What is GST Registration Number: How to Apply Online and Cancel?

Atal Bihari Vajpayee took the first initiative to implement a GST regime in India. It came into existence on 1st July 2017, and Assam was the first ever state to pass this bill in India. After its implementation, both intra-state and inter-state business operation has become easier with greater transparency in taxation.

If you are new to the business and do not have enough idea about the meaning or importance of GST, read this article to gain sound knowledge on GST registration numbers.

GST registration number, also known as the GSTIN, is an acronym for Goods and Service Tax Identification Number. It contains 15 unique digits and is a form of indirect sales tax. The Government of India made it mandatory for every business entity across the country to register under this tax system.

Previously, businesses had to pay VAT (for conducting business within a single state), CST (for carrying out business with other states), service tax, excise tax and entertainment tax. GST is an integration of all these taxes and is applicable to the entire nation.

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Below are the points which will help you to know the significance of registering your business under GST:

• The easy tax compliance process of the GST has eliminated a lot of time wastage from tax filings, thus improving the way of conducting business.
• Business credibility will increase with the input of appropriate tax credits.
• One of the provisions of the GST Act is to file various GST returns. For doing so, you should have a proper registration number.
• A registration number will also enable you to claim any refund as mentioned under the Act.

In many cases, it is a pre-requisite for some businesses to have a registration number. So, always be on the safe side and acquire the number.

There are various advantages to getting a registration number on GST. Go through these below-mentioned points to know how you can get benefit from it:

• There is no need to pay any service tax or other taxes if the annual turnover is below ₹20 lakhs in case of supply of services and ₹40 lakhs in case of supply of services. Previously businesses were bound to pay a certain amount of VAT if their turnover exceeded ₹5 lakhs, and this amount varied with states.
• The transparent structure of the GST allows retailers and business owners to have a clear tax payment structure, where they do not have to pay any hidden costs or taxes. Leading to less business expenditure.
• Earlier, small companies had to give multiple indirect taxes. With a  GST registration number, they only have to pay a single tax. This also prevents corruption issues such as selling products and services without receipts.
• Businesses can transfer goods easily from one state to another, unlike before when it was necessary to manage several warehouses to get away from other additional taxes for inter-state movement. This results in the reduction of operational costs in the logistics industry.
• Implementation of the GST number has led to the formation of clearly defined provisions, particularly in the e-commerce sector. This eliminated the need for the sector to comply with variable laws. Hence, you will hardly face any complications while delivering goods to other states with a valid GST number.

There are some disadvantages, as well, of the GST number that might impact business processes:

• SMEs are bound to pay more taxes after registering under GST. Previously, tax-paying criteria for SMEs were different. Only those, whose annual revenue was above ₹1.5 crores had to pay an excise tax. This completely contradicts the present GST tax system.
• There has been a rise in the selling price of goods and services because of GST. This made a negative impact on the purchasing power of middle-class and lower-middle people.
• It is not possible to transport goods to other states without a GST registration number and timely filing of the returns.

Now that you have understood the advantages and disadvantages of having a GST number, decide accordingly whether your business needs registration or not. Here is the detailed step-by-step process of GST number registration online. It is a long process shown in separate parts.

Step 1: Go to the official portal of Goods and Service Tax.

Step 2: Select ‘New Registration’ under the ‘Services’ group.

Step 3: Fill in the given information.

Step 4: Click on 'Proceed.'

Please note that you will get two separate OTPs for mobile number and email id verification.

Step 5: Enter the OTP on the next page and click 'proceed.'

At this stage, you will get a temporary reference number (TRN) after the contact verification process.

Step 6: Revisit the official website of GST and go to the ‘Service’ group to click on ‘Register.’

Step 7: Provide TRN and captcha before clicking to proceed.

Here, again you will receive a new OTP.

Step 8: Enter the OTP generated and click on ‘proceed.’

Step 9: You can view your GST registration number status on the next page, known as  'My Saved Application.'  Here, click on the 'edit' button to proceed further.

Step 10: Next, fill up all the ten sections of the application form. Here you have to submit some documents for a successful application. Following are the essential GST number registration documents required:

● PAN number

● Proof of business address

● Aadhaar number

● Passport size photograph

● Bank account details

● Class 2 digital signature

● Constitution of taxpayer

Make sure to consult an expert before the final submission of the form to avoid any kind of inconvenience.

Step 11: Sign the form digitally. 

Step 12: Go through the declaration for verification and submit the application if all information is correct.

You will receive a message on your email id and contact number with an Application Reference Number (ARN) if your application is successful.

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If you want to cancel the registration number for any specific reason, the following steps will be helpful to you.

Step 1: Go to the official website of GST and log-in there

Step 2: Go to the ‘Registration’ section under ‘Services’ and click on ‘Application for Cancellation of Registration.’

Note that you need to provide a valid reason for your cancellation.

Step 3: Click 'yes' if you have issued a tax invoice, or else 'no.'

Step 4: Enter the necessary information of the authorised signatory and submit the form either by clicking on DSC or EVC.

Moreover, obtaining a GST registration number not only helps businesses to comply with the law but also provides them with numerous benefits, such as availing input tax credit, boosting credibility among customers, and increasing business opportunities. With the introduction of GST, the entire taxation system in India has been transformed, making it more streamlined and transparent.

However, businesses should ensure that they follow the guidelines and rules set by the GST Council to avoid any penalties or legal issues. Overall, obtaining a GST registration number is a necessary requirement for businesses to thrive and succeed in the Indian market.

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