According to the current GST rules and regulations, every company that provides products and services to the customers has to register under GST or Goods and Services Tax. So, if you are a business owner having an annual turnover of above Rs. 40 lakh, you need to register under the GSTN (Goods and Services Tax Network).
The annual turnover rate for businesses running in the North-Eastern states and hill states is Rs. 10 lakh. In this article, we will look at the various steps on how to get a GST number.
The GST registration process is necessary for all registered taxpayers that will give them a GST number. After successful registration, the taxpayer will get a unique number called GSTIN (Goods and Services Tax Identification Number). The Central Government will provide a 15-digit unique number that will provide the legal identity as a registered supplier.
The registration process can be completed online. If you are a business owner, you are required to fill up a form on the official GST portal. You also have to submit the required documents.
Who are eligible for GST registration?
The following businesses and taxpayers have to register under GST:
• Citizens who have already registered the Income Tax Department before the introduction of GST
• Casual taxable individuals
• Non-resident taxpayers
• The agents of a supplier and Input service distributors
• All individual who has an e-commerce business
• Businessmen having a turnover of more than Rs. 40 lakh
• Businessmen having a turnover of more than Rs. 10 lakh in case of Jammu and Kashmir, North-Eastern states, Uttarakhand and Himachal Pradesh
• Taxpayers under the reverse charge mechanism also have to register
• Citizens who supply goods through an e-commerce organisation
• Individuals offering online data and database access to Indian citizens from outside the country
Types of GST registration Recommended H2 tag
The different categories of GST registration are as follows:
• Normal taxpayers: This is the category where most businesses fall under.
• Casual taxable person: People who wish to open a shop for a brief period or a particular season can choose this category.
• Non-resident taxable person: People who live outside the country but supply goods and services to citizens in India.
• Composition taxpayers: People who have registered under the Composition Scheme or wish to choose the scheme to fall under this category. These taxpayers cannot obtain the input tax credit.
The other categories are:
• GST TDS collector for E-Commerce organisations
• Online service providers who are non-residents
• Special Economic Zone unit
• GST TDS deductor for the government entities
• SEZ (Special Economic Zone) developers
• Individuals under the UN Embassy
Documents required for GST registration
The documents needed for GST registration are as follows:
• Aadhaar card of the person
• PAN (Permanent Account Number) card of the person
• Address proof of the business location
• A digital signature is required
• Bank account statement of the individual or the company
• A cancelled cheque from the individual or the company
• The business registration proof or the Incorporation Certificate
• The address and identity proof of the Director or the Promoter has to be submitted along with photos
• Letter of Authorisation or Board Resolution must reach the Authorised Signatory
In case the individual does not pay the tax amount correctly or pays a lesser amount than the specified amount, 10 % is charged as penalty. The individual has to pay a minimum penalty amount of Rs. 10,000.
On the other hand, if a taxpayer tries to evade paying taxes and does not complete the GST registration process, 100 % of the due amount is charged as penalty.
How to apply for GST number?
You can perform GST registration in a local registered GST Seva Kendra or through the online portal. Here are the steps on how to get GST number:
• Visit the official website of GST and click on the ‘Services’ tab
• Hover over the ‘Registration’ option and click on ‘New Registration’
• In the drop-down menu, ‘I am a’ choose taxpayer
• Then, select the state and district of your business. Then, enter the business name, PAN number, mobile number and email id
• You will receive an OTP on your registered mobile number and email id. Enter the OTP and verify the information
• Click on ‘Proceed’. You will be given a Temporary Reference Number and will be directed to Part B of the registration process
• Note down the Temporary Reference Number. Then in the New Registration page, log in with this number and enter the captcha code. Click ‘Proceed’
• You will receive another OTP on your email id and registered mobile number. Enter this OTP and click ‘Proceed’
• On the following page, your application status is available. Click on the ‘Edit’ icon
• The next page will have 10 sections. Fill in the details. The documents that you need to upload are – address proof of the business, photographs, the authorisation form, bank account number, IFSC code, bank name and branch, the taxpayer’s constitution
• Then, go to the ‘Verification’ page. Check the declaration box. You can submit the application through any one of these ways – an EVC (Electronic Verification Code), by an E-Sign method or a DSC (Digital Signature Certificate) for companies who want to register
• After the completion of these steps, you will see a success message on the screen. Your ARN (Application Reference Number) will be sent to email id and mobile number
You can check the status of your ARN number by logging in the GST portal with it.
The GST number is extremely essential for any business as it is mentioned in all the invoices. If you own a business, you will be able to understand input tax credit. You will be able to properly register your company that will, in turn, enhance your credibility. After registering on the official portal, you can download the registration certificate.