GST Registration

 Introduction

To get into any stable platform, one need to officially register their business in the system and the same applies in GST. Registration in GST refers to getting the business registered in the GST portal which allows them to collect GST from their customers. In India, getting registered under GST is mandatory or voluntary. Registration is mandatory when organizations fall under the threshold criteria set by the Government. Whereas, voluntary registration can be opted which means getting registered under GST even if not falling under the threshold criteria set by the Government. 

When GST was launched, an annual turnover of Rs 20 lakhs was set as the threshold limit for GST registration for both goods and servics. However, in the 32nd GST Council Meeting held in January 2019, states were given the option to either go for new limits or to continue with the existing ones (status quo).

• Telangana was the only state falling in the normal category to opt for status quo. That means Rs. 20 lakhs remained as the threshold limit for both goods and services in the state of Telangana.

• Jammu & Kashmir, Ladakh and Assam (Special Category States) opted for Rs. 40 Lakhs threshold.

• Puducherry, Meghalay, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand opted for Rs. 20 Lakhs threshold.

GST Registration Threshold

Current Regulation for Goods

Rs. 10 Lakhs - Manipur, Mizoram, Nagaland and Tripura (MMNT)

Rs. 20 Lakhs - Telangana, Arunachal Pradesh, Meghalaya, Puducherry Uttarakhand and Sikkim (TAMPUS)

Rs. 40 Lakhs - All remaining states and Union Territories 

Note: The threshold limit for suppliers of ice cream and other edible ice whether or nt containing cocoa, Pan Masala, Tobacco an Tobacco substitutes is Rs. 10 Lakhs for Manipur, Mizoram, Nagaland, Tripura and Rs. 20 Lakhs for all the remaining states and Union territories.

Current Regulation for Services

Rs. 10 Lakhs - Manipur, Mizoram, Nagaland and Tripura

Rs. 20 Lakhs - All remaining states and Union Territories 

Who can register for GST?

The following persons are required to register their business under GST (www.gst.gov.in)

1. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)

2. Business making any inter-state supply

3. Businesses with turnover above the threshold limit of Rs. 40 Lakhs w.e.f 1st April, 2019.

4. Casual taxable person / Non-Resident taxable person

5. Agents of a supplier & Input service distributor

6. Recipients paying tax under RCM.

7. E-Commerce aggregators.

8. E-Commerce suppliers supplying via aggregators.

9. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

GST Registration Process

Go to GST portal “www.gst.gov.in”

Select > Services > Registration > New Registration

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’.

On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes.

Once the details have been entered, click on ‘Proceed’.

You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.

Visit the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.

Select ‘Temporary Reference Number (TRN)’.

Enter the TRN and the captcha details.

Click on ‘Proceed’.

You will receive an OTP on your email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’.

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.

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:

• Photographs

• Business address proof

• Bank details such as account number, bank name, bank branch and IFSC code.

• Authorization form

• The constitution of the taxpayer.

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).

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.

You can check the status of the ARN on the GST portal.

GST Identification Number (GSTIN)

After Applying for GST Registration, Application Reference Number (ARN) is generated to trace the status of the registration. The ARN output can be any one of the following: 

1. Provisional : This means that application has not been filed yet but Provisional ID has been issued. 

2. Pending for Verification: Application has been successfully filed but verification is yet to be completed. 

3. Validation against Error: PAN details provided by the user does not match with the details provided by IT Department. The form need to be resubmitted. 

4. Migrated: The application for migration to GST is successful. 

5. Cancelled: Registration has been canceled.  

It takes up to 15 days to obtain the 15 digit GSTIN, which looks as follows:

Types of Registration under GST

1. Normal Registration: This is the most general form of registration for regular dealers.

2. Casual Taxable Person: Individuals who set up uneven or seasonal business in any state of the country. Registration is valid for 3 months.

3. Composition Taxpayer: Only for dealers with Aggregate Turnover up to Rs. 1.5 Cr in the Previous Year.

4. Non-Resident Taxable Person: A person staying outside India but supplying goods to people living in India. Deposit is applicable and validity is 3 months.

5. Non-Resident Online Service Provider: A business organization supplying services or data retrieval services from databases located outside India.

6. Special Economic Zone Developer: A person or State Govt which has been granted letter of approval for holding atleast 26% equity in proposed entity, residential and recreational facilities in the SEZ.

7. GST TDS Deductor: Government Entities or authorities.

8. Special Economic Zone Unit: Units set up for the manufacture of goods or rendering of services in a unit declared as SEZ by government.