GST Registration: About GST
The GST (Goods and Service Tax) Bill was approved by Government of India and it replaced all State or Central government-imposed taxes. At this process, Govt of India (GOI) has made it a simple process for GST Registration in online mode and reduced the government officials problems. Govt of India is trying to make the life of Business Owners simple and streamlined.
For more details about GST and how it works etc, please click here
GST Registration: Who has to do GST Registration?
Any person or business with a taxable turnover of over Rs.25 lakhs has to register for GST in India. Its essential to get the input credit tax for the business too. It includes proprietorship, partnership firms, Hindu Undivided Family, Company, LLP, Society and any other legal entity. GST registration must be obtained within 30 days of exceeding the Rs.25 lakh turnover limit and failing of which could incur penalties.
- Business owners with more than turnover that’s mentioned in GST have to register
- People who pay Service taxes, TDS have to register for GST.
One of the advantages of GST is that now business can take the input credit for the business expenses including air travel, hotel expenses etc.
GST Registration: How to Register?
We are giving a step by step process to Complete your GST Registration Online
Please keep the below data ready before you begin this process as its essential to enter the right information to avoid rejection and penalties.
- Legal Name of the Business and address.
- Company or your personal PAN number
- eMail and Mobile Number
Now follow the below steps one by one.
- Log in to www.gst.gov.in.
- Click on the ‘Services’ tab on the menu at the top of the page.
- Click on ‘Registration’ and select ‘New Registration’ tab.
- A new page will be opened and you have to select whether you are a “Taxpayer” or a “GST practitioner”.
- Now enter the Part-A of the form with legal name of the business, the state and district in which your business entity is located, Permanent Account Number (be careful here as propriety business will have owners PAN number as Business PAN number), your email address and correct mobile number.
- The details you have entered will have to be verified by the portal, so you will receive a one-time password or an email for confirmation. Based on the kind of business you are running, you will be required to upload a few documents as requested.
- Part-B of the form will then have to be filled in with a few additional details. After that you will receive the Application Reference Number (ARN) through email or SMS.
- Your application will then be verified by a GST officer and it could either be approved or you will be requested to provide some more details or documents until the authorities have all the required information to approve your application.
- Government of India has made it mandatory for the official to ask all questions in ONE GO and verify. Else its approved automatically.
Note: GST has made business with multiple states have to have a separate registration for each state, if your business has branches in multiple states.
GST Registration: Types of new Taxes and what it means?
Under GST, there are three main types of taxes defined. These mainly have replaced the earlier Excise, VAT, Local Taxes, Surcharges etc.
- Central GST (CGST)- Normally 50% fo the total taxes is considered for CGST
- State GST (SGST) – Normally 50% fo the total taxes is considered for SGST
- Integrated GST (IGST) -Normally 50% fo the total taxes is considered for IGST
- Union GST (UGST) for Union Territories
All the above are depending on where you are and which state you are selling. Means, if you are selling with in your state (Intra State) or your are selling to a customer who is from other states (Inter State)
Inter State Transactions – You are from Punjab and your customer is at Haryana, you will be required to apply CGST and IGST taxes.
Intra State Transactions – You are from Punjab and your customer is at Punjab, you will be required to apply CGST and SGST taxes.
Along with there are export related taxes and procedure been changed. Please check with your CA before your proceed here.