The Comprehensive Guide to GST Registration: All that you need to Know in one place

Has your business made the transition to GST? Have you received the GSTIN? If no, then you’ve come to the right place. Here, in this guide, you can find all that you need to know about GST registration.

It’s been eight months since India stepped into the era of “One Nation, One Tax” with the official GST rollout on July 1st, 2017. Yet, there are hundreds of businesses, both old and new, all across the country, who have not yet figured out how to register their business for GST.

Worry not, here in this guide, you can find the answers to all your queries about the registration process.

Let’s get started by answering the big question.

Why bother registering for GST?

Only when you complete GST registration, you will be legally recognised as a supplier of services or goods in the county.

Only a registered merchant or business can:

  • Legally collect taxes from the customers and pass the credit for the taxes to the consumer.
  • Claim input tax credit for the paid taxes.
  • Seamlessly, enable the flow of input taxes from the start to the end of the supply chain.

Who you should register for GST?

Every supplier of goods or services in India must be registered under GST. However, if you are a micro or a small business owner with an aggregate turnover of lesser than 20 lakh rupees per annum (this threshold is 10lakh rupees for NE states, J&K and Himachal Pradesh), then you need not register.

However, even if your turnover doesn’t exceed the threshold limit, you can voluntarily opt to register for GST.

What are the Documents required to complete the Registration process?

  • Applicant’s PAN
  • Aadhaar Card
  • Proof of the business registration, the incorporation certificate or the partnership deed
  • Individual identity cards and address proof of the directors/promoters/partners of the business
  • Bank account statement for the last six months or cancelled cheque leaf
  • The digital signature of the applicant
  • Letter of Authorisation

Is there any penalty for not registering under GST?

Yes, if you don’t register your business under GST and evade paying taxes deliberately, then you are likely to attract up to 100% of the tax amount as penalty.

If you make genuine errors (short payments) in the computation of GST, you have to pay a penalty of 10% of the tax amount or a minimum of 10,000 rupees as a penalty.

How to register for GST?

The registration process is online. Here’s a simple step-by-step guide to complete the process.

  • Log on to the official website
  • Under the Services tab, click on Registration and further select, “New Registration.”
  • Once you click this, a new page opens where you have to enter in a few essential details like whether you’re a taxpayer, GST practitioner, and so on. Other details include the legal name of your business, address, town, district and the state where it is located, PAN number, email address and mobile number.
  • Once your details are verified, you’ll receive an OTP to the email you have entered.
  • Depending on the nature of your business, you have to upload a few supporting documents like incorporation certification, partnership deed, and so on.

This completes the Part A of the registration, following which you have to complete the Part B. Once you finish it successfully, the Application Reference Number will be sent to you via email or SMS.

Then, the details you have submitted are verified by a GST officer, who then provides you with the GSTIN. If any details are missing, you will be required to submit additional documents.

If you haven’t registered for GST, it’s high time to do so. Make sure to provide accurate details to avoid lengthening the process. If you are not sure of the documents to submit, you can always seek expert guidance to assist you.