A Step-by-Step Guide on How to Get GST Number for Your Business
How to Get GST Number: Goods and Services Tax (GST) is an indirect tax system introduced in India on July 1, 2017, with the aim of streamlining the country’s complex tax structure. GST replaced numerous indirect taxes such as service tax, excise duty, value-added tax (VAT), and others, simplifying the tax compliance process for businesses across India. The implementation of GST has led to a unified tax system, reducing the burden of multiple taxes and promoting economic growth in the country.
GST is a destination-based tax system, which means that the tax is collected at the final destination of consumption, and not at the production or manufacturing stage. GST is levied on the value added to goods or services at each stage of the supply chain, with input tax credits available at every stage, making it a tax on consumption rather than production.
GST has had a significant impact on businesses in India, both big and small. Here are some of the benefits of GST for businesses:
Simplified Tax Structure: GST has streamlined the tax structure in India, making it easier for businesses to comply with tax regulations.
Lower Tax Burden: GST has replaced multiple taxes with a single tax, reducing the overall tax burden for businesses.
Input Tax Credit: GST allows businesses to claim input tax credit for taxes paid on inputs, reducing the overall tax liability.
Increased Competitiveness: GST has made businesses in India more competitive by reducing the cost of goods and services.
Increased Compliance: GST has made it easier for businesses to comply with tax regulations, reducing the scope for tax evasion and increasing overall compliance.
Eligibility Criteria for GST Registration in India
The eligibility criteria for GST registration in India is a critical aspect to consider when applying for a GST number. Companies with annual turnover exceeding 20 lakhs must register with GST. Businesses whose turnover exceeds this threshold must sign up. However, there are certain exceptions and rules that businesses need to be aware of when applying for GST registration. Here are the eligibility criteria for GST registration in India:
Turnover Threshold: Businesses with a turnover of over Rs. 20 lakhs are required to register for GST. However, for businesses in the North Eastern states of India, the threshold limit is Rs. 10 lakhs.
Voluntary Registration: Businesses with a turnover below the threshold limit can voluntarily register for GST. Voluntary registration is beneficial for businesses that supply goods or services to other states, as it enables them to claim input tax credits and reduces their tax liability.
Inter-state Supply of Goods or Services: Businesses that supply goods or services to other states must register for GST, irrespective of their turnover. GST registration is mandatory for businesses that engage in inter-state supply of goods or services.
Casual Taxable Person: Casual taxable persons who do not have a fixed place of business in India and supply goods or services in India must register for GST.
Non-Resident Taxable Person: Non-resident taxable persons who supply goods or services in India must register for GST.
E-commerce Operator: E-commerce operators who facilitate the supply of goods or services must register for GST, irrespective of their turnover.
Documents Required for GST Registration
When applying for a GST registration in India, businesses need to provide specific documents to complete the registration process successfully. These documents are essential to verify the authenticity of the business and ensure that the business complies with all the necessary requirements. Here are the documents required for GST registration in India:
PAN Card: Permanent Account Number (PAN) card is compulsory for GST registration in India. Businesses must provide a scanned copy of their PAN card while applying for GST registration.
Aadhaar Card: Aadhaar card of the authorized signatory is mandatory for GST registration. It serves as proof of identity and address of the person applying for GST registration.
Proof of Business Registration: Businesses need to provide proof of their registration, such as a certificate of incorporation or partnership deed, depending on the type of business entity.
Proof of Business Address: Businesses need to provide proof of their address, such as a rent agreement or electricity bill. The proof of address should be in the name of the business owner or the company.
Bank Account Details: Businesses need to provide bank account details, including a cancelled cheque or bank statement, to complete the GST registration process.
Digital Signature Certificate (DSC): A Digital Signature Certificate (DSC) is required for the authorized signatory of the business to sign and submit the GST registration application online.
Photograph: A recent passport-sized photograph of the authorized signatory is required for GST registration.
Additional documents may be required for specific types of businesses, such as a power of attorney for authorized signatories who are not directors of the company or documents related to a trust or society. Businesses must ensure that they have all the necessary documents before applying for GST registration to avoid any delays or rejections.
Step-by-Step Guide for GST Registration Online
Once you have collected all the required documents, you can register for GST online. The GST registration process is entirely online, and you can do it by visiting the GST portal. The steps for GST registration are as follows:
Step 1: Visit the GST portal
Open the official GST portal (www.gst.gov.in) and click on the ‘Services’ tab.
Step 2: Click on ‘Registration’
Under the ‘Services’ tab, click on ‘Registration’ and then select ‘New Registration.’
Step 3: Fill the GST registration form
Fill in all the necessary details in the GST registration form, including the business name, PAN number, email address, mobile number, and state.
Step 4: Verify Your Mobile Number and Email Address
After filling in the required details, you will receive an OTP (One Time Password) on your registered mobile number and email address. Enter the OTP in the relevant field to verify your mobile number and email address.
Step 5: You will certainly receive the 15-digit Temporary Recommendation Number (TRN)
Once again go to the GST portal & Select the ‘New Registration’ tab.
Step 6: Enter Temporary Reference Number (TRN). Click Proceed after providing TRN number.
Step 7: Once registered, an OTP (one time password) will be delivered directly to both your mobile phone and email. Simply enter this OTP to proceed further with registration.
Step 8: Your application’s current status will display as drafts. Click on Edit Button.
Step 9: Complete the remaining sections of the GST registration form
After verifying your mobile number and email address, complete the remaining sections of the GST registration form, including the business address, bank account details, and authorized signatory details.
- To determine your jurisdiction, click the hyperlink in the section. To find out the steps needed to determine jurisdiction, go to this website: Steps to find GST jurisdiction.
- If you are seeking an registration for IRP to undertake CIRP on behalf of the taxpayer’s business, give the details of the original registration for that tax payer (known by the name of corporate debtor).
- To upload multiple documents add all documents to one file, then upload it. The maximum file size of a file is 1 MB. The format is permitted in JPEG or PDF. JPEG and up to two documents can be uploaded.
Once all information has been completed, navigate to the Verification Page, complete a declaration form, and then submit your form using one of these methods:
- Companies and LLPs are required to submit applications by using DSC.
- Utilizing e-Sign, OTP will be sent to the registered Aadhaar number.
- Utilizing EVC The OTP will be delivered to the mobile number that is registered.
The message is displayed after successful application and the Application Reference Number(ARN) is sent to an email address that is registered and mobile.
You can check the registration status by entering the arn on GST portal.
In conclusion, getting a GST number is a crucial step for any business operating in India. By following the above steps, you can easily obtain a GST number and comply with the law. Make sure to keep all the necessary documents handy and track the progress of your application to avoid any delays.