Online GST Registration – Process, Benefits , Penalty

Introduction to GST Registration

In India, the GST was implemented with the goal of eliminating a number of other indirect taxes and establishing a single taxing system. Additionally, GST makes tax collection simpler and increases process efficiency.

Businesses who sell items for more than Rs. 40 lakhs (Rs. 20 lakhs in the North Eastern region and all hilly states) must register for GST. The threshold upper limitations for service providers remain unchanged. If a person’s total annual revenue reaches Rs. 20 lakh (for regular category states) or Rs. 10 lakh, they must register (for special category states).

Multiple Stages of GST Registration Imposition

How may an applicant obtain a certificate of GST registration online?
How may an applicant obtain a certificate of GST registration online?

Additionally, if an individual or corporation conducts business without obtaining a GST registration, it will be considered an offence under the GST Act and subject to severe penalties. GST registration is required for some enterprises. Online GST registration is required, and GST is levied at every point in the supply chain to offset all applicable tax advantages.

Every product goes through a number of steps, starting with the acquisition of raw materials, followed by production, wholesale and retail sales, and finally the final sale to the user for consumption or use. Briefly stated, GST will be applied to each of these 3 stages:

In a nutshell, all products and services go through a number of stages, including: (a) the acquisition and production of raw materials, (b) wholesale and retail sales, and (c) the final sale to the consumer for consumption. The following situations necessitate GST registration:

  • exceeds the threshold for total turnover.
  • Compulsory registration is needed for some businesses.
  • voluntarily sign up.

In India, all indirect taxes that were previously required by the national government and state governments are now included in the final price of all goods and services before being purchased.

What Advantages Come with GST Registration?

The following is a list of benefits of GST registration:

It streamlines tax services.

The GST has integrated the Indian market by bringing together several indirect taxes under a single guise.

Cost reductions for goods and services

The cascading impact of numerous taxes and VATs was eliminated with the implementation of GST, which decreased the cost of goods and services.

It aids in avoiding time-consuming tax services.

Small businesses benefit from GST registration since it lets them avoid time-consuming tax services. Since service providers and product suppliers with annual sales of under 20 lakh rupees and 40 lakh rupees respectively are exempt from paying the GST,

They are trying to cut down on corruption and sales without receipts.

The GST was implemented with the intention of eliminating fraud and unreceived sales. Additionally, it assists in lowering the amount of indirect taxes that small businesses must pay.

The Process for Taxation to Be Uniform

GST registration provides for centralised registration and brings uniformity to the taxation process. This makes it easier for businesses to submit their quarterly tax returns online.

In order to reduce tax evasion,

Tax avoidance has significantly decreased with the implementation of the GST.

The Greater Bar for Registration

A business in India that had a turnover of more than Rs 5 lakh was previously required to pay VAT. Additionally, service providers having a turnover of less than Rs 10 lakh were exempted from paying service tax. Contrarily, under the GST regime, this barrier has been raised to Rs 20 lakh, exempting many small business owners and service providers.

Scheme For Small Businesses’ Composition

Small businesses with a revenue of between Rs 20 and Rs 75 lakh can gain from the GST because it offers the possibility to reduce taxes by using the composition scheme. The tax and compliance burden for many small firms has decreased as a result of this action.

The easy and simple online process

The entire GST process, including registration and submitting returns, is carried out online and is very straightforward. This has benefited start-ups in particular because it eliminates the need for them to go through hoops to get several registrations, including those for VAT, excise, and service taxes.

There is less compliance.

Prior to this, there were separate returns and compliance for the VAT and service tax. On the other hand, under GST, only one consolidated return needs to be submitted.

Regulations For The Unorganized Sector

Prior to the introduction of the GST, it was frequently noted that certain industries in India, such as textile and building construction, were predominantly disorganised and uncontrolled. However, under GST, there are provisions for electronic filing and payment as well as for claiming input credit only once the supplier has approved the payment. This has made these businesses more accountable and regulated.

What qualifications must a person meet in order to register for GST?

The following individuals and/or businesses must register with GST:

  • Any business whose total revenue in a fiscal year exceeds Rs. 40 lakhs (Rs. 20 lakhs in GST for special category states).
  • Note: If the entity only deals in the provision of products or services that are GST exempt, this section does not apply.
  • Every entity that is already registered for taxation under an earlier statute (such as excise, VAT, service tax, etc.) must also register for the Goods and Services Tax.
  • to any organisation or vendor engaged in the interstate supply of commodities.
  • An unreliable taxable entity
  • An individual subjected to the reverse charge process
  • input services distributor and agent
  • Operator or aggregator of e-commerce
  • as a non-resident taxpayer.
  • brokers on behalf of a supplier
  • An individual who sells via an e-commerce aggregator
  • Entities that, other than registered taxable persons, provide online information, database acquisition, or retrieval services to a person in India from a location outside India.

What forms does GST take in India?

A model for GST administration was developed in which the government (both the Central and State governments) has the authority to impose and collect taxes through their respective laws. The GST modes are listed below:-

Internal GST

The Central Government levies a tax known as CGST on intrastate supplies of goods and services. An intra-state supply of products or services is one where both the seller and the buyer are located in the same state. Here, a seller is required to collect both the CGST and the SGST, with the CGST remaining under the control of the Central government and the SGST being collected by the State government.

Federal GST

The state government imposes the SGST tax on intrastate supplies of goods and services.

GST integrated

The IGST Act, which specifies that the seller must collect IGST from the buyer and that the money so received would be split between the Central and State Governments, governs integrated GST.

GST for Union Territory

When any goods or services are consumed in India’s Union territories (UTs), and the income is collected by the government of the union territory, Union Territory GST is applicable.

What are the Constituents of GST?

  • Registration Number
  • Legal Name and Constitution of business
  • Trade Name
  • Period of validity
  • Types of taxpayer
  • Date of Liability
  • Signature of the applicant

What is the 5 Slab Structure under GST?

The GST systems were created with the general public and inflation rates in mind. The GST was set up using a four-tier system to make things easier and simpler. The following list of these four zones includes:

Null Rates

Zero rate tax refers to the application of no tax to goods and/or services.

Reduced Rate

Based on the lower tax rate, the CPI basket and mass consumption are taxed at a 5 percent rate.

Regular Rate

The standard rate includes the 12 percent and 18 percent tax rates.

greater rates

The GST Regulation establishes a tax rate of 28 percent for higher tax rates.

What Paperwork Is Necessary for GST Registration?

The types of businesses have different documentation requirements for online GST registration. The following are the lists of documents needed for GST Registration according to the type of business:-

For A Sole Proprietorship Business

  • PAN card of the owner
  • Aadhar card of the owner
  • Photograph of the owner (in JPEG format, maximum size – 100 KB)
  • Bank account details*
  • Address proof**

For A Partnership Firm

  • PAN card of all partners (including managing partner and authorized signatory)
  • Copy of partnership deed
  • Photograph of all partners and authorised signatories (in JPEG format, maximum size – 100 KB)
  • Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.)
  • Aadhar card of authorised signatory
  • Proof of appointment of authorized signatory
  • In the case of LLP, registration certificate / Board resolution of LLP
  • Bank account details*
  • Address proof of principal place of business**

For A HUF

  • PAN Card of HUF and the Passport size Photograph of the Karta. 
  • Id and Address Proof of Karta and Address proof of the place of business.
  • Bank Account Details

For A Public Or Private Limited Company

  • Pan card of the Company
  • Certificate of incorporation of Company
  • MOA and AOA of the company.
  • Identity Proof and address proof of all directors and Authorised signatory of the Company.
  • Passport size photograph of the directors and authorized signatory.
  • Copy of Board resolution passed for appointing authorized signatory.
  • Details of Bank account opening.
  • Address proof of the place of business.

How does the GST registration process work in India?

Every taxpayer must follow the necessary steps in order to properly complete the GST registration process. Below is a description of the GST Registration process.

  • Step 1- The taxpayer must go to the GST site at www.Gst.Gov.In to complete the online application, which is the first stage in the GST registration process. On the site, the taxpayer (applicant) must also create a username and password.
  • Step 2- The applicant must click on the GST portal link and then select “New User Login.” By selecting “New User Login,” you can register for GST Registration by agreeing to the window on the displayed declaration form and pressing “Continue.”
  • Step-3 To begin the GST registration process, the applicant must choose “New Registration” and log in.
  • Step-4 The applicant must enter the information requested on the GST portal, including:
    • From the drop-down option, choose “Taxpayer.”
    • Choose the appropriate district and state.
    • Add the company’s information (name and PAN card).
    • Enter your email address and mobile phone number (both of which must be active because OTPs will be sent to those numbers).
    • Complete the captcha on the screen, then click “Proceed.”
  • Step- 5 – After providing the necessary information, the next step is to input the OTP that was delivered to your email address and/or mobile number in the appropriate fields.
  • Step 6- Once all of the information has been input, click the “Proceed” button.
  • Step- 7- The Temporary Reference Number (TRN) will appear for the applicant on the screen. Keep the TRN on hand for future use. To access PART-B of the GST registration form and to log in to the GST registration application, use Note-TRN.
  • Step 8- An applicant must reopen the GST portal and select “Register” from the “Taxpayers” option after receiving the TRN.
  • Step 9- “Temporary Reference Number (TRN)” should be selected.
  • Step 10- Type in the captcha information and the TRN you choose.
  • Step 11- Click the “Proceed” button after entering the Captcha information.
  • Step 12- An OTP will be sent to the applicant’s email address and registered mobile number. Enter the received OTP and then click the “Proceed” button.
  • Step 13 – On the following page, the status of your application will be shown. On the right side of the page, select the Edit icon.
  • Step 14- There are several parts on the following page where all pertinent information must be entered together with the requisite paperwork.
  • Step 15- Check the declaration before submitting the application by clicking the “Verification” tab. The application can be submitted using the techniques listed below.
    • Electronic Verification Code (EVC).
    • Through e-Sign.
    • The application must be submitted using a Digital Signature Certificate (DSC) if the applicant is a business (DSC).
  • Step 16- A successful completion message will appear on the screen once the procedure is finished. The mobile number and email address registered by the GST Applicant will receive the ARN.
  • Step 17- On the GST portal, look for the ARN’s status.

What Are the Consequences of GST Non-Compliance?

In The Event Of A GSTR Filing Delay

  • The late fee is Rs. 100 per day, or Rs. 100 under CGST and Rs. 100 under SGST, per Act.
  • a maximum of 5,000 rupees.
  • There is no late fee for IGST.

Due to GSTR not filing

  • A penalty of 10% of the amount of tax owed
  • whichever is greater, 10,000

for having committed fraud.

  • the whole amount of tax due.
  • whichever is greater, 10,000
  • Additionally, jail time is available in cases of high-value fraud.

For Helping A Person To Commit Fraud

Penalty extending up to Rs. 25,000.

For Charging GST Rate Wrongfully

In case of charging higher rate-

  • Penalty 100% of tax due or
  • 10,000, whichever is higher (if the additional GST collected is not submitted with the govt).

For Not Issuing Invoice

  • 100% of tax due or
  • 10,000, whichever is higher.

Non-Registration Under GST-

  • 100% of tax due or
  • 10,000 whichever is higher.

In Case Of Issuing Incorrect Invoice

  • Penalty of Rs. 25,000

How long is the GST Registration Certificate valid?

The sort of taxpayer who receives the certification affects and determines the validity of any GST registration certificate. When the certificate is given to an ordinary taxpayer, it is fully valid. In these circumstances, it only becomes invalid if it is revoked by the GST authority or given back by the taxpayer.

However, certificates issued for casual taxpayers or non-resident Indian (NRI) taxpayers are only valid for 90 days from the date of registration or for the period mentioned in the registration application, whichever comes first. Additionally, the proper authorities may prolong the validity period in accordance with Section 27(1) of the GST Act.

How may an applicant obtain a certificate of GST registration online?

  • After the ARN is produced, the applicant must go to the GST portal.
  • As a result, the applicant must login to his or her own GST account using the username and password you created. Additionally, a candidate must complete the appropriate captcha that is listed in the box and then click the login button.
  • The applicant must choose “View/Download Certificates” from the options shown in the image under “User Services” in the “Services” drop-box.
  • When you choose the download option, the registration certificate will automatically start downloading.
  • The applicant must go to the GST common site at https://www.gst.gov.in to download the GST Certificate.
Online GST Registration - Process, Benefits , Penalty
Online GST Registration – Process, Benefits , Penalty
  • Then, using the username and password you created while registering your name for GST Registration in the GST Portal, you must log in to your GST account. Additionally, you must successfully enter the captcha and then click the login button.
  • As soon as the login is successful, a new page will load. After that, pick “User services” from the drop-box by clicking the “Services” option. You must select “View/Download Certificates” from the menu options shown in the image.
  • When you choose the download option when proceeding, the registration certificate will instantly begin downloading. The registration certificate will be downloaded to your device so that you can access it whenever you need to see it. You must print off this downloadable certificate and display it clearly in the location where your business is located.

The CorpBiz GST Registration Process

Please follow the instructions above to legally and securely incorporate a GST registration and reap the rewards of higher-quality sales and pleased customers. For assistance with advice about GST registration and its compliance for the efficient operation of your business in India, our CorpBiz experts will be available at your disposal. Professionals from CorpBiz will help you plan efficiently and affordably, ensuring that the procedure is completed successfully.

To avoid many of the potential problems that lurk inside GST Registration and to fully comprehend the necessity, it is advised that an attorney with “taxation experience” be consulted. You would need to provide the basic information to begin the procedure. Once all of the necessary information has been provided and the payment has been made, the attorney will start working on your request.

Why is CorpBiz?

One of the platforms that works with you to meet all of your financial and legal needs and links you to reliable professionals is CorpBiz. Yes, our clients are happy with the legal services we provide. They continually hold us in high respect and provide regular updates as a result of our focus on making legal obligations simple.

Additionally, our users can always keep tabs on the development of our platform. Our knowledgeable specialists are available by phone if you have any queries about the GST Registration procedure. CorpBiz will make sure that your interactions with businesspeople are pleasant and seamless.

  • Buy a Plan for Professional Assistance
  • Please Include Your GST Registration Queries
  • Documents to be Provided to Corpbiz Expert
  • Create a GST Registration Application: Complete all requirements for admission for preliminary screening.
  • Finished procedural steps
  • Register for GST at your front door! “

Questions and Answers

Is GSTIN an explanation of GSTIN?

The Goods and Service Tax Identification Number, or GSTIN, has fifteen digits. This number is produced by the government after a person or business successfully submits a GST Registration application.

Is a digital signature necessary to register for GST in India?

Yes, if you are a public limited company, private limited company, limited liability partnership (LLP), or one-person company, a digital signature certificate (DSC) is necessary (OPC).

Can someone voluntarily register for GST?

Yes, even if the yearly revenue is below the threshold level of 40 lakhs, or 20 lakhs in the case of the northeast, anyone can voluntarily obtain GST registration.

When is it necessary for a firm to have several GST registrations?

Any company must obtain multiple GST registration numbers if:
The business entity is required by law to obtain GST registration in each state where it is providing goods and services in multiple states.
To minimise accounting issues between different firms, any business entity can obtain several GST Registration Numbers even if they operate from one state across many sectors.

What does a GST composition scheme entail?

The GST composition plan is a safe strategy designed to lighten the compliance load for small taxpayers. Under this composition scheme under GST, small taxpayers can pay GST at fixed rates and avoid onerous GST requirements. If a business’s annual revenue is less than 1.5 crore, it can opt for a composition plan when applying for GST Registration.

Who is ineligible for the composition scheme under the Indian GST registration?

The GST Registration in India’s composition scheme does not apply to:
Supplier of products exempt from taxes
The creator of the notified goods
service companies
online retailers
Cross-state buyers

What benefits do composition schemes under GST registration offer?

lower tax obligations.
Keeping meticulous records does not necessitate
A single quarterly return must be filed. four annual results;
low levels of compliance;
A small amount of turnover tax (1 percent for merchants and 5% for restaurants) can be paid.
You can offer an auxiliary service under the composition system for up to 5 lakh rupees per year.

What drawbacks are there to the GST Registration Composition Scheme?

can not get an input tax credit for any items made.
You cannot apply any composition tax on a customer invoice as would typically be done under a standard GST arrangement.
can’t generate a tax invoice;

What does ARN mean when registering for GST in India?

The Application Reference Number is abbreviated as ARN. The ARN number is generated upon the successful submission of the GST Registration application. After the required documents have been uploaded, the ARN number is generated.

What does GST Registration’s HSN Code mean?

The Harmonized System of Nomenclature is also known as HSN. This is a widely used product coding scheme to keep the categorisation of products consistent.

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