GST has become the most essential and the only form of tax in India since 2017 in majority of the goods and services. A GST provide relief to the consumer for any service or goods that they purchase with the tax limited up to 28% only. Some exceptions like Petrol-Diesel, Electricity, Liquor and services related to funeral process are exempted from GST ACT-2017.
What is GST?
GST is the short form of ‘Goods and Service Tax ACT-2017’. It is an indirect tax or consumption-based tax that is applied on the supply of goods and services throughout India. All the previous types of taxes like central excise duty, service tax, additional customs duty, surcharges, state-level value-added tax, and octroi were replaced by GST in the year 2017.
How to apply for GST number?
GST number is a unique number that is assigned to a business under the GST-ACT. The number is used by the official of tax department to maintain the essential records of transactions of those who have been registered under GST.
Visit the GST portal at https://www.gst.gov.in/ and select ‘Registration’ option. Select the type of ‘Taxpayer’ and select the state. Now, enter the business/entity name (as given in the PAN database). Now, in the PAN field, enter the business of the PAN of the proprietor. (GST registration will be linked in the PAN).
*(In the case of a company or LLP, enter the PAN of the company or LLP)
For the next verification, provide the email address of the ‘Primary Authorised Signatory’ and then proceed. After submitting the details, an ‘OTP Verification Page’ will be displayed. Provide the mobile number and email address and wait for the OTP. Submit the OTP from mobile number and email and proceed for ‘TRN generation’ (15-digit’s Temporary Reference Number). After the generation of TRN, proceed for GST registration application. Again, on the GST portal enter the generated TRN and enter the ‘Captcha’ and again verify the ‘verification process’ by submitting the OTPs from registered mobile number and email.
Enter the trade name in the field and enter the trade name of the business. (Trade name is different from business name). Now, enter the ‘Constitution of the Business’ from the drop-down list. Now, select the ‘District/Circle/Ward/Charge/Unit’ from the drop-down list. Then select the ‘Commissionerate Code/Division Code and Range Code’ from the drop-down list (Select any scheme, if necessary). Now, select the date for which liability to register arises.
* (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 to register arises).
Now, enter all the personal and other essential details as asked in the form like DOB, Aadhar, Mobile no., etc. Now, enter the authorised signatory information.
*(An authorised signatory is a person nominated by the promoters of the company).
Now add the address of the business/service (from where the business/service will be operated) with all the essential documents like electricity bill copy, rent lease paper (If the place on rent), etc. Now enter details of the good and services, as required/asked in the form, after filling all the details, provide the HSN, SAC and other essential codes. Now enter the banking details like account number, IFSC code, etc.
After filling all the details, the process will be completed. Now verify all the above details and check the verification box and submit the form and a success message will appear and an Application Reference Number (ARN) receipt will be sent to the registered mobile number and email address and the entire process for GST registration will be completed.
Who is eligible for GST registration?
Any business with a turnover of Rs. 40 lakh and above are eligible for GST registration. For North-Eastern remote areas, the GST registration can be done with a turnover of Rs. 10 lakhs.
Is GST registration free of cost?
Yes, the GST registration is free of cost and no money is required at the time or after the completion of GST registration.
How can I get GST registration?
Follow all the steps from the above question ‘How to apply for GST number?’
What are the 3 types of GST registration?
‘Compulsory Registration’, is a category where the GST registration is mandatory for a business irrespective of the turnover of the business.
For eg: inter-state sales of taxable goods, e-commerce operator, e-commerce seller, etc
‘Voluntary Registration’, is a category where a business is not required to register under GST-ACT but the business can be volunteered to register under the GST-ACT.
‘Registration under Composition Scheme’, is a category where the turnover crosses a threshold of “Rs.40 lacs (Rs.20 lacs for special category states) for goods or Rs.20 lacs (Rs.10 lacs for special category states) but is less than Rs.1.5 Cr (Rs.75 lacs for special category states).”