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The biggest tax reform pan India, Goods And Service Tax officially started its reign on July 1st, 2017. Two years might seem enough time to get used to the tax system that consumed all other indirect taxes, unfortunately, it isn’t so.
The idea of GST was to do away with complicated compliances and terms and conditions that entailed any business. Small businesses have the perfect chance to thrive under GST. However, simply because the intention was to make things easier for businessmen doesn’t mean it turned out so.
A lot of the people still don’t understand how GST works or at what point they need to register under GST. Nor do they know how to register.
Several acts such as the GST Amendment Act, 2018 got their introduction to make necessary changes but GST is still a work in progress. Currently, we can only help you by starting you off on the road on how to complete your GST registration.
1. The Documents Required
Before you make any attempt to register for GST, you need to have your documents in order. Whether you’re a small business or a big one, this is the documents you’re going to need.
PAN of The Applicant
For registration, you need the Permanent Account Number of your business along with the signature of the applicants incorporated with the business such as the director, partners, or proprietors.
Address proof of the place of business
The place of business, in this case, is where the taxpayer has established their business within a state. This is the place where accounts are calculated and records are kept.
You can keep documents such as the Municipal Khata copy or electricity bill as an extra support document. A copy of a consent letter which proves ownership of the place of business or one of the valid agreement of rent or lease is will come in handy as well.
If the business has more than one hub in the state, proof of those places is mandatory.
Bank Account Number
You will need the 10 bank accounts number of the bank you’re conducting business through along with the Indian Financial System Code of the branch.
-Board Resolution for Authorized Signatory
-Proof of business registration
2. GST Portal
You only need to register for GST if your annual turnover well over exceeds Rs 20 lakh. If it’s a special state, the rate is Rs 10 lakh.
First, you have to visit the GST portal. On here, click on the Register Now option you will locate under the word Taxpayers (Normal).
This will open the Registration place. Here, select New Registration. You will find several sections with a red asterisk beside them. This means the section is mandatory for completion.
The first option after new registration is I am a. From the drop-down menu here, select Taxpayer.
Further in, you will get the State and district options. Select the correct ones. Afterwards, enter the name and PAN of the business. The email id and Mobile number of the business are important as well. The OTP will be received by these two channels.
Lastly, click on Proceed.
The next page will ask you for OTP you have received for mobile and email separately. Enter them and click on continue.
You will find your Temporary Reference Number or TRN on the next page. It is so that the number will be sent to your email id and phone number as well. Don’t lose it.
Click back to the main page of the GST portal. Register Now option is your friend again.
This time, instead of selecting New Registration, click on the Temporary Reference Number option. This is the time to use the TRN you have received. Then, enter the correct captcha and click on proceed.
Your mobile and email will again be recipient to a new OTP. Enter this OTP and move forward.
The page with the status of the application will appear next. The status will be draft. Click on the edit icon which is under action.
There are 10 sections now. This is where the documents are useful. Fill every detail and upload the digital version of the documents.
Once you’ve completed all the details, it’s time to visit the Verification page. Agree to the declaration. You can now submit your application through three different processes. There’s e-sign, where the Aadhaar registered number will receive the OTP. There’s EVC, where it will be sent to the mobile number your business has registered with.
The best option for a company would be to use DSC.
Once done, you will see the success message. The Application Reference Number is then sent to the mobile and email.
Frequently Asked Questions (FAQS)
Is there any fee involved in the GST registration process?
The process of GST registration is a tedious one. It involved a total of 11 steps. Several documents need to be scanned. If you still don’t understand the process, you can ask for help from a GST expert which will cost you some.
However, the registration process itself is free.
Is there any penalty involved?
If there’s a taxpayer who is eligible under GST but doesn’t pay their taxes on time or pays a shorter amount than the amount due, they have to make up with penalty fee. If the amount due is Rs.10,000, a minimum of 10% of the tax amount shall be paid.
If the offender deliberately tries to avoid paying tax, they will have to pay 100 percent of the amount.
When are multiple GST registrations mandatory?
If the operation for your business covers more than one state, then you will have to register for each state separately. Case in point, if you had a sweet shop in Maharashtra and West Bengal, you will have to comply with separate GST registration for both states.
If your business has multiple verticals in a state, you will have to register for GST under the name of each vertical.