A Step-By-Step Guide To The Online GST Registration Process & Requirements

The Parliament passed the Goods and Service Tax (GST) Act on March 29, 2017, and implemented it on July 1, 2017. Since then, any individual or entity supplying goods and services across India must register for GST. It is mandatory for businesses with a total revenue of above Rs. 20 lakhs. However, GST registration is compulsory for companies in special category states with income exceeding Rs. 10 lakhs.

A GST non-registered entity will be ineligible for a loan as the terms specify mandatory GST registration. Therefore, before you apply for a business loan online or consider getting a business loan, you must understand the GST process.

Eligibility For GST Registration

1. Aggregate Turnover

GST registration is vital for service providers with income exceeding Rs. 20 lakh in one year. The limit for states classified in the special category stands at Rs. 10 lakh. An entity supplying goods with an aggregated turnover exceeding Rs. 40 lakhs must register for GST too.

2. Inter-State Businesses

Any entity that supplies goods outside their resident state without considering a yearly turnover is eligible for GST registration.

3. E-commerce Platforms

Individuals or companies that supply services or goods via such platforms must register for GST without considering the turnover figure.

4. Taxable Persons

Individuals engaging in goods and service-related supply via temporary setups must get GST-registered. The aggregate turnover is not a concern in this context either.

GST Registration Types

• Taxpayer:

GST registration applies to taxpayers running businesses in India.

• Composition Taxpayer:

Any taxpayer can register under the Composition Scheme, enabling them to pay a flat rate on GST. Such a taxpayer cannot claim the input tax credit.

• Casual Taxable Individual:

A taxpayer engaging in seasonal or casual stall-based businesses will have to register as a Casual Taxable Person. You need to pay a deposit that is the same as the amount of GST liability. The active registration stays valid for three months.

• Non-Resident Taxable Individual:

Non-residents of India engaged in supplying goods or services to people or businesses in India must register as casual taxable persons. They need to make a deposit equal to the GST liability amount. The liability must match the active registration period of three months.

GST Registration Procedure Types

1. GST Registration for Non-Resident Online Service Provider
2. GST TCS Collector - E-commerce Company
3. UN Body
4. Special Economic Zone Units
5. Special Economic Zone Developers
6. GST TDS Deductor-Government Entity

GST Registration Documentation

1. Proof of business
2. Certificate of incorporation
3. Applicant photo
4. Partner photo, if any
5. Authorized signatory photo
6. Letter of authorization
7. The resolution passed by BOD or Managing Committee with Acceptance letter copies
8. Business place address proofs such as electricity bill, legal document of ownership, municipal copy, receipt of property tax
9. Proof of bank accounts details

The Step-By-Step Process For GST Registration Online

Step 1: Visit the GST Portal. Navigate to Services > Registration > New Registration.

Step 2: Select the Taxpayer type. Choose your state as applicable. Enter the business name as mentioned in the PAN database and add the PAN number. Provide an email address for the primary signatory. Click PROCEED.

Step 3: The next step is OTP verification. You will get two OTPs by email and the registered mobile number.

Step 4: You will receive the TRN to complete the GST registration.

Step 5: Use TRN to log in. Enter the captcha flashing on the screen and complete OTP verification.

Step 6: Submit all the relevant business information. These include:
• Trade Name
• Constitution of Business
• District or Sector / Unit
• Pick the Commissionerate Code or Division Code as well as the Range Code

Step 7: Submit all promoter information. You can add a maximum of 10 partners or promoters in a single registration application for GST. This step is essential to remember when you file for business loans online or consider getting a business loan.

Step 8: An authorized signatory is liable to file all GST-related company returns. File all the information about the person.

Step 9: Provide all details of the place of operation of your business. These include:
• Address of principal place for business
• Official contact details
• Nature of possession of premises
• Upload relevant certificates if the location falls under SEZ
• Keep deeds, rental agreements or consent letters ready for upload to validate business operations.
• You can add additional places of business such as warehouses, office space and so on under this tab.

Step 10: Mention all details of the goods and services of your business of up to five such things. Goods need an HSN code, while services need a SAC code.

Step 11: Upload all details of the business bank accounts and a passbook first-page copy of bank statement in the right tab.

Step 12: The application is verified post-submission of all data. Enter details of signature, place of signing and other information. Finally, sign this application using a Digital Signature Certificate or an EVC.

Get A Business Loan For Your GST-Compliant Entity From IIFL Finance

Once your application is verified, you will obtain confirmation of your registered e-mail and mobile number. Use the ARN Number to track the status of the registration. Once you get the GST number, you can apply for a business loan with IIFL Finance! Our executives will help you seamlessly through the process of sanctioning business loans.

FAQs

Q1. Is choosing a composition scheme compulsory?
Ans. No, choose the composition scheme if it applies to you. However, you must enter the commencement date for business irrespective of the scheme.

Q2. How soon must I file for GST?
Ans. Filing for GST within a month from registration of the business is mandatory.