How to do GST Registration: The Goods and Services Tax (GST) is an upcoming tax that will be applicable throughout India from July 1st, 2017. It’s a single indirect tax which will be applicable to the whole country to make India one common and amalgamated market. This tax will be levied on the supply of goods as well as services and will apply from the manufacturer to the customer.
How to do GST Registration
The GST bill was first launched in Lok Sabha in the year 2009 by the former UPA government but was declined then. The present NDA government put up a modified version of the bill and was approved and passed with the consent of both the houses. The vision of GST is to create one all-inclusive tax that will consider all the indirect taxes that are being paid by the consumer such as the service tax and more. The motto of this tax is a financial unification of India. The tax rate will be uniform across the nation and will also have benefits and easy procedure of claiming credits for the tax being paid. The government speculates that there will be an increase in the GDP by about 2 percent. Now we will see many aspects of GST and then how to do GST registration.
Read More: Best GST Softwares and Apps for Taxpayers
How will GST Affect Businesses?
GST will alter the functioning of the businesses a bit. There will be a standard abolition of the multiple layers of taxes, and this will create a common market which will have lesser tax rates and also lesser tax exemptions. This will ease the business procedure and also reduce preventable proceedings. There will be a simplification of the complex mesh of taxes which the businesses are subjected to in the present. Businesses are currently unsure of the impact, but there is a visible gain in the long run of GST. Businesses are now worried about how to do GST registration as they are being prompted to register for the online system of the new taxation format.
What Is GST Registration?
Are you wondering how to do GST registration? Know about the matter first. Each and every business that is carrying out taxable supplies of goods and services in the Goods and Service Tax (GST) role and has a turnover exceeding the limit of Rs. 20 lakh/ 10 lakh as it is applicable is obligated to register as a taxable entity. This registration process for the new taxation system has been coined as GST registration.
Why Is It Important To Get GST Registration?
Before knowing how to do GST registration, we must know why is this registration so important. GST registration is crucial because this will make you eligible to avail the profits that will be accessible in the GST regime. Such benefits are:
- Availing a flawless input tax claim
- Multiple levies of taxes are now clubbed under one single tax
- Registering now will avoid facing the consequences with the tax authorities
What is Casual GST Registration?
In the talk of how to do GST registration, there are various formats of the said process. Casual registration is applicable to a person who at times supplies services and goods to areas where GST is applied, but there is not any fixed or tangible place for carrying out business processes. The businesses under this category will be marked as a casual taxable person with concern to GST, thus casual registration.
Who is a Composite Dealer or Composite Tax Payer?
A composite dealer is an option created for the small businesses and the taxpayers who have a turnover of less than Rs. 75 lakh. They can choose the Composition scheme through which tax of 1% or 2.50% of CGST and SGST will be levied on them. The proper rates are yet to be announced. These taxpayers will need to keep a less detailed record and can file for only 1 quarterly return. They are not eligible to issue any taxable invoice like taxable bills to a customer that means the tax will be deducted or charged from their pocket. These dealers are also not eligible for input tax credits. When concerned about how to do GST registration, note that composition dealers do not include the e-commerce traders or interstate sellers.
Process of GST Registration for Composite Tax Payers
- Fill Part-A of the Form GST REG-01
- Provide PAN, e-mail ID, mobile number
- Submit the form
- The PAN will be verified on GST Portal
- Mobile number and your e-mail ID will be verified by an OTP.
- Fill Part-B of the Form GST REG-01
- Attach required documents like:
- Photographs: Photographs of the proprietor, the partners, committee, managing trustee and the authorized
- Charter of Taxpayer: Registration certificate, partnership deed,
- Proof of Business:
- For own site: Document supporting the ownership of the place. E.g.: Property tax receipt, electricity bill, etc.
- For rented site: Lease Agreement, Rent receipt with landlord’s copy of electricity bill, Municipal khata copy, etc.
- Bank Account Proof: Scanned copy of Bank Passbook details, statement of the bank.
- Authorisation proof: Each authorized personnel must upload an authorisation copy or the resolution of management or of the board of directors in the legalized and arranged format.
- Attach required documents like:
- In case more information is necessary, a Form GST REG-03 will be sent to you, and for the response, you need the Form GST REG-04 with all the necessary information. You are required to respond within a time constraint of 7 days from the date you receive the Form GST REG-03.
- After you have supplied all the necessary and crucial information about your business through either Form GST REG-01 or Form GST REG-04, a Certificate of Registration will then be provided with a Form GST REG-06 within a period of 3 days from the receipt of Form GST REG-01 or Form GST REG-04.
- In case the detail that was submitted is not satisfactory, your application of registration will be rejected with a Form GST REG-05.
Steps of Registration for other Stakeholders
- To apply for Registration as a Tax Collector at source, one must fill up the Form GST REG-07
- To apply for cancellation of Registration application as a Tax collector, one must fill up Form GST REG-08
- To apply for Non-Resident Taxable Person Registration, one must fill up the Form GST REG-09
- To apply for registration for entities providing online information and access to database or retrieval of information services from outside of India to any online non-taxable recipient, one must fill up the Form GST REG-09A.
- For application to register for an extended period on functioning by any casually taxable person or a non-resident taxpayer, one must fill up the Form GST REG-10.
- To apply for allotment for any unique identification or any Multilateral Financial Institution or other categories as these, one must fill up the Form GST REG-12.
Migration to Goods and Services Tax (GST)
The existing Service Tax and Central Excise and the VAT dealers will automatically be migrated to the upcoming GST. For migrating to GST, the assessment will receive a provisional identification and password by the State Commercial Tax Departments. This identification proof will be issued to assess who hold a valid PAN which is attached to their registration of business. Under the following cases, an assessed shall not receive a provisional identification:
- The PAN linked with businesses’ registration is not valid.
- If there is more than one CE/ST registrations under the same PAN in one state. In such conditions only the first provisional identification in alphabetical order will be registration and the remaining will not be taken into consideration.
- In case the provisional identification has been issued by the State Tax Authority, and also the PAN has been registered with the same State Tax authority.
A single defined portal has been allotted to solve all your queries of how to do GST registration. Assesses are to use the provisional identification and the password to this GST Common Portal. All the registration for GST is to be performed on this platform.
What Will Happen If You Don’t Register Under GST
If anyone is confused as to how to do GST registration and give up the registration process thinking it will not affect them, it is a misconception. Anyone who offends by not paying taxes properly is subjected to a penalty of 10% on the amount of tax which is subjected to a minimum amount of Rs. 10,000. In the case of deliberate fraud, there will be 100% penalty of the tax amount. For any genuine error, the penalty applicable is 10%.
Entities Conditioned to GST Registration
Individuals and entities in the following conditions are conditioned to GST registration. These are the people who need to know how to do GST registration:
- Having an annual turnover of Rs. 20 lakh from the operations of the state. This threshold limit for the North-Eastern States.
- People, who are presently registered to the existing indirect tax rules, e.g.: Excise laws, VAT, service taxes.
- Have operations in a lot of states.
- Have more than one business entities in one state.
- People involved in inter-state taxable contribute.
- Casual taxable people and the non-resident taxable people.
- People who have to pay taxes under Reverse Charge.
- People who need to cut taxes at the source.
- People who work are supplied agents to many suppliers.
So this is all you need to know about how to do GST registration. These are the topics which you need o know about the future of taxes which are coming into play. It is advisable to get registered under GST as soon as possible to available greater benefits and to be a part of better financial India.