Goods and Services Tax (GST) is the product of India's major tax reform since independence, which has immensely enhanced the ease of doing business and increased the tax payer's base by including millions of small scale businesses. The new GST registration mandates that any entity involved in selling or buying goods or providing services or providing both is needed to register and acquire GSTIN. The New GST Registration is obligatory once an entity crosses a minimum threshold turnover or when a person starts a new business that has the potential to exceed the prescribed turnover limit.
Overview of New GST Registration
In GST authority, any business entity whose turnover exceeds the limit of INR 40 lakhs and INR 20 lakhs for North Eastern and the Hill States must be registered as a separate taxable entity. It takes around five working days to days to complete the new GST registration process. Carrying out business activities without new GST registration is considered an offense under the Goods and Services Tax Act of 2017. GST is levied on goods and services, including the State Taxes like entertainment tax, octroi, luxury tax, and Central Taxes like service tax, excise duty, and CST. This helps the customer as the supply chain's last dealer charges the Goods and Services Tax.
Goods and Services Tax (GST) is the product of India's major tax reform since independence, which has immensely enhanced the ease of doing business and increased the tax payer's base by including millions of small scale businesses. The new GST registration mandates that any entity involved in selling or buying goods or providing services or providing both are needed to be registered and acquire GSTIN. The New GST Registration is obligatory once an entity crosses a minimum threshold turnover or when a person starts a new business that has the potential to exceed the prescribed turnover limit.
Entities Eligible for New GST Registration
Any person who is registered under Pre-GST law that is VAT, Service Tax, Excise, etc.
Business entities that have a turnover of more than INR 40 lakhs and INR 20 lakhs for the Hill States and the North Eastern States.
Non-Resident taxable person.
Resident taxable person.
Input service distributor and agents of the supplier.
Any person paying taxes under the Reverse Charge Mechanism.
Any person who is supplying goods and services through e-commerce aggregator.
Individuals supplying database access and information from outside India to a person in India.
Modes of GST Registration in India
Central Goods and Services Tax (GST)
Central Goods and Services Tax is the tax levied on the Intra State supplies goods and services by the Central Government. Intrastate supply of services or goods takes place when the location of the buyer and location of the supplier is in the same state. In this mode of Goods and Services Tax registration, a seller has to collect both SGST and CGST in which Central Goods and Services Tax gets deposited to the central government while the State Goods and Services Tax gets deposited with the state government.
State Goods and Services Tax (SGST)
SGST (State Goods and Services Tax) is the tax levied on the state government's intrastate supplies of services and goods. The State Government collects the levied Tax.
Integrated Goods and Services Tax (IGST)
IGST is the tax levied on inter-state supplies of services and goods that will be governed by the IGST Act. Inter-state supply of services and goods occurs when the supplier and the supply location are in different states. In Integrated Goods and Services Tax, the buyer has to pay IGST to the seller. The tax collected is shared between the State and the Central Government.
Documents for Online GST Registration in India
The Documents needed for the new GST registration varies with different types of businesses. Following is the list of documents for different business types:
Proprietorship
Identity Proof such as Aadhar Card, PAN Card, and proprietor's address proof.
Limited Liability Partnership
LLP Agreement
PAN card
Name and Address proof of all the partners.
Private Limited Company
Certificate of Incorporation
PAN card
Memorandum of Association
Article of Association
Address and Identity proof of Directors
Digital Signature Certificate
Address proof of Directorship:
Voter ID Card
Passport
Aadhar card
Electricity or Telephone Bill
Ration Card
Driving License
Bank Account Statement
New GST Registration Process
Upload the Documents Online
The first step is to upload the necessary documents required for GST registration on the official online portal of Goods and Services Tax.
Fill the Online Application Form
After the authorities verify the uploaded documents, the applicant has to fill the online form on the official online portal of Goods and Services Tax "http://gst.gov.in.”
Acquirer Reference Number (ARN) Generation
After filling the online application form, the Acquirer Reference Number (ARN) will be issued immediately. Acquirer Reference Number (ARN) is a tracking ID with which an individual can track transaction status with the bank.
GST Registration Certificate and GSTIN Received
After the authorities have verified the Goods and Services Tax Registration Application and the uploaded documents, if the authorities are satisfied and all the requirements are fulfilled, the authorities will issue the GST Registration Certificate and GSTIN.
How to Track GST Registration Application?
By the following method, any individual can track his/her GST Registration Application.
The first step is to visit "http://gst.gov.in.”
Now click on the available 'Service' option.
A dropdown will give a result of 'registration.'
Now the applicant has to choose the option “Track Application Status.”
Now the applicant has to provide his/her Acquirer Reference Number (ARN) and click on search.
The applicant can now see his/her application status, and the same information will be shared on the registered e-mail address and mobile number.
Conclusion
Goods and Services Tax (GST) is the product of India's major tax reform since independence, which has immensely enhanced the ease of doing business and increased the tax payer's base by including millions of small scale businesses. The new GST registration mandates that any entity involved in selling or buying goods or providing services or providing both needs to be registered and acquire GSTIN.