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GST stands for Goods and Service Tax. After the approval of “The constitution amendment bill for Goods and Service Tax” (GST) in the/ Parliament Session, every existing and new business needs to get the GST registration immediately. Basically, the GST has replaced the current indirect taxes levied by state and center. It eliminates several taxes like
- Central Excise duty
- Service Tax
- State VAT
- Central Sales Tax
- Entry Tax (all forms)
- Luxury Tax
- Entertainment and Amusement Tax (except when levied by the local bodies)
- Purchase Tax
- State Surcharges and Cesses so far as they relate to supply of goods and services
- Taxes on lotteries, betting, and gambling
The object of crafting this article is to provide a detailed guide on how to get the GST registration online. Additionally, we put details on the documentation and the benefits of GST.
The Benefits of GST Registration
- Basically, GST promotes the one tax format. It consists several central taxes and state taxes which will enable you to give one tax rather than giving about 16 taxes.
- The companies who are doing interstate business will get the maximum benefits. Therefore, your logistics and inventory costs will fall.
- The manufacturing sector will get an immense boost. Because GST addresses cascading of tax, interstate tax, high logistic costs and fragmented market.
- Several businesses like restaurant or computer shops who are paying both the VAT and Service Tax will come under one tax regime.
- The process of the credit of input tax will be easier.
- Currently, in some states under the VAT regime, businesses are required to comply with VAT regulations once they cross an annual turnover of Rs.5 lakhs. Under GST regime, GST liability accrues only if an entity crosses an annual turnover of Rs.10 lakhs in northeast or hill states, whereas, for rest of India, the threshold is set at Rs.20 lakhs.
- Finally, it promotes the businesses to shift from unorganized sector to organized sector.
Who Needs GST Registration?
Any business that is currently registered under any of the existing tax regimes then you are compulsorily required to migrate under GST law irrespective of the threshold limits.
But if you are supplying goods and services and not registered under any existing tax legislative then you are liable to register only if the aggregate turnover in any financial year exceeds the threshold limit.
The following categories of suppliers need to mandatorily register irrespective of turnover:
- Taxable person carrying on interstate supply
- Casual and non-resident taxable persons
- Businesses liable to pay tax under reverse charge
- Agents supplying on behalf of a taxable person
- Input service distributor
- Sellers on e-commerce platforms
- All e-commerce operators
- Person supplying online information and database access or retrieval services from outside India to an unregistered person in India
- Aggregator supplying services under his brand name
- Persons responsible for deduction of TDS
Liability For GST Registration in India
An aggregate turnover requirement for GST registration is as below:
|Region||Aggregate Turnover Liability to Register||Aggregate Liability for Payment of Tax|
|North East India||Rs 9 Lakhs||Rs 10 Lakhs|
|Rest of India||Rs 19 Lakhs||Rs 20 Lakhs|
Documents For GST Registration
- Proprietary Concern – Proprietor
- Partnership Firm / LLP – Managing/Authorized/Designated Partners (personal details of all partners is to be submitted but photos of only ten partners including that of Managing Partner is to be submitted)
- HUF – Karta
- Company – Managing Director or the Authorised Person
- Trust – Managing Trustee
- Association of Person or Body of Individual –Members of Managing Committee (personal details of all members is to be submitted but photos of only ten members including that of Chairman is to be submitted)
- Local Authority – CEO or his equivalent
- Statutory Body – CEO or his equivalent
- Others – Person in Charge
Partnership Deed in case of Partnership Firm, Registration Certificate/Proof of Constitution in the case of Society, Trust, Club, Government Department, Association of Person or Body of Individual, Local Authority, Statutory Body and Others etc.
Proof of the Place of Business
For Own premises – Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or the copy of Electricity Bill.
For Rented or Leased premises – A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or the copy of Electricity Bill.
If you don’t come under the above-mentioned conditions then a copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, you can upload the same documents.
Proof of Bank Details
You can upload a scanned copy of the first page of Bank passbook / one page of Bank Statement. An opening page of the Bank Passbook with the name of the Proprietor / Business Concern – containing the Account No., Name of the Account Holder, MICR and IFSC and Branch details.
Online GST Registration Process – Step-by-step Guide
Fill Part-A of Form GST REG-01. Provide your PAN, mobile number, and E-mail ID, and submit the form.
The PAN is verified on the GST Portal. Mobile number and E-mail ID are verified with a one-time password (OTP).
You will receive an application reference number on your mobile and via E-mail. Fill Part- B of Form GST REG-01 and specify the application reference number you received. Attach other required documents and submit the form.
Authorization forms: For each authorized signatory, upload authorization copy or a copy of a resolution of managing committee or board of directors in the prescribed format.
If the authority requires additional information, they will issue Form GST REG-03 to you. You need to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
If you have provided all required information via Form GST REG-01 or Form GST REG-04, a certificate of registration in Form GST REG-06 will be issued within 3 days from the date of receipt of Form GST REG-01 or Form GST REG-04. However, if you can’t submit the satisfactory details, the authority will reject the GST registration application using Form GST REG-05.
Footnote: There is no concept of central registration under GST. You will have to obtain a separate registration for every state in which you have a business establishment. Regardless you operate the business with the same name or a different name. Even if you have operations in different states with same PAN number, then every operational unit will have to apply for separate GST registration.