Maksim Consultants

GST Registration Step by Step

  • CA Amritpal Singh

    • GST Registration

    GST registration process is an important function to become a part of GST. This article would help the readers to solve their queries related to the GST registration process. GST registration process will be online through a portal maintained by GSTN (Goods and Services Tax Network). The government will also appoint GSPs (GST Suvidha Providers) to help businesses with the GST registration process.

    Who is required to get GST Registration or GST Number

    Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakhs rupees.

    Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

    As per the latest updates of GST council meeting, the threshold limit for GST registration for selling Goods has been increased from 20 lakhs to 40 lakhs and for special category states, the limit has been increased from 10 lakhs to 20 Lakhs.

    Special Category States under GST Includes:

     

    Compulsory registration in GST without Limit.

    1. Persons making any inter-State taxable supply;
    2. Casual taxable persons making taxable supply;
    3. Persons who are required to pay tax under reverse charge;
    4. Person who are required to pay tax under sub-section (5) of section 9;
    5. Non-resident taxable persons making taxable supply;
    6. Persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
    7. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
    8. Input Service Distributor, whether or not separately registered under this Act;
    9. Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
    10. Every electronic commerce operator;
    11. Every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person; and
    12. Such other person or class of persons as may be notified by the Government on the recommendations of the Council.

     

    FOLLOWING PERSONS SHALL NOT BE ELIGIBLE FOR REGISTRATION UNDER GST (SECTION 23 OF CGST ACT, 2017)

    (a)Person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

    (b) An Agriculturist, to the extent of supply of produce out of cultivation of land.

    The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.

     

    DOCUMENTS REQUIRED FOR REGISTRATION

    1. Documents required for GST Registration of Private Limited Company, Public Company (limited company) / One Person Company (OPC):

    i) Documents required for Private Limited Company

         Director related documents

        Registered Office documents

    ii) Documents required for GST Registration of Limited Liability Partnerships (LLPs):

         a) LLP Documents

        b) Designated Partner related documents

         c) Registered Office documents

    iii) Documents required for GST Registartion of Partnerships Firm

          a) Partnership documents

         b) Partner related documents

          c) Registered Office documents

    iv)Documents required for GST Registration of Proprietorship

         Registered Office documents

     

    GST Registration Procedure

    Every person, whose aggregate turnover exceeds the specified limit, shall file an application form within thirty days from the date of becoming eligible for registration under GST (SECTION 25).

    1. The applicant will need to submit his PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal(gst.gov.in) or through Facilitation centre (notified by the board or commissioner).
    2. The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP). Once the verification is complete, the applicant will receive an Application Reference Number(ARN) on the registered mobile number and via E-mail. An acknowledgement should be issued to the applicant in Form GST REG-02
    3. After acknowledgement is received, Applicant is required to fill the Part- B of Form GST REG-01 and specify the Application Reference Number(ARN). Then the form can be submitted after attaching required documents.
    4. Proper Officer shall examine all the documents attached and information filled therein and shall grant registration in Form GST-REG 06 within three working days. Otherwise, notice may be issued in Form GST REG-03 seeking clarifications.
    5. Applicant needs to respond in Form GST REG-04 with required clarifications within 7 working days from the date of receipt of Form GST REG-03.
    6. If the applicant has provided all required information via Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the principal place of business as well as for every additional place of business will be issued to the applicant. Otherwise, proper officer shall reject the application within next seven working days electronically in form GST REG-05. If no action within seven working days by proper officer, registration shall be deemed to be granted.
    7. If the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals. The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG – 07 for registration. 

     

    Step by Step process of GST registration

    Step 1 – Go to GST portal. Click on Register Now under Taxpayers (Normal)

     

    Step 2 – Enter the following details in Part A –

    Step 3 – Enter the OTP received on the email and mobile. Click on Continue. If you have not received the OTP click on Resend OTP.

    Step 4 – You will receive the Temporary Reference Number (TRN) now. This will also be sent to your email and mobile. Note down the TRN.

    Step 5 – Once again go to GST portal. Click on Register Now.

    Step 6 – Select Temporary Reference Number (TRN). Enter the TRN and the captcha code and click on Proceed.

    Step 7 – You will receive an OTP on the registered mobile and email. Enter the OTP and click on Proceed. 

    Step 8 -You will see that the status of the application is shown as drafts. Click on Edit Icon.

    Step 9 – Part B has 10 sections. Fill in all the details and submit appropriate documents.

    Here is the list of documents you need to keep handy while applying for GST registration-

    Step 10 – Once all the details are filled in go to the Verification page. Tick on the declaration and submit the application using any of the following ways –

    Step 11 – A success message is displayed and Application Reference Number(ARN) is sent to registered email and mobile.

    You can check the ARN status for your registration by entering the ARN in GST Portal.

     

    EFFECTIVE DATE OF GST REGISTRATION

     

    GST REGISTRATION OF PERSON HAVING MULTIPLE BUSINESS VERTICALS

    1. Any person having multiple business verticals within a State or a Union territory, requiring a separate registration for any of its business verticals under sub-section (2) of section 25 shall be granted separate registration in respect of each of the verticals subject to the following conditions:
      1. Such person has more than one business vertical as defined in clause (18) of section 2 ;
      2. No business vertical of a taxable person shall be granted registration to pay tax under section 10 if any one of the other business verticals of the same person is paying tax under section 9.
        Explanation.- Where any business vertical of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other business verticals of the said person shall become ineligible to pay tax under the said section.
      3. All separately registered business verticals of such person shall pay tax under the Act on supply of goods or services or both made to another registered business vertical of such person and issue a tax invoice for such supply.
    2. A registered person eligible to obtain separate registration for business verticals may submit a separate application in FORM GST REG-01 in respect of each such vertical.
    3. The provisions of rule 2 and rule 3 relating to verification and grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.

     

    GRANT OF REGISTRATION TO PERSONS REQUIRED TO DEDUCT TAX AT SOURCE OR TO COLLECT TAX AT SOURCE

    1. Any person required to deduct tax in accordance with the provisions of section 51 or a person required to collect tax at source in accordance with the provisions of section 52 shall electronically submit an application, duly signed or verified through EVC, in FORM GST REG-07 for grant of registration through the Common Portal, either directly or from a Facilitation Centre notified by the Commissioner.
    1. The proper officer may grant registration after due verification and issue a certificate of registration in FORM GST REG-06 within three working days from the date of submission of application.
    2. Where, upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is satisfied that a person to whom a certificate of registration in FORM GST REG-06 has been issued is no longer liable to deduct tax at source under section 51 or collect tax at source under section 52, the said officer may cancel the registration issued under sub-rule (2) and such cancellation shall be communicated to the said person electronically in FORM GST REG-08:
      Provided that the proper officer shall follow the procedure prescribed in rule 14 for cancellation of registration.

     

    REGISTRATION PROCEDURE OF CASUAL TAXATBLE PERSON AND NON- RESIDENT TAXABLE PERSON

    WHO IS NON- RESIDENT TAXABLE PERSON?

    Any person who occasionally undertake transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

    REGISTRATION OF NON-RESIDENT TAXABLE PERSON

    A non-resident taxable person needs to electronically submit a duly signed application, along with a self-attested copy of his valid passport, for registration, using the form GST REG-09, at least five days prior to the commencement of business on the Common Portal. Application must be duly signed or verified through EVC, a new mode of electronic verification based on aadhar.

    The non-resident (if it is a company) must submit its tax identification number of its original country (whatever is the equivalent of our PAN in that country).

    A person applying for registration as a non-resident taxable person will be given a temporary reference number electronically by the Common Portal for making an advance deposit of tax in his electronic cash ledger and an acknowledgment will be issued thereafter

    A non-resident taxable person is required to make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which registration is sought.

    EXTENSION OF PERIOD OF REGISTRATION

    In case a non-resident taxable person intends to extend the period of registration indicated in their application of registration, an application using the form GST REG-11 should be furnished electronically through the Common Portal before the end of the validity of registration granted to him. The extension will be allowed only on deposit of additional tax liability for the extended period.

    WHO IS CASUAL TAXABLE PERSON??

    Casual taxable person: means a person who supplies taxable goods or services occasionally in a taxable Territory where he does not have a fixed place of business. The person can act as a Principal or agent or in any other capacity supply goods or services for the furtherance of business.

    REGISTRATION OF CASUAL TAXABLE PERSON

    The liability to register under GST arises when the person is a supplier and the aggregate turnover in the financial year is above the threshold limit. However, there are certain categories of suppliers who are required to get compulsory registration irrespective of their turnover. The threshold limit is not applicable to them. One such supplier would be a Casual Taxable Person (hereafter referred as CTP). A Casual Taxable person cannot opt for Composition Scheme.

    The registration procedure of CTP is same as normal taxable person. A CTP has to obtain a Temporary Registration which is valid for a maximum period of 90 days in the State from where he seeks to supply as a Casual taxable person. A CTP is required to make the advance deposit of GST (based on an estimation of tax liability) for the period for which registration is sought. Registration certificate shall be issued electronically only after the tax deposit appears in electronic cash ledger.

    EXTENSION OF PERIOD OF REGISTRATION

    A CTP is required to apply in FORM GST REG-11 before the end of validity of registration for the grant of extension. An extension can be made for a further period not extending 90 days. The extension will be allowed only on deposit of additional tax liability for the extended period.

    For Support or Consultancy on GST You may reach us by Clicking Here 

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    mail@maksimconsultants.com