GST Registration Eligibility & Online Filing Process

GST Registration Eligibility & Online Filing Process

GST Registration - An Overview


The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. It is a destination based tax on consumption of goods and services. GST is to be charged at every step of the supply chain, with full set-off benefits available. 
The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian  Government. The tax replaced existing multiple Central and State Government taxes. The procedure for                     GST is entirely online and requires no manual intervention.

GST Registration - Eligibility

Every business or corporation that are involved in the buying and selling of good or services have to register for GST. It is mandatory for companies whose turnover is more than Rs.20 lakhs* (for supply of services) and Rs. 40 lakhs* ( for supply of goods) (Rs 10 lakhs for NE and hill states) yearly to register for a GST. 
Also, as per the recent notification, e-commerce sellers/aggregators need to register if total sales are less than Rs.20 lakhs. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.


GST Registration - Turnover Limit

There are various types of GST registration and some types of entities like casual taxable persons, non-resident taxable persons or persons supplying through eCommerce operators are required to mandatorily obtain GST registration irrespective of turnover limit. The GST turnover limit for regular GST registration for service providers and goods supplier is provided below.
Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.
Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:
  1. Should not be providing any services.
  2. The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.

Who Should Register for GST?

  1. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  2. Businesses with turnover above the threshold limit (Rs. 40 lakh for small businesses and Rs. 20 lakh for hilly and northeastern states, as per recent regulations)
  3. Non-resident Indian (NRI) taxable persons
  4. Agents of a supplier & Input service distributor
  5. Those who pay tax under reverse charge mechanism
  6. Person who supplies via e-commerce aggregator
  7. Every e-commerce aggregator
  8. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

Types of GST Registration
  1. Normal Taxpayer
  2. Composition 
  3. Casual Taxable Person
  4. Input Service Distributor (ISD)
  5. Non Resident Taxable Person
  6. Non-Resident Online Services Provider
  7. UN Body/ Embassy/ Other Notified Persons
  8. Special Economic Zone (SEZ) Developer/ Special Economic Zone (SEZ) Unit
  9. Tax Deductor at Source (TDS)/ Tax Collector at Source (TCS)
Composition Taxpayer - GST Composition Scheme is for the small taxpayers, which is framed to reduce the tax compliance burden. Small taxpayers need not file monthly GST returns and they need to pay nominal GST at a fixed rate of turnover. Any business having an annual turnover up to Rs. 1.5 Crore can opt for GST registration under composition scheme.  Following is the eligibility criteria to register under GST Composition Scheme :
  1. Must be a Registered Taxpayer
  2. Annual Turnover should be less than Rs 1 Crore
  3. Manufacturers of Goods, Dealers, and Restaurants (Not Serving Alcohol) can opt for this scheme.

Casual Taxable Person - Casual Taxable Person is a person who supplies taxable goods or services occasionally like a event management company which has various events in different states needs to register as a Casual Taxable Person for that particular taxable state before supplying or offering any goods or services.
Suppose Mr. 'A' has a business of consulting and who provide services in different states, then he needs to register as a Casual Taxable Person so that his business is compliant with the tax norms of that particular state.




What is GST Registration Process?
By following some easy steps as mentioned here, entities as taxpayers can get register on gst portal
  1. The GST registration process starts with filing the application form (REG-01). 
  2. Those applying for registration will be required to furnish important details after verifying themselves as a taxpayer or GST practitioner. The details required in Part A of the form are legal name of their business, Permanent Account Number, the location of the business establishment, contact details, etc.
  3. Essential documents for verification should be uploaded online.
  4. The applicants will be sent an Application Reference Number via SMS and email, after filling complete form including Part B.
  5. The GST registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST registration certificate can be downloaded from the GST Portal.
NOTE : - If traders have multiple branches in different states, they must complete separate registration process for each state. 
But Remember you always need a Professional like CA/GST consultant to choose the Right AO Code & Proper HSC/SAC Code for your registration with Proper Documents. So always take services from Certified GST Consultant like TAXAJ which helps you to get done GST Registration Online. 

Take a look at how to register for GST online in few easy steps.

1. Go to the GST portal.
2. Click on ‘Registration’ under the ‘Services’ tab and then click on ‘New registration’.

PART A


1. Select ‘taxpayer’ from the drop-down menu of ‘I am a’
2. Now, fill form GST REG-01 for your new registration and enter details such as the legal name of your business, state, email address, mobile number and PAN card.
3. Verify your information by entering the one-time password sent to your mobile number and email ID, and click on ‘Proceed’.
4. When you complete the process and move to Part B, you will receive a Temporary Reference Number (TRN), after verification. Note down this number.

PART B

1. To start with part B, login with your TRN and enter the CAPTCHA code. Complete the OTP verification with the OTPs sent to your email id and registered mobile number. You will then be redirected to the GST registration page.


2. Now, submit business information such as the name of your company, PAN, name of the state you are registering your business in and date of commencement of your business. Here, you have to mention if you have any existing registrations.
3. Then, submit details of up to 10 promoters or partners of your business. In case of proprietorship firm, you will have to submit the details of the proprietor. You will have to provide personal details, designation, DIN (Director Identification Number), PAN and Aadhaar number.
4. Next, submit the details of the person you have authorised to file GST returns.
5. Add the principal place of business, enter the address, official contact details and nature of possession of premises.
6. Add details of any additional places of business, details of goods and services to be supplied, and the bank account details of the company.
7. Upload the required documents based on the type of business you are registering.
8. Now click on ‘Save and continue’. Once you submit the application, you will need to sign it digitally.
9. Click on ‘Submit’ to save your details.
10. After submission, you will receive an Application Reference Number (ARN) via email or SMS to confirm your registration.

Voluntary Registration Under GST (For Companies With Turnover Below Rs. 40 Lakhs) (Rs. 20 Lakhs for Special Category States)
Many small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration has its own advantages and some of them are:
  1. Take input credit: In GST, there is a flow of input credit right from manufacturers of the goods till the consumers, across the country. Input credit means a taxpayer while paying tax on output can deduct the tax that has already been paid on inputs and pay only the remaining amount. Voluntarily registered businesses can increase their margins and profits through this.
  2. Do inter-state selling with no restrictions: SMEs can increase the scope of their businesses and find prospective customers and explore online platforms.
  3. Register on e-commerce websites: SMEs can widen their market by registering through e-commerce sites.
  4. Have a competitive advantage compared to other businesses.
  5. To improve the business credibility.
  6. To satisfy the requirements of B2B customers.

Documents Required for GST Registration

To ensure the GST Registration is executed without any hassle, the applicants must furnish a set of vital documents which will be submitted to the authorities for verification purposes.

The list of documents required for registration of GST for various business are as follows:

PROPRIETORSHIP
1. Name, Contact Number and Email Id of Stakeholder.
2. Self Attested PAN, Aadhar & Passport size photo of Stakeholder.
3. Specimen Signatures of Stakeholder.
4. Latest Electricity Bill/Landline Bill of Registered Office.
5. NOC from owner of registered office. (If Owned)
6. Rent Agreement from Landlord. (If Rented/Leased)
7. Brief description of main business activities of the proposed Company.
8. Cancelled Cheque in business name (After GST Approval)

ADDITIONAL DOCUMENTS FOR PRIVATE LIMITED COMPANY /LLP /OPC / PARTNERSHIP FIRM
1.  PAN Card of Company/LLP/OPC / Partnership Firm
2. Certificate of Incorporation
3. LLP Agreement/Partnership Deed
4. Letter of Authorization/Board Resolution for Authorized Signatory
5. Digital Signature


Benefits of Registering Under GST

  1. You can legally collect taxes from your customers and pass on the Tax Benefits to suppliers
  2. Make interstate sales without restrictions
  3. Register on e-commerce websites
  4. You can easily apply for various states and Central Government tenders if you have GSTIN
  5. GST certificate can be used as one of the documents while opening current account or Business Account
  6. Dealing with MNCs easily
  7. Increase Trust between your customer’s
  8. Business becomes 100% tax Compliant
  9. Expand your business through various channels like Online, Import-Exports 
  10. Have a competitive advantage compared to other businesses

GST Registration Responsibilities


Entities registered under GST have various responsibilities and compliance requirements from time to time. Failure to comply with the GST regulations or compliance requirements can lead to penalties and revocation of GST registration by the authorities. Some of the main responsibilities of a person registered under GST include:
  1. Collecting and remitting GST amount from customers
  2. Issuing proper GST invoice as per the GST rules and regulations
  3. Filing GST returns whenever due based on turnover - even if there is no turnover or business activity
  4. FIling annual GST return
  5. Maintaining all records pertaining to GST for a period of 8 years

Application for Filing Clarification

If the Tax Official is not satisfied with the information provided by you in the Registration Application or the documents attached, the Tax Official can seek for clarifications from the taxpayer.

In such cases, the status of the application is changed to “Pending for Clarification”.

Once you have received the intimation for notice seeking clarifications, you must login to the GST Portal using your TRN and provide the clarifications electronically or upload the document(s) sought with 7 working days from the date of receipt of such intimation.

To respond to the notice seeking clarifications on the GST Portal, perform the following steps:
1.Go to https://www.gst.gov.in/ URL where the GST Home page will be displayed.
2.Click on “Register Now” on the screen
3.Login to GST Application to resubmit clarification.

i-   Click on “Temporary Reference Number”



ii-  In the TRN box, fill the number received. And then click on “proceed”
iii- Enter the otp which will be displayed in your inbox in the Mobile or Email otp field.



Note: OTP sent to mobile number and email address are same.
In case OTP is invalid, try again by clicking the Click here to resend the OTP link. You will receive the OTP on your registered mobile number or email ID again. Enter the newly received OTP again.

In case of Existing Registration:
1. Login to the GST Portal with valid credentials.
2. Click Services > Registration> Application for Filing Clarifications command.



3. In the Reference No. of Notice field, enter the reference number specified on the notice which you have received for filing the clarifications. Or In the Application Reference Number (ARN) field, enter the application reference number received corresponding to the application submitted. Click the SEARCH button.
4. You will see two options in the Modification of the Registration Application area: YES or NO;

If you select Yes: An original application will be provided where you can edit all those fields due to which the notice might have been issued. Enter the required details and documents and submit again.
If you select No: An“Additional Information” Field will display. Submit required additional information.

5. Submit the application using SUBMIT WITH DSC or SUBMIT WITH E-SIGN as applicable/ eligible.

SUBMIT WITH DSC is selected:
1.Click on the “SUBMIT WITH DSC” option and then click on “proceed”.
2.Choose the certificate and then click on the “SIGN” option.
3.Enter PIN (dongle password) for the DSC attached.

SUBMIT WITH E-SIGN is selected:
1.Click on the “SUBMIT WITH E-SIGN” option. 
2.Click on the “I Agree” option in the declaration check box.
3.OTP will be sent to your registered E-mail address as well as registered mobile phone.
4.Verify the OTP in the displayed by entering the OTP you received on your e-mail address or mobile phone number. 

Click on the “CONTINUE” button to successfully resubmit clarification raised against new GST Registration Online application.


GST Registration Fees

Although the government of India does not charge any fee for the purpose of GST Registration under the Goods and Services Tax (GST) regime, individuals and entities registering for GST through the online registration process are required to pay a fee for the services availed from professionals.


Penalty for not registering under GST

All the individuals and entities who qualify under the eligibility criteria are mandated to go through GST Registration. Defaulters who fail to comply with the rules and do not pay the tax or make short payments (genuine errors) instead of full payment are liable to pay a penalty. The penalty for tax evasion by an offender will be 100% of the tax amount due. The amount to be paid as penalty for not registering under GST is 10% of the total tax amount due subject to a minimum of Rs. 10,000.


For more information on this visit https://www.taxaj.com/



Frequently Asked Questions



1. What is GST ?
GST (Goods & Service Tax) the name itself defines that the tax is levied on Good and services. This tax will be levied from all stages from manufacturing till consumption.

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Web re1. What is GST

2. What is GST Registration Number ?
GST Registration number is an identification number which is assign to each Firm or Company or Individual. Its a like a PAN Number for the same. Its a 15 digit unique tax identification number. The first two digit show the state code & another next 10 digit show the pan number of the entity or person. Apart from this next 1 number show the entity Code (Like proprietorship firm or partnership, etc) & another 2 number are random. For Ex – 08AAKCM0506E1ZT

3. Can I be voluntarily registered under GST ?
Yes, you can voluntarily get Registered under GST even if your annual turnover does not exceed the threshold limit (40 Lakhs).
Registering under GST not only helps you in getting your business recognized as a legal registrant but also help you avail various benefits like avail to raise GST Invoice, avail input tax credit, and much more.

4. When should a business apply for multiple GST registrations ?
A business needs to get more than one GST number if,
  1. A business entity is supplying goods & services from multiple States, then he/she mandatorily required to register under GST in different States.
  2. Further, any business entity can get multiple GSTIN even if they are operating from a single State under multiple verticals to avoid accounting complexity between multiple businesses.
Illustration
ABC Private Limited doing the business of selling merchandise and also doing the business of selling software from Bangalore only. Still, a company can apply for multiple GST numbers for their different business domain.

If you are supplying goods and services from one state to all over India. You do not need multiple GST Certificates.

5. How long does it take to get GST number ? 
GST registration takes 7-10 working days for the entire process to complete and receive the GST number.

6. I am vendor selling through an e-commerce portal. Do I need opt for GST registration ?
GST registration is mandatory for all businesses selling their product or rendering services through e-commerce operators like Amazon, Flipkart, Ola etc.

7. Do I need Digital Signature for the GST Registration ?
Electronically signing the Registration Application using DSC is mandatory for enrolment by Companies, Foreign Companies, Limited Liability Partnership (LLPs) and Foreign Limited Liability Partnership (FLLPs). For other taxpayers, electronically signing using DSC is optional.

8. Can we apply GST on our Firm or Brand Name ?
Yes, GST Registration required a one legal entity name, so if you are registered as proprietorship firm then yes you can provide your any firm name. There are no name guidelines on the firm name while applying for the GST registration.

9. Do I need Commercial Address for the GST Registration ?
No, if you are running your business from home then the residential address can be registered with the GST. It is required only the proof of address like electricity bill copy with the NOC or sale deed or rent agreement copy etc.

10. What action required after the GST Registration ?
Once you applied for the GST Registration, after that each month you have to raise the GST Invoice to your customer or client & charge the proper GST Amount from them. At the end of the month you have to pay the taxes online for the same.

11. There is any rejection during the GST Registration ?
Yes, if there are not proper documents then GST Registration is subject to govt approval. If govt officer denied the application then you have to file the fresh new GST registration.

12. How to Choose HSN or SAC Code during GST Registration ?
HSN or SAC Code refers to Goods and Services code. So at TAXAJ, our CA helps you to choose the right HSN or SAC Code after getting details about your business.

13. Do I have to visit the GST Department with my paper for any verification ?
No, we takes care of each thing. So you have not required to visit any kind of govt office etc. simply register on our website and get done your GST Registration at fingertips.

14. When Digital Signature is required for the GST Registration ?
DSC is required only in case of the private limited company or OPC or LLP etc. for the Proprietorship Firm or partnership firm, it’s not required the DSC.

15. Do i have to charge any tax from the customers, if my turnover is not exceeding 40 lakh ?
Yes, from the very moment you obtain GST registration certificate, you need to charge GST tax from your customers on every sale.

                                                                                                                                                                                    Ramesh Kumar Gupta (Team Taxaj)


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