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GST Registration Process – A Comprehensive Guide

1. What is GST Registration?

In the GST Regime, businesses whose turnover is more than Rs. 20 lakhs (Rs 10 lakhs for North East and hill states) are required to register as a normal taxable person. Registration under GST is mandatory for certain businesses. If the organisation is liable to register under the GST and carries on business without registering under GST, it will be considered as an offence under GST and heavy penalties will be levied. GST registration will usually take 2-6 working days.

2. Who should register for GST in India?

Under the GST regime, the tax is payable by the registered taxable person on the supply of goods and services. Here we have mentioned who needs to get registered under GST mandatorily.
  • Individuals who are registered under the previous law (Excise, VAT, Service Tax etc.)
  • When the businesses or the taxable person crosses the turnover threshold limit of Rs 20 lakhs (Rs 10 lakhs for North East and Hill States)
  • Inter-State Suppliers
  • Businesses having multiple branches in multiple states
  • Casual Taxable Person
  • A person who is required to pay tax under Reverse Charge Mechanism (if the supplier is unregistered under GST).
  • A person who want to take Input Tax Credit
  • E-Commerce operators, supplying goods or services
  • Non- Resident Taxable Person.
*Casual taxable person means the person whose place of business is not fixed and undertakes transactions occasionally involving the supply of goods or services or both. *Non-Resident Taxable Person means the person whose place of business is not fixed or is not the resident of India and undertakes transactions occasionally involving the supply of goods or services or both.

3. What are the Documents required for GST Registration?

The document list varies for every business category. The most important document for GST Registration, Click here. Different types of business categories under GST are:
  • Sole Proprietorship/ Individual
  • Private Limited Company/Public Company/One Person Company (OPC)
  • Partnerships
  • Limited Liability Partnerships (LLP)
  • Hindu Undivided Family (HUF)

4. GST Registration for different locations

Registration has to be taken in the state or union territory from where the registered supplier makes a taxable supply of goods & services. Registration is not required in that state where taxable supply is made. Where in case supplies of goods or services are made from different states, a separate registration will be required but there should be a fixed establishment in that other state from where the goods or services are supplied.

5. Time Period to get register under GST

The person is required to get himself registered under GST within 30 days from the date when turnover exceeds Rs.20 Lakhs or Rs. 10 Lakhs(for north east & hill states).

For example: BBC Ltd. is engaged in supplying taxable services in New Delhi. The turnover of BBC Ltd exceeds on 1st October, now BBC Ltd. is requiredto get registered by 1st November in the state of New Delhi.

6. What will be the penalty for not registering under GST?

The penalty of 10% of the taxable amount due, subject to a minimum of Rs.10,000 shall be levied on the person not paying tax or making short payments.
The penalty will at 100% of the tax amount due when the offender has intentionally evaded taxes.
Not registering under GST is an offence under Section 122. The GST Act has listed down 21 offences in section 122.

7. GST Registration Process – Part – A

How to make a new registration on GST Portal online?

Every business whose Annual turnover exceeds Rs 20 lakh (Rs 10 lakhs for North East & hill states) is required to register under GST as a normal taxable person. GST registration can be done online through the GST Portal. On submission of a GST registration application, GST ARN is provided immediately.

Here is a step-by-step guide on how to complete registration process (PART-A) online on the GST Portal –

Step-1 : Go to the GST Portal

  • The GST Homepage will be displayed.
  • Click the Services > Registration > New Registration option.

The Application form for GST Registration is divided into two parts as Part A and Part B.

Step-2 After clicking New Registration form, you are required to fill the following details in Part-A:

First, select the New Registration option.
From the I am a dropdown list; select the option Taxpayer as the type.
In the State/UT and District select from the drop down list.
Enter the Legal Name of the Business (As mentioned in PAN) field.
Enter the Permanent Account Number (PAN) field; enter PAN of your business or PAN of the Proprietor. This will be added in the GST registration.

Note:

  • PAN is mandatory for GST registration.
  • In case you don’t have PAN, you can apply for PAN by clicking the here link.

Enter the Email Address field, of the Primary Authorized Signatory.
Enter the Mobile Number field of the Primary Authorized Signatory.

Note: One Time Password (OTP) will be sent on your email address and mobile number for authentication.

Enter the captcha code in the Type the characters you see in the image below field.
After that, Click the PROCEED button to complete the Part-A registration.

Step-3 OTP Verification and TRN Generation

The OTP Verification page is displayed after the submitting the proceed button (as showed above). Enter the two separate OTP sent to verify email and mobile number. OTP will be valid for 10 minutes.

  • Enter the OTP received on your registered mobile number in the Mobile OTP field.
  • Enter the OTP received on your email address in the Email OTP field

Step-4 TRN Generated

On successful OTP verification, a TRN (Temporary Reference Number) will be generated which can be used to complete and submit the GST registration. You can login through your TRN to view and complete your application.

Step-5 Now, you have to fill the following details in Part-B to complete the GST Registration. Click Here to understand the detailed procedure to fill Part-B.

8. GST Registration Process – Part – B

In the previous article, we have explained the process of making application in Part-A for GST Registration. Now let’s understand the detailed procedure to fill and complete Part-B of GST Registration.

Step-1 As Part-A is already done, now you are required to fill the following details in Part-B to complete the GST Registration:

  • Again go to GST portal
  • Click the Services > Registration > New Registration option.
  • Select Temporary Reference Number (TRN). Enter the TRN and the captcha code and click on Proceed.

Then, you will receive an OTP on the registered mobile and email. Enter the OTP and click on Proceed to login.

Step-2 Login with TRN

  • Now as the TRN is generated, you can complete the GST registration process, which is PART-B of the registration. After login, The My Saved Application page will be displayed. Click the edit icon (icon in blue square with white pen) under the Action option.

Step-3 Submit Information in registration form (Part-B)

On the top of the registration page, there are 10 tabs such as Business Details, Promoter or Partners, Authorized Signatory, Authorized Representative, Principal Place of Business, Additional Places of Business, Goods and Services, Bank Accounts, State Specific Information and Verification. Click separate tab to enter the details. This will affect this verification before the process the various tab. These can be taxed in the same head for the business details tab is selected by default and displays the information to be filled for the business details required for registration in the trade name of your business and the business threshold limit for the GST registration, Taxpayers are required to file the new GST for the registration arises.

Lets understand all tabs under registration process:

A. Business Details:

This tab is selected by default and displays the information to be filled for the business details required for registration.
a) Enter the trade name of your business.
b) Select the Constitution of Business drop-down list, select the type of constitution of your business.
c) Enter the District and Sector/ Circle / Ward / Charge/ Unit from the drop-down list and select the district & sector/circle/ward/charge/unit number of your business.
d) Select the Commissionerate Code, Division Code and Range Code from the drop-down list.
e) Choose Yes in case you want to opt for the Composition Levy, or else select No.
f) Enter the Date of commencement of Business
g) Enter the Date on which liability to register arises.

Note:This is the day the business crossed the aggregate turnover threshold for GST registration. Taxpayers are required to file the application for new GST registration within 30 days from the date on which the liability arises to register.

B.Promoters/Partners Information:

In this tab details of the Promoters of business, Company director information, and Proprietors information must be submitted.

You can enter the details of upto 10 Promoters or Partners.

Following fields should be filled:
a) Personal details of the stakeholder
b) Identity Information
c) Designation / Status of the stakeholder
d) Residential Address of the stakeholder.
e) Document Upload to upload the photograph of the stakeholder.
f) Where the promoter or partner is also the authorized signatory, you can select the option Also Authorized Signatory as Yes and details will be auto-populated in the Authorized Signatory tab.
g) Click the SAVE & CONTINUE button.

C. Authorized Signatory Tab:

The authorized signatory is a person nominated by the stakeholder of the company to be responsible for filing GST returns and other compliances.

In case a stakeholder was selected as an authorized signatory in the promoter’s section, this section will be auto-populated with the relevant details. The details required for authorized signatory is same as that of the promoters.

D. Authorized Representative:
This tab requires the details of the authorized representative.
Select Do you have any Authorized Representative using the radio button and fill the required details (if any).

E. Principal Place of Business:
It is the primary location within the State where the business activities are performed. It is generally the address where the books of accounts and records of business are kept.

a) In the Address Field, enter the address of the principal place of business in Address Field.
b) Enter the contact details like Email address, telephone number, mobile number field and fax number (with STD Code).
c) From drop-Select the Nature of Possession of Premises from the drop-down list.
d) Click the Choose file button to upload the documents..

Note:

  • Maximum file size is 1 MB (PDF or JPEG files)
  • Upload the documents for the proof of Principal Place of Business.
  • Document for Own premises – Any document in support of the ownership of the premises like Latest Property Tax Receipt or copy of Municipal Khata or Electricity Bill.
  • Document for Rented or Leased premises – A copy of the valid Rent / Lease Agreement with proof of ownership of the premises of the Lessor example Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

e) Choose the File button to upload the proof of SEZ unit or SEZ developer approval for the premises.
f) Click the checkbox for the Nature of Business activities being carried out at above-mentioned premises.
g) For additional place of business, select Yes for Have Additional Place of Business.
h) Click the SAVE & CONTINUE button.

F. Additional Places of Business:

You are required to enter the number of additional places of business and click the ADD NEW button. You can enter the same details provided above in Principal Place of Business Details.

G. Goods and Services:

This tab shows the details of the goods and services supplied by the business.
In case you deal with Goods, you are required to mention the HSN Code in the Goods tab. In case you deal with services, you are required to mention the Service Classification Code (SA) in the Services tab. Maximum 5 goods and 5 services can be added. If you have more than 5 goods or services, then you have to add the top 5 goods or services you are trading with.

H. Bank Accounts:

In this tab, it will display the details of the bank accounts maintained for managing business.
Also, You can enter details of up to 10 Bank Accounts

I. State Specific Information

J. Verification:

This is for authentication of the information submitted in the form.
You are required to digitally sign the form using Digital Signature Certificate (DSC)/ E-Signature or EVC.

After Submitting the Form, The success message is displayed. After that you will receive the acknowledgement in next 15 minutes. Application Reference Number (ARN) will be sent on your registered e-mail and mobile phone number.

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