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GST Registration

GST Registration Process

Last Updated 19th Jan 2021

  • GST registration is mandatory for certain businesses with annual turnover above Rs. 40 Lakhs.
  • GST registration can be done online at Nil charges.
  • There is a 10% penalty on tax due if you don’t register for GST.
  • Small businessmen can enjoy benefits by voluntary GST registration.
  • GSTIN is a unique GST Identification Number assigned to the businesses registered under GST.
  • New norms for GST Registration

What is GST Registration?

To register as a normal taxable person, the process of GST registration is mandatory for businessmen whose turnover exceeds ₹ 40 Lakh. This process is known as GST registration. For North Eastern and hill states, the mandatory turnover limit for businessmen is ₹ 10 Lakh. The process of GST registration usually takes 2-6 working days.

GST Registration Online

With the GST bill approved by the President and the GST council busy finalizing the rules and regulations, all existing businesses registered under central excise, service tax or VAT need to register under GST using an online registration process.

GST Registration Procedure for Existing Central Excise, Service Tax Assessees

All existing central excise and service tax assessees are being migrated to GST. An existing assessee would be provided a Provisional ID and Password by CBEC online on logging into their existing ACES login for excise or service tax. Provisional IDs are being issued to only those assessees who have a valid income tax PAN associated with their excise or service tax registration.
In some cases, an assessee may not be provided a provisional ID. Possible reasons for this include:

  • PAN associated with the registration not being valid
  • The PAN being registered with state tax authority and provisional ID having been provided by the said state tax authority (e.g. state VAT department).
  • There being multiple central excise or service tax registrations on the same PAN in a state. In such a case only one provisional ID would be issued for the 1st registration

The assessees need to use this Provisional ID and Password to login to the GST Common Portal where they would be required to fill and submit the Form 20 along with necessary supporting documents.

Who should register for GST?

While it is mandatory for businessmen whose turnover exceeds Rs. 40 Lakhs to register for GST, registration should also be done by the following entities:

  • Any individual who has registered under the Pre-GST law of Exercise, VAT or Service Tax.
  • Individuals who are paying taxes under the reverse charge mechanism. Reverse charge is a mechanism where recipients of goods/services have to pay the GST.
  • If any individual is supplying online information to anyone, who is a non-taxable person in India.
  • Agents of supplier and input supply distributor.
  • Individuals who are supplying inputs through e-commerce aggregators.

GST Registration Process in India

Following steps are to be followed for migrating to GST:

Step 1: Login to ACES portal using existing ACES user ID and password
Step 2: Either follow the link to obtain the provisional ID and password or navigate using the Menu
Step 3: Make a note of the provisional ID and password that is provided.

In case of any doubt contact the CBEC Helpdesk at either 1800-1200-232 or email at cbecmitra.helpdesk@icegate.gov.in

Once you have obtained the Provisional ID and Password, logon to the GST Common Portal (https://www.gst.gov.in) using this ID and Password. The GST Common Portal has made available a manual on how to fill the Form-20. It is available on www.gst.gov.in

GST Registration Process for New Business

Step 1: First login to the online GST portal (www.gst.gov.in)
Step 2: Fill part –A of registration form 1
Step 3: You will receive an application reference number on your mobile and via e-mail
Step 4: Now, fill the second part of the form and upload the needed documents according to the business type
Step 5: Obtain a certificate of registration from the GST portal. In case of any query you have, you may have to visit the concerned department
Step 7: Submit the required documents within seven working days along with GST REG-04
Step 8: Watch out for error notification by email. In case of any errors, your application may get rejected and you will be notified about the same in form GST REG-05 of GST registration

Documents Required for GST Registration

Here is the list of documents required to register for GST:

  • PAN card of the company/ business entity
  • Proof of constitution like Articles of association, Memorandum of Association, Certificate of Incorporation, Partnership Deed etc
  • Proof of place of business like Electricity bill
  • Cancelled cheque of your bank account showing all the details of the account holder

Who is required to register for GST?

Check whether you are eligible or not to register yourself under GST process. The following are liable to register under the GST process:

  • Any person or entity person who is supplying, producing or trading in goods or providing services worth for more than Rs. 25 Lakhs in a financial year
  • Any person or entity that is required to deduct TDS (tax deducted at source) under GST Act.
  • Non-resident taxable person – that is persons registered outside India but liable to pay tax in India due to business operations being based in India

Penalty for not registering under GST

If the individual does not register for GST, they have to pay a penalty of 10% on the tax due subject to the amount of Rs. 10,000. However, in the case of evading taxes deliberately, the individual is liable to a penalty of 100% on the tax due.

GST Registration Fees

The government does not charge any GST registration fees if you register for GST online through the government portal.

  • In-Person Verification mandatory for GST Registration
    Based on the GST council recommendations, the Finance Ministry has notified that the In-person verification will be mandatory for GST registration. If an individual opts for Aadhaar based authentication, he/she will have to visit the notified Facilitation Centres to undergo biometric based Aadhaar authentication. For others, the processing of the application and biometric information and verification of KYC documents will be done at the Verification Centres. The new norms are meant to control the fake invoice frauds. Earlier, The GST Council has recommended that the process for new or fresh registration in GST be tightened to root out all issuing bogus invoices from knowledgeable sources. Under this, all the new registrations can be done digitally with live photographs and biometrics. Also, it has been suggested that the registrants who do not opt for Aadhaar authentication at the time of registration may have to submit a recommendation letter by two taxpayers of adequate reliability. If the registrant/dealer falls in trustworthy category, then he/she can be given registration within seven working days or else conditional registration shall be given within 60 working days only after physical verification. Further, the facilities for Aadhaar like registration process under the GST regime for new applicants would be provided at banks, post offices and GST Seva Kendras (GSKs).

FAQs

How do I register for a GST number?

Once you register for GST, the government will provide you with a 15 digit GST number, which is a unique identification for every businessman.

What is the GST registration fee?

There are no GST registration fees charged by the government; however, if you seek professional help from any CA, you have to pay their fees.

Who needs to register for GST in India?

In India, it is mandatory for businessmen whose turnover exceeds ₹ 40 Lakh to register for GST.

Do I have to register for GST?

There are certain benefits if you register for GST, however, if your turnover does not exceed ₹ 40 Lakh, you can opt not to register for GST.

What happens if I dont register for GST?

If your turnover exceeds the permissible limits, you have to pay the penalty if you dont register for GST.

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Our News - Jan 2021
  • 2021-01-01 : Deadlines extended for filing GST
    The government extended the due dates for indirect tax compliance, the government has extended the date for filing annual returns under GST for the financial year 2019-20 to February 28 from the previous deadline of December 31.
  • 2020-12-02 : GST collections for November top ₹1 trillion
    GST revenue scaled ₹1 trillion for the second consecutive month in November, after a sharp decline in the initial months due to the pandemic and the subsequent nationwide lockdown. The government notified that GST collections increased by 1.4% on a year-on-year basis. Out of the ₹1.05 trillion revenue collected, central GST was ₹19,189 crore, state GST was ₹ 25,540 crore, IGST ₹ 51,992 crores and cess ₹8,242 crores.
  • 2020-11-24 : GST registration for an overhaul
    The GST Council law committee has made its recommendations on both new registrations and the removal of current risky taxpayers likely to be interested in the fraud. Comprehensive amendments to the registration procedure for new applicants will soon be considered by the GST Council, which will make the process rigorous for those not opting for Aadhaar-based authentication. The new rules seek to curtail fly-by-night operators that use bogus invoices to take advantage of input tax credits.
  • 2020-11-23 : GST Council advises Aadhaar-like registration for False invoice issue
    The GST Council has recommended that the registration process be tightened to root out all issuing bogus invoices from knowledgeable sources. The committee recommended the implementation of an Aadhaar-like registration process under the GST regime for new applicants. Under this after record authentication, a new registration can be done digitally with live photographs and biometrics.
  • 2020-11-18 : Compulsory GST e-invoicing from Jan 1, 2021, if turnover crosses ₹ 100 Cr
    The Central Board of Indirect Taxes and Customs declared that GST e-invoicing would be mandatory as of Jan 1, 2021, for any business whose revenue exceeds ₹100 Cr. A turnover of ₹ 500 crore was the cap set earlier. In the field of e-invoicing, the reforms would affect a significant number of medium-sized firms. From Apr 1 2021, it is planned to be made available to all taxpayers for B2B transactions.
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