Navigating the GST Registration Process: A Step-by-Step Guide
The process of registering for GST in India is largely online and user-friendly in nature. Below are the key steps involved:
1. Ascertaining Your Eligibility:
Before proceeding with the registration, one needs to verify whether your business is required to register. Most businesses with a turnover of over ₹40 lakh (₹20 lakh for special category states) are required to register for GST. Some businesses are mandatorily required to register irrespective of turnover, like those making inter-state supply of goods, e-commerce operators, and those responsible for paying tax under the Reverse Charge Mechanism.
2. Documentation:
Furnishing the right documents at right time will help escalate the process of GST registeration, most documents are required online. So make sure you have a clear and easy to read copy of your documents readily available. The documents themselves will vary slightly depending on your business type (e.g., proprietorship, partnership, company), but they are usually:
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Permanent Account Number (PAN) Card of the owner, or firm.
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Aadhaar Card of the owner, partners, or directors, as the case may be.
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Business Address Proof, e.g., an electricity bill, property tax receipt, or lease agreement with an NOC from the landlord if any.
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Bank Account Information, like a cancelled cheque or a bank statement where the account number, name of bank, branch, and IFSC code are visible. This is not necessarily required at the application stage but is necessary for future compliance.
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Photographs: Passport photographs of the owner, partners, or directors.
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Constitution of Business Document, such as a Partnership Deed in case of partnerships or Certificate of Incorporation and Memorandum of Association/Articles of Association in case of companies.
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Proof of Appointment of Authorized Signatory: Letter of authorization or board resolution.
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Digital Signature Certificate (DSC): Required for LLPs and companies for application submission. Proprietorships can use an Electronic Verification Code (EVC).
3. Online Registration on the GST Portal:
The entire registration process takes place on the official GST portal (www.gst.gov.in).
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Part A of Form GST REG-01: You’ll start by accessing the 'New Registration' option on the GST portal. Here you’ll be required to enter the basic details of your business's i.e the legal name (as per PAN), PAN, mobile number, and email address. An OTP will be sent to your registered mobile and email for verification. After successful verification, a Temporary Reference Number is generated. This TRN is essential for continuing with your application.
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Part B of Form GST REG-01: Log into the portal again with the help of your TRN. Then fill the more detailed form asking for more information about your company, which includes particulars of your such as business type, principal place of business, details of partners/directors/proprietor, character of business activities, and details of goods or services supplied (HSN/SAC codes), along with the documents.
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Verification and Submission: Once all the details are filled and documents uploaded, you just need to validate the application through a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
4. Application Processing and ARN Generation:
Once submitted, an Application Reference Number (ARN) is generated. You can use this to check the status of your application. GST authorities will scrutinize your application and the documents you have submitted.
5. Query and Response (If Any):
Sometimes, the officials might need additional information or clarification. Query will be raised on the portal, and you’ll need to respond with the requested details or documents within a specified timeframe which usually is seven working days.
6. Grant of GSTIN:
Upon successful verification and authentication of your application, you will get a Certificate of Registration in Form GST REG-06, along with your 15-digit Goods and Services Tax Identification Number (GSTIN).
Although the process is made to be simple, accuracy and proper submission of documents are crucial for hassle-free and rapid registration. If difficulties take place, receiving assistance from tax experts at Legal Dev can prove to be highly beneficial. Getting GST is one of the most important steps in making your business legitimate, unlocking tax advantages, and laying the groundwork for long-term growth in the competitive Indian marketplace.