What is Goods and Service Tax (GST)? Who (Person/Company) Needs to Register in GST in India? Types of Audit Under Goods and Service Tax (GST)? How to Register for GST on GSTN website? What are the penalties for not obtain GSTN certificate? What is the Document required for GST Registration?

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Goods and Service Tax (GST) most commonly known as GST was introduced in India on 1st July 2017. Most of you might have seen and heard about GST a lot these days, and many of you might be keen to know what GST actually is. In this guide, we will be clearing your views about GST and GST Registration process.

Table Of Content

  1. What is GST registration in India?
  2. Who should register for GST?
  3. GST Registration Documents List
  4. GST Registration Procedure
  5. GST Compliance
  6. Penalties under GST
  7. FAQ’s

What Is GST Registration?

  1. GST Registration is an online process where the GST Law implies that any business entity should obtain a unique number by concerned tax authority for collecting the tax and for availing Input Tax Credit (ITC).
  2. It is a PAN-based and state-specific registration. The supplier is allotted with a 15-digit GST Identification Number (GSTIN), and the certificate of registration is made available for the applicant on the portal.
  3. Voluntary registration is also allowed by GST Portal.

Who Needs To Register For GST In India?

Under the GST regime, the tax is payable by the registered taxable person on the supply of goods and services. Here we have mentioned who needs to get registered under GST mandatorily.

  1. Liability to pay tax arises when the taxable person crosses the turnover threshold of Rs 20 lakhs (Rs 10 Lakhs for NE and the Special Category States) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit
  2. Inter-State Suppliers
  3. Having multiple branches in multiple states
  4. Casual Taxable Person
  5. A person who is required to pay under Reverse Charge Mechanism (if the supplier is unregistered under GST)
  6. A person who must take Input Tax Credit
  7. E-Commerce operators, supplying goods or service
  8. Non- Resident Taxable Person

*Casual taxable person means the person whose place of business is not fixed and occasionally undertakes transactions involving the supply of goods or services or both.
*Non-Resident Taxable Person means the person whose place of business is not fixed or is not the resident of India and occasionally undertakes transactions involving the supply of goods or services or both.

Documents Required For Private Limited Company (Pvt. Ltd)/Public Company (Limited Company)/One Person Company (OPC):

Company Documents

  1. PAN card of the company
  2. Registration Certificate of the company
  3. Memorandum of Association (MOA) /Articles of Association (AOA)
  4. Copy of Bank Statement
  5. Declaration to comply with the provisions
  6. Copy of Board resolution

Director Related Documents

  1. PAN and ID proof of directors

Registered Office Documents

  1. Copy of electricity bill/landline bill, water Bill
  2. No objection certificate of the owner
  3. Rent agreement (in case premises are rented)

Required Document For LLP Registration

  1. PAN card of the LLP
  2. Registration Certificate of the LLP
  3. LLP Partnership agreement
  4. Copy of Bank Statement of the LLP
  5. Declaration to comply with the provisions
  6. Copy of Board resolution

Designated Partner Related Documents

  1. PAN and ID proof of designated partners

Registered Office Documents

  1. Copy of electricity bill/landline bill, water Bill
  2. No objection certificate of the owner
  3. Rent agreement (in case premises are rented)

Documents Required For Normal Partnerships

Partnership Documents

  1. PAN card of the Partnership
  2. Partnership Deed
  3. Copy of Bank Statement
  4. Declaration to comply with the provisions

Partner Related Documents

  1. PAN and ID proof of designated partners

Registered Office Documents

  1. Copy of electricity bill/landline bill, water Bill
  2. No objection certificate of the owner
  3. Rent agreement (in case premises are rented)

Documents Required For Sole Proprietorship/Individual

Individual Documents

  1. PAN card and ID proof of the individual
  2. Copy of Cancelled cheque or bank statement
  3. Declaration to comply with the provisions.

Registered Office Documents

  1. Copy of electricity bill/landline bill, water Bill
  2. No objection certificate of the owner
  3. Rent agreement (in case premises are rented)

Compliance After Registration

  1. To register under GST, click on the Govt. GST Portal www.gst.gov.in
  2. Click on Service tab on the Menu
  3. You will have four options: Registration, Payments, User Services and Refunds
  4. Click on Registration and then on New Registration
  5. You will be directed to Part – A of the form to fill in all the basic details like is the person a taxpayer, GST Practitioner, Tax Detector, etc., the State, District, Legal Name of Tax detector (According to PAN), PAN.
  6. Enter the Email ID and Mobile No. on which OTP could be sent
  7. A One Time Password (OTP) would be sent to verify by the GST Portal
  8. Based on the business you will have to upload few documents
  9. After the Documents are submitted, the Application Reference Number (ARN) is generated and is sent to you via Email and SMS on the registered mobile number
  10. GST Officer will verify and either approves the application or would request to provide more document or details till the authority have all the information to approve

Types Of Audit Under GST

Audit under GST is the process of examination of records, returns and other documents maintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess the compliance with the provisions of GST.

How To Register For GST?

There is much compliance in GST, for which, if not complied properly, high penalties can be charged.

List of three basic compliance’s is listed as below:

  1. Details of Invoice: The details of every invoice are required to be furnished in the GST returns
  2. 3 Returns: There are 3 monthly returns to be filed by invoices (GSTR- 1, 2 and 3)
  3. Annual Return: There is also an annual return to be filed (GSTR- 9)

Penalties For Not Registering Under GST

Not registering under GST is an offence under Section 122. The Act has listed down 21 offences in section 122, apart from the penalty that is prescribed under section 10 for availing compounding by a taxable person who is ineligible for it.

[Read: Penalties under GST Act]

FAQ Series on GST Company Registration

When Will I Receive GSTIN Certificate And How?

After the registration request is made, the GSTIN certificate will be received within 8 -10 working days, and it will be received online. And the certificate will be made available on GST Portal.

Is PAN Mandatory For Registering Under GST?

Yes, PAN is mandatory for the resident of India.

What Is The Validity Of GST Certificate?

The validity of GST certificate is forever. It is just a one-time certificate.

Who Is A Primary Authorized Signatory?

The primary authorized signatory is the person who is primarily responsible for performing an action on the GST System Portal on behalf of the taxpayer. >

Is Amendment In GST Registration Possible?

In case of the amendment in both the core & non-core fields, the application is required to be made within 15 days of the change. However, in case of the amendment in non-core fields, the registration certificate gets automatically updated on the GST portal. Whereas, in case of core fields, the Proper officer will investigate the details and may require additional details & documents if he feels necessary before updating the details on the portal. >

What Is The Aggregate Turnover Limit For GST Registration?

A person whose aggregate turnover* from business in a financial year exceeds Rs 20 lakhs are bound to register under GST. For the North-Eastern and hilly states (Assam, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh, and many more) it is set at Rs 10 lakhs because they are considered as special category states.

Also, a person whose aggregate turnover for business in preceding financial year is less than 1.5 crores can avail composition scheme where the returns are to be filed quarterly for the year. For the North-Eastern and hilly states (Assam, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh, and many more) it is set at Rs 75 lakhs because they are considered as special category states.

Aggregate turnover shall include all supplies made by the taxable person, whether on his account or made on behalf of all his principals. Aggregate turnover does not include the value of inward supplies on which tax is levied on a reverse charge basis. The value of goods after completion of job work is not included in the turnover of the job-worker. It will be treated as a supply of goods by the principal and will accordingly be included in the turnover of the Principal.

*Aggregate turnover includes all the kind of combinations of taxable and non- taxable supplies, exempt supplies, and exports of goods or services.