GST GST Registration

Step by Step Guide to Register GST – Complete Process

With the introduction of the GST regime, it has become mandatory for a business with a turnover of more than Rs 40 lakhs to register as a normal taxable entity. The process of registration is known as GST registration. The process of applying for unique GSTIN, i.e. GST Identification Number on GST portal registration is known as GST Registration. For certain businesses, it is mandatory to complete the GST registration process, and if the organization carries out its operations without GST registration, it is considered a criminal offence and hefty penalty shall be levied in case of non-registration. Generally, the process of GST registration takes around 2-6 days. Continue reading the blog; this shall serve you as an overall guide on GST Registration.

Eligibility Criteria for GST registration

The eligibility criterion for GST registration is mentioned below:

• Individuals already registered under Pre-GST law (i.e. Excise, VAT, and Service Tax).
• Any business with the turnover exceeding above Rs 40 lakhs. However, there is an exception for North Eastern states and Hill States (Jammu & Kashmir, Himachal Pradesh, and Uttrakhand) as the mandatory business turnover for GST registration for these states is set at Rs 20 lakhs.
• Individuals acting as distributors of Input Service.
• All e-commerce aggregators.
• Non-Resident Taxable Person and Casual taxable person.
• An individual who supplies online information and database access from a place outside India to a person in India.
• All individuals paying taxes under the Reverse Charge Mechanism.
• Individuals who supply goods through e-commerce aggregator.

Essentials Documents for GST Registration

The documents require for GST registration ranges with the business type. Following is the list of documents required to complete the process of GST Registration of your business:

Documents required for Individuals and Sole Proprietors GST Registration

• Identity proof such as PAN Card or Aadhar Card
• Address proof of the proprietor
• Photograph of the owner
• Bank Account details

Documents required for Partnerships and LLP’s (Limited Liability Partnership) GST Registration

• PAN Cards of partners involved
• Photographs of the partners
• Aadhar Card of authorized signatory
• Bank details
• LLP Agreement
• Partner’s name and address proof

Documents required for Private Limited Company’s GST Registration

• Incorporation Certificate
• PAN Card
• Article of Association (AOA)
• Memorandum of Association (MOA)
• Identity and address proof of the Director
• Digital Signature

Documents required for Hindu Undivided Families (HUFs) GST Registration

• HUF’s PAN Card
• Karta’s (patriarch of the family) PAN card
• Photograph of the owner
• Banks details
• Address proof

Types of GST Registration

GST Registration can be of various types and depends on the nature of the business.

Following are the various types of GST Registration:

Compulsory Registration: As per section 24 of CGST Act 2017^[1], it is mandatory for certain categories of persons to register under GST even if their aggregate turnover is below the specified limit for GST registration. For example, it is mandatory for a person making any Inter-State taxable supply of goods to register under GST irrespective of the turnover limit. It is also mandatory for a casual taxable person to obtain compulsory registration regardless of the turnover limit.

Voluntary Registration:  Under the GST regime, every business is eligible for voluntary registration irrespective of the threshold limit.

Register under Composition Scheme: Any taxpayer whose turnover is less than Rs 1.5 crore can opt for this scheme. In the case of North-Eastern states and Himachal Pradesh, the threshold limit to opt for this scheme is set at Rs 75 lakh. Registering under the Composition scheme has various benefits for a taxpayer such as lesser compliances (returns, maintaining books of record, issuing invoices etc), high liquidity, limited tax liability etc. However, it is to be noted that by registering under composition scheme the composition dealers cannot avail Input Tax Credit (ITC).

Read our article: Composition scheme under GST & Presumptive Taxation Scheme

No Registration:

GST Registration is not required for the following category of businesses:

• The businesses which don’t fall under the category of Compulsory GST Registration
• Dealers selling the goods or services which are exempted or not covered under GST.
• Businesses whose annual aggregate turnover does not exceed the threshold limit of GST Registration i.e. Rs 40 lakhs and Rs 20 lakhs for special category states.
• There are a number of goods that are not taxable under GST, and the list of goods exempted from GST is liable to change periodically.

GST Registration Procedure – Guide on GST Registration

To complete the process of GST Registration following steps are to be followed:

• Visit the GST portal^[2] and click on ‘Register Now’ under taxpayers.
• Next, select ‘New Registration’.

Enter the below- mentioned details:

• Under the ‘I am a’ drop-down menu, you will have to select ‘Taxpayer’.
• Select the State and District from the drop- down menu
• Next, enter the name of the business and PAN of the business.
• Enter your active e-mail id and phone number in respective boxes. Further, an OTP will be sent on the entered mobile number and e-mail id.
• Click on Proceed
• After clicking on Proceed, on the next page, you will have to enter the OTP received on the registered mobile number and e-mail id. Then click on Continue. In case if you didn’t receive the OTP click on Resend OTP.
• Once you have entered the correct OTP, you will receive the Temporary Reference Number (TRN) on your registered mobile number and e-mail id. Make a note of the TRN.
• After noting down the TRN, visit the GST portal once again and click on ‘Register Now’.
• In the next step, you will have to select ‘Temporary Reference number’ (TRN). Enter the ‘TRN’ you had noted before and the captcha code, then click on ‘Proceed’.
• After entering the ‘TRN’ once again, you will receive an OTP on the registered mobile number and e-mail id. Enter the OTP and then click on ‘Proceed’.
• After completing the above- mentioned steps, you will see the status of your application on next page. Click on the ‘Edit’ icon present on the right side of the page.
• Further, in part B there will be 10 sections. Fill in the required details and submit the appropriate documents. Following is the list of documents that are to be uploaded:
  • Photographs
  • Business address proof
  • Constitution of the taxpayer
  • Details of Bank Account including account number, Bank name, Branch name, IFSC code
  • Authorization form

Once you have uploaded all the documents, go to the Verification page and tick on the declaration. Then submit the application by using any of the following ways:

• By using the Electronic Verification Code (EVC): The code will be sent on the registered mobile number.
• By using the e-sign method: OTP will be sent on the mobile number linked to the Aadhaar card.
• For Companies registering for GST, they will have to submit the application by using the Digital Signature Certificate (DSC).
  • After completing the above-mentioned process, a success message shall be displayed on the screen, and Application Reference Number (ARN) is sent on the registered e-mail and mobile number.
  • You can check the status of your registration by entering the ARN in GST Portal.

Penalty on failing to complete GST Registration

• If any individual fails to register under GST due to genuine reasons, then the penalty levied is 10% of the due amount. The minimum penalty levied is Rs 10,000.
• In case any individual is purposefully evading the tax payment, then the penalty levied is 100% of the tax amount.

Take Away

GST registration is a mandatory process for businesses whose annual aggregate turnover fall under the criteria mentioned above. If any organization or individual carries out the business without GST registration, it is considered a punishable offence and the defaulter shall be liable to pay hefty penalties. We at Enterslice, help you complete the process of GST Registration conveniently and without any hassle. Further, our team of experts will also help you with filing GST returns and all other compliances involved. For Guide on GST Registration, feel free to contact us at Enterslice.

Read our article: Composition scheme under GST & Presumptive Taxation Scheme