The Goods and Service Tax, or GST, went into effect on July 1st, 2017. It freed India from its intricate indirect tax system and replaced all indirect taxes imposed on products and services by the federal and state governments.
The Goods and Services Tax (GST) is an attempt by the national government to replace all existing forms of taxation, eliminate tax barriers, and establish a single market where everyone may purchase, sell, import, and export goods inside the nation. This post will teach us about the requirements for eligibility and the steps involved in registering for GST.
What requirements must one meet to register for GST?
All businesses that purchase or sell products, offer services, or engage in both must register as GST under the new tax law. Businesses that aren’t registered for GST aren’t able to collect GST from customers, claim input tax credits for the GST they’ve paid, and they risk penalties.
The following list will assist you in determining if you qualify for GST:
- In a given fiscal year, your company’s turnover surpasses INR 20 lac (or Rs 10 lac for states under special categories).
already registered, regardless of the threshold, under any of the current indirect tax systems (VAT, excise laws, service tax laws) - Current taxpayers have received a Provisional ID and Password from the relevant tax offices to complete the GST migration procedures (within six months) and create a GSTIN.
- Running a company across many states
- Possess many industry verticals in a single state
- Possess a taxable commodities supply across state lines
- Taxable individuals who are not residents
- Sporadic taxpayers [A person who sporadically provides products or services without having a permanent location of business; an example would be a store that sells pyrotechnics around Diwali]
- Tax payment is necessary under the Reverse Charge
- Tax must be withheld at the source
- Representatives of an input service distributor provider
- In the e-commerce industry. For instance, Ola (Operator/Aggregator), Amazon, and Flipkart
- Delivering products or services via an online shopping site
- In the industry of providing database access or retrieval services and online information
- To someone in India from outside of India
- supplying non-taxable goods or operating an export company Relevant to the export of software that was previously exempt from taxation
What documents are needed to register under the GST?
To register for GST, some documents will be needed. A comprehensive list of the same is provided below.
1. The applicant’s or business’s PAN card
This is so because the business’s PAN and GSTIN (Goods and Service Tax Identification Number) are connected.
2. Promoters’ Address and Identity
It is necessary to produce identification and address proof documents, such as PAN, passport, driver’s license, Aadhaar card, or voter identity card, for each director, partner, or promoter.
3. Business Registration Document
All registered entities are required to produce all documentation attesting to the business’s registration. Depending on the kind of registration, the documentation could be different.
- Limited Liability Partnership: Certificate of Incorporation and LLP Agreement
- Private Limited Company: Certificate of Incorporation, Memorandum of Articles, and Articles of Association
4. Address Proof for Business Location
Submission of all supporting documentation for the business location specified in the GST registration application is required. These consist of copies of the most recent property tax receipt, the rental agreement or sale deed, the municipal khata copy, and power bill copies.
5. Proof of Bank Account
The first page of the bank passbook must be supplied as a scanned copy that has been authenticated. This copy has to be for the bank account shown on the registration form, with a few transactions and the business address included as well.
6. Digital Signature
Authorized signatories must use Class 2 or 3 digital signatures on all GST registration applications. If you are a proprietor, you do not need a digital signature.
How does one go about obtaining a GST registration?
Using the official GST site run by the federal government or state governments, anyone may register for GST online. Additionally, GSPs (GST Suvidha Providers) will be appointed by the government to assist companies with the registration procedure. GST registration is required for all current taxpayers with a provisional ID and password, regular taxpayers, composition taxpayers, casual taxable individuals, ISDs, SEZ developers, SEZ units, and GST practitioners. The steps to register are as follows:
1. For new GST Registration
- Go to the Government GST Portal (gst.gov.in) to register for a new GST.
Locate the Registration Tab. - Enter the necessary information in Part-A of Form GST REG-01.
PAN, State, Email ID, and Mobile Number
Check the OTP. An email and mobile number will be sent with a temporary application reference number.
The applicant will get an electronic acknowledgment in Form GST REG-02. - Next, properly sign Part B of Form GST REG-01 (via DSC or EVC).
Upload the necessary files that are listed by the kind of company.
Please provide the application reference number that you were given. - If further data is needed, Form GST REG-03 will be provided.
Within seven working days of receiving Form GST REG-03, the applicant must reply in Form GST REG-04 with the necessary data.
If any mistakes are detected, the application may be denied. This will be disclosed to you in Form GST REG-05. - Ultimately, the department will provide you with a certificate of registration in Form GST REG-06 once all approvals and verifications have been completed.
2. For dealers who are currently registered under state and federal taxes:
- Every dealer with a PAN who is registered under current legislation must verify their email address and mobile number on the shared site.
- Within three months, all dealers must file Form GST REG-24 on the GST Portal with the necessary information and documentation.
- Following enrollment, a provisional certificate of registration in Form GST REG-25 will be issued.
- According to current law, only one Provisional Registration will be allowed in the event of numerous registrations based on a single PAN.
- If the current law’s centralized registration for service tax
- They will be awarded a single provisional registration in the state or union territory where they were previously registered.
- The final registration certificate in Form GST REG-26 will be issued upon satisfaction with the information submitted.
- If the information provided is not suitable, a Show Cause Notice in Form GST REG-27 will be sent.
Before the provisional registration is canceled, a hearing will also be held.
If the information is not submitted within the specified time or in the event of an unsuccessful show cause hearing, an order in Form GST REG-26 will be issued to terminate the provisional registration granted in Form GST REG-25.