How to Register for GST in India: A Step-by-Step Guide

Posted In | Finance | Accounting Software | India Accounting Tax

Goods and Services Tax (GST) is a comprehensive tax levied on the supply of goods and services in India. It has replaced multiple indirect taxes such as excise duty, VAT, and service tax. Businesses with an annual turnover above a specified threshold must register under GST. This article provides a step-by-step guide on how to register for GST in India.

 

Step 1: Determine if you need to register for GST

Before initiating the registration process, you need to determine if your business is required to register for GST. You must register if your business fulfills any of the following criteria:
 

• Annual turnover exceeds ₹20 lakhs (₹10 lakhs for northeastern states, Uttarakhand, and Himachal Pradesh)
   

• Engaged in the inter-state supply of goods or services
   

• Required to pay tax under reverse charge
   

• Non-resident taxable person
   

• E-commerce operator or aggregator
   

If your business meets any of these conditions, you are required to register under GST.

 

Step 2: Gather necessary documents

Before starting the registration process, gather the following documents:
 

• PAN (Permanent Account Number) card
   

• Aadhaar card
   

• Proof of business registration (Certificate of Incorporation, Partnership Deed, etc.)
   

• Identity and address proof of the authorized signatory (Passport, Voter ID, etc.)
   

• Address proof of the place of business (Electricity bill, rent agreement, etc.)
   

• Bank account details (cancelled cheque, bank statement, etc.)
   

• Digital signature or Aadhaar-based e-signature
   

Step 3: Visit the GST Portal

Visit the GST Portal at www.gst.gov.in to start the registration process. Click on the 'Services' tab and then click on 'Registration' followed by 'New Registration'.

 

Step 4: Fill the GST REG-01 form

Fill in the required details in the GST REG-01 form, which is divided into two parts - Part A and Part B.
 

Part A

1. Select 'New Registration' and enter the following details:
    

   • Legal name of the business

   • PAN

   • Email address and mobile number
      

2. Click on 'Proceed' and you will receive an OTP on the registered mobile number and email.
    

3. Enter the OTP and click on 'Continue'.
    

Part B
 

1. After completing Part A, you will receive a Temporary Reference Number (TRN).
    

2. Use the TRN to log in and complete Part B of the form by providing the required details and uploading the necessary documents.
    

3. After filling in all the details, sign the form using a digital signature or Aadhaar-based e-signature.
    

4. Click on 'Submit' to complete the registration process.
    

Step 5: Application acknowledgment and GSTIN

After submitting the application, you will receive an acknowledgment in the form of Application Reference Number (ARN) via email and SMS. You can track your application status using the ARN on the GST Portal.
 

Once the application is approved, you will receive your GSTIN (GST Identification Number) along with a registration certificate.

 

Registering for GST in India is a simple and straightforward process. By following this step-by-step guide, you can easily register your business under GST and ensure compliance with the GST laws and regulations.

 

Frequently Asked Questions

 

1. What is GST and why was it introduced?

GST stands for Goods and Services Tax. It is a comprehensive indirect tax that is levied on the supply of goods and services across India. GST was introduced to replace multiple indirect taxes like VAT, Service Tax, and Excise Duty, among others, with a single tax structure. The primary objective behind implementing GST was to streamline the tax administration process, eliminate tax cascading, and improve the ease of doing business in the country.

 

2. Who is liable to register under GST?

Businesses and individuals with an annual aggregate turnover exceeding the prescribed threshold limit (Rs. 20 lakhs for most states and Rs. 10 lakhs for special category states) are required to register under GST. Additionally, certain categories of suppliers like e-commerce operators, casual taxable persons, non-resident taxable persons, and those liable to pay tax under reverse charge are also required to register under GST, irrespective of their annual turnover.

 

3. What is the difference between CGST, SGST, and IGST?

GST is divided into three components: Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST). CGST is levied by the central government, SGST by the respective state government, and IGST is charged on inter-state supplies of goods and services. The revenue collected under CGST goes to the central government, while that under SGST goes to the state government. IGST revenue is divided between the central and state governments as per the applicable rates.

 

4. What is the Input Tax Credit (ITC) and how does it work?

Input Tax Credit (ITC) is a mechanism under the GST regime that allows a registered taxpayer to claim credit for the GST paid on the purchase of goods and services used as inputs for the furtherance of business. The taxpayer can use this credit to offset the GST liability on the supply of goods and services. To claim ITC, the taxpayer must possess a valid tax invoice and should have received the goods or services. Additionally, the supplier should have filed the GST returns and paid the tax to the government.

 

5. What is a reverse charge under GST?

The reverse charge is a mechanism under GST where the recipient of goods or services is liable to pay the tax instead of the supplier. This mechanism is applicable in specific cases like the supply of goods or services by an unregistered dealer to a registered dealer, import of services, and certain notified supplies. The registered recipient is required to pay the tax under reverse charge and can later claim it as Input Tax Credit (ITC).

 

6. What are the penalties for non-compliance with GST?

Non-compliance with GST provisions can result in penalties and interest. Some common penalties include a late fee for delayed filing of returns, penalty for non-registration, and penalty for non-payment or short payment of tax. The amount of penalty varies depending on the nature of the offence and can range from Rs. 10,000 to an amount equal to the tax evaded or the ITC wrongly availed.

 

7. How can I file GST returns?

GST returns can be filed online through the GST Portal (www.gst.gov.in) using the taxpayer's login credentials. The taxpayer is required to provide details of outward and inward supplies, Input Tax Credit (ITC) availed, tax payable, and tax paid. The type of return and the frequency of filing depend on the taxpayer's registration category and annual turnover.

 

8. Can I revise my GST returns?

Under the GST regime, the concept of revising returns has been replaced with the amendment of details in the subsequent return. If a taxpayer has made any errors or omissions in a filed return, they can rectify the same in the subsequent return by providing the correct details in the relevant sections.

 

9. Is GST applicable on exports?

GST is not levied on exported goods and services, as they are considered 'zero-rated supplies.' However, the exporter is allowed to claim Input Tax Credit (ITC) on the GST paid on inputs used for producing the exported goods or services. The exporter can either claim a refund of the accumulated ITC or utilize it to offset the GST liability on other taxable supplies.

 

10. How can I check the status of my GST refund?

Taxpayers can check the status of their GST refund application through the GST Portal (www.gst.gov.in) by logging in with their credentials and navigating to the 'Services' menu, followed by 'Refunds' and then 'Track Application Status.' By entering the relevant details, the taxpayer can view the current status of their refund application.