Goods and Services Tax (GST), the new taxation structure, was implemented on July 1st, 2017. It has changed the whole scenario of how manufacturers, distributors and end-customers pay taxes to both central and state governments. Every individual, business or company that provides services or manufactures or sells products, would have to go for GST registration if their financial transactions fall under the taxation slab. As all 17 state and central taxes have been clubbed into one tax form — the GST — every entity will have to get registered if it wants to collect tax from customers and claim tax credits of the tax paid by them.
Entities having the annual turnover of Rs. 40 lakh and above will have to register under GST. This limit is Rs. 20 lakh in case of businesses operating in north-eastern states.
GST registration can be done in different forms. It can be for a person who does not have a business address as well as for an entity that has operations in different parts of the country.
Types of Entities under GST
An entity that does not have a fixed place of business and supplies goods or provides services in territories where GST is applicable is known as a casual entity. For example, a person having his place of business in New Delhi but also providing services in Mumbai would be considered as a casual taxable entity.
Taxpayers and small businesses having an annual turnover of up to ₹ 50 lakhs can register under composition scheme where they will have to maintain very less records. These entities will have to file returns every quarter instead of filing 3 returns every month and 1 annual return. These entities can neither issue taxable invoices to their customers nor claim input tax credits. They will have to pay tax from their own coffers.
Why is GST registration important ?
- After 1st July, only GST is being charged.
- Taxpayers registered under state VAT or Central Board of Excise and Customs (CBEC) have to switch to the GST platform to file all taxes and share information with taxation authorities.
- Once a person registers at the GST portal, he gets a Goods and Services Taxpayer Identification Number (GSTIN) which would be used to store his details and taxation history.
- This number would be used for all administrative and compliance purposes.
- It is expected that 8 million taxpayers would be migrating from different platforms to GST.
How to Register for GST online
In order to register for GST online, you have to follow these simple steps:
1) Go to the GST Login Portal at https://www.gst.gov.in/
2) Fill up the Part-A form and provide your PAN, mobile number and email address.
3) The portal would verify the mobile number and email id by sending OTP and verification mail.
4) Once verified, you will get the Temporary Reference Number (TRN) on both e-mail and mobile.
5) Now fill Part-B of the GST registration form using the received TRN.
The business type after which the GST officer would verify the application and approve it within three working days.
Once approved, you will get the GST registration certificate.
In case the GST officer does not approve the application and asks for more documents in support of claims made in the application, you have to provide the required documents within seven working days.
If the application is approved, you would get the GST registration certificate within seven working days.
Documents required for GST Registration
Different entities may be required to furnish documents for GST Registration which they have to upload on the GST Portal. One can find the list of required documents on the GST Portal itself.
Step 1- From the HELP section on the bottom of the page, click on ‘Documents Required for Registration’ and you will be redirected to the page.
Step 2- You have to select the type of your business. The options include-
- Local Authority
- Limited Liability Partnership
- Public Limited Company
- Public Sector Undertaking
- Private Limited Company
- Hindu Undivided Family
- Sole Proprietorship
- Unlimited Company
- Statutory Body
- Government Department
- Foreign Company
- Foreign Limited Liability Partnership
Step 3- You will also have to select the Nature of Possession of Premises. The options include-
Once you select these two, a complete table will be available that shows the documents that you can upload as different proofs.
How to Check the GST Registration Status?
You can easily check your GST registration status by visiting the official GST website. Follow the steps given below-
Step 1- Go to the GST Portal- https://www.gst.gov.in/
Step 2- Click on the ‘Services’ tab.
Step 3- Hover on the ‘Registration’ option from the dropdown. Click on ‘Track Application Status’ option.
Step 4- Enter the ARN (Application Reference Number) received at the time of registration.
You can now see the status of your application on the screen.
- GSTIN is a unique 15-digit alphanumeric code that is allotted to all taxpayers who have undergone the GST registration process.
- The government has ensured that everything under GST is digital so that there is maximum transparency and minimum corruption.
- GST is aimed to eventually reduce tax evasion.
- The first two digits of the GST registration number represent the state code which is given as per the 2011 census.
- Next 10 digits are the PAN number of the entity.
- The thirteenth digit assigned signifies the entity number of the same PAN holder in the state.
- The fourteenth digit would be Z by default.
- The last digit is for check sum digit.
Migrating to the GST Platform
Existing service tax payers and dealers paying VAT have to migrate to the GST platform. In order to migrate from these platforms, CBEC and state VAT authorities issue provisional IDs and passwords to registered users. However, these IDs are issued only to those users who have their PAN registered with authorities concerned.
- Provisional ID is not provided to businesses having an invalid PAN registered with Central Excise/State Tax authorities.
- If the taxation authority has already issued the provisional ID and the person requests for another ID, he would not be provided one.
- In case there are multiple registrations under the same PAN in a state, the authority would issue only one provisional ID and that too for only the first registration in the alphabetical order.
- The person has to login to the GST portal at https://www.gst.gov.in/ using the provisional ID and password provided by the tax authority.
- He has to duly fill and submit Form 20 along with required documents.
Penalties for GST Registration Failure
- For all those who fail to register under GST will have to pay a penalty of 10% of the tax amount or ₹ 10,000, whichever is more.
- This will be applicable to defaulters not paying tax partially or completely.
- In case of deliberate fraud, the penalty can be as high as 100% of the tax due.
Multiple Registrations under GST
- Entities having multiple businesses in a state can register for each business separately.
- PAN would be mandatory in each case.
- In case of non-residents, GST registration can be done on the basis of other documents.
- Registrations rejected under CGST Act would not be approved under SGST Act and vice versa.
How to Get GST Certificate?
Users can download their GST Certificate from GST Portal. No physical certificate is issued by the government and it can only be downloaded from the portal. The steps are given below-
Step 1- Login to the GST Portal
Step 2- Click on the ‘Services’ tab.
Step 3- From the dropdown, hover above the ‘User Services’ tab and you will be able to see the option ‘View/Download Certificates’. Click on it.
Step 4- You will be able to see your GST Registrations.
Step 5- Download the same by clicking on the download sign.
The GST certificate includes all details related to the business. On the first page, basic details like name, address, and date of registration of the business are displayed. The second page would show the details of any additional places of business that you have mentioned. The third page shows details of the person in charge of the business.