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GST Registration Process: Comprehensive Guide for GST Online

Jun 10, 2022

GST Registration Process Threshold Limits

Businesses that cross the threshold turnover limit, that is, Rs. 40 Lakhs for a general situation whereas for some North-eastern states and special state rules, the threshold is Rs. 10 Lakhs. For some, business registration under GST is mandatory. With digitalization, the GST registration process is possible to carry out in 2-6 working days. 

Mandatory GST Registration

Some of the entities that need to be registered under GST are:

  1. Entities registered under Pre-GST laws.
  2. *Businesses whose turnover is above the threshold of Rs 20 Lakh for normal category state and Rs 10 Lakh for special category state. 
  3. Agents of input service distributors & suppliers.
  4. A taxpayer under Reverse Charge Mechanism 
  5. Individuals who supply via an e-commerce aggregator
  6. The Individuals who are supplying online information and database.

Essential Documents required for GST Registration Process 

Before getting registered for GST some of the major documents which one should be prepared with are:

  1. PAN card
  2. Aadhar Card
  3. Business registration proof
  4. Identity proof of directors or promoters with photographs
  5. Address proof of the place of business
  6. Bank Account Statement or canceled cheque
  7. Digital Signature
  8. And finally letter of authorization or board resolution for authorization 

The types of GST Registration Process

GST Registration is available to different categories of individuals and businesses. Type of GST Registration process changes as per case and the available types of Registrations include:

(i) Tax Payer

(ii) Tax Deductor

(iii) Tax Collector (E-commerce)

(iv) GST Practitioner

(v) United Nations Body

(vi) Consulate or Embassy

(vii) Non-Resident Taxable Person

(viii) Non-Resident Online Service Provider

(ix) Other Notified Persons

 

Changes in Threshold Limits

Government of India considering the demands of the MSMEs in its 32nd GST council meeting which was held on 10th January 2019 has increased the threshold limit for the entities to get registered under GST. Now the new threshold limit for providing goods is Rs. 40 Lakh or more for normal category states and Rs. 20 Lakh or more for special category states. With respect to service, the threshold for normal category state is Rs. 20 Lakhs and Rs. 10 Lakhs for special category states.

Additionally, the GST council of India has given options to states to opt between new and old tax regimes. Telangana is the only state which opted to continue with the old tax regime whereas, special category states, Jammu and Kashmir, Ladakh, and Assam opted for the Rs 40 Lakhs limit. (* J&K and Assam earlier too had opted for a threshold limit of Rs. 20 Lakhs instead of Rs.10 Lakhs)

States or Union Territory such as Uttarakhand, Nagaland, Arunachal Pradesh, Sikkim, Manipur, Tripura, Mizoram, Puducherry, and Meghalaya all have opted for a new limit of Rs. 20 Lakhs.  

Indian State, Kerala, can now charge ‘calamity cess’ up to 1% on all the inter-state supply of goods and services to manage natural calamities. 

The threshold for individuals who opt for Composition Scheme 

From 1st April 2019, the threshold for entities opting for the composition scheme has increased to Rs. 1.5 crore but for the North-Eastern states and Uttarakhand threshold is the same, that is, Rs. 75 Lakh. The new scheme introduced a 6% rate, where independent service providers whose turnover is up to Rs. 50 lakhs in the previous year can also opt for this scheme. 

 

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Online GST Registration Process

As prior to GST registration, the indirect taxation system was complicated. To make the whole process simple, online GST registration process was introduced. The steps involved in the whole process are:

1. Login to the GST portal.

2. Under the top tab. Go to Services > Registration > New Registration

3. On the new pop-up page, select “New Registration”. Fill out the registration application form. Details like: Name, State/UT, District, Legal name of business, PAN, Email address, and Mobile Number.

4. On clicking “Proceed”, an OTP will be generated. This will lead to Temporary Reference Number (TRN) generation.

5. For registration of business, various information needs to be submitted. The information which is asked:

Business Details

Promoter/ Partners

Authorised signatory

Authorized Representative

Principal Place of Business

Additional Place of Business

Goods and Services

Bank Accounts

State Specific Information

Verification

6. In the Verification step, details are submitted and the document is verified using Digital Signature or e-sign or EVC. Digital Signature verification is mandatory for LLP and companies.

Finally, an Application Reference Number (ARN) will be generated. Using this number GST applications can be traced.

Steps involved in checking the application status via ARN (before logging in with the credentials) are:

  1. Login to the GST Portal 
  2. Under the top tab, click on Services > Track Application Status
  3. In the next window under “Module” select “Registration”
  4. Click on the suitable radio button (ARN or SRN) and put the allotted ARN number.
  5. Click on “Search”

This will present a new screen that will show the status of the registration number. Some of the status are:

Pending for Processing

Site Verification Assigned

 Site Verification Completed

Pending for Clarification

Clarification filed – Pending for Order

Clarification not filed- Pending for order

Approved

Rejected 

The steps involved after registering:

  1. Login to the GST portal with your credentials. 
  2. Under the top tab. Go to services > Track Application Status.
  3. In the next screen, select “Registration” under the Module section.
  4. Click on the radio button and fill the “Submission Period” > “Search”
  5. Click on “Download” to download the Acknowledgement 

 

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Post-GST Registration

An entity becomes liable to get registered when it crosses the threshold limit. The effective date of registration is within 30 days from the date when one cross the limit. But in the case when the registration is carried out beyond 30 days, then the effective date is the date on which the registration is granted. 

It is mandatory that entities that are registered under GST should display their business GSTIN number at a noticeable place. Apart from it, every entity after getting a certificate of registration should issue an invoice that complies with all the rules. In the case where registration is done late, then invoices can be again issued. For unregistered persons, a single invoice-cum- the bill is issued in case of both taxable and exempt supplies. 

Once the registration is done, eligibility to claim ITC becomes active. Cross-checking through GSTR 3B and GSTR 2A will ensure that there is no excess or shortage of ITC. But at the same time, this rule is not applicable for composition dealers, as they are not eligible to take full advantage of the ITC process.

GSTR filing 

After one is registered under GST and successfully obtained a registration certificate filing suitable GST returns is the next important step to do. Due to various types of individuals & business entities being present, the GST council has introduced various types of GSTR forms. 

To know more about the GSTR filing and Registration process, Contact HA.

 

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