GST Registration Requirements

GST Registration Requirements

Here, we will discuss about all GST Registration requirements in one single post. This will include the process as well as all the documentation requirements for the same.

The steps for GST Registration are as follows:

  • Create a login account on the GST website to initiate the GST registration process. The requirements for the account are: email, PAN, mobile number. (GSTN portal). PAN will be verified automatically online. These details are to be filed in form PART 1 of GST REG-01. After this a Temporary Reference Number (TRN) will be generated.
  • Submit the application form. Once the verification is done, one has to fulfill the registration form and complete all the related formalities like uploading documents. Once PART-2 is duly filled and submitted an Application Reference Number is generated. This ARN can be used to track the application status.

GST Registration Requirements relating to documents are as follows:

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

The application if submitted online through FORM GST REG–02.

  • Verification by GST officerOnce the application is filled and submitted, then it shall be forwarded to the proper officer, who will then examine the application and the documents attached and make sure that all the GST Registration requirements are met. If everything is found to be in order, then GST registration will be granted within 3 working days.

If any deficiency is found in the application, then it shall be communicated to the applicant within 3 working days in FORM GST REG-03.

After getting the deficiencies, the applicant will have to respond within 7 working days through FORM GST REG-04.

  • No action within 3 working daysIf the officer does not respond to the applicant either with deficiencies or approval, then the application for grant of registration shall be deemed to have been approved.
  • Registration CertificateWhen the application is approved by the officer, then a certificate of registration in FORM GST REG-06 shall be issued through a common portal. The applicant can easily download the registration certificate from the common portal using his/her login id passwords.
  • Separate registration for each branch:If the applicant has different branches in different states, then separate registrations need to be applied for each state.

A registered taxable person has an option to obtain separate GST registrations for different business verticals and can file separate application in FORM GST REG-1 in respect of each such vertical.

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 is rolled out from July 1, 2017.

Difference between VAT and GST

In VAT only goods are taxable, but in GST both goods and services are taxable.

GST is the summation of all the indirect taxes that are levied in India.

VAT is applied to tangible goods, and GST is applied to both goods and services. VAT is applicable for goods sold and not service. Service tax takes care of services rendered. However, GST will be applicable for both products and services, and will have a uniform pricing.

GST is applied to both central and state tax, (there are two components in GST – CGST, and SGST).

One difference between VAT and GST is the reduced cost which a trader would incur under the GST regime as compared to what would be his outflow until the GST is implemented. Under the VAT system of claiming tax credit, a trader is not allowed to deduct the amount of service tax paid by him on the input services (such as rent of his premises) from the output VAT payable by him on the final goods sold. However, under GST he can deduct such input tax paid on the services paid by him from the output tax (GST) payable.

The overall system of GST is very similar to VAT, which can be considered the first step towards GST.

How can I convert my VAT no to GST no?

If you get yourself registered under VAT, you’ll be automatically migrated to GST network, thus you will not have to do the complete process again. Since GST is simply just a takeover of one’s VAT, the number will be re-registered into GST automatically at a later point in time.

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