GST registration Process in India

GST registration Process in India

What is GST?

Goods and Services Tax or GST was first introduced on 1st July 2017. GST is considered as one of the most praiseworthy changes in the Indian taxation system. On 29th March 2017, the GST Act was passed in the Lok Sabha and it has been termed as a ‘Good and Simple Tax’. This indirect tax has replaced VAT, Service tax, Excise, Entry tax, Entertainment Tax and more. Goods and Service Tax is imposed on the distribution of goods and services. In India, Goods & Services Tax is a widespread tax reform levied on every value addition. As a result, the tax will be levied at every end of sale. GST in India is applicable in three ways, namely:

1. SGST – the Good or Service Tax collected by State Government.
2. CGST - the Good or Service Tax collected by Central Government for an intra-state transaction.
3. IGST - the Good or Service Tax collected by Central Government for an interstate.
   

Advantage of GST

1. The earlier tax was levied on every purchase and the final consumer. But now, this system of tax or the Cascading Effect of Taxes will be replaced by Goods and Services Tax. Therefore, businesses won’t be charged with multiple taxes.
2. GST does not require multiple tax returns. As a result, an individual engaged in more than one business is not required to file a separate return; rather a single GST return will successfully serve all the purposes.
3. With no more implementation of entry tax, goods carrier do not need to wait at state borders for clearance. Goods will now be transported faster.
4. GST regime aims for guaranteed digital support and says no to bureaucracy.

GST Registration in India

Any taxable supply of goods or services by a business demands GST Registration, when its turnover exceeds the limit of Rs. 10 Lakh or Rs 20 Lakh. Thereafter, in such cases, businessmen and traders are liable to pay GST. Rs 10 lakh is levied as GST in the case of states under the special category or for states situated in north-eastern India. GST registration facilitates traders to achieve various benefits that are available under the GST establishment. Among them is input tax credit. In order to make sure that at each stage of the supply chain, the tax is imposed only on the value addition, the GST Act grants credit for the taxes rewarded at the previous stage. Moreover, with GST registration, multiple taxes are integrated under GST Act. More importantly, in order to avoid crossing point with tax authorities, timely registration of GST is the only wise decision.

Registration process for GST in India

The GST regime allows fulfilling all necessary procedures through online method. As a result, filing returns, taxpayer registration, payment of tax and more can be conducted online. The Central Government of India also appointed GSPs or GST Suvidha Providers to guide various businesses during the registration process Within 7 working days from the date of acceptance of Form GST REG-03, the applicant needs to answer in Form GST REG-04 with required details.

1. The PAN Card of the applicant along with the mobile number and email address have to be submitted in Part A of Form GST REG–01 on the GSTN portal or through Facilitation center.
2. Once the PAN is validated on the GST Portal, thereafter the mobile number and E-mail address are verified with a one-time password (OTP). After the completion of this step, the applicant will obtain an application reference number on the registered mobile number and via E-mail. In FORM GST REG-02, an acknowledgment should be issued to the applicant electronically.
3. The Part- B of Form GST REG-01 needs to be filled by the applicant. Moreover, application reference number shall be specified as well. After enclosing the required documents, the form can be submitted.
4. In case any additional information is demanded, then Form GST REG-03 will be issued.
5. When all necessary details are provided through Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the primary location of the business or any other supplementary place of business will be issued to the applicant.
6. When an individual operates multiple businesses within a state, then he may file a separate application for the registration in Form GST REG-01 for each one of the businesses. However, if the information is not acceptable, the registration application is rejected via Form GST REG-05.
7. The applicant who is expected to deduct TDS or collect TCS shall put forward an application in Form GST REG – 07 for registration. However, if the applicant is not eligible to deduct or collect tax at source, the officer may reject the registration.

Documents for GST Registration

1. The PAN Card of the applicant is necessary to obtain GST certificate.
2. Identity and Address Proof of Promoters such as PAN, Passport Aadhar card or Voters ID etc must be submitted.
3. Incorporation certificate or partnership deed or registration certificate must be submitted to validate business registration.
4. Documents such as rental agreement as well as copies of electricity bill or latest property tax receipt along with other documents mentioned on the GST website need to be submitted by the applicant.
5. The first page of bank passbook needs to be scanned and a copy has to be submitted to provide transaction history of the applicant. Moreover, the address of the business must be submitted to the bank account mentioned in the application.
6. Digital Signature is mandatory while submission of GST application. Whereas, there is no requirement for digital signature in case of proprietorship.

Thus, it is important to have a comprehensive knowledge about “GST Registration Process in India”. When an individual neglects payment of tax or makes insufficient payments, thereafter he is legally responsible to pay 10% of the tax amount. Additionally, this interest can stretch up to 100% of the tax amount, when there is a contravention of tax rules. As a result, it is wise of every citizen to pay their taxes on time and follow the rules.