GST Registration: How to Apply for Goods & Services Tax Number in India in Steps
According to the GST rules, every business owner with an annual turnover of above Rs 40 Lakh must obtain a GST number by registering for GST. The turnover limit is Rs 10 Lakh for companies in north-eastern and hill states. You can complete the registration process online, which takes around a week to complete. Not registering for GST is a criminal offence that attracts heavy penalties and even imprisonment. Here is a stepwise guide to apply for a Goods and Service Tax number in India.
Meaning of GST Registration
If a company’s annual turnover exceeds the threshold limit, it must register as a normal taxable person under GST. Registration for Goods and Service Tax in India can be of different types:
- Normal Taxpayer: Most Indian businesses fall under this category. No deposit is necessary for this registration. Besides, it does not have any expiry date.
- Casual Taxable Person: Business owners setting up a seasonal stall or shop are eligible for GST registration under this category. The deposit requirement depends on the expected GST amount during the business operation. The validity period is three months, which the business owner can renew or extend.
- Composition Taxpayer: This GST registration is necessary to obtain the benefits of the GST Composition Scheme. A flat deposit is required, and it has no provision for input tax credit.
- Non-Resident Taxable Person: Business owners living outside India but supplying goods or services to India must opt for this type of registration. Similar to the registration for a casual taxable person, this registration form requires a deposit equivalent to the expected GST amount during the active GST registration period. The validity is three months, which is renewable and extendable upon expiry.
Eligibility for GST Application
The following individuals and business owners are eligible for GST application:
- Individuals registered under tax services before the implementation of GST
- Non-resident taxable persons and casual taxable persons
- Individuals paying taxes under the reverse charge mechanism
- e-Commerce aggregators
- Businesses with an annual turnover of above Rs 40 lakh, except those located in Uttarakhand, Jammu & Kashmir, Himachal Pradesh, and North-Eastern states
- Input service distributors and supplier agents
- Individuals supplying goods through e-commerce aggregators
- Individuals providing online information and database access from outside India
Documents Required for GST Application
Here is a list of documents required to register for Goods and Service Tax in India:
- Photograph
- Aadhaar card
- PAN card
- Bank account details
- Address proof
- Digital Signature
- Certificate of incorporation issued by the Ministry of Corporate Affairs
- Articles of Association or Memorandum of Association
- New Online GST Registration Fees
- Proof of appointment of authorised signatory
- Registration certificate or LLP Board resolution for LLP
Steps in the Online GST Registration Process
Here is a step-by-step procedure to complete the GST registration process online:
- Visit the GST portal at https://www.gst.gov.in.
- Click the ‘Register Now’ link under the ‘Services’ tab.
- Select ‘New Registration’ and fill in the required details. It includes state, business name, business PAN, contact details, etc. After verifying them with an OTP, receive a TRN (Temporary Reference Number) for further steps.
- Visit the portal again and click on ‘Register.’
- Select the TRN option, enter the TRN number, type captcha, and click ‘Proceed’.
- Enter an OTP and click ‘Proceed’.
- The next page will display the GST application status.
- Click the edit icon on the right-hand side.
- Fill in the next sections and submit the required documents. These include photographs, business address proof, bank details, authorisation form, taxpayer’s constitution, etc.
- Verify the application with an electronic verification code or e-sign method through OTP.
Downloading the GST Registration Certificate
Here is a stepwise guide to download the GST Registration Certificate:
- Visit https://www.gst.gov.in/
- Click on ‘Login’.
- Enter the username and password
- Click on Login > Services > User Services > View/Download Certificates
- Click on ‘Download’
With GST Registration, a business gains legal recognition and starts uniformly accounting for its taxes. It also provides several benefits under the GST rule, such as authorisation to collect taxes on each sale, input tax credit, and an advantage over competitors. The GST portal allows quick GST application online, allowing business operations without restrictions.