GST Registration Requirements (Goods and Services)

22 Jan, 2021

Here, we will discuss all GST registration requirements in one single post. This article will include the process as well as the documents required for its registration.

Steps of GST Registration

The steps for registration of GST are as follows:

Go to the official GST website^[1] to initiate the GST application online process. Select the services tab and select registration. The requirements for the account are email, PAN, mobile number for OTP. (GSTN portal). PAN will be verified automatically online.
After this, a Temporary Reference Number (TRN) will be generated and it will be sent to your registered e-mail ID and mobile number.
Now go again to the services and select registration and select Temporary Reference Number.
Enter the TRN and an OTP will be sent to your registered e-mail ID and mobile number. Enter the OTP.
You would be able to see the status of your application in a draft form. You can edit it and key in all the required details as well as required documents.
Once the details and documents are uploaded, go to the verification page and submit the application.

GST Registration Requirements relating to documents

The documents required for registration of GST are as follows:

Photograph;
Constitution of a taxpayer (Partnership deed, COI, etc.);
Proof of principal place of business (electricity bill, NOC, rent agreement);
Bank account details;
Authorization form.

Who is required to complete registration of GST?

The registration of GST is to be completed by the following:

Individuals who have registered under the tax services before the implementation of GST law;
All e-commerce aggregators;
NRI Taxable person;
Businesses who require paying taxes under Reverse Charge Mechanism;
Businesses who have a turnover crossing 40 lakh rupees;
Input service distributors or agents of suppliers;
Persons making an interstate supply;
In case you are a supplier in more than one state you need registration of GST in all those states where you supply goods or services.

READ Debit Note, Credit Note and How to Revise a GST Invoice?

How to download GST Registration certificate online?

To download the GST Registration Certificate online the following steps are required:

Visit the GST common portal;
Log in to your GST account with the username and password;
Click on services option and select user services from the drop box.
Choose the option of “View/Download Certificates”.
The registration certificate then will start downloading process.
The registration certificate is downloaded and can be viewed anytime. You may take a print out of the same.

How much does a GST number cost?

The Government doesn’t charge you any fee for registration of GST however if you wish to take the services of a Chartered Accountant or a Consultant, they may charge a professional fee as the whole registration process is tedious one.

GST Tax Rate

A four-tier GST tax structure of 5%, 12%, 18% and 28%, with lower rates for essential items and the higher rates for luxury and de-merits goods that would also attract an additional cess.

Essential items, including food which presently constitute roughly half of the consumer inflation basket are zero-rated under GST.

The lowest rate of 5% is applicable for common use items, while there are other two standard rates of 12% and 18% under the Goods and Services Tax (GST) regime which was rolled out from July 1, 2017.

Difference between VAT and GST

The table made below explains the difference between Value Added Tax (VAT) and Goods and Services Tax (GST).

Goods and Services Tax	Value Added Tax
Applicable to goods and services	Applicable only to goods. In case of services Service tax would apply
It is applicable on supply of goods and services.	It is applicable at the time of sale of goods.
The tax collected is shared equally among the Central and State Government.	The tax collected is held only by the state in which sale occurs.
Online and offline payment options are available	Only offline payments option is available.
Input tax credit is available	There is no input tax credit benefit available on customs duty paid.
GST is collected by the consumer state.	VAT is collected by the seller state
GST is a tax system that is transaction based.	VAT is a system that is summary based.

Benefits of GST Registration

The benefits of registration of GST are as follows:

GST implementation has removed the cascading effect of taxes and also removed taxes on tax.
GST laws and regulations have helped in regulating the unorganized and scattered business sector.
With its registration, small businesses can use the composition scheme.
It has reduced the number of compliances.
It has caused an improvement in the efficiency of logistics.
The whole registration process is online therefore it has become convenient for someone who has a new business or a start up.

READ Where and who should apply for GST Registration in India

Conclusion

GST registration requirements should be met in order to enjoy a smooth business functioning in India. As the registration process is made available online, many business owners have had a huge sigh of relief.

Read our article:What is the Impact of GST in the Manufacturing Sector?

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