An Overview on GST Registration
This is the day and age of the GST (goods and services tax) regime and as such any business that is earning in excess of INR 40 lakh in India has to register for GST. In case of the northeast and hill states this comes down to INR 20 lakh. The requirement here is the same as a normal person who is liable to pay taxes as well. The process for registering for this tax is also known as GST registration.
Under normal circumstances, GST registration takes around 2 to 6 working days. However, there are certain companies they are providing GST registration services in Bangalore and can make it happen in some simple and easy steps. If you need our help and support, we would always be happy to assist you.
It needs to be mentioned in this particular context that GST has overtaken all other kinds of business taxes such as sales tax, excise duty, and service tax, to name a few. It is always advisable to register for GST even if your income is lower than the prescribed threshold.
There are certain reasons for such a suggestion as well. Without GST registration you would not get any tax refund, which can be quite a useful amount at times for your business. Without GST you would also be unable to sell the products or goods outside your state.
Who has to Obtain GST Registration?
The following entities need to register for GST:
- Individuals who had registered under the laws that were applicable before GST such as excise, service tax, and VAT
- Businesses that are earning more than INR 40 lakh a year – in case of businesses in the northeastern states, Jammu and Kashmir, Himachal Pradesh, and Uttarakhand this limit is at INR 20 lakh
- Casual taxable individuals and nonresident taxable individuals
- Agents of suppliers and input service distributors
- People paying tax as per the reverse charge mechanism
- People who supply through ecommerce aggregators
- All ecommerce aggregators – this includes the likes of Flipkart, Amazon, and Ola
- Individuals who are supplying online database access or retrieval services and information from outside India to people in India with the exception of a registered taxable individual
- Businesses that have many branches across India or operate in various different verticals in one state
- Businesses that supply to other states
- Businesses that have to deduct taxes at source
It needs to be kept in mind that the process of GST registration is state specific and based on PAN. In case you are a supplier you would have to register in each state and union territory where you are operating.
What are the Benefits of GST Registration?
If you register for GST you would be eligible to receive a number of benefits.
See, the following advantages you can get under GST:
- You will legally certified to do business as a supplier of goods and/or services.
- You could do proper accounting of received and paid taxes which can be used GST payment.
- You would have the right to collect taxes from your buyers and clients, and then pass on the credit of the taxes that they have paid to them.
- With GST registration you would have the right to claim input tax credit of the taxes that you have paid to your suppliers. You can also make use of this particular facility for taxes that are yet to be paid.
- With GST registration you would also be able to allow for input tax credit to flow smoothly from the suppliers to the recipients, and that too at the national level.
What are the Documents Needed for GST Registration?
The following documents are needed in order to register GST:
- PAN (permanent account number) of applicants such as business owners, partners, or directors
- Address proof for the place of business – this includes the likes of electricity bill, telephone bills, rent agreement, and letter of consent
- Aadhaar card of owners, directors, or partners
- Bank account statement or cancelled cheque – this also includes the Indian Financial System Code details and a valid bank account number in India
- Proof of business registration such as incorporation certificate, memorandum of association, and article of association
- Digital signature
- Identity and address proof of promoters or directors along with photographs
- Letter of authorization or board resolution for authorized signatory, who should at least be an Indian resident – this person should have valid details including PAN
- Valid Indian mobile number
- Valid email address
- Jurisdiction details
GST Registration Process
The application form of GST registration is covered by 2 parts as Part-A and Part-B. Part A registration belongs to getting up to Temporary Reference Number (TRN) and Part B belongs to the afterward work of Part A.
To get the registration under GST, the applicant has to follow the 7 steps procedure:
- Go to Government’s GST Portal site and look for New Registration under the Registration tab of Service menu (Service > Registration > New Registration).
- Select the type of taxpayer is to be registered, enter details like State / UT, District, Business Name, PAN, Email and Mobile Number in Part-A, then click on PROCEED button, you will receive OTP for both Mobile and Email for verification purpose. After verification, you will get a TRN acknowledgement information on your mobile and email.
- Then you have to fill the Part-B Form of GST registration by selecting the Temporary Reference Number (TRN) option, enter TRN and captch then proceeding with Mobile and Email OTP verification.
- In fourth step, it will direct you to the next page where it holds 10 menus regarding to your business information. This is the major step, here you have to click on one by one menu and fill the business details regarding to them for each and attach all the required documents. Verify all the particulars and submit the application.
Remember that you have to finish Part-B registration within 15 days, after getting your TRN number. It will be shown to you in yellow background message on top of the window, you could be noticed it.
- In verification step, you have to verify with DSC only for company/ LLP. For other organization Electronic Verification Code (EVC) is required; if you have DSC, could go for that and code will come to your mobile and email ID, just you need to verify it.
- After verification, you will be getting an ARN (Application Reference Number) to your mobile and email id in 15 minutes. So you can check latter your application status through ARN.
- To track application status, go to Service tab, then Registration then click on Track Application Status of GST Portal and enter your ARN, you will find your progress (Service > Registration > Track Application Status).
Procedure to Register GST Through Government Portal
To register for GST in Bangalore or any other cities in India; you have to know, understand and follow the above process. So we have summarized the steps here below:
The first thing is that you need to do in this case is to visit the official portal for this purpose and check out the registration tab, which we’ve mentioned in above (GST Registration Process) paragraph; refer that. Over there you would have to fill out the details such as the following:
- Type of taxpayer
- State / UT
- Business name
- Email ID
- Mobile number
This needs to be done in Part A of form GST REG-01. You would get this on your email and mobile following an OTP (one time password) verification. Once you have done this you would be provided a reference number on a temporary basis i.e. Temporary Reference Number (TRN).
After this you would need to fill up Part B of the same form by selecting the Temporary Reference Number (TRN) option. It needs to be signed either by EVC or DSC. In this case you would also need to upload certain documents along with the signed and filled up form. The type of documents would be specified to you on the basis of the kind of business that you are in.
After this you would GST REG-02, which is basically an acknowledgement.
If you get GST REG-03, where the authorities want more information from you, you would have to visit the department physically and provide clarifications. You may also have to produce certain documents in this case as well. All this needs to be done in the shape of GST REG-04. In case there are any errors it is possible that your application may be rejected by the office as well. You will come to know this in the shape of GST REG-05.
As and when your application is properly approved you would be provided a certificate of registration in the shape of GST REG-06. However, the department will only issue it following verification. As you can see, the process is a quite time consuming one and there are a lot of details to be taken care of as well. This is where the private service providers can be of great help for you.
What is GSTIN?
GSTIN can be called as the GST Identification Number, from this number one business or organization can be recognized as a GST holder. It is a 15 digits number. In this case the first couple of numbers represent the code of state. Normally, 01 represents Jammu and Kashmir, 03 represents Punjab, and 02 represents Himachal Pradesh. The next 10 digits normally represent the PAN of the GSTIN owner.
What are the Penalties for not Registering under GST?
In case of certain businesses it is absolutely mandatory to register for GST. In case if such a business carries on doing business without registering for GST it would be regarded as a contravention of said laws. In such cases the guilty party would be levied with heavy fines.
In case you are not paying the requisite tax or have made inadequate payments you would have to pay 10 per cent of your tax amount as fine. However, this amount cannot be lower than INR 10,000. However, if you have deliberately avoided paying taxes this amount could go up to 100 per cent of your tax amount.