How To Register Your Business Under GST?

A main part of the Indian tax structure is the Goods and Services Tax (GST). This was a tax reform introduced from July 1, 2017. Many indirect taxes are incorporated into the one system from GST, like VAT, service tax, and excise duty. GST covers every business where its turnover surpasses the permissible limit that carries on selling any good or providing some services. Having a GST certificate has immense benefits, which include acting as a valuable document when you apply for business loan.

Additionally, no MSME business owner can charge GST from his customers or claim input tax credit on his purchases unless he registers his business under GST.

GST Registration in India

Below are a few statutory requirements for all businesses that cross certain turnover thresholds:

1. Businesses with an annual turnover of more than ₹40 lakhs in case of sale of commodities and ₹20 lakhs in case of sales of services should register GST.

1. Special Category States like Himachal Pradesh, Assam, and Uttarakhand have just a threshold of ₹10 lakhs.

1. All those businesses that engage in an interstate supply or e-commerce supply or sell any taxable services regardless of the value of turnover. 

1. Even in the case of a threshold limit, registration is available on a voluntary basis.

After the registration process, the business is assigned a 15-digit unique number called GST Identification Number or GSTIN issued by the government, which is used while filing their respective GST returns, for claiming input tax credits and the legitimacy of the business.

How Can You Register Your Business Under GST

Step 1: Visit the GST Portal

You can visit the official GST website. To begin, go to the 'Taxpayers' tab and click on the "Register Now" option.

Step 2: Fill Part-A of the Registration Form

You will need to provide the following details:

1. Select ‘New Registration
2. Type of taxpayer (e.g., individual, partnership, private limited company)
3. State and district
4. Legal name of the business (as per PAN card)
5. PAN (Permanent Account Number) of the business
6. Email ID and mobile number (for OTP verification)

After filling in all the above details, an OTP (One Time Password) will be sent to your mobile number and email ID to verify the OTP.

Step 3: Filling out Part-B of the Registration Form

Once OTP is verified, fill out Part-B of the form along with all additional details given below:

1. Business Details (trade name, nature of business, date of commencement)
2. Principal Place of Business Address
3. Details of Promoters or Partners (in case of partners).
4. Bank account details (cancelled cheque or bank statement)
5. Digital signature (DSC) (for companies and LLPs)
6. Upload required documents (as mentioned below)

Step 4: Upload Required Documents

You need to submit scanned copies of these documents:

1. PAN card of the business
2. Proof of business registration (Partnership deed, Incorporation certificate, etc.)
3. Address proof of business (electricity bill, rental agreement, etc.)
4. Identity proof and photographs of promoters/partners
5. Bank account details (canceled cheque or bank statement)
6. Digital signature (for companies and LLPs)

Step 5: Submit the Application

After filling in all details and uploading the required documents, submit the application using the Electronic Verification Code (EVC) or Digital Signature Certificate (DSC).

Step 6: Receive GST Registration Certificate

Once submitted, the application is verified by the GST officer. If everything is correct, you will receive your GST Registration Certificate (Form GST REG-06) and GSTIN within 7 working days via email.

In case there is a problem with the application, the officer shall request clarification of more information. You should respond within 7 days so that your application does not get declined.

Conclusion

GST registration is important for businesses operating within the nation. The registration process conducted on the GST portal is purely online. After obtaining GSTIN, a business can further claim input tax credits, accept tax from their customers, and improve market access. Provided your business turnover fulfills the criteria, this can be applied under GST to avoid penalties as well as a problem that would arise in terms of legal legitimacy. By following the above step-by-step process, you can easily complete your GST registration. In case of any problem, seek guidance from a tax consultant or Chartered Accountant (CA).

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