This guide will instruct you on how to register for GST online, apply for it, and suggest methods to obtain swift approval. Goods and Services Tax (GST) is a singular tax which is a conglomeration of various indirect taxes like Value Added Tax (VAT), Service Tax, and Excise Duty. This guide is useful for businesspersons, entrepreneurs, and even individuals who wish to start a business, as they can complete their GST registration online.
What does GST Registration mean?
GST Registration is the official process where a business is acknowledged by the government as a taxable entity under the gst system. After registering your business with GST, you receive a number called Unique GST Identification Number (GSTIN). This number is vital for trade activities related to goods and services.
Summary of GST Registration
In India, registration for a business is vital to ensure compliance with tax regulations. This simplifies the process by allowing registration through online applications. Following the above steps ensures the right documents are submitted and mistakes are avoided, helping to fasten your registration.
Why do we require GST Registration?
- Legal Recognition: It supports your business legally as a taxable entity.
- Tax Credit: A registered business can earn input tax credit for GST on purchased goods.
- Compliance: As compliance guarantee, enhances business laws and governance is ensured.
- Credibility With Modern Clients: A registered business under GST has the ability to foster credibility with its customers, suppliers, and even investors.
Who Needs to Get a GST Registration?
Every form of business whether a sole proprietorship, partnership, LLP, or Private Limited Company needs to get a GST registration if:
- Aggregate turnover is above the limit (Rs. 40 lakh for a majority of businesses and Rs. 20 lakhs for service providers).
- Is supplying services or goods interstate.
- Is into the business of Import/Export.
- Anyone engaging in e-commerce or sales through the internet.
- Willing Registration: In situations where a business does not meet the limit as above mentioned, they still have the option to register willingly and enjoy benefits such as input tax credit.
Steps in Online GST Registration Process:
Step 1: Go to GST Portal
The very first step in the GST registration is to go the site www.gst.gov.in where you would be able to find all the GST services under one portal and follow the following steps:
Head to services, click on Registration and select New Registration.
Step 2: Business Information Submission
In part A of the GST application form, you will have to fill in the following field:
- Name of Business: Business Name based on the PAN card.
- PAN Number: The unique identification number of the business’s PAN.
- Email ID: The correct email for official correspondence.
- Mobile Number: A number that will receive OTP for verification purposes.
- State: The jurisdiction of your business’s physical location.
- Business Constitution: The legal framework of the enterprise: individual business, partnership, LLP or company.
- Details of Business: Address primary business activity and type of enterprise.
Step 3: Obtain Contact Verification OTP
The system dispatches an OTP to your registered mobile and email address post submission. Utilize the OTP provided to validate your contact information by entering it in the appropriate fields.
Step 4: Application Reference Number (ARN)
Post verification, an ARN (Application Reference Number) becomes available. You can monitor your application status using this reference.
Step 5: Fill GST Registration Form (Part-B)
Subsequent to receiving an ARN, you must complete the GST Registration form (Form REG-01). The reference requires the following information:
- Business Details: Description and industry classification of the business activity, and the goods or services provided.
- Proprietor/Partners/Directors Details: PAN and addresses, and identity documents for partners, or directors.
- Bank Account Details: Bank name, account number, IFSC code, etc.
- Proof of Business Address: Documentation that verifies the location of the business (lease agreements, utility bills, etc.).
Step 6: Upload Documents
It is mandatory to submit the following:
- PAN Card (of business owners, directors or partners).
- Aadhaar Card (of individual applicants).
- Photographs (Post sized).
- Proof of Business Address: Electricity bill, rental agreements, etc
- Bank Statement Or Canceled Cheque.
- Partnership Deed/LLP Agreement (if necessary).
- Certificate of Incorporation (if necessary).
Step 7: Submit Application
After filling in all the details and uploading the necessary documents, submit the form. You will receive an application acknowledgment on your email registered for this purpose.
Step 8: Allocation of GSTIN
Your application will undergo approval or rejection post the verification of submitted details and documents by the GST department. Upon approval, you shall receive the GSTIN (GST Identification Number) and the GST Registration certificate can be downloaded from the GST portal.
How To Obtain Quick Approval For GST Registration?
The hurdles to be overcome while the application is processed generally take 3-7 working days, but the following pointers can expedite the registration process.
- Verify All Documents Are Complete
All identity documents and proofs should be compliant, adequately uploaded, and accurate. Any incorrect information mismatch may cause delays.
- Do OTP Verification For Offline Validation.
Offline validation of personal details by two-step verification via email and phone number will fasten the registration process.
- Avoiding Mistakes in the Application
Applying for a GST registration must be done precisely. Simple clerical errors like a wrong business name, incorrect PAN, or mismatched details can all lead to the rejection of your application.
- Try to Apply Before the Threshold Limit
It is best to apply for the GST registration before reaching the threshold limit to avert any complications or penalties down the road.
- Follow Up Consistently
Make sure to keep close track of your application by using the ARN number on your GST portal. If necessary, reach out to the proper authority and follow up.
The Different Types of Businesses and their GST Registration Process
- Sole Proprietorships
Applying is particularly easy, as all that’s required is a PAN and aadhaar card.
The sole proprietor also needs to provide the information and documentation.
- Partnership Firms
In addition to the firm’s PAN, one also needs the Partnership Deed.
Proof of the firm’s bank account also has to be provided alongside personal details of the firm’s partners.
- Limited Liability Partnerships (LLP)
Alongside a PAN, an LLP agreement with the firm’s and some of their partners’ details are also required.
A Certificate of Incorporation for the LLP must also be provided.
- Private Limited Companies
A company’s PAN and incorporation certificate along with details of the directors need to be submitted.
If the application is being submitted by someone else, a Board Resolution or Letter of Authorization will also be necessary.
Did You Know?
- Filing GST returns: Every registered business ought to file the GST returns on a monthly basis or every three months based on their earnings.
- Input Tax Credit/ITC: Any business that is GST registered shal be eligible to the Input Tax Credit B on all taxes paid on the business items that are acquired for business purposes.
Overcoming Common Hurdles of GST Registration
Incorrect Business Information
The business needs to be very careful about all information which is associated with the business. Many businesses are very careless, especially when it comes to providing business information. It’s best to be consistent and check before you submit.
Delays in Document Verification
This has to be in the top three of the most problematic hurdles. Ensure appropriate outlined documents are provided.
GSTIN Rejection
Your application is subject to rejection if the specific documents that are provided are not relevant or valid. Check all required documents and ensure that they are not expired.
GST registration fees and processing times
- Processing time: Depending on how complete your application is, it is usually between 3 to 7 working days.
- Fees: There is no cost, however, if you decide to engage a consultant, there will be costs related to registration.
Important Highlights:
- Your documents must be authentic and precise.
- Do not neglect periodic monitoring of your GST application status.
- Apply within the early stages of the processes to prevent operational delays.
Frequently Asked Questions (FAQs)
After submission, it usually takes between 3 to 7 working days. However, the timeline may extend beyond this if documents are incomplete or incorrect.
Yes, the threshold limit can be applied regardless of a company’s turnover.
That is possible. Any registered taxpayer has the ability to apply for GST cancellation should they decide to stop their economic activities.
In the case that an application is mandatory and one is not submitted, penalties and fines are likely to occur.