If you are a budding small trader or business and are unfamiliar with the Goods and Services Tax (GST) and the GST registration process, you need to know a few fundamentals.
What is GST?
This seems to be the main question that most business owners tend to ponder. In short, the Goods and Services Tax (GST) is a tax structure that was introduced in 2017 to subsume the indirect taxes that were a part of the previous regime. In other words, the fundamental principle underlying GST’s implementation is ‘One nation, one tax.’
How do you register your business under the GST regime?
If you are looking to carry out the GST online registration process, know that it isn’t nearly as daunting as you may think it is. This is how you do it:
- Visit and sign in to the GST portal online with your details.
- Next, hit the services tab and click on new registration. By this point, you need to have your essential details, such as your email address, phone number, and Personal Account Number (PAN).
- Once you click on proceed, you should receive a One Time Password (OTP) on the phone number that you’ve submitted for registration.
- Verify the details and note the Temporary Reference Number (TRN) that you receive after verification.
- Head over to services, select registration, and click on new registration. Select “TRN’ and enter the TRN that you’ve received from the step above, along with the captcha code that shows up, and click on continue.
- Now, you will receive another OTP that you will have to submit. After this, you will be redirected to the ‘Saved Applications’ page. Remember to submit your application within 15 days.
- Hit the edit button and proceed
- In this step, you will have to submit your vital business specifics, including the name of the business, the location of the business, partners, and so forth. Aside from this, you will be required to scan and submit documents like your bank account details, proof of business location, proof of incorporation of the business, registration certificate of the business, authorized signatory, and so on.
- Hit the ‘Save’ button and ensure all the information you’ve submitted is saved.
- You can submit your GST application in three ways: verification via e-signature, verification using Digital Signature Certificate, and verification through the Electronic Verification Code (EVC).
- Once this is done, you can expect to receive an Application Reference Number (ARN) in your inbox and on your registered phone number.
Tracking your GST application status
You can use your ARN to track your Goods and Services Tax Identification Number (GSTIN). Visit the GST portal online, hit the services tab, select registration, and click on the track application status option. If you find a status displayed that says ‘approved’, you should receive an email with your GSTIN. You can expect to receive a temporary username and password using which you will complete your first login. You can edit those parameters after you log in.
Your GSTIN is a 15-digit number that is exclusive to you after you complete the GST registration process.
As per the GST regime, if your business witnesses a yearly turnover of Rs. 40 Lakh, you will be liable to complete the GST online registration and get a GST number. However, in special category states like the North-Eastern states and Himachal Pradesh, the minimum turnover threshold is Rs. 20 Lakh. Here are the scenarios that call for GST registration:
- On the off chance that you have your business transferred or demerged
- If you were previously registered under another tax structure
- Being a casual taxable person
- If you act as an agent for a supplier
- Dealing with the supply of goods and services between states
- Being an E-commerce operator or aggregator
- Supplying through E-commerce aggregators
- If you are making tax payments as per the reverse charge mechanism
There you have it – a quick, easy-to-use guide on how to navigate the GST portal and get the GST registration process done for your business without issues. Be sure to get on it as soon as you can.