The Goods and Services Tax (GST) has brought a significant change in the indirect tax in India, as all the taxes were amalgamated into one single tax. Any business that exceeds a given turnover threshold is required to obtain a new GST number to enable legal operation. This is because GST registration will provide compliance with tax laws, unhindered movement of input tax credit, and it will gain credibility with its customers and suppliers. This blog has explained new GST number registration in India, who can apply, procedure, documentation, charges to be paid, and how it is beneficial.
What is GST Registration?
GST registration is an exercise that requires a business or an individual to acquire a unique 15-digit Goods and Services Tax Identification Number (GSTIN) issued by the government. The number is required to file GST returns, pay tax and claim input tax credit. Upon registration, the business is a known taxpayer under the GST law.
Who Needs to Apply for a New GST Number?
All enterprises that begin to fulfil the conditions based on the GST Act are required to register for GST. The following categories will need a GST number in India:
- Businesses whose annual turnover exceeds 40 lakhs (20 lakhs in some states).
- Service providers with a turnover of more than Rs. 20 lakhs
- E-commerce business owners and companies that trade via e-world platforms.
- Casual taxable persons- non-resident taxable persons.
- A company or business that deals with the interstate supply of goods or services.
- Agents and input service distributors.
Benefits of GST Registration
There are a number of benefits of getting a GST number in India:
- Legal recognition of business.
- Eligibility to input tax credit.
- The ability to expand through interstate trade.
- Repays confidence with openness in taxes.
- Penalties and legal problems should be avoided.
Required Documents to get a New GST Number
The applicant should have the following documents online to apply for GST registration:
- PAN card of the applicant or business.
- Aadhaar card of the candidate.
- Proof of Registration or incorporation of the business.
- Address evidence of the place of business (electricity bill, rent agreement, NOC).
- Bank statement or bank cancelled cheque
- DSC certificate to companies and LLPs.
- Photographs of the business owners or promoters.
The Process of GST Registration in India: Step-by-Step Guide
The entire procedure of GST registration occurs online on the GST portal. Here is the step-by-step procedure:
Step 1: Access the GST portal
Visit the official GST site (www.gst.gov.in) and under services, click on Registration > New Registration.
Step 2: Enter Part A of GST REG-01
Fill in information like PAN, mobile, email ID and state. OTP will then be sent to check.
Step 3: Fill in Part B of GST REG-01
Sign in using the Temporary Reference Number (TRN) sent to you. Submit the documentation as required, such as the employment evidence and bank information.
Step 4: GST Officer Verification
The application is verified by an officer of GST In case further information is required a notice is issued in Form GST REG-03. The applicant shall respond in Form GST REG-04 within 7 working days.
Step 5: GSTIN Issuance
After it has been approved, it is assigned a 15-digit GSTIN and a GST registration certificate in Form GST REG-06 is issued.
GST Registration Fees in India
In India, there is no government fee chargeable in respect of GST registration. Companies can opt out and engage the services of a qualified accountant, like Chartered Accountants, or even a GST consultant, and this can have a professional fee attached to it.
Penalties for Not Registering under GST
Failure by a business that is supposed to be registered for GST can, in turn, attract penalties. The fine amount is 10% of the tax amount or 10,000 whichever is greater. In deliberate evasion of tax, the penalty can be as high as 100 percent of the tax payable.
Common Mistakes to Avoid During GST Registration
There are a number of errors common in many businesses which have resulted in delays or even rejection. Some of the mistakes to be avoided are:
- An incorrect PAN or Aadhaar was entered
- Adding blurred/invalid format documents
- Failure to match business information with PAN records.
- Misclassification of goods/services.
Conclusion
Registration of a new GST number in India is an essential activity as a business is likely to keep its affairs within the laws of taxation, benefit by claiming input tax credit, and grow its trade network to other states. It is a non-complicated and online procedure that does not require much documentation. Timely registration and proper filing guarantee the avoidance of penalties and will help businesses establish a transparent market.
When intending to apply for a GST number, make sure that you have all the documents with you and follow the procedure in order to get a smooth registration process.
FAQs
1. Who is liable to register under GST in India?
All the businesses with turnover above the specified limit, inter-state suppliers, e-commerce operators, and businesses under the reverse charge mechanism are supposed to be registered in GST.
2. How much time does it take to acquire a GST number?
The process can take between 3 and 7 working days, provided all the documents are well-filled and verification is successful.
3. Can a freelancer register under GST?
It is true that freelancers and service providers should consider taking GST registration whenever their annual turnover goes beyond 20 lakhs (10 lakhs in special category states).
4. What is the government charge for new GST registration?
GST registration does not attract any fee to the government. Businesses may also incur professional expenses in case they hire consulting services.
5. Can I apply for GST registration without a PAN card?
No, PAN is a mandatory requirement in GST registration (excluding non-resident taxable persons).
6. Is GST registration permanent?
Yes, after allotment, GSTIN is permanent until its cancellation, surrender or suspension at the jurisdiction of the authorities.
7. What are the consequences of non-registration under GST?
You are not allowed to receive GST from the customers or input tax credit in legal terms. There will also be punitive fines and prosecution.
