The Goods and Services Tax has changed the way businesses collect, pay and report indirect taxes in the country. Most of them had to engage GST service providers to understand the new registration and return filing system. The new GST registration process is completely online and users have to access the GST portal to get their incorporation. This portal can also be used for filing returns, lodging complaints, and claiming refunds. All entities who are eligible for the new tax have to mandatorily get the registration while others like composite dealers have to voluntarily apply for the process. Many small entrepreneurs are not aware of the details of the procedure. In this article, we are providing some essential information about the registration.
Which Taxpayers Are Eligible For GST Registration?
The new regime introduced different eligibility conditions for goods and service tax registration. According to the new law, the following taxpayers have to register for GST:
1. Earlier businesses with an annual turnover in excess of Rs 20 lakhs were eligible for the incorporation. However, in the last meeting of the GST council this threshold limit was increased to Rs 40 lakhs. The limit for special category states like North-eastern states was set at Rs 10 lakhs. The council suggested that the limit for these jurisdictions be increased to Rs 20 lakhs but asked the tax authorities of these states to take a final decision on the matter.
2. All enterprises which were registered under a pre-GST tax like VAT, excise etc. had to mandatorily register for GST.
3. Casual taxable persons who are occasionally involved in the supply of goods or services in a location where they do not have a fixed business establishment, have to get the incorporation.
4. The new law introduced the composition scheme for small enterprises. An entity with an annual turnover of up to Rs 1 crore is allowed to collect the tax at a fixed rate. The GST Council raised the threshold limit for the scheme to Rs 1.5 crore which will become effective after 1 April 2019. Composition dealers have to voluntarily file the incorporation application.
5. Input Service Distributors are offices of goods and services suppliers which receive tax invoices for the input services used by their branches. These taxpayers are also eligible for registration.
6. Non-Resident Taxable Persons who do not have a fixed place of business in the country but are involved in the supply of goods or services must get the incorporation.
7. E-commerce operators irrespective of their annual turnover are mandatorily required to get the registration.
8. The central and state government departments, local bodies, government agencies or an entity notified by the union or state governments, making contractual payments exceeding Rs 2.5 Lakhs for the supply of services must register as a TDS under GST.
9. The various agencies of the UN, the embassies and other notified persons receiving supplies of taxable goods from registered entities have to get the GST registration.
What Are The Documents Required For Registration?
Taxpayers must possess the following documents before filing the registration application:
1. The Permanent Account Number (PAN) of the applicant. In case, a person is applying for his/ her business, then the entity’s PAN must be provided or else the proprietor must furnish his/ her PAN.
2. The identity and address proofs of the applicant. PAN, passport, driving license, AADHAR card or voters identity card can be used as identity proof. The same documents can be provided as address proof.
3. The proof of business registration. The incorporation document of the entity issued by the Ministry Of Company Affairs must be submitted.
4. The address proof for the place of business. The address proof for business premises needs to be submitted along with the application. Property tax receipts, rent/lease agreements, utility bills, and a consent letter of the owner of the premises with his/her ownership proof will be required to fulfill this condition.
5. Bank account details.
6. Digital Signature Certificate.
7. Photographs and the details of the authorized signatory.
How Can Taxpayers Get The Registration?
The registration process is online and users have to log on to the GST portal to get the incorporation. While large corporations can hire top accounting firms or expert GST consultants in India for the purpose, small taxpayers who are technically-challenged can find the process difficult. The following steps will be helpful to them:
There are two parts of the registration form.
1. Go to the “New Registration” screen in the “Services” section of the portal. Select your taxpayer class and location from the respective dropdown menus. Provide the name, PAN, email, and mobile number of the business. Remember that the email ID and mobile number will receive One Time Passwords (OTPs).
2. When you click the proceed button, an OTP will be sent to the mobile and email. Provide these codes on the OTP verification page and click “Continue”.
3. Provide the Temporary Reference Number (TRN) which you will receive after the completion of Step 2, along with the captcha code on the next page.
4. Enter the OTP which you receive now to be directed to a new screen where the status of the application as “draft” will be visible.
1. Click on the edit tab against the “draft” status. Provide all the documents which have been listed in the above section and proceed.
2. Use the DSC to submit the application.
3. You will receive the Application Reference Number(ARN) on the registered email and mobile. Use it to check your application status.
This simple guide to GST registration will be useful for small taxpayers who are looking for complete information about the eligibility and requirements of the incorporation procedure.