GST identification number or GSTIN is a unique 15 digit PAN based number that is assigned to every individual who is registered under GST. GST registration is necessary to obtain this unique number.
In this article, you will learn everything about GST registration online and how to get a GST identification number in India.
What Is GST Registration
It is the process by which a taxpayer can get themselves registered with the GST council through the government portal that is dedicated to the tax regime. After registration, the taxpayer is assigned a number that is called the Goods and Service Tax Identification Number (GSTIN). This number is assigned by the Central government. It is used to determine whether or not the business should pay any GST.
Who Should Register For GST
The types of entities who have to do the GST registration process are:
- Individuals who are still registered under the pre-GST law.
- A non-resident taxable person
- Businesses with a turnover of more than Rs.40 Lakhs. For Himachal Pradesh, Uttarakhand, Jammu & Kashmir and north-eastern states, the turnover has to be Rs.10 Lakhs.
- Input service distributor along with the supplier’s agent
- E-commerce aggregators
- Individuals who sell goods through e-commerce aggregators.
- Reverse charge mechanism tax payers
- Individuals who supply retrieval services or database access or online information from abroad to an Indian resident
Advantages Of GST Registration
Getting yourself registered with the GST service council has its own share of advantages. These are:
- Huge projects from Multinational Corporations (MNCs) that have registered with the council can be accepted.
- Individuals who have registered with the council can sell goods across the country.
- Registered companies can sell their goods online.
- GSTIN number is imperative to increase the business’ brand value.
- Individuals can open a current bank account in the name of the business with the help of GSTIN.
- The GST registration certificate is a valid proof as it is issued by the government.
- At the time of services and goods being rendered or purchased, the input tax credit can be availed.
Documents Required For GST Registration
The documents required for registration are-
- Aadhaar
- PAN card
- Business incorporation proof or registration certificate
- Address and ID proofs of directors or promoters with passport size photographs
- Bank account statements
- Supporting address proof of the place of business
- Digital signature
- Authorised signatory letter of authorisation
How to Apply For Online GST Registration
The step by step process of GST registration online is-
- Visit the official GST portal
- Click on the ‘Register Now’ option under the ‘Taxpayers’ tab.
- Select the option ‘New Registration’ after this.
- Fill in the necessary details like name of the business, PAN details, email ID and mobile number.
- Enter the Captcha and proceed.
- Enter the OTP received on your mobile number as well as email ID.
- The page will show you a numerical figure called Temporary Reference Number (TRN). Kindly note it down for future reference.
- Now visit the GST service portal again and click on ‘Register’ under ‘Taxpayers’ menu.
- Select ‘Temporary Reference Number (TRN)’
- Enter the TRN and the captcha.
- Click on ‘Proceed’ and you will get an OTP again.
- Enter this OTP and click on ‘Proceed’
- The status of your GST registration online application will be shown. On the right-hand side, you will see an ‘Edit’ icon’, click on it.
- Fill in the necessary details and attach the scanned copy of the documents required.
- Click on the page that says ‘Verification’, after which you will have to check the declaration.
- Finish the process by adding your digital signature.
- A success message will show up on the screen and you will be provided with an Application Reference Number (ARN).
- You can check the status of the ARN on the portal. Please note that the new GST application might take some time to go through.
GST Registration Process For New Business
The GST registration online process in case you want to register your new business is-
- Visit the official GST portal
- Fill the part-A of the registration form 1
- You will receive an Application Reference Number (ARN) via email and mobile.
- Fill in the second part of the form and attach the required documents based on your business type.
- Download the registration certificate from the GST service
- Upload the required documents along with GST REG-04 within seven working days.
- Check the email for any errors. If there are any errors, the application may get rejected and in that case, you will be notified about the same in form GST REG-05.
Penalty For Not Registering Under GST
The penalty for late registration or non-registration of an individual’s business with the GST service council is 10% of the due amount in case the error made was genuine. The minimum penalty is Rs.10,000. However, if the officials suspect that you are deliberately trying to evade tax, then the penalty that is levied will be 100% of the due tax amount. Therefore, it is important for any individual who has a business to register as soon as they can.
Being a service or goods provider, it’s necessary for you to register for GST in case the annual turnover exceeds the threshold limit specified for GST registration. Businesses failing to register under the GST regime may have to incur heavy penalties and fines.
Follow our WhatsApp channel
