Goods and Services Tax (GST) is a cumulative indirect tax system that has been implemented by the central and state governments of India to eliminate the several indirect taxes like excise duty, VAT, entertainment tax, etc. Hence, it has become essential for every business entity to register under the GST to ensure smooth functioning and compliance of their business.
While registration for GST is an important process, understanding the registration procedure and also finding out who all are liable to apply for GST registration is equally significant.
Here are the answers to all your GST registration related queries.
Who Are All Liable To Apply For GST?
Finding the answer to this simple yet complex question is important and ever since the GST has been implemented everyone is seen asking the same question again and again.
So, the basic, simple and straightforward answer to this question is that everyone who is supplying any goods and services is liable to register for GST. However, if your annual business is less than 19 lacs, then you are exempted from applying for the same. The day your business turnover will cross that 19 lac mark, you will also become liable to register for GST.
GST Registration Process – Step by Step Guide
Now that you know whether you are liable to register for GST or not, it’s time to understand the step by step registration procedure:
Step 1: Verify your Prelim Details
As the first phase of registration for GST, you need to create a login account on the official GST website so that your registration process will get initiated. The prelim details that you need to furnish at this stage include your email id, mobile number, and PAN on the GSTN portal. Your PAN Number will get verified automatically on the portal. Though, for checking the mobile number and email id, you will get a One Time Password through their validation system. These details must also be filled in Form PART 1 of GST REG -01.
Step 2: Submit the Online Application Form
Once you get all your basic details verified, you will now be moved to the next page where you need to complete your registration form, complete all the related formalities and upload all the required documents. Documents you need to keep scanning for GST registration process include:
- Recent Photograph
- Constitution of taxpayer record (Partnership deed, COI, etc.)
- Proof of principle place of your business / workplace (electricity bill, NOC, rent agreement)
- Complete Bank Account details
The online application should be submitted through FORM GST REG-02
Step 3: Verification by the GST Officer
Once you have submitted your duly filled GST application, then it will be forwarded to the GST officer who will examine the details of your application and will also vet the documents you have attached for authenticity. If they find everything in order and original then your GST registration certificate will be granted within the next three working days.
But, if there are any discrepancies in the documents or information filled then the same will be communicated to you in the next three working days through FORM RED-03.
The applicant will get the time of 7 working days to respond back to discrepancies with the correct information and documents through FORM GST REG-04.
Step 4: No Information in 3 Working Days
If the GST officer fails to respond to your application, for confirmation or the discrepancies, within the three working days, then the status of your application for registration shall be deemed as approved.
Step 5: Obtaining Registration Certificate
Once the GST officer approves the application, then you will get your GST certificate of registration issued in FORM GST REG-06 through the common GST portal. You can easily download the certificate from the portal by logging in using your login id and password.
Step 6: Separate Registration Process
If you have various branches for your business in different states, then you need to obtain GST registration certificate for each state separately.
The GST registration process might sound like a complicated thing to do in the beginning, but it will make your tax filing a lot easier. It is advisable to be extremely careful while filling in the details to avoid mistakes.