GST Registration: A Complete Guide!
What is GST?
GST stands for Goods and Services tax. Effective from 1st July 2017, GST has caused ripples in India’s finance and economy and it could help reduce inflation in the future. GST is an indirect tax that customers pay for the goods and services they purchase. The goods and services tax is levied on manufacturers and sellers, who include the tax on the final selling price of the product/service.
GST has replaced numerous indirect taxes such as excise tax, sales tax, VAT, service tax, etc.
Components of GST
1. CGST – Central GST
This is the portion of GST collected by the Central Government. It is applied on all transactions taking place within a state.
2. SGST – State GST
This is the portion of GST collected by the State Government. This is also applied on all transactions taking place within a state.
3. IGST – Integrated GST
This is the tax levied by the Central Government for all transactions that take place across states. For example, if you are a business based in Tamil Nadu and supplying goods to Gujarat, you are entitled to pay IGST.
4. UGST – Union Territory GST
This is the portion of GST collected by the Union Territory and is applicable on all transactions taking place within the Union Territory.
Who Needs to Register GST?
With the advent of GST, you may be feeling overwhelmed or confused regarding who has to pay GST. Here’s a comprehensive list on who should register for GST.
- Businesses that deal with supply of goods and have a turnover of over Rs. 40 lakhs per year (varies in different regions).
- Service providers who have a turnover of over Rs. 40 lakhs per year (varies in different regions).
- Individuals who had registered for taxes such as VAT, excise duty, or service tax before GST came into effect.
- If you are a casual taxable person, you need to pay GST. A person who has his business in one location and supplies goods/services to another location where GST is applicable is considered as a casual taxable person in the place where he supplies his offerings.
- Non-resident taxable persons are also required to pay GST. This is a person who does not have a fixed place of business anywhere in India and supplies goods/services to a region where GST is applicable.
Documents Required for GST Registration
Any governmental registration requires a specific set of documents to be submitted. Whether you go for Udyam registration, FSSAI registration, or to apply for a Trademark license, the documents required will be different. The same goes for GST and we understand how difficult it is to collect and organize all the required documents and submit them on time.
Worry not, because this is exactly where we come in! Here, we have a brief overview of the documents required for GST registration.
- Aadhar card of the applicant
- PAN card of the applicant
- Address proof of the business
- Bank account details
- Photograph of owner/partners
The documents required varies depending on the type of business and stakeholders in the business. Here are the key categories of businesses where documents required vary:
- Sole proprietorship
- Partnerships, LLPs
- Societies and Clubs
- Hindu Undivided Families
- Companies – may be public, private, Indian, or foreign.
The first step is to figure out what category your business falls under, after which you can compile the documents required.
GST Registration Process
Once you are all set with the necessary documents, you can follow the steps below to complete your GST registration.
The GST registration process can be briefly explained as follows.
- Visit the GST Portal and choose the new registration option.
- Generate the Temporary Reference Number (TRN).
- Login to the GST registration portal using the TRN.
- After GST portal login, submit relevant business details.
- Provide information on stakeholders, proprietors, or promoters.
- Nominate a person as the authorized signatory, who will be responsible for filing the GST returns hereafter. This is a decision made by the promoters, as the authorized signatory shall have complete access to the GST portal and will also be responsible for ensuring that the company is compliant with laws.
- Submit information regarding the authorized signatory.
- Provide the place of business. This is the primary location from where the business operates.
- Provide proof of ownership for the place of business.
- If you have other locations of business, that should also be added.
- Provide the details of the 5 primary goods/services that you supply. You need to add the HSN code for goods and the SAC code for services.
- Provide the bank account details and submit the relevant documents.
- Verify your application and add your digital signature. This generates your Application Reference Number (ARN).
- You can track your GST registration status using the ARN.
GST Registration Process
Saryu Business Solutions is always on the lookout to simplify and smoothen the road for businesses. We begin by helping you figure out which category your business falls under. We then proceed to make a list of documents required, and acquiring those documents for the registration process.
With Saryu Business Solutions, you can take the back seat as we drive the GST registration process to a smooth stop at the right destination.
Contact us now to get a consultation and begin your GST registration process!