The Goods and Services Tax registration process in India has been eased through a website available in the modern digital age. Anyone will be able to handle the full registration procedure step by step from determining whether you’re eligible to submitting an application and obtaining your Goods and Services Tax registration certificates. Getting your GST Registration in India, will be easy with the help of this article, regardless of whether you’re starting out as a company or expecting to develop your company.
What do you Mean by Goods and Services Tax?
Goods and Services Tax which was the recent update in the tax regime, is a widespread indirect tax which has been imposed on the sale of goods as well as services with the implementation on July 1st, 2017 developed in India. In order to create a more user-friendly and efficient tax structure, it replaced an extensive number of previous taxes, including excise duty, VAT, revenue tax, etc.
Goods and Services Tax Structure in India
Being a destination-based tax, Goods and Services Tax is applied at the place of the last use. Since it is a multiple stage tax, it gets collected at every point in the distribution chain, manufacturing, the wholesale sector, and retail but it is possible to claim an exemption for taxes paid at previous phases to save paying taxes again.
At each level, the value added is subject to a rate of taxes. As of present day, March,2024, there are currently four primary tax slabs, or rates: 5%, 12%, 18%, and 28%. Certain necessities may be exempt or have a reduced rate.
Eligibility for New GST Registration
Usually, companies that have annual revenues more than or up to ₹40 lakhs in case of goods and ₹20 lakh in case of services must register for Goods and Services Tax. Despite this, ₹20 lakh is the threshold for several special categories of states (such as Jammu & Kashmir, North Eastern states, etc.) In addition, the threshold may be as minimal as ₹10 lakh for particular supply forms (such as services) for the Goods and Services Tax enrollment process. If one does not fall under this eligibility criteria but wants to obtain this registration for his or her business then he can opt for the option of voluntary registration process.
Process of GST Registration In India
In order to get this mentioned registration follow the steps given below:
Beginner Guide for New GST Registration
- Check out and visit the goods and services tax portal in its entirety at https://www.gst.gov.in.
- Go to registration by tapping the link. Select “Registration” using the menu that appears after clicking on “Services” in the main menu.
- Afterward, select “New Registration.”
- Choose the heading “Taxpayer”: Select “Taxpayer” in order to proceed forward.
Complete the Form REG-01
This form collects information about your company. Here are the details for Part A:
- Choose “New Registration” from the appropriate menu.
- Under “I am a,” select “Taxpayer.”
- You can choose your region and location from the list of choices.
- Provide the official name and PAN number of the business you represent.
- Enter your registered telephone number along with your email address (if not already connected to your PAN).
- When finished, click the proceed button.
Use OTPs to Confirm
For identification, one-time passwords (OTPs) will be sent to your electronic mail address and your cell phone or contact number (or PAN-linked information). After entering the OTPs, select “Continue.” Without completing this OTP authentication one cannot go ahead with the process. Hence make sure to complete this.
Acquire Interim Reference Number (TRN)
A 15-digit Provisional References Number (TRN) will be issued to you following the successful confirmation. Make sure to save this TRN number securely because this is very useful and definitely required on many steps of the registration. Even for the checking of the status of your registration you need this number. Hence make sure to securely save it somewhere.
Fill Out Section B of the Form
Some specific information is needed for this section. You have to re-open the website and choose “Temporary Reference Number (TRN)” under “Registration.” Put in the captcha code and your TRN. Select “Continue.” Complete all of the other fields on the application form (bank account information, company details, etc.)
Documentation Upload and Submit the Application
Provide a scanned version of the papers that the website states must be submitted for the Goods and Services Tax enrollment process. Accept the document electronically if your company needs a DSC. After completing all the necessary fields and uploading it, thoroughly check the application before submitting it and then submit it.
Post Submission Process
Once you submit the application your work as an applicant is over. Now the application will be reviewed by competent authorities. The application you submitted will be reviewed by the appropriate officials. They might get in touch with you if you have any additional inquiries. You will get your Goods and Services Tax enrollment certificate upon authorization through mail. In case you didn’t get it, you can contact the authorities directly through the helpdesk.
Required GST Registration Documents in India
The list of documents candidate need for New GST registration are as follow:
- PAN card for your company
- The candidate’s Aadhaar card
- Evidence of company registration, such as the incorporation certificate
- Address and Id of directors and promoters with scanned pictures
- Verification of the company’s address (rent an agreement, electricity bill)
- Bank statements or voided check with the name and IFSC number of the bank
- Digital Signature Certificate (DSC) (mandatory for some firms)
- If the official signer is not a director or promoter, the official document of license or board resolution should be used.
Key Advantages of Registration of GST
Some of the key benefits of the goods and services enrollment are mentioned below:
- Conformity: By registering for Goods and Services Tax, you can be sure that your company complies with tax laws and prevent possible fines and legal issues.
- Reliability: Enrollment for GST improves the legality and efficiency of your company, which may draw in fresh consumers and investment.
- Input taxes credit (ITC): By claiming an ITC for Goods and Services Tax payable on buying decisions, registered firms can lower their overall tax bill.
- Expanded Market Scope: You can engage in international trade and supply without limitations if you have a goods and services tax registration.
- Improved Tax Registration: According to the prior complex strategy, online GST registration process makes the return of taxes procedures simpler.
Conclusion
The Goods and Services Tax is significantly altering the country’s indirect revenue structure. The system is made simpler by this complete tax on the development and transfer of goods and services, which replaces the numerous, usually conflicting charges that were before in effect. Although it could seem challenging at first to navigate the complexities of online GST registration process, such as the registration process, tax computing, and the various Acts controlling national, state, and interstate activities, knowing the fundamentals enables businesses to operate efficiently within this structure.
FQAs
- When was the Goods and Services Tax implemented?
On July 1st, 2017, Goods and Services Tax came into effect in India.
- What are the essential rates for Goods and Services Tax?
As of March 19, 2024, there are four primary slabs: 5%, 12%, 18%, and 28%.
- What are the various Goods and Services Tax Act?
The UT Goods and Services Tax Act (united territories), the Integrated Goods and Services Tax Act (interstate), the State Goods and Services Tax Act (state), and the Central Goods and Services Tax Act (central).
- How is double taxation minimized by Goods and Services Tax?
Companies may reduce their final burden of taxes by claiming credit for Goods and Services Tax paid on transactions through the input tax credit (ITC) method.
- Which benefit does Goods and Services Tax provide?
It seeks to promote revenue generation, enhance openness, and simplify the tax code.
