Clients keep coming back to Enterslice because of the ease of our services and the excellent experience they receive. We prioritize our clients' needs and tailor our services to meet their requirements.

Here is the list of GST registration services provided by Enterslice.

1. Regular GST Registration

We help businesses that meet the required turnover threshold get their GST registration and assist those who want to register under GST regulations voluntarily.

2. Composition Scheme Registration

We also assist small businesses in obtaining GST Composition Scheme registration, allowing them to benefit from a lower tax rate and reduced compliance requirements.

3. Casual Taxable Person Registration

We also support businesses that occasionally supply goods or services in a taxable territory where they don't have a fixed place of business. We help them obtain temporary GST registration for these activities.

4. Non-Resident Taxable Person Registration

Our GST registration services also include assisting non-residents supplying goods or services in India in obtaining temporary GST registration.

5. Input service distributor (ISD) Registration

Guidance on registering as an ISD allows businesses to distribute the Input Tax Credit (ITC) among their various units or branches based on the usage of goods and services.

6. TDS and TCS Registration

We assist businesses in deducting Tax Deducted at Source (TDS) or collecting Tax Collected at Source (TCS) under GST, ensuring they comply with relevant regulations.

7. SEZ Developer and Unit Registration

We offer guidance and assistance to businesses operating in special economic zones (SEZs) to meet compliance requirements and obtain GST registration, specifically for SEZ developers and units.

8. GST Registration Amendments

We also help update details in existing GST registrations, including business information, locations, and more.

9. GST Registration Cancellation

Our professionals also help with cancelling GST registration, whether voluntarily, due to business closure, or due to changes in business circumstances.

10. GST Compliance and Advisory

At Enterslice, we offer advisory services to help businesses comply with GST regulations, including filing returns, managing input tax credits, and responding to notices from tax authorities.