All About GST Registration to Register for GST

As of July 1, 2017, any seller who wants to sell across India must enrol for GST (Goods and Services Tax), except if the seller sells goods or services under exempt categories. The GST registration process is entirely paperless, meaning it will take place online or digitally. There will not be any hard copies or physical printouts required for the enrolment.

We have broken down the GST registration process into smaller parts for your convenience.

Part I: Generate your GST Application form.

The first step is to obtain the Temporary Registration Number (TRN). You need a valid mobile number (an India number), email address and PAN (Permanent Account Number) for the business to obtain this.

1. Go to the official GST portal – https://www.gst.gov.in/ and under the services tab, choose Services > Registration > New Registration.
2. Enter all the requested details (including your PAN number) on the Registration page, email address and mobile number.
3. After entering the details, click proceed. You will receive two different OTPs on your mobile and on your email for verifying the mobile number and the email iID OTP is valid only for 10 minutes. If required, you can regenerate the OTP.
   Your Temporary Reference number will be generated at the end of this process.
4. To use this number, either click Proceed or Services > Registration > New Registration option and select the Temporary Reference Number (TRN) radio button to log in using the TRN.
5. In the Temporary Reference Number (TRN) field, enter the TRN generated and enter the captcha text as shown on the screen.
6. After this, you will be asked to verify OTP again. This is different from the previous OTP generated, please enter the new OTP received. The same OTP will be received on the verified mobile number and email iID.
7. This will take you to your “My Saved Application” page. You will have to fill in all the form details and submit it within 15 days. After this, your number and saved form will be deleted. Click the Edit button and proceed to Part II.

Part II: Filling in your GST Application form

The form contains 10 sections/ tabs. Please click each tab to enter that section. Please consult your CA/Tax Consultant/GST Practitioner before submitting the form.

For this process, you need scanned copies of the following documents and some additional personal information:

• Valid Bank Account Number and IFSC
• Proof of constitution/incorporation of business

1. In case of a Partnership Firm – Deed of Partnership
2. For Others- Registration Certificate of the business entity.
   • Proof of primary place of business
   • Photo of promoter, director, partner, karta of Hindu undivided family (HUF) (whichever is applicable).
   • Proof of appointment of Authorised Signatory.
   • Photo of Authorised Signatory.
   • Front / first page of bank passbook/statement containing bank account number, branch address, address of account holder and latest transaction details.

Part III: Registering your Digital Signature Certificate

To verify your GST application, you would need to digitally sign the form. Please note that:

• DSC is compulsory for Companies and LLPs.
• You can only register and use the digital signature of the Authorized Signatory specified in the GST registration form.
• If you wish to verify the form by other available methods (rather than by the use of DSC), please refer to Part IV.
• If you wish to sign the document using Da Digital Signature Certificate (DSC), please follow the instructions below: Please ensure you have DSC software installed on your computer.
• If you wish to get a DSC, you can contact any one of the certifying authorities mentioned at http://www.cca.gov.in/cca/.
• Once you get the DSC software installed, you should also have the DSC Dongle with you (which you will receive with the DSC software).
• To sign the GST form, you need to also install Emsigner. You can download and install the DSC Signer from emsigner.com.

Part IV: Verify and Submit Your GST Application

You can apply by choosing any one of the 3 verification methods:

• Verification with DSC: Please refer to the earlier section
• Verification with e-signature: Refer to the section below.
• Verification with EVC: Refer to the section below.

On completion, an Application Reference Number (ARN) will be generated and sent to your mobile number and email ID. You can use this to track your application status (Services > Registration > Track Application).

Once your Application Status” shows “Approved”, an email and SMS will be received intimating that the GSTIN is generated and providing a temporary user name (which will be your GSTIN number) and password to login to the GST website.

While logging into the GST portal using the temporary user name and password received, you will have to go to the “Login” page and then click on the “The first time login” option, which will be available at the bottom of the login page. After you input the temporary username and password provided to you and click on the “Lthe login” option, it will ask you to change the username and password for future use.

You will be able to Download your Registration Certificate within 3-5 days. To download your Registration Certificate, log in using your valid credentials on the www.gst.gov.in website to access your dashboard, go to Services > User Services > View or Download Certificates and click the Download button.

If you are new to selling online, please register yourself and explore the opportunities.

Why GST Registration is required?

Removing The Cascading Effect Of Tax
GST is a comprehensive tax that was incorporated to bring India under single taxation. Thus it simplified the process and made the products cheaper by eliminating the effect of tax on tax.

Higher Boundaries For GST Registration Under VAT any business with a turnover of Rs 5 lakh was liable to pay VAT(different as per states). However, under GST the limit has been increased to Rs. 20 lakh thus several small traders and service providers are exempt.

Benefit Of Composition For Small Business
With GST small businesses with turnover between (RS 20 lakh to 75 lakh) can benefit from the composition scheme.

Helpful In Regulating Unorganized Sectors
Certain industries like textile and construction were unregulated and unorganized. With GST there is a provision for online compliances and payments and helps in getting input credit only if the supplier has accepted the amount.

Who Needs GST Registration?

Every business or corporation that is involved in the buying and selling of goods and services soo registered for companies with an annual turnover of more than Rs.20 lakhs (for the supply of services) and Rs. 40 lakhs (for the supply of goods) must registerer for GST.

All businesses making interstate outward supplies of goods have to register for a GST as well. The same applies to businesses making taxable supplies on behalf of other taxable persons, for example, Agents and Brokers.

Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are below Rs.20 lakhs.

Components of GST

Central Goods and Services Tax (CGST)

CGST is the amount of tax charged on the intra-state supply of different types of goods and services. This is normally charged and levied by the Central Government. As per CGST, both the Central Governments and State Governments would combine their GST collections and share the revenue equally.

State Goods and Services Tax (SGST)

This is the amount of tax charged on the intra-state supply of different types of goods and services. It is covered under the State Goods and Service Tax Act 2016.

Integrated Goods and Services Tax (IGST)

The revenue collected from IGST will be divided between the central Government and The ate Government as per the rates specified by the government. IGST is charged on the transfer of goods and services from one state to another state.

What are the GST tax rates?

• Items that are considered basic amenities come under the exempt list i.e. they are not taxed.
• Household necessities and life-saving medicines etc. are taxed at 5%.
• Products like computers and processed food are taxed at 12%.
• Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%.
• Luxury commodities are taxed at 28%.

You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html.

Documents for Online GST Registration

The list of documents required for registration of GST for various businesses is mentioned as follows:

• PAN Card of Owner
• Aadhar Card of Proprietor
• Bank Details
• Address Proof
• PAN Card of Company
• Aadhar card of All Directors
• Bank Details
• Address Proof
• MOA, AOA and Incorporation
• PAN Card of Partnership
• Aadhar card of Partners
• Bank Details
• Address Proof
• Partnership Deed/ LLP Certificate

What is Voluntary GST Registration?

Voluntary Registration is an option for people to apply for GST Registration even if he is not liable to get registration under Section 22 or Section 24 of the CGST Act, 2017 or SGST/UTGST Act 2017.

Let us see who can apply for voluntary registration.

Certain businesses are required to register mandatorily under the GST Act such as:

• Having a turnover of more than 20 lakhs
• Selling inter-state
• Selling online

Benefits of Voluntary Registration under GST

• Provide an input tax credit to consumers: Since your business is considered a legal entity, you can issue taxable invoices. Buyers, on the other hand, can take input credit on their purchases. This will help enlarge the customer base and increase competitiveness.
• Take input credit: Voluntary registration allows persons to take input credit on their own purchases and input services like legal fees, consultation fees etc. This will help increase their business margin and profitability.
• Allows inter-state sales without much restriction: Businesses registered under GST can make inter-state sales without much restriction. Thus, it expands the potential market for SMEs. They can also sell their goods online through the e-commerce platforms.

Disadvantages of Voluntary Registration under GST

• Tax Liability: Any taxpayer who opts for voluntary registration will be liable to collect taxes from their customers and issue a voice of tax to them. This has to be done irrespective of their turnover.
• Compulsory Return Filing: Under Voluntary Registration of GST, people who have opted are required to file periodical GST Returns. Any ordinary taxpayer is required to file 3 returns every month, and any composite dealer will be required to file returns quarterly. Along with these returns, taxpayers are also liable to file yearly returns as well.
• Penalty for Non-Compliance: Any taxpayer who registers for voluntary registration fails to issue proper invoices and furnish timely returns, will be liable to pay pea nalty under GST for such non-compliance.

Advantages of GST Registration

Tax evasion: The input credit applied to the recipient i.e. manufacturers or service providers only if the specifics are given by the supplier as a return. This supports the suppliers of products and services and thereby tends to control tax avoidance.

Composition plans for small businesses: Most small companies have reduced tax and compliance requirements. Therefore, the choice of opting for composition schemes can be beneficial for small businesses with revenues between 20 and 75 lakh rupees.

Improved efficiency of logistics: Restrictions on the transfer of goods between states have been minimised with the introduction of GST (one country, one tax scheme). Previously, several warehouses had to be managed to prevent the new GST and state entry taxes. This increased the overall cost of operations. As an outcome of GST, warehouses are setting up units at key locations, rather than in every other city.

Regulation of unorganized sector: Earlier textile and construction industries were mostly unorganized and not regulated. Under GST, arrangements for online payments and compliances have been made to regulate such sectors and keep them more organized.

Removes the cascading effect of tax: GST is a systematic process of taxation and has been formed to remove the cascading impact of tax. It has simplified the process and made the products cheaper by eliminating the effect of tax on tax. The cost of a tax is transferred close to the customer who supports the sector by improving cash flows and also the working capital management.

Transparency in taxation: GST is a clear tax structure where there are no hidden costs or taxes. This has also helped in decreasing the cost of conducting business.

HiThe higher limit for registration: Earlier under VAthe T structure, companies with a turnover of more than 5 lakh rupees were obliged to pay VAT. The threshold in the GST system has now been raised to Rs. 20 lakhs. This frees smaller businesses and service providers.

Disadvantages of GST Registration

Short-term challenges for business: The change towards GST has disrupted the working capital of companies in their starting phase, owing to the input credit lock-up.

Online taxation system: Under the GST system, the entire system has been digitalized. It has become a technically far-reaching transition that is challenging for smaller firms to embrace.

Multiple registrations: For organizations with branches in more than one state in India, it is extremely tedious to comply with the GST regulations. They will have to register with each state and adhere to compliances.

Numerous GST types: The concept of one country, and one tax majorly affects the compliance system of GST which includes CGST, SGST, and IGST.

Distribution of revenue: Revenue sharing for products and services specified in the corresponding list has become a point of conflict.

GST on Freelancers

India has emerged as a hub for passionate freelancers and hence, the freelance industry has been constantly growing. However, this particular industry is an unorganised sector and lacks clear and specific rules and regulations. The freelance industry in the country includes professional freelancers of various professions, bloggers and consultants. From a wide range of interests starting with travel and food to technology and fashion, freelancing has been a platform for people to display their talents and be self-employed.

Over time, the freelance sector has emerged to be one of the highest revenue-earning sectors in the industry. Hence, it was bound to be taxed under the GST law. The freelancers are required to obtain GST registration and pay 18 % GST for any income earned from these services. This is implemented for those who earn an income that exceeds the limit of Rs. 20 Lakhs.

GST on Sole Proprietorship

GST Registration for the Proprietorship Firm can be required in the following cases:

• When turnover is more than 40 lakh rupees per in a financial year.
• When a Proprietorship Firm sells products or services inter-state.
• When a Proprietorship Firm is involved in the e-commerce business.
• When the Proprietorship Firm wants to claim the input tax credit on the purchase.
• Voluntary Registration

Documents needed for GST Registration of Sole Proprietorship

• Personal PAN card Copy of the owner
• Aadhar Card
• Electricity Bill, Telephone Bill or water Bill of Business premise or Rent Agreement if it is rented
• Personal Bank Statement (If you have a current bank account in the Firm’s Name then instead of a savings bank account provide a current bank account)
• Passport Size Photograph
• Mobile Number and Email ID

Procedure for GST Registration

• Log into the Official Website of GST in India and fill up a registration form with pea personal PAN Card and other details.
• You can also contact a Professional Legal Service Provider or a GST Consultant to get GST Registration for proprietorship. Keep the documents handy.

GST Registration for Partnership Firm

GST Registration Procedure

Following are the steps for GST Registration for Partnership firms.

• Login into the GST Online Portal
• Fill up Form Part-A (with PAN, Mobile No., and E-mail)
• The Portal will verify your details by OTP/E-mail
• Upload the required documents
• Access and fill in Part B using the received number
• You will receive the Application Reference Number
• The GST Officer will verify your documents
• The GST Officer either rejects or accepts your application within 5-7 working days
• If any explanation is required, you need to submit the documents required
• After successful verification and approval, the GSTIN number is allotted to you

Documents required for GST Registration of Partnership Firm:

• Passport-size Photos of all Partners
• PAN Card of all Partners
• Aadhar Card of all Partners
• PAN Card of the Partnership Firm
• Copy of Partnership Deed
• Address Proof of business (Anyone – Electricity Bill/Rent or Lease agreement/Latest Bank Statement – Not older than 2 months)

GST Registration for Private Limited Company

Documents required for GST Registration for Private Limited Company:

The following documents are to be kept handy for GST registration.

• Company PAN Card
• Company’s Registration Certificate
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• PAN card, photograph and Aadhar card of all Directors
• Bank details
• Proof of appointment of authorized signatory
• Address proof of business

GST Registration Procedure

Following are the steps for GST Registration for Private Limited Company.

• Login into the GST Online Portal
• Fill up Form Part-A (PAN, Mobile No., and E-mail)
• The Portal will verify your details by OTP/E-mail
• Upload the required documents
• Then fill in Part B using the received number
• You will receive the Application Reference Number, which you can use to track the application status.s
• The GST Officer will start verifying your documents
• The GST Officer either rejects or accepts your application within 5-7 working days.
• In case of any further proofs or clarifications needed, you must provide the same.
• After successful verification and approval of the application, the GSTIN number shall be allotted to you.

GST Registration for E-Commerce

• It is mandatory under the GST Act, for e-commerce operators to obtain GST registration irrespective of sales turnover.
• GST Registration for the person selling through the -e-commerce platform: All the members who undertake supplies through e-commerce websites have to mandatorily obtain GST registration irrespective of the sales turnover. They have to apply for the GST registration irrespective thof e ownership of the websites and goods supplied. Any person who intends to sell on E-Commerce sites such as Flipkart, Amazon, Myntra, Snapdeal etc must obtain GST registration.
• TCS shall apply at the rate of 1% on the total net value of the goods or services supplied through the e-commerce operator.
• The e-commerce operator shall remit the GST TCS (Tax Collected at Source) to the Government 10 days after the end of the month.

Process of GST Registration

• Visit the Homepage of Goods and Services Website.
• At the top of the webpage from the menu, select Registration then New Registration.
• Fill in User Credentials and verify OTP.
• You should upload the scanned copies of all required documents and apply.

Hereafter, you need to select your category from the taxpayer, tax deductor, and tax collector (e-commerce). Apply under the right category to avoid major issues as it is an important step.

Timeframe for GST Registration

GST Registration usually takes 3 to 7 working days.

Cost of GST Registration

The Government does not charge any fee for GST Registration in India. Although individuals and entities registering for GST through the online registration process are required to pay a fee for the services availed from professionals. GST Registration for different entities requires careful documentation which requires professional assistance and guidance and the charges vary according to different entities.

It is recommended that you seek the help of a professional for submitting the application, the required procedures, filing your returns and completing other formalities online.