What is GST?
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words, Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.
The goods and services tax (GST) is an indirect federal sales tax that is applied to the cost of certain goods and services. The business adds the GST to the price of the product, and a customer who buys the product pays the sales price inclusive of the GST. The GST portion is collected by the business or seller and forwarded to the government. It is also referred to as Value-Added Tax (VAT) in some countries.
Advantages of GST Registration
👉 GST Eliminates the Cascading Effect of Tax
👉 Composition Scheme for Small Businesses
👉 The Number of Compliances is Lesser
👉 Improved Efficiency of Logistics
👉 Higher Threshold for Registration
👉 Simple and Easy Online Procedure
👉 Defined Treatment for E-commerce Operators
👉 Unorganized Sector is Regulated Under GST
Disadvantages of GST Registration
👉 Increased Costs due to Software Purchase
👉 GST Will Mean an Increase in Operational Costs
👉 GST is an Online Taxation System
👉 Being GST-Compliant
👉 GST Came into Effect in the Middle of the Financial Year
👉 SMEs Will Have a Higher Tax Burden
Here is a step by step process of GST Registration in India.
Step 1 – Go to GST portal. Click on Services. Then, click on ‘Registration’ tab and thereafter, select ‘New Registration’.
Step 2 – Enter the following details in Part A –
👉 Select New Registration radio button
👉 In the drop-down under ‘I am a’ – select Taxpayer
👉 Select State and District from the drop down
👉 Enter the Name of Business and PAN of the business
👉 Key in the Email Address and Mobile Number. The registered email id and mobile number will receive the OTPs.
👉 Click on Proceed
Step 3 – Enter the two OTPs 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 15-digit Temporary Reference Number (TRN) now. This will also be sent to your email and mobile. Note down the TRN. You need to complete filling the Part-B details within the next 15 days.
Step 5 – Once again go to GSTportal. Select the ‘New Registration’ tab.
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. Recently, Aadhaar authentication section was added and the bank account section was made non-mandatory.
Here is the list of documents you need to keep handy while applying for GST registration-
👉 Constitution of the taxpayer
👉 Proof for the place of business
👉 Bank account details*
👉 Verification and Aadhaar authentication, if chosen
*Bank account details are non-mandatory at the time of GST registration since 27th December 2018.
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 –
👉 Companies and LLPs must submit application using DSC
👉 Using e-Sign – OTP will be sent to Aadhaar registered number
👉 Using EVC – OTP will be sent to the registered mobile
Step 11 – A message is displayed on successful application and Application Reference Number(ARN) is sent to registered email and mobile. Note that if the authorized signatory chose to go for Aadhaar authentication, then physical verification of premise or site will not be required to be done by the officer, except is specific cases. In such cases, the ARN will be generated right after that is complete.
You can check the ARN status for your registration by entering the ARN in GST Portal.
Check now if GST registration applies to your business
For easier and hassle free GST Registration opt for ProAdvisor GST Registration services.