Get Your GST Number Online Without Breaking a Sweat!

In 2017, the Indian business landscape underwent a major transformation with the introduction of the Goods and Services Tax (GST). This new system replaced a complex web of indirect taxes with a single, unified tax, simplifying compliance for businesses.

Over the past seven years, Indian entrepreneurs have adapted to the GST system, yet many still have lingering questions about the process. If you’re wondering about any of these, you’re in the right place. Keep reading to get answers to all your queries:

•  How to apply for a GST number?
•  How to register for GST?
•  How to apply for a new GST number?
•  How to register for a GST number online?

With GST, the efficiency and transparency of tax processes improved significantly, reducing administrative burdens. It has eliminated the complications of state-specific taxes, making interstate trade smoother and allowing businesses to focus on growth rather than tax-related challenges. As a crucial part of India’s economic framework, GST has had a profound impact on businesses across the country.

Knowing how to apply for GST in India is crucial for anyone aiming to operate legally and efficiently. This guide provides essential information about documents required for GST registration, including mandatory GST registration criteria, the registration process, and more.

Who Should Register for GST?

• Service Providers: If your annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), you must register for GST.
• Goods Suppliers: If your annual turnover exceeds ₹40 lakhs (₹20 lakhs for special category states), registration is mandatory.
• Interstate Traders: Any business involved in the supply of goods or services across state borders must obtain GST registration, regardless of turnover.
• E-commerce Businesses: E-commerce operators and those selling through e-commerce platforms need to register for GST irrespective of their annual turnover.
• Certain Professionals: Businesses in specific sectors, such as agents or service distributors, also require GST registration. 

What is GST Registration?

• Legal Recognition: GST registration provides your business with a unique Goods and Services Tax Identification Number (GSTIN), serving as legal recognition of your business.
• Tax Credits: With a GSTIN, businesses can claim input tax credits on goods and services purchased, effectively reducing overall tax liability.
• Nationwide Trade: GST registration allows you to conduct business across state borders, opening up a larger market for your goods and services.
• Building Customer Trust: A GSTIN enhances your credibility with customers, indicating compliance with tax regulations and increasing their trust in your business.
• Compliance with Tax Laws: Registering for GST ensures you adhere to tax laws, reducing the risk of penalties for non-compliance.

Key Components of GST Registration

1. GSTIN: The Goods and Services Tax Identification Number is a 15-digit unique number assigned to each registered taxpayer.
2. Tax Liability: The taxes you are responsible for collecting and remitting to the government, which includes CGST, SGST, and IGST, depending on whether you are dealing with intrastate or interstate transactions.
3. Return Filing: Registered taxpayers are required to file periodic returns, providing details of their sales, purchases, input tax credits, and the tax collected.
4. Composition Scheme: A scheme designed for small taxpayers, allowing them to pay GST at a fixed rate on their turnover instead of regular tax rates.

Documents Required for GST Registration

1. PAN Card: The Permanent Account Number (PAN) of the business or individual applying for registration.
2. Proof of Business Registration: This may include a partnership deed, certificate of incorporation, or any other relevant document based on your business structure.
3. Identity and Address Proof: This includes Aadhaar cards, passports, voter IDs, or driver’s licenses of the business owners/promoters.
4. Proof of Business Address: Utility bills, rental agreements, or any official document that verifies the business address.
5. Bank Details: A recent bank statement or a cancelled cheque in the business’s name.
6. Digital Signature: For companies and LLPs, a digital signature is required for signing the application.

Online GST Registration Process

1. Visit the official GST website at [www.gst.gov.in]
2. Under the ‘Taxpayers’ section, click on ‘New Registration’ to initiate the process
3. Enter your state and district details, your legal name and PAN card details 
4. Verify your email and mobile through OTPs sent to both
5. You will receive a TRN (Temporary Reference Number) after which you can log in to the GST portal to complete your application process
6. Provide comprehensive business information, including the type of business, address, and ownership details
7. Attach all the necessary documents, ensuring they are clear and readable
8. Review all details thoroughly before submitting the application

Getting a GST Number

1. After you submit the online application, it goes to the GST officer for verification
2. The GST officer may request additional documents or clarification if needed
3. Upon successful verification, you will receive your GSTIN via email and SMS along with a GST registration certificate

This process ensures that you receive your GST number efficiently and in compliance with tax regulations.

GST Registration Fees

1. Free Registration: The application for GST registration does not incur any fees.
2. Consultancy Charges: If you seek assistance from professionals or consultants for the GST registration process, they may charge a fee for their services.
3. Filing Fees: Although the registration itself is free, there may be fees associated with filing GST returns, especially if you opt for premium services.
   

GST Registration Turnover Limit

1. For Goods Suppliers:

•    ₹40 lakhs for businesses in general states
•    ₹20 lakhs for businesses in special category states (northeastern states and Jammu & Kashmir)

2. For Service Providers:

•    ₹20 lakhs for general states
•    ₹10 lakhs for special category states

3. Interstate Suppliers: Any business engaged in interstate trade must register for GST, regardless of turnover.
4. Aggregate Turnover: The turnover limit includes all taxable supplies, exempt supplies, export of goods and services, and inter-state supplies, but excludes central and state taxes.

GST Registration via Authentication of Aadhaar

1. Aadhaar Verification: When you register for GST using your Aadhaar number, the system verifies your identity using the Aadhaar database. This step ensures that your identity is authenticated quickly and securely.
2. GST Registration Online: After providing your Aadhaar number, you will receive an OTP on the mobile number linked to your Aadhaar. Enter this OTP to verify your registration request.
3. Simplified Document Submission: If you choose Aadhaar authentication, the requirement for additional documents like identity proof and address proof may be reduced, making the registration process more straightforward.
4. Issuance of GSTIN: Once your Aadhaar is authenticated, and your application is processed successfully, you will receive your GSTIN via email and SMS.

Important Facts About GST Registration

1. Mandatory Registration: As mentioned earlier, certain businesses must obtain GST registration if they meet specific criteria regarding turnover, type of business, or nature of transactions.
2. No Separate State Registrations: A GSTIN is issued for the entire country, and there is no need to apply for separate registrations in different states. However, businesses operating in multiple states must obtain a separate GSTIN for each state.
3. Validity of Registration: GST registration is valid indefinitely unless cancelled or surrendered by the taxpayer. Businesses must ensure compliance with tax laws to maintain their registration status.
4. Migration from the Old Tax Regime: Existing taxpayers under VAT, service tax, or other indirect tax regimes had to migrate to GST registration during its implementation in 2017.
5. Separate Registrations for Different Businesses: If a taxpayer operates multiple businesses under different names, they must obtain separate GSTINs for each business entity.

Checking GST Registration Status Online

1. Visit the official GST website [www.gst.gov.in]
2. Navigate to ‘Services’: Click on the ‘Services’ tab in the menu
3. Head to the drop-down menu and select ‘Track Application Status’ to track your online registration status
4. Enter your ARN (Application Reference Number) or TRN (Temporary Reference Number) along with the captcha verification
5. Click on ‘Search’ to view your application status

Downloading the GST Registration Certificate

1. Login to the GST portal: Access the GST website and log in using your credentials.
2. Navigate to ‘Services’: Click on the ‘Services’ tab in the main menu.
3. Select ‘User Services’: In the drop-down menu, select ‘View/Download Certificate’
4. Choose the option to download your GST registration certificate, typically available in PDF format
5. After downloading the PDF, you can print the certificate for your records and keep it handy as proof of your registration for GST compliance

GST Registration Exemption

1. Turnover Exemptions: Small businesses with an annual turnover below the specified limits (₹20 lakhs for service providers and ₹40 lakhs for goods suppliers in most states) may be exempt from GST registration.
2. Agricultural Exemptions: Agricultural produce and services related to agriculture are exempt from GST, allowing farmers to operate without the burden of registration.
3. Special Exemptions: Certain types of activities or specific sectors may receive exemptions based on government policy, such as health services and education.
4. Composition Scheme: Small businesses can opt for a composition scheme, which allows them to pay a lower tax rate without needing full GST registration.

Benefits of GST Registration Online

1. Convenience: The online GST registration for small business process allows you to complete the application from anywhere, eliminating the need for physical visits to government offices.
2. Speed: The online system reduces the time taken for registration compared to traditional methods, ensuring quicker processing and issuance of GSTIN.
3. 24/7 Availability: The GST registration portal India is accessible round the clock, allowing you to submit your application at any time that suits you.
4. Real-time Updates: You can track your application status online, receiving real-time updates on the progress of your registration.
5. Reduced Errors: The online GST registration form includes validation checks, helping to minimise errors and omissions that could delay the registration process.
6. Streamlined Document Submission: Uploading documents online simplifies the process, as you can quickly attach the necessary files without physical paperwork.

Penalty for Not Obtaining GST Registration

1. Monetary Penalties: Businesses that fail to register for GST may face penalties of up to 10% of the tax amount due. In cases of deliberate tax evasion, the penalty can escalate to 100% of the tax owed.
2. Interest on Tax Due: In addition to penalties, interest may be charged on any unpaid tax amounts. This interest is typically calculated at a rate of 18% per annum.
3. Legal Action: Persistent non-compliance can lead to legal action against the business, resulting in further financial and operational repercussions.
4. Reputation Damage: Non-compliance can tarnish a business’s reputation, leading to a loss of trust among customers and partners.
5. Ineligibility for Input Tax Credit: Without GST registration, businesses cannot claim input tax credits on their purchases, effectively increasing their tax burden.

In summary, it is essential to ensure compliance with new GST registration requirements to avoid financial penalties and maintain a good standing in the marketplace.

FAQs

How to apply for a GST number by myself online?

Yes, you can apply for GST registration yourself through the official GST portal without needing to engage a consultant or professional. The online process is user-friendly, and the required documents can be uploaded digitally.

How much does GST registration cost?

GST registration is free of charge. However, you may incur consultancy fees if you choose to hire professionals to assist you in the registration process.

Who is eligible for GST registration?

GST registration eligibility includes businesses whose turnover exceeds the prescribed limits, e-commerce operators, and those involved in interstate supplies. Certain professionals and service providers may also need to register, depending on their activities.

How to register GST for proprietorship?

Sole proprietors can register for GST online by following the same process as other businesses. They will need to provide their PAN, proof of identity, and address documentation during the registration process.

Can I get a GST number for free?

Yes, obtaining a GST number through the official registration process is free. However, remember that there may be costs involved if you seek professional help for the application.