On July 1st, 2017, the Government of India introduced a new tax regime known as the GST Act. This Goods and Services Tax Bill was passed on March 29th, earlier that year, by the Indian Parliament.
Presently, GST registration has is crucial for businesses over Rs.40 lakh annual turnover. In the North-Eastern states, the registration for GST is mandatory for enterprises earning a yearly revenue of over Rs.10 lakh.
Businesses that fail to register under the GST Act are liable to pay hefty fines and a 10% penalty on the tax. The GST registration process is often different for various types of businesses. It can be initiated by an entity without a business address or by those with business operations in other parts of the county.
The GST registration process is quite simple and is completed within 2-6 working days. Take a look at the details below.
Guide on online GST registration process
The following steps will illustrate how to register for GST online –
Step 1: Firstly, borrowers need to visit the official GST portal and select the “New Registration” option. Next, they need to fill in their personal information like PAN, email-ID, phone no., etc.
Step 2: An OTP will be sent to your mobile number, and you will be provided with a TRN (Temporary reference no.).
Step 3: Visit the GST portal again and click on “Register” under the “Taxpayers” menu.
Step 4: Select the TRN number and click on ‘Proceed’.
Step 5: Borrowers will again receive an OTP, and by entering it, they will be directed to the next page, where all the relevant details must be filled in, and essential documents must be submitted.
Step 6: After filling in the details and submitting the documents, individuals will need to visit the verification page and check the declaration.
Once completed, a registration confirmation message will be displayed on the screen, and an application reference number will be sent to the registered mobile number to check the status of registration.
Documents required for GST registration
Following are the list of documents business owners need to provide while initiating GST registration.
- Certification of incorporation
- Proof of business address such as property tax, electricity bill, legal ownership document etc.
- Authorised signatory’s photo
- Stakeholder’s photo
- Copy of Resolution pass by BOD/ Managing Committee
- Bank account statement, cancelled cheque, or the first page of your passbook
By providing these documents, individuals can register for GST without any complication. These are some of the notable points individuals must know about Goods and Service Tax and its registration process.
Taxpayers can also use GST calculators for buyers that are easily available on top financial lender’s websites like Bajaj Finserv to know the amount they will need to pay under GST.
Apart from these essential financial tools, Bajaj Finserv also provides pre-approved offers on various financial products. These offers reduce the hassle of document check during the loan application and save a lot of time. These are also available on various financial products like business loans, personal loans, etc. You can check your pre-approved offer by entering your essential details.
Apart from the registration process, also take note of the types of GST to ensure that there are no hassles while filing for it.
Types of GST
GST is segmented into four sections which are based on where the goods and services are produced and sold.
- CGST (Central Goods and Services Tax) – This tax is imposed on the supply of Intra-state products, and the Central Government charges it.
- SGST (State Goods and Services Tax) – This tax payable refers to the dealings and transactions within a state.
- UTGST (Union Territory Goods and Services Tax) – This tax applies to the sale of services and products in the Union Territories.
- IGST (Integrated Goods and Service Tax) – IGST is implemented on the inter-state sale of products and services that lead to taxation. When businesses transfer products and services from one state to another, businesses must pay this form of GST.
Who should undertake GST registration?
If your company belongs to any of these sections, you will need to register under GST immediately.
- Individuals or business owners who were paying pre-GST laws must undertake GST registration.
- Businesses that are exceeding a yearly turnover of Rs.40 lakh or Rs.10 lakh, as applicable, must initiate GST registration.
- E-commerce aggregators, casual and non-resident taxable persons are liable to pay GST.
So, individuals who are already serving a loan or planning to take a business loan must opt for GST registration to avoid legal actions. GST registration is a simple online procedure and requires due diligence and sufficient knowledge on the taxpayer’s part while filling the online form.