Can I apply for GST registration on my own?
In India, there is a tax on the supply of goods and services that depends on the destination. Businesses with a revenue above a particular level must register for GST. Some businesses prefer to work with a registration agent even though it is possible to apply for GST registration on your own. Businesses may legitimately collect GST, make an input tax credit claim, and build credibility by registering for GST. Following the rules is crucial since failing to register for GST can result in penalties and fines.
Understanding GST Registration
What is GST?
In India, a value-added tax known as GST (products and Services Tax) is imposed on the delivery of products and services. With the goal of establishing a single and straightforward tax system, it replaced several indirect taxes such as the VAT, service tax, excise duty, and others. Every step of the supply chain is subject to GST, and tax paid on inputs is credited. The Central GST, State GST, and Integrated GST components make up the GST system.
Who needs to register for GST?
If a company’s annual revenue exceeds a certain threshold, they are required to register for GST. Depending on the type of business and the state where it is situated, different thresholds apply. The barrier for companies selling products is INR 40 lakhs for the majority of states as of April 2023 and INR 20 lakhs for few northeastern states. The barrier for service providers is INR 10 lakhs in several northeastern regions and INR 20 lakhs in the majority of states. In addition, some enterprises, such those involved in interstate commerce or those who provide products or services through an e-commerce operator, are obliged to register for GST regardless of their annual revenue.
Benefits of GST registration:
Businesses can profit from GST registration in a number of ways, including access to certain government programs, enhanced credibility, input tax credits, and compliance with the law. Additionally, it eases the overall tax burden on businesses and helps them streamline their operations. Additionally, businesses can increase their customer base and establish a presence across India by registering for GST.
Documents required for GST registration
The following documents must be submitted in order to register for GST.
- PAN card of the company, the owner, the partners, or the directors
- a copy of the business owner’s or signatory’s Aadhaar card
- Proof of a company’s incorporation or registration Address verification of the location of the business
- a business’s bank account statement or canceled check
- The authorized signatory’s digital signature (in the event of a business or LLP)
- A picture of the proprietor or other authorized signatory.
Applying for GST Registration
Steps involved in GST registration
GST registration involves the following steps:
- Click “Register Now” when you go to the GST portal.
- Give the registration form’s Part-A your basic information, including your PAN, phone number, and email address. You’ll receive an OTP at the registered phone.
- Include information about your business’ name, type, and nature in Part-B of the registration form.
- the necessary paperwork online.
- An Application Reference Number (ARN) will be generated upon application submission.
- If there are no problems after the GST officer has validated the application, the GST registration certificate will be provided.
Online vs offline registration
Online and offline registration for GST are both options. By completing the registration form, providing the necessary files, and submitting the application, one can register online using the GST site. Offline registration entails filling out the registration form in person by going to the closest GST Seva Kendra or Taxpayer Service Center. However, because it can be done from anywhere and the application status can be monitored in real-time, online registration is typically thought to be more expedient and convenient.
Common errors to avoid during registration process
Following are some errors to avoid when registering for GST:
- Giving false or erroneous information on the registration form
- submitting incorrect papers or failing to upload the necessary documents
- Giving incorrect bank information or information about a bank account that is not in the business’s name
- not submitting the application within the allotted time period
- utilizing a single PAN card for multiple registration applications
- Giving an incorrect email address or mobile number is important because these are the only channels through which the registration process will be communicated.
Timelines for registration
The following are the deadlines for GST registration:
- For standard registration: The application for GST registration must be submitted within 30 days of the earliest of the day the business passes the threshold threshold limit or the date the firm becomes liable for registration.
- For occasional taxpayers or non-resident taxpayers: The GST registration application must be submitted at least 5 days before the start of commercial operations in India.
- Application for GST registration under the composition scheme must be made prior to the start of the fiscal year for which the scheme is to be used.
To avoid any last-minute issues or delays, it is advised to finish the registration procedure as soon as you can.
Working with a Registration Agent
What does a registration agent do?
Businesses can apply for GST and acquire the GST registration certificate with the help of a registration agent. They aid companies in comprehending the registration procedure, filling out the registration form, and submitting the required paperwork. They also offer advice on compliance standards and can aid companies in resolving problems that could occur during the registration procedure. Businesses that are unfamiliar with the procedure or those who would rather have a professional handle the assignment might benefit from working with a registration agent.
Pros and cons of working with a registration agent
Throughout the registration process, experienced direction and assistance are provided
Saves companies time and effort
Can aid in preventing typical errors and mistakes
Added expense for enterprises
Working with untrained or dishonest agents might be risky
The registration procedure may not be entirely under the control of businesses.
How to choose a reliable registration agent
Businesses should: in order to select a trustworthy registration agent:
- Look for agents that have experience and training.
- Check out customer feedback and endorsements
- Verify the agent’s registration with the relevant government agencies.
- In ahead, enquire about their rates and services offered.
- Check their addresses and places of business.
Fees charged by registration agents
The fees that registration agents charge fluctuate based on the agent and the services provided.
Applying for GST Registration on Your Own
Advantages of self-registration
- Cost savings
- Additional control over the registration process
- More knowledge of the registration process
- There is no need to wait for or rely on a registration agent.
- Satisfaction from completing the work by yourself.
Risks and challenges of self-registration
- Lack of familiarity with or comprehension of the registration procedure
- Committing errors or blunders while registering
- Potential for application delays or rejections.
Tips for successful self-registration
Advice for effective self-registration:
- Investigate and comprehend the registration procedure
- Check information twice and stay away from typical mistakes.
- When necessary, ask for assistance.
The main considerations are that companies with an annual revenue above a specific level must register for GST. Although it incurs a fee, working with a registration agent can offer expert direction and support. More control and cost reductions are possible with self-registration, but there are hazards and difficulties.
The GST registration procedure may be facilitated for businesses by Kanakkupillai, a reputable and knowledgeable registration agency. However, Kanakkupillai also offers tools and advice for companies that prefer to self-register in order to guarantee a successful registration. Working with a registration agent or going it alone should ultimately depend on the demands and resources of the particular firm.
FAQ on GST Registration
Yes, businesses can complete their own GST registration using the online registration process offered by the GST portal.
Yes, employees who perform taxable services and whose annual revenue exceeds the threshold of Rs. 20 lakhs (Rs. 10 lakhs for Special Category States) must register for GST and abide by its rules.
Depending on how difficult the registration procedure is, a CA may charge between Rs. 2,500 and Rs. 10,000 or more for GST registration.
Depending on the nation or state, individual GST registration might cost anything from application costs to yearly renewal fees.
Depending on the nation or state, a firm may be obliged to register for individual GST if its sales or turnover meet specified thresholds.
Depending on the nation or state where the registration is being completed, it may take longer or shorter to get a GST (Goods and Services Tax) number. In some nations, the registration procedure may be finished online, and the GST number is typically supplied quite quickly. In other situations, the procedure would require submitting actual papers and could take days or even weeks to finish.
Registering for GST for the first time usually entails filing an application either in person or online.