All about GST Registration Online in India
GSTIN or GST identification number is a unique 15-digit PAN-based number assigned to every individual registered under GST. Therefore, GST registration is necessary to obtain this number.
There may be multiple GSTIN for a single person. In such a scenario, when the applicant reaches a threshold limit for GST registration online, the person must acquire GSTIN.
In this piece, you will find everything you need to know about GSTIN registration and how to get a GST number in India.
Without any further delay, let’s begin!
How to register for GST?
The new tax regime rolled out on 1st July 2017. Since then, it is vital for all business entities to apply for GST to benefit from this regime. After successful registration, one can obtain a GST number and enjoy tax benefits. However, one needs to follow certain steps to apply for a GSTIN. Here is the process for GST registration.
How to apply for GST registration?
For the procedure of GST application online, follow these steps:
- Visit the GST portal online.
- From the “Taxpayers” tab, click on “Register Now” for registration.
- By selecting the “New Registration” option, you will land on a page where you need to provide details like name, permanent account number, state, district, etc.
- After filling up the details precisely, click on “Proceed.”
- You will receive an OTP in your registered email ID and mobile number. Enter it in the required field.
- A ‘Temporary Reference Number’ will be assigned to you. Make a note of this number.
- Upon revisiting the portal, you need to follow the same steps. Instead of “New Registration,” select “Temporary Reference Number” and enter captcha details to proceed to the next step.
- Again, you will receive an OTP in your registered number and email ID. Enter it.
- On the next page, you will find the application status shown as drafts. You may click on the edit icon.
- Finally, select your category and submit documents for the place of business, authorised signatory, and more to proceed to verification.
Upon completion of verification, you will receive an ‘Application Reference Number’ on your mobile number. This concludes the process to apply for a GST number.
These are the basic steps one needs to follow for new registration. After this, one needs to present a list of documents required for GST registration. We have discussed the same in the following sections.
Who should register for GST?
To successfully obtain a GST number, an individual needs to meet the following eligibility for GST registration.
- Individuals who are still classified under the pre-GST law (VAT, Service Tax, etc.)
- Business turnover above Rs. 40 lakhs (The same amount is Rs. 10 lakhs for north-eastern states, Himachal Pradesh, Uttarakhand, and Jammu & Kashmir)
- A taxable person who is a non-resident
- Input service distributor and supplier agent
- Individuals who are paying tax under reverse charge mechanism
- Person supplying through an e-commerce aggregator
- E-commerce aggregators
- Individuals who supply online information or database access or retrieval services from a foreign country to a resident in India are not registered taxable
Furthermore, according to the category of a person, there are different types of registration under GST. Therefore, take a look at the types of GST registration in the following section.
What are the types of registration in GST?
Here are the types of GST registration in India:
- Normal taxpayer: This category includes any person whose business turnover is more than Rs. 40 lakhs. An individual whose aggregate turnover in the previous year did not surpass Rs. 75 lakhs should register under this scheme. Additionally, taxpayers from service industries, GSTR3B, and GSTR1 need to opt for Goods and Services Tax registration.
- Composition scheme: Any taxpayer whose annual turnover is less than Rs. 1.5 crores can register for GST under this scheme. This is a simple and easy scheme availing which small taxpayers can avoid inconvenient GST formalities and pay tax at a fixed rate.
- Casual taxable person: An individual without a fixed place of business supplying goods or services in a territory where GST is applicable is treated as a casual taxable person under GST.
- Input service distributor: This is an office of goods or services supplier that receives tax invoices on input services receipt. Such tax invoices are issued for the distribution of credits on the same services to a facility with the same PAN.
- Non-resident taxable person: A person outside of India supplying goods or services where GST is applicable is a non-resident taxable person under GST.
- Non-resident online service distributor: Individuals supplying online services outside India other than a registered person must register for GST.
- UN Body/Embassy/other notified individuals: The Ministry of External Affairs issued a Unique Identification Number to the UN bodies and embassies. This number allows them to receive the supply of goods and services from registered individuals. These categories can apply for GST from its online portal.
- Special Economic Zone unit or developer: SEZ developers and units must initiate a new registration for GST by submitting the necessary certificate and documents.
- TDS/TCS: Candidates paying more than Rs. 2.5 lakhs to suppliers need to register under GST as a tax deducted at source. The individuals can directly apply for the registration from the website.
Furthermore, there are some vital documents required for GST registration. Let us take a look at that!
Which documents are required for GST registration?
For registration under GST, one needs to carry the following documents:
- PAN card
- Business registration proof or incorporation certificate
- ID and address proofs of promoters or directors with passport size photographs
- Supporting address proof of the place of business
- Bank account statements
- Digital signature
- Letter of authorisation for authorised signatory
After successfully presenting the scanned copies of the above documents, one can complete the procedure for GST registration.
Additionally, it takes 2-6 days to complete the registration process. One can apply for GST by visiting the online GST portal and following the steps mentioned above.
However, an individual may visit the GST Seva Kendra set up by the Government of India to apply for GST offline. All you need to do is fill up the form, present the necessary documents, and submit them to the authority.
What are the fees for GST registration?
Taxpayers should note that GST registration charges are free. Therefore, you need not pay anything for registration under GST.
However, defaulting tax payments or making short payments will incur a GST penalty. The penalty under GST stands at 10% of the tax amount only if the amount is a minimum of Rs. 10,000. In case of deliberate tax evasion, the penalty will be 100% of the tax amount.
How to check GST application status?
Candidates can check GST status with or without logging in to the portal. Here are the steps to follow if you wish to check GST registration status without logging in:
- Upon visiting the GST portal, you need to select “Services” and “Registration.”
- Now click on the “Track Application Status” and enter your ARN.
- You will find any one of the statuses out of - pending for processing, site verification assigned, site verification completed, pending for clarification, clarification filed- pending for order, clarification not filed- pending for order, approved, or rejected.
Additionally, one can track GST application status after logging in to the portal by following these steps:
- Login to the GST portal.
- Choose the “Services” and “Track Application Status” options.
- You need to select “Registration” from the module drop-down.
- Either by providing your ARN or SRN (Service Request Number) or submission date, you can check your status for GST registration.
You can download the acknowledgement slip by clicking on the “Download” hyperlink.
Therefore, after making a note of all this crucial information, one can proceed with GST registration in a hassle-free and convenient manner. This will allow the individuals to avail of tax benefits under the regime.