GST Registration Online: Documents Required, Limit, Fees, Process

Goods and services tax (GST), first implemented in 2017, is an indirect tax applied on the sale of goods and services for domestic consumption. It is a multi-stage, destination-based value-added tax started by the Indian Government to achieve its ‘One Nation One Tax’ agenda. The main aim of this taxation system is to replace other indirect taxes like service tax, purchase tax, excise duty, etc. which was earlier levied at multiple supply chain stages. GST is borne by the consumer and this tax is applicable throughout India.

Who Needs To Register Under GST?

Any business involved with supply of goods or services and with an annual turnover above a specified limit (Rs 40 lakh\Rs 20 lakh\Rs 10 lakh), as stated by the government, needs to register under GST. Even ecommerce aggregators, agents of input service distributors and suppliers, individuals registered under pre-GST law (i.e., Excise, VAT, Service Tax etc.), Non-Resident Indians who pay tax as well as people who pay tax as per the reverse charge mechanism need a GST registration.

GST Registration Threshold Limit

The minimum threshold limit for GST registration in India depends on the type of business and its location. In most states, businesses with an annual turnover of more than Rs. 40 lakhs (for the supply of goods) and Rs. 20 lakhs (for the supply of services) must register for GST. For the north-eastern states the threshold limit for GST registration is an annual turnover of Rs. 20 lakhs (for the supply of goods) and Rs. 10 lakhs (for the supply of services). However, some specific businesses in India, such as e-commerce businesses selling goods across state borders, are required to register for GST regardless of their turnover.

GST Registration Details

All service providers, buyers, and sellers who are eligible under GST must register themselves in the GST portal created by the Government of India. Every individual or business that files for registration is assigned a unique Goods and Services Tax Identification Number, popularly known as GSTIN. It is a unique 15-digit number provided based on the state of residence and PAN.

• Documents:

For GST registration one needs PAN card, Aadhaar, ID and address proofs of promoters or directors with passport size photographs, bank account statements, digital signature and a letter of authorisation for authorised signatory. However, the list of the required documents may change based on the business type and the nature of GST registration an individual is seeking. Some other basic documents that are needed for GST registration online are business registration proof or incorporation certificate, supporting address proof of the place of business.

• GST Registration Process:

GST Registration is a two-step process. Application for GST registration online can be done through the GST portal online. After log-in into the portal one should follow these steps to complete the process successfully:

• Click on “Register Now” on the “Taxpayers” tab.
• Select the “New Registration” option. Fill in the details (like name, permanent account number, state, district, etc.) as asked. Click on “Proceed.”
• Enter the OTP (received on registered email ID or mobile number) in the required field.

A ‘Temporary Reference Number’ will be assigned. The number is valid for 15 days. After a few days one should revisit the portal and enter this temporary reference number to proceed to the next step.

• A new OTP will be sent. Once the OTP is entered in the required field, it will direct to a page, where the application status shown as drafts will be visible.
• Click on the edit icon, select the category and submit documents to proceed to verification.
• Upon completion of verification, an ‘Application Reference Number’ is sent on the mobile number.

It takes 2-6 working days to process the GST application. But those not comfortable with the online process of GST registration, can visit the GST Seva Kendra to apply for GST offline. After completing the GST registration successfully, the taxpayer will get a GST Identification Number and a registration certificate in Form GST REG-06.

• GST Registration Fees:

Taxpayers need not pay anything for registration under GST. But all businesses and individuals who are registered under GST must regularly file their GST returns monthly or quarterly as per the applicability.

• GST Offences:

There are 21 offences under GST. If a person fails to file their returns on time, they will be charged penalties or late payment fees as per the GST rules. The penalty will be at 100% of the tax amount if the business or the individual is found to be a deliberate offender evading taxes. For genuine errors like short payments, a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000 is applied.
In worst possible scenarios like registration obtained through wilful suppression of facts or not commencing operations after 6 months from the date of voluntary registration, a regular dealer not furnishing returns for a continuous period of 6 months, etc., the registration of the taxpayer can be cancelled. For some offences goods can be confiscated and fines can be levied.
For extreme offences such as for high-value fraud of 100 lakhs and above, both corporal and monetary penalties are applicable under GST.

Conclusion

GST was introduced to simplify the taxation process by replacing many indirect taxes in India that existed earlier. It is a single tax that applies to the supply of goods and services. Strictly speaking it is a value addition tax added at each level from the manufacturer to the customer.

There are some basic steps and a list of documents that one needs for GST registration. But, it is important to be aware of the GST laws and regulations of a specific region to be certain of the threshold limit for registration.

After completing the fundamentals of GST, if at any point you need money to start operations or expand your business, then think of a business loan from banks and NBFCs. Since there are a large number of players in the market, you should select the right financial partner for the best deal.

IIFL Finance offers a wide range of loan products that can be taken to fulfil all your business endeavours. All IIFL Finance loans have easy-to-meet eligibility criteria. Once documents are submitted and the verification process is successfully completed, the loans will be disbursed to your account to make things convenient for you.