GST Registration – Types, Eligibility, Online Process, Documents & more

GST or Goods and Services Tax were brought into the parliament in 2017 by the Indian Government.

GST was initiated in 2017 but still, a lot of people know very little about GST. There are so many confusions among people regarding GST and GST registration.

If you go through the full article you will get to know more about registering for GST. It is quite easy and any person with decent computer knowledge can easily register for you.

About GST & GST Registration

Goods and Services Tax is an indirect form of tax introduced in India in 2017.

It is bought into existence to cope up with multiple form tax slabs that existed back then. It helps to reduce existing multiple tax slabs into one.

Thus, if a person pays GST once for a good or service then that person does not have to go through destination-based, comprehensive, and multi-stage tax forms that existed in India.

Today in India, GST registration is mandatory for companies earning more than 40 Lakh Indian rupees of revenue per annum.

The tax slab of GST for North Easter states is 10 Lakh Indian Rupees Per annum.

Now, if you are eligibility for GST returns, You need to register yourself and your business on the GST portal.

GST registration is plain and simple because there are categories based on the business you do or the service you provide. Here is the division of GST payers under different slabs.

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Eligibility for GST Registration

Not all people who pay tax fall under GST and thus cannot register for GST. The only business providing Services or selling goods can go for GST registration.

There are also some clauses for you to be eligible for GST registration.

• If you are a service provider or a Business selling goods that registered for Tax schemes before GST then you have to transfer into a GST scheme.
• Your business has to exceed a turnover of 40 Lakh Indian rupees in India except for the North Eastern States. In North-Eastern states, if your turnover is more than 10 Lakh Indian rupees, then you are eligible for GST filing.
• Individuals, Businesses who are operating through e-commerce platforms are liable to pay GST. Not only this, but the eCommerce platform is itself liable to pay GST under the new rules.

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Types of GST Registration

Here are the various types of GST Registration process –

Average Taxpayer

Maximum people residing in India usually fall under this slab. Generally, no necessary deposits or GST filing are under this slab.

Most of the companies running in India fall under this jurisdiction

Casual Taxable Individual

Temporary businesses usually fall under this category. Casual taxable Businesses are those who set up their business for a short period usually months.

Here, Renewal and extensions can be done after the tenure ends, which is 3 months. The individual has to deposit the GST amount.

This amount will be the tax amount that will get incurred during the whole tenure of the business.

Non- Resident Taxable Individual

NRI or Non- Residential Indian doing business in India occasionally falls under this category.

When a person residing outside India does business in India occasionally then he or she is liable to pay GST in the form of Non-Resident Tax.

The GST amount equal to the expected GST amount has to be deposited first.

Composition Registration

There are no predictions involved when the business is huge with a turnover of more than 1 Cr Indian Rupees.

In that case, companies have to deposit an amount set by the Tax Department. This is a huge step to eliminate the complicated steps involved as those steps often lead to hassle.

Documents needed to Register for GST Account

These are the documents you have to submit while registering for a GST account

• Permanent Account Number (PAN) card of the applicant.
• Incorporation Certificate/ Valid proof of Business Registration
• AADHAR card of the applicant
• Address proof of the place where the business is being conducted
• A canceled Cheque or a Bank account statement of the Bank account related to the business
• Digital Sign of the Applicant
• Authorization letter or board resolution if any for Authorized signatory

GST Registration Online Process

As mentioned earlier, GST registration is very easy and simple. The application consists of two parts.

In the first part personal details like phone number name email address etc are verified. In part two, the details of the businesses are to be furnished.

Here is the Online GST Registration process in detail:

Part A of GST registration

• First, you have to visit the GST Portal of India.
• Click on the Services tab then find the Registration tab under it. There click on “New registration” to proceed with the application
• On the top of the application choose Taxpayer from the dropdown list
• Select State and District from the drop-down menu
• Next, enter the Legal name of the business or entity as applicable. It should match the name on the PAN card.
• Next enter the PAN card details of the business
• Fill up the email address field with the email address of the Proprietor. You have to do the same for the Valid Mobile number field
• Fill up the Captcha and click on proceed to go to the next step.
• In the next step you will receive a Temporary Reference Number. This Temporary Reference Number is sent to your email address and mobile number.

Part B of GST Registration

• Keep the Temporary Registration Number (TRN) handy while starting this step.
• In the GST portal under the Services tab, click on the registration Tab and then click on New Registration and there you can click on the TRN button.
• On clicking the TRN button, you will be able to login using the Temporary Registration Number or the TRN.
• Verify your mobile phone number in the next step by entering OTP sent to your mobile number.
• Next, in “My Saved Application Page”, click on the edit which is under the action column.
• Fill out all the details related to business in the following steps.
• Click “Save and proceed” to complete the application process
• After submission, you will receive an Application reference number which marks the successful registration of GST

Types of GST Applicable in India

Although GST reduces the multi-stage tax scheme into one, various types of GST are applicable based on administration.

CGST

CGST or Central Goods and Service Tax is the tax levied by the Central Government of India on various goods and services.

The total Jurisdiction of this tax goes under the Central Government of India. Usually, intrastate products come under this category.

CGST has replaced a lot of previously levied taxes such as Central Excise, Customs Tax, CST to name a few.

SGST

State Goods and Service Tax is the tax levied by State Governments for Goods and services payable in that state of India.

SGST has replaced VAT, state sales tax, entertainment tax, and many others to reduce the burden of a taxpayer.

UTGST

Union States Goods and Service Tax is also known as UTGST is only applicable on the Union territories of India which includes Delhi, Chandigarh, Andaman and Nicobar Island, Daman and Diu, Dadra and Nagar Haveli.

IGST

Inter-State Goods and services tax refers to the tax which is applicable when Goods or services are exchanged in-between states.

GST Registration – Conclusion

According to new norms, GST is mandatory for businesses, Individual service providers, and Goods distributors to register for GST.

However, the tax slab is Rs 40 Lakh for the provider of the goods. In the North-Eastern States, Jammu and Kashmir, and Himachal Pradesh it is 10 Lakh.

In the case of Service providers, it is Rs 10 Lakh for North-eastern states and Rs 20 Lakh for the rest of India. You can apply for multiple registrations within a state for different businesses.

There are a lot of benefits that come with GST registrations and GST filing. You can operate a business without any restrictions so as to avail of an input tax credit.

GST Registration FAQs

Ques – What is the Eligibility for GST Registration?

Answer – There are certain eligibility grounds which business must clear in order to have GST registration.  The business hold must exceed a total turnover of 40 lakhs INR in India and as well have goods that are registered for relevant tax schemes before GST.

Ques – What are the different types of GST registration?

Answer – When the topic of GST registration arises there comes various slabs which the individual must keep an eye on. The various kind of GST registration are – Average Taxpayers, casual taxable individual, non-resident taxable individual and the composition registration.

Ques – What documents are needed for GST proprietorship?

Answer – The government has set a few mandatory guidelines when an individual wish to get GST registered.  Every individual must produce a certain set of documents for their proprietorship, which are – PAN card, AADHAR card, address proof, bank statement and digital sign of the individual.

Ques – Who is exempt from GST registration?

Answer – The businesses which are exempted from the GST are those whose annual turnover is less than the given or set amount that is 40 lakhs. However a certain kind of goods too has a non-application of GST, example live plants, vegetables and fruits.

Ques – Is GST registration mandatory?

Answer – Taking in note the India’s current budget scenario, GST registration is a mandatory condition for business which is earning more than 40 lacs INR per annum through their production in India and 10 lacs per annum for north eastern states of the country.

Ques – Can I do business without GST?

Answer – If your business falls under the company-crowd that earns a total of 40 lacs INR per annum or above then it’s a mandatory requirement for the business holder to get their commerce GST verified. For the business residing in north eastern states the budget total turnover set is 10 lacs per annum.

Ques – What is turnover limit for GST?

Answer – Indian government have set two types of turnover limit for business in order to check whether they need GST verification or not. For north eastern states the turnover should be either 10 lacs INR or above it per annum. For other states all over India it should be INR 40 lacs as their total income for one year.

Ques – Can I get GST number without shop?

Answer – Yes you can, the individual is required to visit the GST portal given by the government and register for the GST number, the only difference is one needs to register themselves as an individual. This works for individual without a physical shop or individual who are engaged in online selling.

Ques – Can an individual get GST number?

Answer – Yes you can absolutely. Individuals can get GST number for their business online. Given the current technological advancements it has now become seemingly easy to obtain one’s GST number by just visiting the GST portal.

Ques – What are the benefits of GST registration?

Answer – One can become a legally recognized supplier when registering the GST, as well as the business will enjoy a proper and systemized accounting of taxes paid on the input goods and services.

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