Overview of GST Registration

GST is an indirect tax that was introduced to abolish several other indirect taxes in India, to create a single taxation system for the ease of collection and to enhance the efficiency of the process. According to the GST Regimes, businesses whose turnover gets over Rs. 40 lakhs* (Rs 10 lakhs for North Eastern – All hilly states) is required to obtain the GST Registration as a“Normal taxable person”.

However, for certain businesses, GST registration is compulsory and if the organization or a person carries on business without GST Registration, it will be treated as an offence under GST and heavy penalties will apply. It takes 2-6 working days to get the GST registration done.

What is GST (Goods and Service Tax)?

GST is the biggest tax reform in India levied on the goods and services which subsumes both the State (VAT, Entertainment Tax, Luxury Tax, Octroi) and Central taxes (CST, Service Tax, Excise Duty). This will help the end consumer like us to bear only GST charged by the last dealer in the supply chain. After all, One Nation One tax is the slogan of our PM Sri Narendra Modi.

On 1st July 2017, The GST was introduced with certain rules and regulations, and a lot many modifications have been implemented since then. Due to a large number of amendments in the Act, people still have perplexed thoughts as regards to threshold limit for registration and implementation under the Act.The procedure for GST is online and requires no physical medelling and to set off all the available benefits, GST is imposed at every step of the supply network.

Every product goes through multiple stages which includes the purchase of basic materials, manufacturing, whole selling, and the retailing the products, and then the final sale to the consumer for consumption/usage. In a nutshell, GST will be levied on all of these 3 stages-

A person is required to take GST registration in the following cases-

• If the threshold limit of aggregate turnover exceeds.
• Compulsory Registration, in case of certain businesses.
• Voluntary Registration.

When the consumer pays the GST, it transmitted to the government by the organizations selling the goods and services. As a result, GST gives revenue to the Govt. The GST is comprised in the final price of all the goods/services before its purchase. This tax eliminates all the indirect taxes that have been obligatory by the central government and the state government beforehand in India. The businesses require going for GST registration to be applicable for this.

Need for GST Registration in India

The Goods and Services Tax (GST) was implemented in Indiato improve the process of collecting the tax. Moreover, the main reason for implementing the GST in India is to reduce the tax burden that comes on both the entity and consumers. There were numerous taxes included at each phase of the production with the previous tax system, without mentioning that tax has been paid at earlier stages. Consequently, the end cost of the item doesnt obviously show the items genuine price and how much tax was made upon. It is noteworthy that this cascading effect is excessively unbelievable and unproductive, which sometimes garnered a lot of confusion and repeatedly led to double taxation.

Taking into consideration the above reasons, a wise initiative was taken by the government to assimilate whole India at one central point through the uniform taxation system instrument in the form of GST (Goods and Service Tax).

• It helps in developing the common national market.
• Helps in distinguishing between Goods and services no longer required.
• Increasing the employment opportunities.
• Build a transparency in taxation system.

What is the procedure for GST Registration Process in India?

To successfully finish the GST registration, process every taxpayer must follow the requisite process. The procedure for GST Registrationis mentioned below.

Step - 1:

The very first step for GST Registration is to fill the online application, and for the same, the tax payer shall visit the GST portal www.gst.gov.in. Also, the taxpayer (Applicant) needs to create a username and password in the portal.

Step - 2:

The Applicant need to click the link on the GST portal, and click on to the ‘New User Login’. By clicking on ‘New User Login’ accept the window on the displayed declaration form and press ‘Continue’ to register yourself for GST Registration.

Step - 3:

The applicant is required to Select ‘New Registration’ and Login to start the GST registration procedure.

Step - 4:

The applicant shall fill the required details asked on the GST portal:

• Select ‘Taxpayer’ under the drop-down menu.
• Select the respective state and district.
• Enter the details of the business (Name and PAN card).
• Provide the email ID and mobile number (that must be active as OTPs will be sent on the details) in the respective boxes.
• Enter the Captcha shown on the screen and click on ‘Proceed’.

Step - 5:

The next step after filing the required details is to enter the OTP sent to your email ID and mobile number in the respective boxes.

Step - 6:

Click on the ‘Proceed’ button once the details have been entered.

Step - 7:

An applicant will receive the Temporary Reference Number (TRN) on the screen. Save the TRN for further process.

Step - 8:

After receiving the TRN, an applicant is required to open the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.

Step - 9:

Select the ‘Temporary Reference Number (TRN)’.

Step - 10:

Enter the TRN selected and the captcha details.

Step - 11:

Once the Captcha details are entered, click on the ‘Proceed’ button.

Step - 12:

An applicant will receive an OTP on the email ID and registered mobile number. Click on ‘Proceed’ Button by entering the OTP received.

Step - 13:

The status of your application will be displayed on the next page. Click on the Edit icon, mentioned on the right side of the page.

Step - 14:

On the next page there will be various sections, where all relevant details are required to be filed along with the necessary documents.Below-mentioned documents must be uploaded for the GST Registration-

• Photographs of the Applicant
• Details and Principal place of the business
• Business address proof
• HSN Code of the business
• Bank details of the GST Applicant
• Authorization form
• The constitution of the taxpayer.

Step - 15:

Before submitting the application, click on the ‘Verification’ page and check the declaration. The below-mentioned methods can be used for submittingthe application:

• Electronic Verification Code (EVC).
• By e-Sign method.
• In case the company of GST Registration, the application must be submitted by using the Digital Signature Certificate (DSC).

Step - 16:

Once the process is completed, a successful completion message will be shown on the screen. The ARN will be sent on the mobile number and email ID registeredby the GST Applicant.

Step - 17:

Check the status of the ARN on the GST portal.

How an applicant will get the GST Registration Certificate Online?

• Once the ARN is generated, an applicant needs to visit the GST portal.
• Consequently, an applicant needs to Login into his/her respective GST account, by entering the username and password created by you. Along with that, an applicant needs to fill the right captcha mentioned in the box and select the login button subsequently.
• Select “User services”in the “Services” option from the drop-box, where an applicant needs to select the “View/Download Certificates” in the options displayed in the image.
• The registration certificate will automatically start downloading when you will select the download option.
• For downloading the GST Certificate,what an applicant needs to do is to visit the GST common portal “https://Www.Gst.Gov.In/”

After that, you need to Log in to your GST account utilizing the username and password created by you while registering your name for GST Registration in the GST Portal. Along with, you need to enter the captcha correctly and select the login button afterwards.

A new page will open once the login is successful. After that, click on the “Services” option and select “User services” from the drop-box. You need to choose the “View/Download Certificates” in the options displayed in the picture.

You must note that the Registration certificate will automatically start downloading, when you select the download option while proceedings.

The Registration certificate shall be downloaded to your device and can be accessible to view the same when required. You need to take a printout this downloaded certificate and accordingly must display prominently in the place of your business.

What are the Constitutions of GST Certificate?

What is the validity of GST Registration Certificate?

The validity of any GST registration certificate depends and conditional to the type of taxpayer who is receiving the certification. It is valid throughout when the certificate is issued to a regular taxpayer. In such cases, it only invalidates if it is canceled by the GST authority or surrendered by the taxpayer himself.

Though, the validity is restricted to a period of 90 days from the date of registration or for the period specified in the registration application, whichever is earlier in cases certificates issued for the casual taxpayer or Non-Resident Indian (NRI) taxpayer. Moreover, the validity period can also be extended under the provisions of Section 27(1) of the GST Act by the appropriate authorities.

How to Track GST Registration Application?

By following method, you can track your GST Registration application

• Firstly, log on to http://gst.gov.in
• Now click on the ‘service’ option available
• After clicking on the service option, a dropdown will provide a result of registration.
• Now choose the ‘track application status’ option
• After choosing the option, you have to enter your ARN in a new window and click on search
• Here, you can see your application status and the same information will be shared on your registered mobile number and email ID.

• Firstly, log on to http://gst.gov.in with the help of credential provided to you
• After selecting the Service tab for a drop-down, select option, registration.     
• Now click on the option, track application status and after entering the ARN number, click on search.

Offences & Penalties

There are 21 offenses recognized under the GST. However, we have mentioned a few major offenses below for your understanding. Please consult our experts on offenses for the entire list of 21 offenses which differs from case to case basis.

The Offenses recognized under the GST are as follows:-

• Not registering under GST when eligible and required by law 
• Supply of any services/goods issuing a false invoice or without any invoice
• Issuance of invoices by a taxable person by means of the GSTIN of another bona fide taxpayer under GST
• Compliances and submission of false information while registering under the law of GST
• Submission of fake financial documents/records or files, or fake returns to avoid tax
• Obtaining Fraudulent Refunds 
• Intentional suppression of sales to avoid tax
• Choosing for composition scheme even though a taxpayer is not entitled

Penalty

A penalty will have to be paid under GST if in case any of the offenses are committed. The principles are also mentioned by law on which these penalties are based.

For Late Filing

It is a well-known fact that late filing attracts late fee penalty. According to the late fee is Rs. 100 per day. Therefore, it is Rs. 100 under CGST and Rs.100 under SGST. Total will be Rs. 200/day (Subject to changes announced via Notifications). However, there is a limit for maximum penalty, which is Rs. 5,000. Nevertheless, there is no late fee on IGST in case of belated filing. Interest has to be paid at 18% per annum along with late fee. It has to be calculated determining on the tax to be paid by the taxpayer. The duration will be from the next day of filing to the scheduled date of payment.

For Not Filing

The consequent returns cannot be filed in case you don’t file any GST return. For example, the next return GSTR-3 and subsequent returns of ‘September’ cannot be filed if GSTR-2 return of August is not filed. As a result of this, late filing of GST return will have a cascading effect leading to heavy penalty and fines.