Table of Contents
What is GST Registration?
GST registration is the process of obtaining a unique identification number for a business that is required to pay Goods and Services Tax (GST).
Businesses that have an annual revenue of more than Rs. 40 lakhs (or Rs. 20 lakhs in certain states under specific categories) are required by GST to register as regular taxable businesses.
Businesses that exceed the turnover threshold are required to register for GST; otherwise, they will be facing fines and legal action. GST registration assists in ensuring compliance and transparency in the tax system.
GST registration is mandatory for every e-commerce seller. People can apply for the New GST by registering online, without physically visiting a government office.
Who Should Register for GST?
GST registration is not required for every business. The eligibility criteria vary depending on business turnover and geographical location. Here’s a brief overview:
Normal Scheme Registration: This is the most popular type of registration for a business whose revenue exceeds the threshold limit of Rs.40 lakh for goods or Rs. 20 lakhs for service. The registered persons must file monthly or quarterly GST returns and pay tax at the applicable rates.
Interstate business: Any type of business that supplies products or services across boundaries between states must register.
Input Service Distributed: This is a registration for offices of a supplier who receives tax invoices for input services and distributes the input tax credit to other branches of the same supplier.
Non-Resident Taxable Person: This is a registration for persons who reside outside India but supply taxable goods or services in India. The registration is valid for 90 days (about 3 months) or the period of supply, whichever is earlier.
Reverse Charge Mechanism: A tax regulation known as the Reverse Charge Mechanism (RCM) transfers the responsibility of paying GST from the supplier to the recipient of the goods or services. Usually, it is used in transactions involving unregistered suppliers or products or services that the tax authorities have identified. RCM ensures tax compliance and improves revenue collection efficiency.
Selling on E-commerce Business: E-commerce businesses are those that sell their goods online. If you sell goods or products on Flipkart, Amazon and Myntra etc. then you will need a website, in such a situation you will have to take Goods And Services Tax registration before starting the business.
What are the Steps involved in the Goods and Services Tax (GST) Registration Process?
- Step 1- Go to the GST Portal. Click on Services. Then select the ” Registration” tab thereafter select the “New Registration” tab.
- Step 2– Fill in the following information in part A:
Enter the following details in Part A:
- Select the ‘I am a’ – Taxpayer
- Select the State and District.
- Enter the legal Name of the Business and PAN of the business.
- Enter the Mobile number and email address.
- You will get OTPs on the registered Mobile number & email ID.
- Click on proceed.
Step3– Enter the two OTPs that you got on your phone and email. Click on continue. Click Resend OTP if you haven’t received the OTP.
Step 4– Now, you will get the 15-digit Temporary Reference Number (TRN). This will also be sent to your email and mobile or PAN-linked contact details. Write down the TRN. You need to complete filling part-B details within the next 15 days (about 2 weeks).
Step 5 – Once again visit the GST portal. Visit to the ” Registration” tab and Select ” New Registration”
Step 6– Enter the Temporary Reference Number (TRN) and captcha code. Click on proceed.
Step 7– You will get an OTP on the registered mobile and email. Verify the OTP and click on proceed.
Step 8– You’ll see that the application is displayed as being in draft phase. Click on the Edit icon.
Step 9– There are 10 sections in part-B. Fill in all the required details and submit the necessary documents.
The List of Documents Applying for New Goods And Services Tax Registration
- PAN Card
- Aadhar ID
- Photographs
- Proof of Address
- Bank Account details
What are the Advantages of GST Registration?
1.Eliminating of cascading effect
2.Improved Threshold limits
3.Simplified Tax Structure
4.Composition scheme for small business
5.Interstate Operations
6.Avoid Penalties
7.E-commerce Operations
8.Expanded Market Reach
9.Simple and easy online procedure
Summary
GST registration is mandatory for every e-commerce seller. A person can have multiple registration for GST. If a person runs more than one business in a different state, they must register with each state separately. Additionally, a person can have GST registrations within a single state if they operate more than one business vertically.
FAQs
Who is eligible for GST Compliance?
Businesses are required to pay GST if their annual revenue exceeds Rs 40 lakhs.
What Are the Different GST Rates?
The types and characteristics of goods and services determine the different GST rates. There are four categories in which different GST base rates are divided: 5%, 12%, 18%, and 28%. The GST Council sets these rates, which are changed annually. The highest GST rate, 28%, is applied to luxury goods like vehicles, washing machines, and while the 5% tax slab is charged on basics necessity like medicine and food.
Is GST Applicable to All Goods and Services?
No, because of their nature, some categories of goods and services are excluded from the GST. These products and services are not currently covered by the GST and will continue to be charged the same taxes under the former indirect tax regime.
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