What is GST?
Goods and Services Tax (GST) is a comprehensive, multistage, destination-based tax levied on every value addition. The main objective of GST registration is to replace all the indirect taxes levied on goods and services by the Central and State governments.
The GST Council has proposed a four-tier tax structure of 5%, 12%, 18%, and 28%, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess. GST got implemented from July 1, 2017.
What objectives does GST have?
The primary objective of the GST is to consolidate all taxes into one single tax. It subsumes multiple central and state-level taxes, including service tax, excise duty, VAT, and entertainment tax. It also makes it easier for businesses to comply with complex tax regulations by reducing paperwork and simplifying processes.
How Does GST Work?
GST works on the principle of ‘One Nation, One Tax,’ where all the goods and services sold within a state fall under the same tax rate. It also eliminates multiple layers of taxation by combining both direct and indirect taxes.
Why Register for GST?
A 15-digit Goods and Service Tax Identification Number (GSTIN), which is exclusive to the taxpayer and must be obtained from the GST authorities, is necessary for GST registration. Gathering all the information pertaining to the firm is made easier with the help of the GST Registration or GSTIN. This is the most fundamental prerequisite in any tax system for identifying the firm for taxes or for any programme that verifies compliance.
Why Do I Need To Register For GST?
A firm will benefit from and receive the following benefits from GST Registration under the Goods and Services Tax (GST) regime: –
- It grants the provider of products or services legal recognition.
accurate accounting of taxes paid on input products and services that can be used to pay - GST as a result of the business’s provision of goods and/or services.
- Give buyers or recipients the credit for the taxes you paid on the items and/or services you provided.
- A taxpayer is given the go-ahead to collect taxes on the government’s behalf.
Do I Have To Register For GST Act?
It is a frequently asked question about GST, making it one of the most significant. If you have a place of business in Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, or Uttarakhand, you must register under the GST Act if your total annual PAN-based revenue exceeds INR 20 lakh (Rupees Twenty lakh). Otherwise, the threshold is Rs 10 lakh (Rupees Ten lakh).
As per the GST Act, when do I need to register?
Within 30 days of the day your liability occurred, you must register for GST if your turnover reaches 20 lakhs or 10 lakhs in a special area zone. A Casual Taxpayer or Non-Resident Taxable Person must also submit their paperwork five days before their business opens.
What are the steps involved in online GST registration?
Step-1. Access the GST Portal ->https://www.gst.gov.in/ > Services -> Registration > New Registration option.
Step-2. Generate a TRN by Completing OTP Validation
The new GST registration page is displayed. Select the New Registration option. If the GST registration application remains incomplete, the applicant shall continue filling the application using TRN number.
- Select the Taxpayer type from the options provided.
- Choose the state as per the requirement.
- Enter the legal name of the business/entity, as mentioned in the PAN database. As the portal verifies the PAN automatically, the applicant should provide details as mentioned in the card.
- In the Permanent Account Number (PAN) field, enter PAN of the business or PAN of the Proprietor. Hence, in the case of a company or LLP, enter the PAN of the company or LLP.
- Provide the email address of the Primary Authorized Signatory. (Will be verified in next step)
- Click the PROCEED button.
Step-3. OTP Verification & TRN Generation
On submission of the above information, the OTP Verification page is displayed. OTP will be valid only for 10 minutes. Hence, enter the two separate OTP sent to validate the email and mobile number.
- In the Mobile OTP field, enter the OTP.
- In the Email OTP field, enter the OTP.
Step-4. TRN Generated
Once OTP is verified TRN will be generated.
Step-5. Log in with TRN
Upon receiving TRN, the applicant shall begin the GST registration procedure. In the Temporary Reference Number (TRN) field on the GST Portal, enter the TRN generated and enter the captcha text as shown on the screen. Complete the OTP verification on mobile and email.
Step-6. Submit Business Information
Business details must be submitted, in the first tab:
- In the Trade Name field, enter the trade name of the business.
- Input the Constitution of the Business from the drop-down list.
- Enter the District and Sector/ Circle / Ward / Charge/ Unit from the drop-down list.
- In the Commissionerate Code, Division Code and Range Code drop-down list, select the appropriate choice.
- Opt for the Composition Scheme, if necessary
- Input the date of commencement of business.
- Select the Date on which liability to register arises.
Step-7. Submit Promoter Information
In the next tab, provide promoters and directors information.
Details to be submitted:
- Personal details of the stakeholder like name, date of birth, address, mobile number, email address and gender.
- Designation of the promoter.
- DIN of the Promoter, only for the following types of applicants:
- Private Limited Company
- Public Limited Company
- Public Sector Undertaking
- Unlimited Company
- Foreign Company registered in India
- Details of citizenship
- PAN & Aadhaar
- Residential address
In case the applicant provides Aadhaar, the applicant can use Aadhaar e-sign for filing GST returns instead of a digital signature.
Step-8. Submit Authorised Signatory Information
A person nominated by the company is an authorised signatory. The nominated person shall hold responsibility for filing GST returns of the company. Further, the person shall also maintain the necessary compliance of the company. The authorised signatory will have full access to the GST Portal. The person shall undertake a wide range of transactions on behalf of the promoters.
Step-9.Principal Place of Business
In this section, the applicant shall provide the details of the principal place of business. It generally addresses the books of accounts and records. Hence, in the case of a company or LLP, the principal place of business shall be the registered office.
For the principal place of business enter the following:
- Address of the principal place of business.
- Official contact such as Email address, telephone number (with STD Code), mobile number field and fax number (with STD Code).
- Nature of possession of the premises.
In this section, upload documents to provide proof of ownership or occupancy of the property as follows:
- Own premises – Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- 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 copy of Electricity Bill.
- Premises not covered above – 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.
Step-10. Additional Place of Business
Upon having an additional place of business, enter details of the property in this tab.
Step-11. Details of Goods and Services
In this section, the taxpayer must provide details of the top 5 goods and services supplied by the applicant. For goods supplied, provide the HSN code and for services, provide SAC code.
Step-12. Details of Bank Account
In this section, enter the number of bank accounts held by the applicant. If there are 5 accounts, enter 5. Then provide details of the bank account like account number, IFSC code and type of account. Finally, upload a copy of the bank statement or passbook in the place provided.
Step-13. Verification of Application
In this step, verify the details submitted in the application before submission. Once verification is complete, select the verification checkbox. In the Name of Authorized Signatory drop-down list, select the name of the authorised signatory. Finally, digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC. Digitally signing using DSC is mandatory in case of LLP and Companies.
Step-14. ARN Generated
After signing the application a success message is received. Using the GST ARN Number, the status of the application can be tracked.
What does the GST’s Unique Identity Number mean?
Its is the unique identity number under GST for Agencies like the United Nations, Specialised Agencies, Consulates or Embassies of other nations, etc.
Exists a situation when having a Permanent Account Number is not necessary for someone who has registered under the Act?
The following people would be exempt from needing a Permanent Account Number in order to register under the Act:
- A non-resident taxpayer,
- A person who must withhold taxes in accordance with Section 51 of the CGST Act.
Is there a different deadline for casual taxpayers and non-resident taxpayers to submit their registration applications?
Indeed, a non-resident taxable person or a casual taxpayer needs to file their registration application at least five days before they begin doing business.
Can I request to have my GST registration cancelled?
Only a few predetermined circumstances allow for the cancellation of a GST registration. The legal heirs of a registered person may request cancellation in the event of death.
What Is The Source Of Authority To Give The Power To Levy GST?
Article 246A of the Constitution of India gives concurrent powers to both the Parliament and State Legislatures to make laws with respect to GST i.e. Central tax (CGST) and state tax (SGST) or union territory tax (UTGST). On the other hand, Article 246A clause (2) and Article 269A gives to the Parliament the exclusive power to legislate with regard to inter-State trade or commerce i.e. Integrated tax (IGST).
