As per the recent changes made by the GST Authority of India, the suppliers of goods or services need not register under GST if their turnover earned during a relevant financial year does not exceed INR 40 Lakhs. However, as a business owner or an MSME (Micro, Small, and Medium Enterprises) business owner, it would always be beneficial to have sufficient insight regarding GST and the registration required under it.
The central point of discussion in this article is the process of obtaining GST Registration by individuals and the necessary documents required for this purpose.
What is GST Registration?
GST Registration is the process of getting registered or recognized under the GST Act by entering the official website of the GST and filling the details in the application form along with the submission of the necessary documents that are required by the portal and the GST Law for successful registration. The GST registration process has been done successfully. It will issue you a GSTIN, which is a unique registration number assigned to each registered person.
Who is to Obtain GST Registration?
Individuals who are running a business supplying goods or services, earning a turnover of INR 40 Lakhs and above in states belonging to the standard category of states, or achieving a turnover of INR 20 Lakhs or above in states belonging to the Special Category Status, shall take registration under GST. In addition to this, the following conditions shall also function as the point of stress for determining the registration under GST by individuals:
– The individual was registered under the Service Tax law before the commencement of the GST Act.
– The individual is engaged in interstate or other state supply of goods or services or both.
– The individual is liable to pay tax or GST under the reverse charge mechanism (RCM).
– The individual is a non-resident but a taxable person in the eyes of the law, or is a casual taxable person.
– The individual is supplying goods and services as an agent or in such other manner or on behalf of another taxable person.
– The individual is acting as the distributor of the input service.
– The individual is engaged in e-commerce operations.
– The Central or State Government has notified such an individual or group of individuals to get registered under GST as per the recommendations that the GST Council made.
– The individual is supplying goods using the e-commerce operator’s platform.
The special category stipulated above includes the following, as per the GST Act:
– Arunachal Pradesh
– Assam
– Jammu & Kashmir
– Manipur
– Meghalaya
– Mizoram
– Nagaland
– Sikkim
Documents Required for Obtaining the GST Registration
The individual, like any other person intending to apply for registration under GST, shall have certain documents kept ready so that they can easily avail of the GST registration. In the case of individuals, only certain basic personal documents are required, and the same have been listed and explained below:
Individuals PAN Card
A PAN Card, which is nothing but a Permanent Account Number, is issued by the Income Tax Department to the individual. Individuals can easily obtain it through the NSDL website by submitting the required documents or by using e-KYC with Aadhaar Card credentials. It shall be issued on a faster basis and does not involve any physical dispatching of documents. The hard copy or PAN card shall be delivered to your registered address within a span of 15 to 20 days.
And while registering under GST, the individual shall submit a copy of this as identity proof, as it contains a unique number issued to each taxable person separately.
Individuals Aadhar Card
The Aadhaar card is a single place where various biometrics and other credentials of the individual are held. This card serves as proof that can be easily used by the authority to obtain the details of the individual seeking registration. Individuals can easily use this as proof of identity when opening a bank account, activating a SIM card, and obtaining other necessary services.
When applying for GST registration, it is recommended that individuals submit a copy of their Aadhaar card along with the other required documents.
Photograph of Individuals
Passport-size photographs of the individual should also be submitted while applying for registration under GST.
Address Proof
The address proofs can be a water bill, an electricity bill, a copy of the rental agreement (if the property has been rented for residential purposes), or a lease agreement (if the property has been leased).
The property tax receipt can also be used as proof of address, and a copy of the same can be submitted.
Bank Account Details
For this, a copy of the bank statements or bank passbook can be submitted. A cancelled cheque would serve the purpose of registering under GST.
Type of GST Registration
The individual can obtain registration under GST as any one of the following, namely:
Normal Taxpayer
Most business enterprises would register under this category and pay GST as per the relevant provisions and sections, as applicable, without any expiry date. Any amount of money can be deposited to avail of this registration.
Casual Taxable Person
This is often chosen by businesspeople setting up a seasonal stall or shop. There is a definite expiry period of 3 months, with the option to extend or renew. The amount of deposit to be made for this would be an amount that is equal to the expected GST liability that would arise for such individuals during the season or time of operation of the stall.
Composition Taxpayer
This option is available to individuals who wish to opt for the composition scheme of GST payment. The taxpayer cannot obtain credit for input tax paid if they opt for a composition scheme, and they also cannot collect tax from their consumers.
Non-Resident Taxable Person
This option is available to individuals living outside India who provide certain services to individuals in India. The validity of such registration shall be 3 months and can be extended or renewed. The deposit shall be made of an amount equal to the GST liability that would arise when the registration is active.
Hence, we can conclude that the individual seeking registration under GST should provide the above-stipulated documents without fail, ensuring easy availability of the registration.
