Goods and Services Tax (GST) is an indirect tax levied by the Indian government on the supply of goods and services. It has replaced many other indirect taxes like excise duty, service tax, and value-added tax. GST has simplified the tax structure and made compliance easier for businesses. If you are a business owner in India, registering for GST is mandatory. In this article, we will guide you on how to register for GST and everything you need to know about it.
Who needs to register for GST?
As per the GST Act, any person or entity that is involved in the supply of goods or services and whose turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for Northeastern and hilly states) in a financial year must register for GST. In addition, certain categories of businesses like e-commerce operators, non-resident taxable persons, and persons liable to pay tax under reverse charge mechanism must register for GST irrespective of their turnover.
Benefits of GST registration
Registering for GST offers several benefits to businesses. Firstly, it helps to streamline the tax system and reduce the complexity of complying with multiple taxes. GST is a single tax that is levied on the value of the goods or services supplied. Secondly, it enables businesses to claim input tax credit on the GST paid on their purchases. This helps to reduce the overall tax liability of the business. Thirdly, it makes the business eligible to sell its products or services in the GST network, which is a common platform for tax payments and return filing. Finally, it enhances the credibility of the business as it becomes a registered taxpayer.
How to register for GST?
To register for GST, follow the steps below:
Step 1: Visit the GST portal
The first step to register for GST is to visit the official GST portal at https://www.gst.gov.in/. On the homepage, you will see the “Register Now” button, click on it to initiate the registration process.
Step 2: Enter your basic details
Once you click on the “Register Now” button, you will be redirected to a new page where you need to fill in your details like PAN, email address, mobile number, state, and district. After you have entered your details, an OTP will be sent to your mobile number and email address, which you need to verify.
Step 3: Fill in the application form
After OTP verification, you will be directed to the GST registration application form where you need to fill in all the required details like your business name, type of business, and other relevant information. It is important to fill in the details correctly as it will be used to generate your GSTIN. You will also need to provide necessary documents like PAN, identity proof, and address proof to complete the application.
Step 4: Submit the application form
Once you have filled in all the required details and submitted the application form along with the necessary documents, your application will be processed by the GST authorities. They may ask for additional documents or information if required.
Step 5: Receive the GSTIN
Upon successful processing of your application, you will receive your GSTIN and login credentials on your registered email address and mobile number. It is important to note that the GST registration process can take up to 7 working days.
Documents required for GST registration
The following documents are required for GST registration:
PAN card of the business
Identity proof and address proof of the authorized signatory
Proof of business registration like partnership deed, certificate of incorporation, etc.
Bank account details of the business
Digital signature certificate (DSC) in case of companies or LLPs
Photographs of the authorized signatory
Business address proof
Details of the business activities and goods