Registering for the Goods and Services Tax (GST) is essential for businesses in India. The process is online and straightforward, provided you follow the steps correctly. This guide will help you understand the GST registration process, including the necessary documents, steps involved, and frequently asked questions.
Why Register for GST?
Businesses with an annual turnover exceeding Rs.20 lakh (or as specified for different states and types of supplies) must register for GST. Registering for GST ensures legal recognition as a supplier of goods or services, and it allows you to collect taxes from your customers and pass on the credit of the taxes paid to your suppliers.
Latest Updates on GST Registration
While there haven’t been any groundbreaking changes to the GST registration process itself in 2024, some key updates can impact your experience:
Registration:
- Aadhaar Authentication: Aadhaar verification remains mandatory for GST registration and various other GST-related processes.
Compliance:
- Focus on Timely Filings: The government is emphasizing timely filing of GST returns. Unfiled returns can obstruct your ability to register for GST or make changes to your existing registration.
Changes announced in the 52nd & 53rd GST Council Meetings (October 2023 & June 2024):
- Amnesty Scheme (October 2023): Though no longer active, it’s important to be aware that an amnesty scheme existed until January 2024, allowing late filers of specific returns (GSTR-4, GSTR-9, GSTR-10) and those facing penalties under Section 62 of the CGST Act to resolve their issues.
- Return Filing Updates (June 2024):
- Taxpayers can now revise GSTR-1 for the same period through a new form, GSTR-1A. This allows adding or correcting missed details before filing GSTR-3B.
- The threshold for reporting B2C interstate supplies in GSTR-1 has been reduced from Rs. 2.5 lakh to Rs. 1 lakh.
- The due date for filing GSTR-4 by composition taxable persons has been extended to June 30th from FY 2024-25 onwards.
Step-by-Step Guide to GST Registration
Part-A of GST Registration Application
Step 1: Go to the GST portal. Click on Services, then Registration, and select New Registration.
Step 2: Enter the following details:
- Select New Registration.
- Choose Taxpayer.
- Select your state and district.
- Enter the business name and PAN.
- Provide the email and mobile number linked with PAN.
- You will receive OTPs on your registered email and mobile number.
Step 3: Enter the OTPs received. Click Continue.
Step 4: You will receive a 15-digit Temporary Reference Number (TRN). Note this TRN.
Step 5: Return to the GST portal, select New Registration, and enter the TRN and captcha code.
Step 6: Enter the OTP sent to your registered contact details. Click Proceed.
Step 7: The application status will show as a draft. Click the Edit icon.
Part-B of GST Registration Application
Step 8: Part B contains 10 sections. Fill in all details and submit the required documents.
Documents Required:
- Photographs
- Constitution of the taxpayer
- Proof of business place
- Bank account details (optional)
- Aadhaar authentication
Step 9: Under the Business Details section, enter trade name, business constitution, and district. Opt in or out of the composition scheme.
Step 10: Enter the date of commencement of business and the date from which liability arises. Provide registration details for existing registrations.
Step 11: In the Promoters/Partners tab, enter details of up to 10 promoters or partners, including personal details and photographs.
Step 12: Enter details of the authorized signatory, similar to those for promoters/partners.
Step 13: Provide the principal place of business details, including the address and proof of possession.
Step 14: Submit details of goods and services with HSN codes or SAC for up to 5 goods and 5 services.
Step 15: Enter bank details for up to 10 bank accounts (optional).
Step 16: In the State Specific Information tab, provide professional tax employee code number and state excise license number.
Step 17: Choose whether to undergo Aadhaar authentication.
Step 18: Go to the Verification page. Submit the application using DSC, e-Sign, or EVC.
Step 19: Upon successful application, you will receive an Application Reference Number (ARN).
FAQs
Q1: What is the full form of TRN in GST?
A1: TRN stands for Temporary Reference Number. It’s a temporary identifier generated when you initiate the online GST registration process.
Q2: How can I get a GST number?
A2: You can complete the GST registration process online. A guide outlining the steps involved is available on the GST portal (https://services.gst.gov.in/services/quicklinks/registration). Follow the instructions to register and receive your GST number.
Q3: What documents are required for GST registration?
A3: Here’s a list of documents typically required for GST registration:
- Photographs of yourself and authorized signatory (if applicable)
- Proof of business place (e.g., rental agreement, electricity bill)
- Constitution of taxpayer (e.g., PAN card, company registration certificate)
- Bank account details (optional)
Q4: What is the composition scheme in GST?
A4: The composition scheme is a simplified GST scheme for small taxpayers. Under this scheme, businesses pay a fixed tax rate on their turnover instead of the regular GST rates and file returns quarterly.
Q5: Can I edit my GST application after submission?
A5: Yes, you can edit your draft GST application before final submission. Once submitted, any changes will require an amendment process.
Q6: Is Aadhaar authentication mandatory for GST registration?
A6: Yes, Aadhaar authentication has been mandatory for GST registration since January 1st, 2022. It’s also required for revoking a cancelled GST registration.
Conclusion
Registering for GST is a crucial step for businesses in India. This guide simplifies the GST registration procedure and ensures you have all the information needed to complete the process smoothly. By following the steps outlined, you can ensure your business is compliant with GST regulations and ready to take advantage of the benefits it offers.
For more detailed information and updates, visit the official GST website.
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Disclaimer
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