GST REGISTRATION ONLINE A STEP BY STEP GUIDE (UPDATED FOR 2020)
What is GST and what is meant by GST Registration?GST Refers to Goods and Services Tax (GST) , GST Registration refers to Registration under GST Laws , GST is an indirect tax levied in India on the supply of goods and services. GST is levied at every step in the production process, through this article we will find answers to (1) Who Should apply for New GST Registration? (2) Who are the person liable to take GST Registration online? 3) Can Service Providers opt for Composition Scheme?
Who Should apply for New GST Registration?
GST Registration, Under the GST Laws, (CGST Act 2017) traders/service providers/ manufacturers whose turnover exceeds Rs. 40 lakhs for Goods (Rs 10 lakhs for NE and hill states) ( New Rate Amendedended listed below is required to register as a normal taxable person.
|Nature of supply||Turnover or Receipts||Registration||Composition scheme||Rate of tax for composition scheme|
|Goods||Up to 40 Lakhs||–||–||–|
|More than 40 but up to 1.5 crore||✓||✓||1% of the turnover|
|More than 1.5 crore||✓||–||–|
|Restaurant Services||Up to 20 Lakhs||–||–||–|
|More than 20 Lakhs but up to 1.5 crore||✓||✓||5% of the turnover|
|More than 1.5 crore||✓||–||–|
|Other services||Up to 20 Lakhs||–||–||–|
|More than 20 Lakhs but up to 50 Lakhs||✓||✓||6% of the turnover|
|More than 50 Lakhs||✓||–||–|
In terms of Section 22(1) of the CGST Act, every supplier making taxable supplies is liable for registration if his aggregate turnover in a financial year exceeds twenty lakh rupees ( Now ammended as per rates provided in the table above) or ten lakh rupees in special category States as the case may be.
This process of registration is called GST Registration.
Example 1: A person located in Delhi having a turnover of Rs. 15.00 Lakh of taxable goods or services or both and Rs. 7 Lakh of exempted goods or services or both is required to get himself to get GST Registration?
Ans: Yes, he has to get himself registered because his aggregate turnover exceeds Rs. 20 Lakh and he has to apply for registration mandatorily within 30 days of becoming so liable
Example 2 : A salaried person drawing a salary of Rs. 30 lakh per annum. He sells his old car for Rs. 40 lakh. Would he be liable for registration? Would this one-time transaction of selling off old car be treated as a business?
Answer: No he not liable for GST Registration, The term ‘business’ is defined by section 2(17) of the CGST Act.
The above transaction does not fall under any of the transactions listed under this definition. So, he would not be required to obtain registration for the said purpose of selling his old car.
Who is the person liable to take GST Registration online?
GST Registration can only be online through the GST E-Portal
Section 24 of CGST Act enlists 12 types of persons who shall compulsorily obtain GST registration even though these persons do not trigger the condition prescribed under Section 22 ( Even if Turnover is less than 20 Lakhs, its compulsory to register for this category of persons)
Thus Section 24 is an overriding section that makes it mandatory to obtain registration by certain prescribed persons even though the conditions prescribed under Section 22 are not met, meaning you need to take registration irrespective of turnover for these categories of persons
a) persons making any inter-State taxable supply ( Supply to other states, other than the one you are registered )
The above-mentioned threshold limit of 20 Lakhs does not apply in case the goods are traded or services are provided in a state other than the registered state
b) casual taxable persons ( Person doing the only parttime of one-time business, Like exhibition in other state and stall in meetings in another state, Expo etc)
c) persons who are required to pay tax under reverse charge
d) non-resident taxable persons
e) persons who are required to deduct tax under section 37, this is only for e-commerce operators ( Like Flipkart, Amazon, etc) and not for individuals
f) persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise
g) input service distributor, this is applicable for larger factories which have many branches and input credit is distributed
h) persons who supply goods and/or services, other than branded services, through electronic commerce operator
i) every electronic commerce operator
j) an aggregator who supplies services under his brand name or his trade name
k) such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.,
Now that we have understood who has to get compulsory GST Registration, we will discuss documents required and the procedure
Can a business having a turnover of fewer than 20 /40 Lakhs and not having transaction mentioned above can apply for New GST Registration online?
Yes , As per section 25(3) a person, though not liable to be registered under section 22 ( As turnover is less than 20 lakhs) may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.
If the voluntary registrant fails to commence business within 6 months from the date of registration, his registration may be cancelled by the proper officer.
The voluntary registrant cannot file an application for cancellation of registration before the expiry of a period of one year from the effective date of registration.
Voluntary registrant has to pay tax on his taxable supplies from the date of grant of registration and shall be eligible for input tax credit in respect of inputs held in stock, semi-finished and finished goods.
GST REGISTRATION PROCEDURE
Step 1: Create an account in GST website E-Portal https://reg.gst.gov.in/registration/
Step 2: Fill the Basic details and Name as per PAN card Data base
Step 3: Get E-Mail and Mobile OTP , verify and login to the account
Step 4: Flll up Part A & Part B of FORM GST REG01 , along with business details and documents thar are nessary
Step 5: An acknowledgment will be generated in Form GST REG-02.
Step 6: In case of any information sought from you and intimated to you in Form GST REG-03, you may need to visit the department and clarify or produce the documents within 7 working days in Form GST REG-04.
Step 7: Certificate of registration will be issued to you by the department after verification and approval in Form GST REG-06.
What is the time limit for taking GST registration under GST Law ?
If a person is operating in different States, with the same PAN, whether he can operate with a single GST registration?
GST REGISTRATION DOCUMENTS ( Required Documents)
PAN Card of the Business or Applicant: GSTIN is linked to the PAN of the business. Hence, PAN is Compulsory
Identity and Address Proof of Promoters Any 2 Documents
- driving license,
- aadhaar card or
- voters identity card must be submitted for all the promoters.
Business Registration Document ( Only for Companies or Partnership Firms)
- Incorporation certificate OR
- partnership deed or
- LLP Certificate
Address Proof for Place of Business
- Rental agreement or sale deed
- copies of electricity bill or latest property tax receipt or municipal khata copy must be submitted for the address mentioned in the GST application.
Bank Account Proof ( For Proprietors Personal Account details can be given)
- Scanned copy of the first page of bank passbook showing a few transactions or
- Canceled Cheque
What is the time limit for taking GST Registration?
Every person should take a GST registration, within thirty days from the date on which he becomes liable to registration. But casual taxable person or a non-resident taxable person shall apply for GST registration at least five days prior to the commencement of business.
If a person is operating in different States, with the same PAN, whether he can operate with a single registration?
Every person who is liable to take a registration will have to get registered separately for each of the States from where he is making taxable supplies and is liable to get registered in terms of Section 25(1) of CGST Act.
GST REGISTRATION FEES
GST Registration Fees would be ranging from Rs 1000 to Rs 2000 based on the category of Company, for more detailed clarification of GST pricing click on this link GST REGISTRATION FEES
Once all the documents visit GST website https://www.gst.gov.in/and update all the documents and Get the ARN number post verification GST Department, GST Certificate will be issued in 3 to 7 Working days if clarification is requested then the time limit is 15 to 20 working days
Amendment of GST Registration
Section 28 of the CGST Act, specified the provision of amendment of GST registration, every registered person or a person to whom a Unique Identity Number has been issued shall inform the GST Registration officer of any changes in the information of registration within 15 days of the said changes.
The GST Registration officer may approve or reject the amendment in the registration of such particulars but the GST Registration officer shall not reject the application for registration without giving the person an opportunity of being heard.
Cancellation of GST registration
Section 29 of the CGST Act, provides the procedure for cancellation of GST registration either by the GST Registration officer or an application filed by the registered person or by his legal heirs in the following circumstances where,-
(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business; or
(c) the taxable person, other than the person registered as voluntarily , is no longer liable to be registered under section 22 or section 24.
(2) The GST Registration officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,––
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 ( composition levy scheme ) has not furnished returns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
Provided that the GST Registration officer shall not cancel the registration without giving the person an opportunity of being heard.
(3) The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
(4) The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act.
(5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed:
(6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.
Revocation of cancellation of GST registration
Section 30 of the CGST Act, specified the provision of revocation of cancellation of GST registration as per the following conditions:
1. Any registered person whose registration is cancelled by the GST Registration officer, he can apply to such officer for revocation of cancellation of the registration within 30 days from the date of service of the cancellation order.
2. The GST Registration officer either revokes cancellation of the registration or rejects the application, but before rejection of application the GST Registration officer hould be given an opportunity of being heard by the applicant.
3. The revocation of cancellation of registration under SGST Act, and UTGST Act, as the case may be shall be deemed to be a revocation of cancellation of registration under section 30 of the CGST Act.
For assistance on GST registration in Chennai, GST Registration in Bangalore please Talk to our Compliance Advisors at + 91 99622 60 333 /99622 30 333or email us at [email protected]