GST which means goods and services tax came into existence after replacing many indirect taxes in India. It replaces excise duty, VAT, service tax, etc. The Indian tax system faced a very big change when GST came into existence. On 29th March 2017 Parliament passed the Goods and Services Tax Act. This Goods and Services Tax Act came into force on 1st July 2017. It is a very big change in the history of the tax system. Many people got it wrong due to which they oppose GST.
Before Goods and Services Tax there was no uniformity in collecting indirect tax. Different States have different tax rates. There is no one tax available. There are many interacting taxes and consumers have to pay them. After GST there is just one indirect tax in India which is Goods and Services Tax. After GST Registration in India there is uniformity in all over India with respect to taxes.
What do you mean by GST Registration in India?
Goods and Services Tax Registration is a process where a taxpayer gets registered on the GST portal as a taxpayer. After complying with the registration process one will get a 15-digit unique registration number. That 15-digit unique registration number is known as a goods and services tax identification number which is commonly called GSTIN. Goods and Services Tax registration can be done while sitting at home as well. It’s a simple online procedure one can do on its own. There are particular criteria that one needs to meet to get GST registration in India. Not everybody needs to take GST registration in India.
Who needs to take Goods and Services Tax Registration?
Not on all the new businesses GST is applicable. There are certain criteria If your business falls under those criteria you have to take GST registration in India. otherwise, you don’t have to. If you have a business whose turnover is up to 20 lakh or more than that then you have to take GST registration in India. compulsorily. Secondly, if your business transaction is through e-commerce then in that situation you have to take Goods and Services Tax registration, turnover doesn’t matter here. Third is when your business is not just limited to one state but you are doing interstate business then GST registration in India. is compulsory for you. In that situation as well turnover doesn’t matter.
Types of GST Registration in India
There are a total of four types of GST in India. The list of those four types is given below in detail:
CGST
Central Goods and Services Tax is commonly known as CGST. It is levied by the center on the sale and purchase of goods and services. How much Central Goods and Services will be levied that depends on the tax slab. For a better understanding of the CGST let’s take one example. A sale of some goods in Rs. 1000 and 18% GST levied on that transaction. Hence the total GST will be Rs. 180. Out of this Rs. 180, 9% will be Central Goods and Services Tax which is CGST and 9% is SGST which is State Goods and Services Tax. That is how Central GST works.
SGST
SGST is State Goods and Services Tax. It is levied by the state government on the sale and purchase of goods and services. It is levied when the transaction is in one single state. When the transaction is in more than one state this GST will not work. To know about the SGST in detail let’s take one illustration. A sale of some goods and services in Rs. 2000 in the state of Madhya Pradesh and 18% GST levied on that transaction. Hence the total GST will be Rs. 360. Out of this Rs. 360, 9% will be Central Goods and Services Tax which is CGST and 9% is SGST which is State Goods and Services Tax. That is how State GST works.
UTGST
When the business is in one Union Territory, UTGST will be applied. UTGST which is commonly known as Union Territory Goods and Services Tax. It just works like SGST, but here instead of SGST we use the word UTGST. An example can help you out for a better understanding of the UTGST. A sale of some goods and services in Rs. 10,000 in the Union Territory of Delhi and 18% GST levied on that transaction. Hence the total GST will be Rs. 1800. Out of this Rs. 1800, 9% will be Central Goods and Services Tax which is CGST and 9% is UTGST which is Union Territory Goods and Services Tax. That is how UTGST works.
IGST
When the transaction is either more than one state or union territory, IGST will be applied. IGST means Integrated Goods and Services Tax. For a better understanding of integrated goods and services tax let’s take an illustration. A is a manufacturer from Rajasthan and sells his goods in Gujarat. Here if 18% of IGST is levied then 9% will go to central and 9% to Gujarat state. That is how Integrated Goods and Services works.
Slabs of Goods and Services Tax
Under Goods and Services Tax there are different slaps of paying GST. The slaps are particularly 5% GST, 12% GST, 18% GST and 28% GST. It depends on the goods and services you are purchasing. For a better understanding of GST slaps read the table below:
| 5% GST Slab | 12% GST Slab | 18% GST Slab | 28% GST slab |
| Sugar, tea, packed paneer, edible oils, raisins, domestic LPG, roasted coffee beans, PDS kerosene, cashew nuts, footwear whose price is more than 500 rupees, milk food for babies, apparel whose price is more than 1000 rupees, fabric, spices agarbatti, coal, Indian sweets, life-saving drugs, etc | Butter, ghee, computers processed food, almonds, mobile, fruit juice, preparation of vegetables, nuts fruits or other parts packed coconut water, umbrella, etc | Printers, computers, shops, toiletries, pasta ice cream, soup, industrial intermediate toothpaste, capital goods, hair oil, etc | Small cars, high-end motorcycles, consumer durables such as AC fridges, and beedis are not included here, luxury and sin items like BMW cigarettes, wine aerated drinks, etc |
GST slabs have been decided on the basis of the goods and services you are purchasing. Some have 5% GST, some have 12% GST, some have 18% GST, some have 28% GST and also there are certain items which are tax free on which 0% GST has been levied. The list of such items includes milk, curd, lassi, Kajal, education services, health services, children’s drawing, and coloring books packed food grain, unpacked paneer, gur, branded natural honey, fresh vegetables, salt, unbranded atta, unbranded maida, prasad, etc
Documents Required for GST Registration in India
While submitting an application for GST registration in India., proper documentation is required. The list of documents required for GST registration in India are given below:
- Permanent Account Number (PAN) Card number of the applicant
- The Aadhaar card of the applicant is also required
- Business proof like incorporation or registration certificate will be needed
- Identity proof of promoters or directors with a passport-size photograph
- Address proof of promoters or directors with a passport-size photograph
- Bank statements of the promoters and directors of the entity
- The authorization letter will be needed
- Board resolution for authorized signatory will be required
- Digital signature Certificates are also required
Process of Goods and Services Tax Registration
Follow the steps given below to get your GST registration:
- Go to the GST official portal and then go to the services option
- Click on the services option
- Then click on registration and choose new registration
- A form will be open, fill that form and submit it
- Now your TRN number will be generated
- With the help of the TRN number login
- After login, fill in the information related to business details, promoter or partner details, authorized signatory and representative details, principal place of business details, additional place of business details, and goods and services details.
- Then comes the verification stage where one has to fill in the details of the authorized signatory and submit the form
- The moment you submit the form a challan will be generated
- Now department will examine the application
- If they find anything that is not there in the application they will raise the query
- Applicants have to submit the query
- But if they find everything all right, Goods and Services Tax Registration will be granted.
Conclusion
GST Registration in India is a critical process under the Goods and Services Tax system. It involves obtaining a unique 15-digit GSTIN and is mandatory for businesses with a turnover exceeding 20 lakhs, those engaged in e-commerce, or conducting interstate transactions. There are four types of GST: CGST, SGST, UTGST, and IGST, each serving specific purposes. GST rates vary based on the type of goods or services, with four main slabs ranging from 5% to 28%. Certain essential items are tax-free with 0% GST. To register, businesses need to provide essential documents like PAN and Aadhaar cards, business proof, and more. The registration process is completed online, involving form submission, verification, and eventual approval. GST registration in India. simplifies India’s taxation system, promoting transparency and compliance among businesses while replacing various indirect taxes.
