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GST Registration Process | Step-by-Step Guide

by TeamFinodha | Dec 9, 2024 | GST, GST Knowledge | 0 comments

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The Ultimate Guide to GST Registration Process in India

The GST registration process is essential for businesses in India to comply with the Goods and Services Tax (GST) system, which was introduced in 2017 to streamline indirect taxation across the country. This system replaces multiple taxes levied by the central and state governments, simplifying tax compliance and boosting economic growth.

GST registration is required for businesses to ensure legal compliance, claim input tax credits on their purchases, and facilitate smoother interstate trade. For any business to function smoothly under the GST regime, they must first complete the GST registration application process. If you’re wondering how to register for GST, or need clarity on the GST registration steps, this guide will take you through all the necessary details.

By the end of this article, you will have a solid understanding of the GST registration requirements, the online GST registration process, and the benefits of GST compliance for your business.

Understanding GST Registration Requirements

Before starting the GST registration process, it’s important to understand who needs to register and the GST registration rules. Not all businesses are required to register for GST, and it’s essential to know the criteria that trigger mandatory registration.

Who Needs to Register for GST?

Businesses with a Turnover Above the Threshold:
- Businesses that have a turnover exceeding ₹40 lakh for goods and ₹20 lakh for services must register for GST. This threshold ensures that smaller businesses with limited turnover do not bear the burden of complex tax compliance.
- The turnover limit is lower for some special categories, such as the Northeastern states (₹10 lakh) and hill states (₹20 lakh).
E-commerce Operators:
- Businesses engaged in e-commerce operations are required to register under GST, even if their turnover is below the prescribed limit. This includes both the e-commerce platform owners and suppliers selling on these platforms.
Inter-state Suppliers:
- If you are involved in the supply of goods or services across state borders, you must register for GST. Interstate sales require businesses to obtain GST registration to collect and pay taxes.
Casual Taxable Persons:
- A casual taxable person refers to someone who occasionally conducts business in India, like a business with seasonal or temporary operations in different states. GST registration is mandatory for such businesses.
Voluntary Registration:
- Even if your business does not meet the turnover threshold, you can opt for voluntary GST registration. Voluntary registration offers businesses the advantage of claiming input tax credits and enhancing their credibility.

Preparing for the GST Registration Process

Proper preparation can ensure that the GST registration application process is smooth and free from delays. Here’s what you need to do before starting your registration.

Documents Required for GST Registration

Having the correct documents in hand is crucial. These documents are used to verify your identity and business operations.

For Sole Proprietorships:
- PAN Card: A must-have for the proprietor and business.
- Aadhaar Card: Helps in verifying the identity of the business owner.
- Proof of Business Address: This can be a rent agreement or electricity bill in the name of the business owner.
- Bank Account Details: A copy of a cancelled cheque or a bank statement or front page of a passbook is required to verify the business account.
For Partnerships, LLPs, and Companies:
- PAN Card of the Business: Required for tax identification.
- Aadhaar Card of the Authorized Signatory: Essential for verification.
- Partnership Deed or Company Registration Documents: These legal documents define the structure of your business.
- Proof of Business Premises: Rent agreement or any document showing ownership or legal possession of the premises.
- Bank Account Details: A copy of the cancelled cheque or bank statement from a registered bank.

Checklist for Smooth Application

To ensure that the registration is processed without delays, make sure all fields in the application form are completed correctly and that all documents are legible and accurate. Common mistakes include:

Incorrect name or PAN details.
Mismatched documents or missing signatures.
Not submitting the necessary additional documents for specific business types, like e-commerce or interstate businesses.

Step-by-Step GST Registration Process

Here’s a comprehensive breakdown of the GST registration steps that will help you successfully complete the GST registration process.

Step 1: Navigating the GST Portal

Go to the official GST Portal.
Click on “Services” and select “New Registration”.
You will be directed to a page where you need to provide your business’s details, such as the legal name, PAN, and type of business.

Step 2: Creating Your Account (Part A)

Fill in the necessary details such as your email address and mobile number.
Verify the information by entering the OTP (One Time Password) sent to your registered mobile and email.

Step 3: TRN (Temporary Reference Number) will be generated

After successful verification, a 15-digit TRN number will be generated. This will also be received on your email and mobile or PAN-linked contact details. Kindly note down the TRN. You need to complete filling the part-B details within the next 15 days using this number.

Again go to the login portal. Select TRN option. Enter the TRN and the captcha code and proceed. Enter OTP received on email and mobile number. After log in to your account, you will see that the status of the application is shown as drafts. Click on Edit Icon.

Step 5: Filling in the Application Form (Part B)

Part B contains 10 sections. Fill all the details correctly and appropriately with supporting documents.Key fields to fill in include:

Business Details: Business name, PAN, business type, and address.
Promotor/ Partner Detail: Enter promoter name, email address, mobile no, photo, address etc.
Authorized Signatory Details: The name and contact details of the person authorized to sign the application.
Principal Place of Business Details: Enter the address of place of business with supporting documents
Goods and Services Codes (HSN Code): Choose the correct codes that describe the goods or services your business deals with.
Bank Details: Next, enter the Bank details of the taxpayer for up to 10 bank accounts. Submission of bank accounts details has been made optional from 27th December 2018. You can add it after GSTIN is granted under a non-core amendment.

Step 6: Submitting the Application and Getting Verification

Once the application is complete, choose whether or not you are willing to do Aadhaar authentication. 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

You will be issued an Application Reference Number(ARN) on your registered email ID and mobile number which you can use to track the status of your application.

Step 7: GSTIN Issuance

If everything is in order, the GST registration number (GSTIN) will be issued to you, and your business will be officially registered under GST. The entire process generally takes 15 to 30 days, depending on the complexity of the application.

Time Required for GST Registration

Typically, the time required for GST registration is 15-30 days, depending on the accuracy of your application. In case there are discrepancies in the documents or information provided, the registration process might take longer.

You can track your GST registration status using the ARN on the GST portal.

Common Challenges and Solutions

While the GST registration process is relatively straightforward, some businesses encounter common issues. Here’s how to deal with them:

Common Issues

Incorrect Details: Ensure all personal and business details are correct before submission. Even a minor error can cause delays.
Document Errors: Ensure all documents are legible and valid. Missing or incorrect documents can delay approval.
GST Portal Glitches: Occasionally, users may face technical issues with the portal. If the portal is not working, wait a few hours or contact support.

Solutions

Double-check information: Verify all fields before submission.
Ensure document completeness: Submit all required documents in the correct format.
Seek professional help: If the issues persist, consult with a GST consultant to streamline the process.

Benefits of GST Registration

There are multiple benefits of registering for GST, including:

Legal Recognition: GST registration provides your business with official recognition as a legal entity, which is crucial for transparency.
Smooth Interstate Trade: With GST registration, you can seamlessly conduct business across state borders without any regulatory issues.
Claim Input Tax Credits: Businesses can claim input tax credits on their purchases, helping reduce tax liabilities.

How Finodha Simplifies GST Registration

Navigating the GST registration application process can be time-consuming and complex. That’s where Finodha comes in, offering professional GST registration services to ensure your business stays compliant and operational.

About Finodha

Finodha is an expert in handling GST registrations, offering affordable and reliable services to businesses of all sizes. Whether you’re starting fresh or need help with filing returns, Finodha simplifies the GST registration process for you.

“Get your GST registration done hassle-free with Finodha starting at just ₹798. Contact us at +91-8512-022-044 or visit Finodha GST Registration today!”

Conclusion

The GST registration process is a vital step for businesses to ensure compliance with Indian tax laws. It provides legal recognition, facilitates interstate trade, and helps businesses save on taxes through input tax credits. With the right preparation and support, such as that provided by Finodha, the process becomes straightforward and stress-free.

Frequently Asked Questions

Q1. What is the GST registration process?

The GST registration process involves creating an account on the GST portal, submitting the necessary documents, and obtaining a GSTIN.

Q2. Is GST registration mandatory for all businesses?

GST registration is mandatory for businesses that meet the turnover criteria or engage in e-commerce, interstate trade, or provide taxable goods and services.

Q3. How can I track the status of my GST registration?

You can track your GST registration status using the Application Reference Number(ARN) on the GST portal.

Q4. What documents are needed for GST registration?

PAN card, Aadhaar, business address proof, and bank account details are essential for GST registration.

Q5. Can I register for GST online?

Yes, the online GST registration process is available on the official GST portal, where you can complete the registration without visiting any office.