Introduction
The introduction of the Goods and Services Tax (GST) has been one of the most significant tax reforms in India. Implemented to streamline the indirect taxation system, GST has unified various central and state taxes into a single tax structure. For businesses, registering under GST is not just a legal requirement but also a step towards greater transparency and growth opportunities. This article provides a detailed, step-by-step guide on how to apply for GST registration in India, covering the necessary documents, eligibility criteria, application process, and important considerations.
What is GST?
GST, or Goods and Services Tax, is a comprehensive, multi-stage, destination-based tax levied on every value addition. It is a single indirect tax for the entire country, making India one unified common market. GST is divided into:
Central GST (CGST): Collected by the Central Government on an intra-state sale.
State GST (SGST): Collected by the State Government on an intra-state sale.
Integrated GST (IGST): Collected by the Central Government for inter-state sales.
Who Needs to Register for GST?
GST registration is mandatory for:
Businesses with Aggregate Turnover Above Threshold Limits:
Service Providers: Annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states).
Goods Suppliers: Annual turnover exceeds ₹40 lakhs (₹20 lakhs for special category states).
Inter-State Suppliers:
Businesses supplying goods or services across state lines, regardless of turnover.
E-commerce Operators:
Entities facilitating online sales through their platforms.
Casual Taxable Persons:
Individuals who supply goods or services in events/exhibitions where they do not have a fixed place of business.
Non-Resident Taxable Persons:
Individuals or businesses residing outside India but supplying goods or services in India.
Agents of Suppliers:
Those acting on behalf of other taxable persons.
Reverse Charge Mechanism Entities:
Businesses required to pay tax under the reverse charge mechanism.
Input Service Distributors and ISD Agents.
Taxpayers Paying Tax Under Section 9(5):
Aggregators supplying services under their brand name.
Documents Required for GST Registration
Before starting the registration process, ensure you have the following documents ready:
1. Proof of Business Registration/Incorporation Certificate
Proprietorship: Owner’s PAN and Aadhaar card.
Partnership Firm: Partnership deed and PAN cards of partners.
Company: Certificate of incorporation, PAN of the company, and Memorandum/Articles of Association.
2. PAN Card of the Applicant
Requirement: Mandatory for all Indian citizens.
3. Proof of Place of Business
Owned Property: Property tax receipt, municipal khata copy, or electricity bill.
Rented Property: Rent agreement and NOC (No Objection Certificate) from the owner.
4. Identity and Address Proof of Promoters/Directors
Documents Accepted: PAN, passport, driving license, voter ID, or Aadhaar card.
5. Bank Account Proof
Options: First page of passbook, bank statement, or a canceled cheque.
6. Digital Signature Certificate (DSC)
Requirement: Mandatory for companies and LLPs.
7. Photograph of Proprietor/Partners/Directors
Specification: Recent passport-size photograph in JPEG format (maximum size 100 KB).
8. Authorization Letter/Board Resolution
Purpose: Authorizing a designated signatory for GST compliance.
Step-by-Step Guide to Apply for GST Registration
Step 1: Visit the GST Portal
Action: Access the official GST portal to begin the registration process.
Step 2: Click on 'Register Now'
Navigate to: The 'Services' tab.
Select: 'Registration' > 'New Registration.'
Step 3: Part A - Fill in Basic Details
Fields to Complete:
I am a: Choose 'Taxpayer.'
State/UT and District: Select the appropriate options.
Legal Name of the Business: As per PAN.
PAN: Enter the PAN of the business or proprietor.
Email Address and Mobile Number: Valid and active for OTP verification.
Verification: Enter the Captcha code and click 'Proceed.'
Step 4: OTP Verification
Action: Enter the OTPs sent to your registered mobile number and email ID.
Validity: OTPs are valid for 10 minutes.
Step 5: Temporary Reference Number (TRN) Generation
Receive TRN: After successful verification, you will receive a TRN on your email and mobile.
Note: Keep the TRN safe; it is required for Part B of the registration.
Step 6: Part B - Log in with TRN
Action: Go back to the GST portal homepage.
Click on: 'Register' > 'Temporary Reference Number (TRN).'
Enter TRN: Input the TRN and Captcha code.
OTP Verification: Enter the OTP received on your registered mobile/email.
Step 7: Fill in the Application Form
Sections to Complete:
Business Details:
Trade name, constitution of business, district, sector code, etc.
Date of commencement of business.
Select if you have any existing registrations (e.g., Excise, Service Tax).
Promoters/Partners Details:
Personal information, designation, and identity details.
Upload photograph and identity/address proof.
Authorized Signatory:
Details of the person authorized to sign GST returns.
Can be one of the promoters or a third person.
Upload authorization letter or board resolution.
Authorized Representative:
Details if you have a GST practitioner representing you.
Principal Place of Business:
Address details, contact information.
Nature of possession of premises (owned/leased).
Upload proof of place of business.
Additional Places of Business:
Details of other business locations (if any).
Goods and Services Details:
Top 5 goods and services supplied.
HSN (Harmonized System of Nomenclature) codes for goods.
SAC (Services Accounting Code) for services.
Bank Account Details:
Account number, type, IFSC code.
Upload bank statement or canceled cheque.
State-Specific Information:
Professional tax employee code (if applicable).
State Excise License details (if applicable).
Verification:
Tick the declaration.
Select the authorized signatory.
Place: Enter the place from where the form is filed.
Step 8: Submit the Application
Modes of Submission:
Companies and LLPs: Must submit using DSC (Digital Signature Certificate).
Other Applicants: Can submit through E-Signature or EVC (Electronic Verification Code).
Action: Click on 'Submit' after completing verification.
Step 9: Application Reference Number (ARN) Generation
Receive ARN: Confirmation message and ARN will be sent to your registered email and mobile.
Note: Use ARN to track the status of your application.
Step 10: GST Officer Verification
Timeline: Application is reviewed by GST officers within 7 working days.
Possible Outcomes:
Approval: GSTIN is allotted.
Clarification Required: Officer may ask for additional information or documents.
Rejection: Application is rejected with reasons provided.
Step 11: GSTIN Allotment
Notification: Receive GSTIN and GST registration certificate via email.
Download: Log in to the GST portal to download the registration certificate.
Understanding Your GSTIN
GSTIN Format: A 15-digit alphanumeric code.
First 2 Digits: State code.
Next 10 Digits: PAN of the business.
13th Digit: Entity code (number of registrations within a state).
14th Digit: Default 'Z.'
15th Digit: Checksum digit for error detection.
Important Points to Consider
1. Multiple Registrations
Requirement: Separate GST registrations are required for each state where business operations occur.
Business Verticals: Optional separate registrations for different business verticals within a state.
2. Voluntary Registration
Eligibility: Businesses with turnover below threshold limits can opt for voluntary registration.
Benefits: Legitimacy, ability to issue tax invoices, claim input tax credit.
3. Composition Scheme
Eligibility: Small taxpayers with turnover up to ₹1.5 crores.
Benefits: Lower tax rates, simplified compliance.
Limitation: Cannot collect GST from customers or claim input tax credit.
4. Penalties for Non-Registration
Consequences:
Tax Evasion Penalty: 100% of the tax amount due.
General Penalty: ₹10,000 or 10% of the tax due, whichever is higher.
5. Amendments and Updates
Process: Changes in business details must be updated on the GST portal.
Timeline: Within 15 days of the change.
Approval: Some changes require approval from GST authorities.
6. Cancellation of GST Registration
Conditions for Cancellation:
Discontinuation of business.
Transfer of business.
Taxable person no longer liable for registration.
Process: Apply online through the GST portal.
7. Annual Returns and Compliance
Requirement: Mandatory filing of GST returns monthly/quarterly and annually.
Non-Compliance Penalties: Late fees and interest on unpaid tax liabilities.
Frequently Asked Questions (FAQs)
Q1: Is GST registration free of cost?
A: Yes, there is no government fee for GST registration. However, professional fees may apply if you seek assistance from a tax consultant.
Q2: Can I save the application and complete it later?
A: Yes, using the TRN, you can save your application and complete it within 15 days.
Q3: What if my application is rejected?
A: You can rectify the issues pointed out by the GST officer and reapply.
Q4: Do I need to display my GSTIN publicly?
A: Yes, businesses must display their GSTIN on the name board at the principal place of business and at every additional place of business.
Q5: How can I track my GST registration application status?
A: Use the ARN to track the status on the GST portal under 'Services' > 'Registration' > 'Track Application Status.'
Tips for a Smooth Registration Process
Ensure Accuracy: Double-check all details and documents before submission.
Digital Signature: Obtain a DSC in advance if required.
Stay Updated: Regularly check your email and mobile for communications from GST authorities.
Professional Help: Consider consulting a tax professional if you encounter complexities.
Conclusion
Registering for GST is a critical compliance requirement for businesses operating in India. The process, while detailed, has been made user-friendly through the online GST portal. By following this comprehensive guide and ensuring that all necessary documents and information are accurately provided, businesses can obtain their GST registration seamlessly. GST registration not only ensures legal compliance but also opens up avenues for business growth by enhancing credibility and enabling participation in the formal economy.
Disclaimer: This article provides general information on GST registration as of October 2023. Tax laws and regulations may change, so it is advisable to consult the official GST portal or seek professional assistance for the most current information.