GST Registration

To know about the process and requirements regarding GST (Goods and Services Tax) registration we must know about the term GST i.e Goods and Services Tax. GST is a consumption tax collected by the central or state government levied on supplying goods and rendering services. GST revolves around the statement “ One Nation One Tax “. GST creates a semblance of the common market of the supply of goods and services or both without the fact as to where it takes place, has common treatment and is provided with a common tax rate throughout the chain.

The four kinds of tax applicable under GST are first, Central Goods and Services Tax (CGST), secondly, State Goods and Services Tax, thirdly, Integrated Goods and Services Tax (IGST) and fourthly Union Territory Goods and services tax (UTGST).

CGST and SGST are levied within a state whereas IGST is levied outside a state i.e from one state to another. 

GST is divided into five different tax slabs for the collection of revenue – 0% ,5%,12%,18% and 28%. 

GST came into effect on July 1, 2017, by the government of our country “India”. GST has replaced the existing tax service that was VAT (Value Added Tax) which was imposed on multiple products and was not distributed equally among the central and state government whereas GST now provides an equal share of tax among the central and state governments. Here the tax has to be paid only on the gained profit, rest is the tax liability of the end consumer.

 A network for the goods and services tax is also developed by Infosys Technologies and this information technology network provides us with computing resources that are maintained by the NIC (National Informatics Centre). GSTN i.e Goods and Services Tax Network is a network that does not allow a person to extract any kind of profit, formed for creating a refined network to provide information from a single source (portal). The portal can conveniently be used by the tax authorities for tracking down every transaction whereas the taxpayers can connect for their tax returns.

GST is avail as it helps in the selling of products online on various local, national and international platforms, its return helps in the easy collaboration of bank loans, hounding of services is possible by the generation of a unique reference number for any activity, uniform prices of goods in the entire nation and reduction in prices due to the eradication of cascading.

GST reign has also brought a centralized system of waybills by the introduction of “E- waybills”. GST has drafted the accouterments applicable to the e-commerce sector and as these are applicable all over India. There will be no confusion based on the inter-state movement of goods anymore. Under this system, manufacturers, traders, and transporters are now capable of generating e-way bills for the goods transported from its manufacturing area to its required location on a common portal with serenity. Tax management authorities are also benefited as their system consumes less time at check – posts and helped in cutting down tax evasion. 

Coming to GST registration is mainly for the people who are related to business transactions. In the GST administration, the people whose productions transcend Rs. 40 lakhs ( Rs. 20 lakhs for North – Eastern States ) are required to register themselves as normal taxable persons. The course following the registration of the person is called GST registration. You need a GST registration if your business has previous registration under VAT, Excise Laws, Service Tax Laws, and import-export business. A person is not required to take registration if the production turnover including exports and discharged supplies is below the rate.

Registration for GST, in the beginning, is necessary for people who are linked with e-commerce business ( such as Myntra, Club factory, Snapdeal, Swiggy and many more ). If one is supplying or rendering services in events without having a perpetual place for business then it is needed for you to get an online GST registration. An NRI( Non – Resident Indian) company or person provides goods or services in India that need GST registration disregarding their annual income.

The documents essential for GST registration are PAN card, an Aadhaar card, passport size photo, valid phone number, and email address and a valid bank account number and if one has a business company then you also need to have a canceled cheque of business account. 

 It is impossible to trade interstate without having a GST registration. It completely gives us an idea as to how much important GST registration is for people carrying out business transactions. GST helps a person to get his / her business registered under GST and obtain their GSTIN. The experts of Clear Tax GST would counsel you on the applicability and concession under GST for your business transactions and will help you get your business registered under GST. If a person is found that he is not paying tax or making genuine errors (short payments) then he/she has to pay a forfeiture (penalty) of 10% of the tax amount due subject to start from a minimum of Rs. 10,000. The penalty at 100% of the tax price due when the offender has voluntarily deceived of paying taxes. In case any person has given an incorrect invoicing then he/she has to pay a penalty of Rs.25,000. The penalty is also to be paid if one has not filled GST tax returns i.e. Rs. 20 per day for nill return and Rs. 50 per day regular returns and if you have chosen a composition scheme even if not eligible then 100% tax due or Rs. 10,000 penalty. When you finally get your GSTIN number, your business can legally collect tax and can also get the input credit. Once you are given the GSTIN number it is to be displayed in every registered business on the name–board placed at the entrance of the registered industry or office.  

(Goods and Services Tax) GST Registration is a process that includes submission of all of your business details, trader’s details and scanned documents. To get yourself registered under GST you must open up a website through which GST registration is possible where you go ahead filling up all your required and important details like firstly whether you are a taxpayer or GST practitioner followed by the name of your state, district, the legal name of your business, PAN number, e-mail address, mobile number as all your future communications will be through your mobile number and e-mail. The thing to be marked is that the size of all documents must be 100 kb and then you can finally proceed. As you proceed you get a one-time verification code (OTP) one for your mobile number and one for your e-mail address. Just after proceeding you get a message of completing the first part of your registration process followed by a temporary reference number. It would be beneficial for you to keep or save a picture of the temporary reference number as this will be the thing which will help you in login once again if required and the number is valid for 15 days only. Then after you will get the My Saved Application page. To complete the registration process you get a page where you once again need to fill up all kinds of details as mentioned like business details, proprietor/partner details, principle place, additional place, whether you are supplying goods or rendering services and many more. After filling up all the necessary and required details you will come across criteria where you need to give your signature. It provides you with three kinds of options first, submits with DSC that is digital signature if you have but it is mandatory for companies and limited liability partnerships (LLPs) and optional for other taxpayers. DSC is always linked to the PAN(Permanent Account Number) of the signatory, &PAN is encrypted in a DSC token. Second, e-signature which is linked with the Aadhaar number and the third option is signature with EVC where you once again get a one-time verification code on the mobile number and email address you had given in the first part of the registration. After filling all the required information you will finally get a message of being successfully registered with an Application Reference Number (ARN) on your registered email address and mobile number. This Application Reference Number will help you in tracking down the status of your registration. For this, you just have to enter the ARN on the GST Portal. This way you can complete your registration under GST with an easy go.

Every business needs to display the GST Registration certificate at a prominent place inside the proposition of the leading place of business and every other place of business. An Input Service Distributor is also applied by GST meaning a central bureau receiving bills for services received at branches. Later on, it sends apportions to the branches. The ISDs need to register themselves under GST. At the same time if a person has not registered himself under GST then he/she can neither collect tax from his/her client nor declare any input tax credit of GST paid by him/her. Mainly GST is collected from the receiver and deposited to the government by the provider himself. A GST registered receiver must deposit GST to the government under the reverse charge system. It has been notified by the CBIC (Central Board of Indirect and Customs) that the record of goods and services for which revenue is paid on reverse charge ground by the receiver instead of the supplier.    

Once you are done with all the registration processes it is now essential for you to identify the nature of the transaction i.e. the place of supply and decide whether the charge will be SGST and CGST or IGST. The regulation for the area of supply alters for goods and rendering services. Now you can start providing the GST compliant invoices and charge and collect GST on all taxable sales made. To claim the input tax credit (ITC) of SGST and CGST or IGST paid on the purchase of input services that are used in fabricating the varnished products; ITC-01 is filed. You need to manage proper accounts and records as per the Goods and Services law and know that you may be essential to reverse charge. Begin to avail ITC on purchases as all the purchases made after the efficacious date of GST registration shall be entitled to ITC claims. Another point to be marked that businesses can be maintained on books like accounts in the electronic mode like ERP (Enterprise Resource Planning) application and cloud computing.

Certain essential things to be kept in mind under the registration of Goods and Services Tax are your details comprising of the trade name, GSTIN, registered address, Service goods Details having description, HSN code, value. Tax details and other details like place of supply are also imperative. 

Some are paying taxes for the development of India while some are busy accumulating black money. The introduction of GST and the indirect tax under it has enhanced the collection of taxes as well as brought many advancements in the development of our nation’s economy by eliminating the indirect tax barriers between states and assimilating the nation through a uniform tax rate. GST is the only dual system tax that the Indian government has brought into action being more compliant. GST has also played a great role in sweeping down corruption. Websites provided by the government enable a person to register themselves under GST without standing in a large queue therefore registering online is an easy and serene way. Thus, the project of GST brought by the government of our nation has been an effective way of raising India to great heights.