Last Updated on Feb 23, 2022 by Anshiya Tabassum
GST was launched jointly by the President of India and the Government of India at the stroke of midnight on 01 July 2017. It aimed at renewing our taxation system by including all the existing taxes like VAT (Value Added Tax) and ST (Sales Tax) under a single tax bracket.
The GST law that was implemented consists of:
- Central Goods and Services Tax (CGST) Act, 2017
- State Goods and Services Tax (SGST) Act, 2017
- Union Territory Goods and Services (UTGST) Act, 2017
- Integrated Goods and Services Tax (IGST) Act, 2017
- Goods and Services Tax (Compensation to States) Act, 2017
This law made it mandatory for all business owners to undergo GST registration. Here we will discuss the process of GST registration and fees required for that purpose.
This article covers:
- What is GST?
- What is GST registration?
- Eligibility criteria for GST registration
- GST registration fees
- Process of GST registration
- Documentation required to complete GST registration
What is GST?
GST or Goods and Services Tax, implemented in 2017, is a comprehensive, multistage, destination-based, and indirect form of taxation in India. The Government of India levies GST on all goods and services that you can avail of, with a few exceptions like alcohol and raw materials.
The GST law, which was implemented in 2017, was met with a lot of protest from the opposition parties and the business community. They stated that GST did not change the taxation system that was already in place; instead, it made luxury items cheaper while increasing the prices of common daily goods. This adversely affected people belonging to middle, lower-middle, and poor income groups while benefiting people belonging to higher income groups.
What is GST registration?
According to the GST Law, if you are a business owner with a turnover of more than Rs. 40 lakh it is mandatory for you to register as a normal taxable entity (Rs. 10 lakh for hilly and North-Eastern states).
GST registration is the process by which any taxpayer registers themselves under GST. This is done to determine whether they are liable to pay any GST to the Government. This can be done online by visiting the GST portal and following a series of simple steps. It takes about six working days to complete the registration. Upon registration, you are given a 15-digit Goods and Service Tax Identification Number or GSTIN.
Eligibility criteria for GST registration
It is mandatory for the following individuals to complete their GST registration.
- E-commerce aggregators
- Individuals registered under tax services since before implementation of GST Law
- Non-resident and casual taxable people
- Taxpayers under reverse charge mechanism
- Businesses with a turnout over Rs. 40 lakh (Rs. 10 lakh for hilly states and the North-Eastern States)
- Input service distributors
- Supplier agents
- Individuals using e-commerce aggregator as a medium of distribution
GST registration fees
The Government levies no GST registration charges if you apply for GST registration via an online medium. If you, however, wish to register by taking the help of a chartered accountant or consultant, they may charge a professional fee.
Process of GST registration
You can apply for GST registration via the online Government portal or with the help of a chartered accountant or consultant. Here we will guide you on how to apply for GST registration online.
To register for GST online, you will have to follow the steps given below:
- Visit the online GST portal
- In the GST portal, go to ‘Services,’ then under ‘Registration,’ select the ‘New Registration’ option
- Enter all the necessary details like legal name, taxpayer status, PAN number, etc.
- Submit and verify the information provided by validating the OTP to generate a Temporary Reference Number or TRN
- Log in with the TRN and fill in all the business-related details like name of business, district of operation, date of commencement, etc.
- Submit the information of the Promoter
- Submit the information of the Authorized Signatory
- Select the principal place of operation of your business, which will include office address, phone number, email id, etc.
- Enter the details of the goods and services provided by your business
- Enter your bank details
- Once you verify the information provided by uploading your signature, an ARN or Application Reference Number will be generated, which can be used to track the progress of your application.
Documentation required to complete GST registration
To complete the registration, you will be required to submit:
- PAN card
- Photo-identity proof (Aadhar card)
- Bank details (account number, bank name, bank branch name, and IFSC code)
- Business address proof
- Bank account statement and cancelled cheque
- Authorization form/letter or Board resolution from the Authorized Signatory
- Incorporation certificate or business registration proof
- Digital signature
- Director’s or Promoter’s ID proof, address proof, and photographs
- Constitution of the taxpayer
The Government introduced the GST law to bring about a change in the taxation system, which till then comprised different taxes levied in different ways across different states of India. The GST law aimed to change the existing taxation system by unifying the different forms of taxes under a single bracket. After its implementation, business owners were required to register under the law to help the Government efficiently keep track of the individuals liable to pay taxes.
The Government does not charge any fee to register under the GST law to date. It can be done quite simply by visiting the online GST portal and following a series of simple steps. Contact your financial advisor for professional advice on GST and other laws.