FAQ on GST Registration : A complete Guide
The Goods and Services Tax (GST) is a significant tax reform in India that has streamlined the country’s indirect tax system. GST registration is mandatory for businesses with an annual turnover exceeding a certain threshold limit. As GST registration can be a complex process, many businesses have questions regarding its various aspects. This FAQ on GST registration aims to address some of the commonly asked questions and provide a comprehensive understanding of the GST registration process. From the basics of GST and its objectives to the process of obtaining a GST certificate, this FAQ covers a wide range of topics to help businesses navigate the intricacies of GST registration.
What Is GST (FAQ ON GST Registration)?
Goods and Services Tax (GST) is a comprehensive, multistage, destination-based tax levied on every value addition.
The main objective of GST is to replace all the indirect taxes levied on goods and services by the Central and State governments.
The GST Council has proposed a four-tier tax structure of 5%, 12%, 18%, and 28%, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess. GST is expected to be implemented from July 1, 2017.
What Are The Objectives Of GST?
The primary objective of the GST is to consolidate all taxes into one single tax. It subsumes multiple central and state-level taxes, including service tax, excise duty, VAT, and entertainment tax. It also makes it easier for businesses to comply with complex tax regulations by reducing paperwork and simplifying processes.
How Does GST Work?
GST works on the principle of ‘One Nation, One Tax,’ where all the goods and services sold within a state fall under the same tax rate. It also eliminates multiple layers of taxation by combining both direct and indirect taxes.
What Does GST Mean For Consumers?
The main advantage for consumers is that most products will be cheaper since companies will no longer have to pay multiple taxes at various stages of production or distribution. It means that products will be available at lower rates which will help to improve purchasing power as well as boost demand.
Who should register for GST?
If your business’ turnover exceeds Rs 20 lakhs (Rs 10 lakhs for North Eastern states), you must register under GST. However, if you are an e-commerce seller, you need to register under GST even if your turnover is less than Rs 20 lakhs because e-commerce companies collect TCS (Tax Collected at Source). The registration certificate is mandatory to collect TCS.
How should I register for GST?
You need to file an online application on the official portal of the Government of India.
What is GSTIN?
GSTIN means Goods and Services Taxpayer Identification Number. The government assigns you a unique 15-digit number after registering for GST. This number is unique to every taxpayer who enlists in the GST regime. When you apply for registration, you will receive this number via SMS or email.
What do I need to know about GSTIN?
A: There are two types of GSTIN – One for regular taxpayers and the other for taxpayers under the composition scheme. The penultimate digit of the former will be 1, 2, or 3. For those under the composition scheme, it will be 4 or 5. The last digit is an alphanumeric check digit that ensures that no errors have been made while entering the number.
How can I get my GSTIN number?
A: You can obtain your GSTIN by applying for registration at www.gst.gov.in or by filing Form REG-01 with your jurisdictional authority after obtaining DSC and DIN, if applicable
What are the documents required to register for GST?
The following documents are required to register under the GST regime:
- PAN Card Copy
- Bank Account Statement or Passbook Copy
- Canceled Cheque Copy
- Proof of Constitution of Business such as Partnership Deed, MOA, AOA, etc.
- Address Proof such as Sale Deed/Rent Agreement etc., and Utility Bill (Electricity Bill, Telephone Bill, Water Bill, etc.) not more than two months old
- Copy of Registration Certificate under other Laws, if any.
What Are The Benefits Of GST Registration?
There are several benefits to GST registration. Some of the key benefits include:
- Increased visibility and certainty of tax liabilities
- More extraordinary ability to claim input tax credits on business purchases
- Reduced compliance costs as a result of a single tax system
- simplified record-keeping and reporting requirements
Who should apply for GST Registration?
- Non-resident taxable persons
- Casual taxable persons
- Agents of a supplier and Input service distributors
- E-commerce operators and Aggregators
- Businesses required to deduct tax at the source
- Companies are liable to pay the reverse charge.
Whether a person can take registration under GST in more than one state?
A person having business operations in more than one state shall be required to obtain separate registration in each such form.
What are the different types of registration under GST?
There are three types of registrations:
- Normal Taxpayer;
- Composition dealer; and
- Casual taxable person.
What is the validity of GST registration?
Once obtained by a taxable person, the validity of GST registration will continue until the business continues and no cancellation application is made with the concerned authorities.
Is it compulsory to pay tax at the time of obtaining GST registration?
Yes, it is mandatory to pay tax when obtaining GST registration. However, You may deliver this tax within seven days from receipt of an application for grant of registration.
How do I know whether my business falls under the composition scheme or not?
The composition Scheme is only provided to those who only sell goods, and their annual turnover is less than Rs 1 crores in a financial year. So if you are eligible, you can get yourself registered under this scheme and enjoy tax benefits.
Which existing taxes are proposed to be subsumed under GST?
(a) Central level:
Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty commonly known as Countervailing Duty and Special Additional Duty of Customs
(b) State level:
Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (charged by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, Taxes on lottery, betting and gambling.
What is the procedure to get a GST certificate?
The GST certificate shall be provided to the taxpayer through email or SMS on the registered mobile number. It would also be available online on the common portal by entering the user ID & password. In addition, the taxpayer can print their certificate from the common portal itself.
What is the due date to register for GST (FAQ ON GST REGISTRATION)?
The last date to register under GST is September 30, 2017. If you fail to do so within the stipulated period, you will be liable to pay a penalty of Rs 100 per day until you do not get yourself registered under GST.
How do I apply for GST registration?
- Visit: https://www.gst.gov.in/
- Click on Services (Top right corner of the website)
- Click on Registration under the Services section
- Click on New Registration
- Enter your details in Part-A of FORM GST REG – 01 by providing a valid mobile number and valid email address
- Click Submit
- You will receive a Time Password (OTP) on the mobile number and email address provided during registration, after which you need to click ‘Proceed.’
- Login again by entering the user name, password, and captcha provided on the screen that appears after you click Proceed
- Click the ‘Continue’ button at the bottom of the page
- Select relevant options available such as Application Type, Action Type, and Sub-Type to be taken for GST registration in Form GST REG – 02 and click the “Submit” button at the bottom of the page
- You will receive a Temporary Reference Number (TRN) to track your application status on your mobile number and email address provided during registration.
What is the fee for GST Registration?
Ans: The fee for GST registration is Rs. 500/- which can be paid online.
What is the process of GST registration?
Although there are many stages involved in registration still, it is easy to get registered under GST.
- The first step is to obtain a provisional registration certificate by filing an application form on the GST portal. It will make the applicant eligible to be registered under GST.
- Next, the applicant has to file for registration within 30 days from the date of application. It would help if you did it and submitted all required documents and declarations where necessary.
- After this, the concerned authority will either approve or reject the application for registration within three working days from the date of receipt of the application. If the application is denied, a proper explanation is given to the applicant within seven working days from the date you made the order.
- The last step is to obtain your registration certificate as proof that you have been successfully registered as a taxpayer under GST law/Act.
Can I apply offline for GST registration?
No. The entire process for GST registration is online-based, and there is no offline procedure for it.
Will my old service tax / VAT / CST registration number still be valid?
No, your old registration numbers will not be valid anymore as from now on, only GSTIN (GST Identification Number) will be issued. Therefore, you need to apply for a new GSTIN if you are a taxpayer under GST.
What is the process of getting an HSN code? Why is it required?
The HSN code is used when you are filing your GST returns. There are four digits in the HSN code, and it depends on what the business is engaged in.
Is it mandatory for all to register under GST?
It is mandatory for all those who carry out any business to register under Goods and Services Tax. If the turnover exceeds Rs 20 Lakhs, it becomes mandatory to get registered under GST irrespective of the nature of business (manufacturing/trading / Services). However, specific categories may be exempt from this rule, like small-scale industries, manufacturers producing goods exempted under the GST law, etc.
When can I get my GST Registration done?
A business with an annual turnover of Rs 20 lakhs or more must register under GST within 30 days from the commencement of business or the date when such a yearly limit crosses Rs 20 lakhs. A dealer currently registered under any pre-GST law who has reached the threshold limit for registration under GST will have to apply for a new registration within 30 days from the date such dealer becomes liable for registration under GST Law.
What is the time limit for GST registration?
As per Section 25 of the CGST Act 2017, you should apply for GST registration within 30 days from the date you become liable for such registration.
How much time will it take to get the certificate of registration issued by GSTN?
The period prescribed for the issue of the GST certificate by the Central/State tax officer under Section 32(1) of the CGST Act 2017 is three working days from the date of application. But, if any reasons require further scrutiny, you can extend this period up to 7 working days.
What is the difference between a Taxpayer and a Casual Taxable Person?
A person who has taken a GST registration is called a taxpayer. A person who does not have a permanent place of business within India but has a taxable supply in India has been termed a casual taxable person.
Where do I get my GST number?
You will have to apply for it via the GST portal, where you can find all information on how to register under GST. Your GSTIN (Goods and Services Taxpayer Identification Number) will be allotted after completing your application. You can also use your PAN card details to login into the portal for registration.
What are the GST registration fees in India?
The GST online registration process is free of cost. There is no fee charged by the Govt. of India for getting your business registered under the GST Act. So, you can relax when it comes to paying a fee for writing your business under the GST Act.
Can I take provisional registration before starting my business?
No. A person cannot take provisional registration before commencing business.