GST Registration is the process by which businesses which has turnover of more than Rs. 40 lakhs, More than Rs. 20 lakhs for service sector (Rs. 10 lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand) is required to take registration under GST as a normal taxable person.
The registration under GST is mandatory for certain businesses. And if the organization fails to obtain registration, it will be an offence under GST and the heavy penalties will be levied on such organisation.
PERSON LIABLE TO REGISTER UNDER GST
The following persons shall be liable for registration under GST Act:
- Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, if his aggregate turnover in a financial year exceeds 40 lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds 10 lakh rupees.
- Every person who is registered or holds a licence under an existing law shall be liable to be registered under this Act with effect from the appointed day.
- Where a business carried on by a taxable person is transferred, the transferee or the successor, shall be liable to be registered with effect from the date of such transfer or succession.
- In a case of transfer under amalgamation or demerger of two or more companies the transferee shall be liable to be registered.
- Persons making any Inter-State taxable supply;
- Casual taxable persons making taxable supply;
- Persons who are required to pay tax under Reverse charge;
- Person who are required to pay tax under sub-section (5) of section 9;
- Non-resident taxable persons making taxable supply;
- Persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
- Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
- Input Service Distributor, whether or not separately registered under this Act;
- Every Electronic commerce operator;
- Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and
- Such other person or class of persons as may be notified by the Government on the recommendations of the Council.
PERSON NOT LIABLE TO TAKE REGISTRATION
(1)The following person shall not be liable for registration
- Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
- An agriculturist, to the extent of supply of produce out of cultivation of land.
(2)The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.
PROCEDURE FOR REGISTRATION UNDER GST
The step-by-step procedure that individuals must follow to complete GST Registration is mentioned below:
Step – 1: Visit the GST portal – https://www.gst.gov.in
Step – 2: Click on the ‘Register Now’ link which can be found under the ‘Taxpayers’ tab
Step – 3: Select ‘New Registration’.
Step – 4: Fill the below-mentioned details:
- Under the ‘I am a’ drop-down menu, select ‘Taxpayer’.
- Select the respective state and district.
- Enter the name of the business.
- Enter the PAN of the business.
- Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them.
- Enter the image that is shown on the screen and click on ‘Proceed’.
Step – 5: On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes.
Step – 6: Once the details have been entered, click on ‘Proceed’.
Step – 7: You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.
Step – 8: Visit the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.
Step – 9: Select ‘Temporary Reference Number (TRN)’.
Step – 10: Enter the TRN and the captcha details.
Step – 11: Click on ‘Proceed’.
Step – 12: You will receive an OTP on your email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’.
Step – 13: The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it.
Step – 14: There will be 10 sections on the next page. All the relevant details must be filled, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below:
- Business address proof
- Bank details such as account number, bank name, bank branch, and IFSC code.
- Authorisation form
- The constitution of the taxpayer.
Step – 15: Visit the ‘Verification’ page and check the declaration, Then submit the application by using one of the below mentioned methods:
- By Electronic Verification Code (EVC). The code will be sent to the registered mobile number.
- By e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.
- In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
Step – 16: Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.
Step – 17: You can check the status of the ARN on the GST portal.
Documents required to Complete GST Registration
Here are the documents required to complete GST Registration:
- PAN card.
- Aadhaar card.
- Business address proof.
- Bank account statement and cancelled cheque.
- Incorporation Certificate or the business registration proof.
- Digital Signature.
- Director’s or Promoter’s ID proof, address proof, and photograph.
- Letter of Authorisation or Board Resolution from Authorised Signatory.
GST Registration Fees
In case you complete the GST Registration procedure online, no fee will be levied. Once the relevant documents have been uploaded, an Application Reference Number (ARN) will be sent via SMS and email to confirm the registration.
Penalty for not completing GST Registration
If you do not pay tax or pay a lesser amount than what is due, the penalty that is levied is 10% of the due amount (in case of genuine errors). However, the minimum penalty is Rs.10,000.
If you have not registered for GST and are deliberately trying to evade tax, the penalty levied is 100% of the due tax amount.