GST Registration: Your Gateway to Tax Compliance (2024)

Goods and Service Tax, which is popularly known as GST. It is basically an indirect tax. Goods and Service Act came on 1^st July 2017. This tax is levied upon the supply of goods and services. It is in the form of indirect tax which has replaced many indirect taxes like excise duty, service taxes, VAT, etc.

The Goods and Service Tax is the one and only domestic indirect tax law in India. GST in India is quite comprehensive, destination-based tax and multistage tax which is levied on every value addition. The validity of each GST Registration Certificate depends on the type of taxpayer who obtains the certification. The certificate is valid for the full period after it is provided to a regular taxpayer.

What are the objectives of GST Registration?

To know more about the GST and how it is imposed, it is essential to know the main objectives behind GST. Let’s go through it.

• To achieve the ideology of ‘One Nation, One Tax’
• To reduce a majority of the indirect taxes in India
• To prevent the indirect consequences of multiple taxes
• To increase the taxpayer base
• To Prevent tax fraud
• To increase the taxpayer base
• Simple online procedures for easy GST registration
• An improved logistics and distribution system
• To develop competitive pricing and gradual increase consumption

What are the documents required for GST Registration?

• PAN card of applicant
• Aadhar card of applicant
• Proof of Incorporation Certificate or Registration Certificate
• Identity of promoters
• Address proof of Promoters or Director with photographs
• Address proof of the place where the business will be operated
• Bank Account statement must be submitted
• Digital Signature of applicant
• Letter from the board Resolution for Authorized Signatory

Simplifying Online GST Registration Process

The detailed process that people need to take in order to finish their GST registration is listed below:

• Go to the Services tab of the GST site and choose the Register Now option.
• Choose New Registration and fill out the information below.

Part A of the GST Registration Application

• Choose the button ‘Taxpayer’ from the drop down box.
• Decide on the appropriate district and state you belong.
• Type the company name.
• Provide the business’s PAN number.
• Fill up the appropriate sections with your mobile number and email address. OTPs will be delivered, they must be active.
• Type in the picture that appears on the screen, then select “Proceed.”
• Click on the button ‘Proceed’ after entering the OTP in the corresponding field.
• Temporary Reference Number (TRN) will appear on the screen for you. (Note the TRN provided, as it will be useful in the following steps.)

Part B of the GST Registration Application

• First, go back to the GST Online Portal and select ‘Register’ from the ‘Services’ option.
• Step 2: Choose Temporary Reference Number. It is next necessary to type the captcha information and the TRN number. Then Press the ‘Proceed’ button.
• Step 3: An OTP will be sent to your registered mobile number and email address. After entering the OTP, select Proceed.

• Step 4: The following page will provide the status of your application. Click the Edit icon that appears on the right side.
• Step 5: These are the following documents that need to be submitted:
  • Photo of the applicant
  • Proof of the business address
  • Bank information, including IFSC code, bank name, bank branch, and account number.
  • Taxpayer’s constitution; the authorization form.
  • Send in the paperwork to proceed to the next step.
• Step 6: Check the declaration on the ‘Verification’ page, then submit the application using one of the techniques listed below:
  • EVC stands for Electronic Verification Code. The code will be sent to the registered mobile number.
  • If for business registration, they need to use the Digital Signature Certificate (DSC) to submit the application.
  • The mobile number associated with the Aadhaar card will receive an OTP.
• A success message will appear on the screen when it is finished. The registered email address and mobile number will receive the Application Reference Number (ARN).
• GST registration is now done successfully.

What are the penalties for failing to register with GST?

One must be well aware of what happens if any business entity runs without the GST Number, fails to pay tax, or does any fraudulent activity and other. So here are the clear details on what reason penalty is given.

• A penalty equal to 10% of the tax amount owed, subject to a minimum of INR 10,000, must be paid by an offender who fails to pay taxes or makes short payments.
• If the offender has purposefully avoided paying taxes, the penalty will be 100% of the tax amount owed.
• According to the Act, the late cost is INR 100 per day, or INR 100 under CGST and INR 100 under SGST.
• There is a INR 5,000 cap.
• No IGST late fees.
• Penalty for failing to file GSTR: 10% of the overdue tax or INR 10,000, whichever is more.
• Fraudulent Activities: 100% of the outstanding taxes or INR 10,000, whichever is more.
• High value fraud cases additionally carry a prison sentence for incorrectly charging the GST Rate.
• If a higher rate is charged, the penalty is either INR 10,000 or 100% of the tax owed, whichever is greater (if the extra GST is not filed with the government).
• For assisting someone in fraud, there is an INR 25,000 maximum penalty.

Who is eligible for GST Registration?

• Before entering into the GST registration, it is very necessary to be aware of whether that particular business is eligible or not. The provided below is a clear view of who is eligible for GST registration.
• Any company whose total annual revenue is above INR 40 lakhs (INR 20 lakhs for GST exempt special category states).
• The point that is to be noted is if an organisation is only involved in the provision of products or services that are exempt under GST, this clause does not apply. All entities that are registered under previous tax laws (such as excise, VAT, service tax, etc.) must register under products and Service Tax.
• Any company or supplier involved in the interstate delivery of products.
• Casual taxable individuals, taxpayers via the reverse charge system, input service distributors and their agents, e-commerce operators or aggregators, non-resident taxable individuals, supplier agents, and individuals who supply through e-commerce aggregators are all included in this list.
• Organisations that, aside from registered taxable persons, offer online information, databases, or retrieval services to individuals in India from locations outside of the country.

Check here to find the eligibility for GST Registration!

What are the benefits of GST Registration?

• Makes Tax Services Simpler:
  • The Indian market has been integrated and several indirect taxes have been consolidated under the GST.
• Lowering of Product and Service Prices:
  • The cascading impact of several VATs and taxes was eliminated with the implementation of the GST, which decreased the price of goods and services.
• Assists in Preventing Extended Tax Services:
  • Small companies benefit from GST registration by eliminating time-consuming tax services. Because products and services providers with less than INR 40 lakhs in revenue and INR 20 lakhs in revenue, respectively, are excluded from paying GST.
• Cut Down on Sales without Receipts and Corruption:
  • The goal of the introduction of GST was to lessen sales without receipts and corruption. It also lessens the requirement that small businesses pay different indirect taxes.
• Parity in the Tax System:
  • GST Centralised registration is made possible by registration, which also standardises the taxing process. This facilitates the quarterly online filing of tax returns by businesses.
• Higher Registration Threshold:
  • Any company in India with a turnover of more than INR 5 lakh was required to pay VAT under the previous VAT regime. Additionally, service providers with less than INR 10 lakh in revenue were excluded from service tax. However, under the GST system, this ceiling has been raised to INR 20 lakh, exempting many small businesses and service providers.
• Compilation Plan for Small Enterprises:
  • Small businesses with annual revenue between INR 20 and INR 75 lakh can profit from the GST as it offers the opportunity to use the Composition plan to reduce taxes. For many small firms, this action has reduced the burden of taxes and compliance.

What is the validity for GST Registration Certificate?

Any GST registration certificate’s validity is contingent upon the kind of taxpayer obtaining the certification. When the certificate is given to an ordinary taxpayer, it is valid for the whole duration. In some situations, it becomes void only if the taxpayer surrenders it or the GST authority cancels it. However, in circ*mstances where certificates are granted for casual taxpayers or Non-Resident Indian (NRI) taxpayers, the validity is limited to a period of 90 days from the date of registration or for the time mentioned in the registration application, whichever is sooner.

Who is exempted from GST Registration?

Certain organisation or entities and people have some exemption from registering GST. Here is the list that indicates who and what are all exempted from GST registration.The people and organisations listed below are not required to register for GST:

• Companies that produce supplies are covered by the reverse charge.
• Actions not classified as providing goods or services. Funeral services, the selling of real estate or buildings, and employee services are a few examples of these kinds of operations.
• Companies that provide non-taxable/non-GST goods. Fuel for aircraft turbines, electricity, natural gas, high-speed diesel, and petrol are a few examples.
• Companies that produce exempt or zero-rated goods.
• Companies that are exempt from certain thresholds.
• Farmers.

Conclusion

An essential first step towards a simpler and more open tax system is GST registration. Governments want to achieve this by requiring companies to register under the Goods and Services Tax, which would reduce cascading effects and encourage economic efficiency. In addition to facilitating easier intrastate and interstate commerce, GST registration encourages corporate responsibility and compliance. Furthermore, there are fewer compliance requirements and greater efficiency as a result of the digitalization of tax procedures related to GST registration. It makes it possible for authorities to maintain equitable tax burden distribution, stop tax evasion, and better track transactions. Businesses that adjust to the GST structure should see an overall improvement in the consistency and simplicity of the tax system. Even while some firms may find the first shift to GST registration to be scary, there are long-term benefits that cannot be ignored, including easier corporate operations, simpler tax laws, and increased competitiveness.

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