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Whether you are a business owner, a service provider or even a customer, you have heard of the Goods and Services Tax (GST). The GST came into effect in India on July 1, 2017, and changed the entire taxation process of the country.
In layman terms, it is a single indirect tax charged on the value addition provided by a business through their goods and services. At every stage, from manufacture to distribution, companies get taxed by the Government of India only on their respective offering, and the final consumer bears the burden of the tax.
The process of paying the GST begins with first registering your business in the GST portal. If you are a start-up owner, chances are you may find the process overwhelming. Here’s a quick guide for you to know everything you need about GST registration for your business.
To apply for GST registration, your annual turnover should meet one of the following thresholds:
Further, if you meet any of the below criteria, you must apply for GST registration:
Note: If despite meeting these criteria, you do not apply for GST registration, then your business is liable to pay a fine of 100% of the tax due or Rs. 10,000, whichever is higher.
To register for GST, you need to keep the following documents ready:
The GST portal allows you to do GST registration online. This is a free process or you may ask for a tax consultant to do so for a nominal fee. The steps to follow are:
Step 1) When you visit the portal, select Services > Registration > New Registration
Step 2) In the next screen, select the ‘New Registration’ option. Choose ‘Taxpayer’ in the first dropdown, fill the rest of the form and click on the ‘Proceed’ button.
Step 3) Once you receive the OTP, provide the same in the next screen. If you did not receive an OTP on your phone or email, click on the button Resend OTP to get a new one.
Step 4) A Temporary Reference Number or TRN will be generated. Further, it will be emailed to you and sent as an SMS to your mobile number. Make a note of it.
Step 5) Go back to GST portal > Services > Registration > New Registration, and this time, select the radio button Temporary Reference Number. Input the details from the previous step.
Step 6) You will have to perform OTP verification again.
Step 7) A new application is created, which can be edited to supply the primary details.
Step 8) You will have to provide all the necessary details with proofs section-wise.
Step 9) When you reach the Verification section, select the checkbox next to the declaration. Then, submit the form to complete the application.
Once you have submitted the application, an Application Reference Number or ARN will be generated. You can track your application with this number on the GST portal.
Once your GST registration is complete, a GST officer will go through your entire application. If they approve it, they will provide you with a unique GST Identification Number or GSTIN, which you must include in your invoices.
The entire process – from registration to receiving GSTIN – roughly takes two to six days.
There are cases when you are permitted to register for multiple GST numbers:
The Composition Scheme was devised to help small business owners and taxpayers, whose turnover does not exceed Rs. 1.5 crores (or Rs. 75 lakhs for North-East states).
The benefits these taxpayers enjoy are as follows:
But the scheme has its flip side too:
The following dealers cannot avail the composition scheme:
There are many advantages of GST registration for business owners in the long run. These include:
At the end of the day, GST registration allows your business to function legitimately and positions your brand as a trustworthy, authentic one. With the GST portal having simplified many processes, starting from application to filing returns, GST registration is the first step to managing your company taxes efficiently.
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Nice Article on GST
Thank you. Explore more related articles in the Tax category.
We will communicate with the vendors for alteration in GST return to ensure free flow of input tax credit, We will also send the due reminders for GST due dates to avoid any penalty or financial implications, We will also help in revising the vendor management process to keep it aligning with the GST provisions.
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Thanks For Giving this much Information about GST Registration it means a lot.
Excellent Informative Article about GST Registration
Thanks for sharing details about GST Registration.