The GST was finally implemented with effect on July 1, 2017, and almost all indirect taxes across central and state levels were brought under its umbrella. However, over the years, the process of GST implementation has faced strong headwinds. The authorities have been kept on their toes to address the numerous challenges faced by the industry and public bodies.
The GST along with its challenges has brought in various benefits also like the creation of a national market by bringing down fiscal barriers amongst the States and has negated the difficulties associated with the tax payment mechanism by allowing seamless credit of input tax across goods & services.
GST Registration: Points to Remember
Non-compliance with GST guidelines or non-registration can attract heavy penalties and is considered a criminal offense. The current GST norms make it compulsory for a business having a turnover of more than ₹40 lakh to register as a normal taxable entity and follow the GST registration process. This turnover benchmark is ₹10 lakh for businesses operating across the hill states and the northeastern states.
The entire process of GST registration can be completed within six working days by following the steps mentioned on the GST portal. Business owners need to fill out an online form on the GST portal, submit the necessary documents for registration, and complete the GST registration process. The entire process is free if as per the government-mandated process.
Once the business owner completes the registration process, a 15-alpha-numeric Goods and Service Tax Identification Number (GSTIN) is generated. The authentication number is provided by the Central Government and helps evaluate whether a business is liable to pay GST. There are around six GST slabs currently active — 0.25%, 3%, 5%, 12%, 18%, and 28%.
Steps for GST Registration
The following steps must be followed by a business entity to complete the GST Registration successfully:
1. Visit the GST portal.
2. Click on the Register Now link under the Taxpayers tab.
3. Click Register Now. The following screen appears:
4. Fill in the following details:
- Select Taxpayer from the I am a drop-down menu.
- Select the relevant state and district.
- Enter the name of the business.
- Enter your PAN details.
- Enter an active email ID and a mobile number in the respective boxes. The OTPs will be delivered on the provided email ID and the mobile number.
- Enter the characters from the image in the textbox and click Proceed.
5. On the next page, enter the OTP sent earlier to the email ID and the mobile number.
6. After entering the details, click Proceed.
7. The Temporary Reference Number (TRN) appears.
8. Re-visit the GST portal and click Register under the Taxpayers menu.
9. Select Temporary Reference Number (TRN).
10. Enter the TRN received in step 7 and the captcha details.
11. Click on Proceed.
An OTP will be sent to your email ID and registered mobile number. Enter it on the next page and view the application status on the next page. Click the Edit icon on the right side.
The next page has 10 sections. Enter the relevant details and submit the necessary documents. The list of documents required to be uploaded is as follows:
- Photographs
- Business address proof
- Bank details such as account number, bank name, bank branch, and IFSC code
- Authorisation form
- Details of the taxpayer’s constitution
12. Visit the Verification page and check the declaration. Submit the application by using one of the following methods:
- An Electronic Verification Code (EVC) will be sent to the registered mobile number.
- An E-Sign in method where an OTP will be sent to the mobile number linked to the Aadhaar card.
- In the case of registering companies, apply by using the Digital Signature Certificate (DSC).
13. On completion, a success message will be displayed. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.
14. Check the status of the ARN on the GST portal.
After the ARN is generated, the Registration Certificate (RC) containing GSTIN is issued after three working days, unless approved earlier by the Tax Officer.
