GST Registration Online – An Overview
Launched on 1 July 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers. A variety of Central taxes like Service Tax, Excise Duty, CST and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are accumulated in the GST. Also, taxpayers with a turnover of less than ₹1.5 crore can choose a composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
Every product goes through multiple stages along the supply chain, including purchasing raw materials, manufacturing, selling to the wholesaler, selling to the retailer and then the final sale to the consumer. Interestingly, GST will be levied on all of these 3 stages. Let’s say if a product is produced in West Bengal but is being consumed in Uttar Pradesh, the entire revenue will go to Uttar Pradesh.
What Are the Components of GST?
GST has three tax components, namely:
- Central Goods and Services Tax or CGST, it is a central government
- State Goods and Services Tax or SGST which is a state component. Where centre and state will levy GST on all entities for all the transaction in the state
- The Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e. when a transaction happens from one state to another.
Mandatory Documents For Online GST Registration
The list of documents required for registration of GST for various business are as follows:
- PAN Card and address proof of proprietor
- PAN Card of LLP
- LLP Agreement
- Partners’ names and address proof
Private Limited Company
- Certificate of Incorporation
- PAN Card of Company
- Articles of Association, AOA
- Memorandum of Association, MOA
- Resolution signed by board members
- Identity and address proof of directors
- Digital Signature
The Following Can Be Shown as Proof of Address of a Director
- Voter Identity Card
- Aadhar Card
- Ration Card
- Telephone or Electricity Bill
- Driving License
- Bank Account Statement
Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone bill.
GST Registration Process
Step 1: To apply GST Registration Online, visit the GST portal and select ‘New GST Registration’
Step 2: Fill in the necessary details like name of business, state, pan card details, etc
Step 3: Enter the OTP and click proceed
Step 4: Make a note of the Temporary Reference Number(TRN)
Step 5: Check the GST portal and select ‘Register’ in the ‘Taxpayers’ menu
Step 6: Enter the TRN and proceed
Step 7: Enter the OTP received on your registered mobile number or your email and then proceed
Step 8: You can check the status of your application on the next page
Step 9: Fill in the necessary details and upload the necessary documents
Step 10: Submit your application after verifying by one of the three methods given
Step 11: After completion, you will receive the Application Reference Number(ARN) on your registered mobile number and email id
Step 12: Now you can access the status of the ARN on the GST portal.
After successful registration, you will get your GST registration certificate and GSTIN after verification of the GST application and other mandatory GST registration documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST certificate can be downloaded from the GST Portal.
Who Needs a GST Registration Service?
- Any individual or business entity that carries out taxable supplies of goods or services
- Annual turnover of the business exceeds the prescribed threshold limit (currently ₹20 lakhs for most businesses)
- E-commerce operators that facilitate the supply of goods and services through their platform
- Non-resident taxable persons who occasionally supply goods or services in India
- Businesses that are involved in inter-state supply of goods or services
- Input service distributors who distribute input tax credit to their branches or units
- Casual taxable persons who supply goods or services occasionally in India
- Businesses that were previously registered under the old tax regime (VAT, Service Tax, etc.) and have migrated to GST.
What is a GST Certificate?
A GST Certificate is a document issued by the Indian government to businesses registered under the Goods and Services Tax (GST) system. It serves as proof of the business’s registration under GST and includes details such as the business’s GST identification number, name, and address. Businesses are required to have a GST Certificate to be able to charge and collect GST from customers. It is also used for various other purposes such as availing input tax credits, applying for loans and participating in tenders.
What Are the GST Tax Rates?
Goods and Services Tax (GST) is a value-added tax that is levied on the supply of goods and services in India. The GST tax rates in India are as follows:
- 0% – This rate is applicable for essential items such as food grains, fresh vegetables, and medical supplies.
- 5% – This rate is applicable for items such as processed food, packaged food, and some household items.
- 12% – This rate is applicable for items such as mobile phones, laptops, and television sets.
- 18% – This rate is applicable for items such as air conditioners, refrigerators, and washing machines.
- 28% – This rate is applicable for items such as luxury cars, tobacco, and aerated beverages.
In addition to these rates, there are some special rates that are applicable to specific goods and services. For example, gold is taxed at 3%, while crude oil and natural gas are taxed at 6%. GST is also levied on services such as telecom, insurance, and banking at the rate of 18%.
It’s important to note that GST rates are subject to change and may vary depending on the type of goods or services being supplied. It’s always a good idea to check the current GST rates before making a purchase or offering a service.
You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html
Check out the GST calculator, which comes in handy to calculate the Goods and Service Tax using different slabs.
What is GSTIN?
GSTIN is a unique identification number given to each GST taxpayer. To verify a GSTIN number, a person who has a GST number can log onto the GST portal.
What is the GSTN (Goods and Service Tax Network)?
The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTN is responsible for maintaining the Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.
Penalties For Failure To GST Registration
As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST online.