GST, GST Council, GST Rate, GST Registration, GSTBill, GSTIN, Indirect Tax Regime, small and medium enterprises, VAT
The Goods and Services Bill, or the GST Bill, came into effect from 1st July, 2017. GST would be a all-inclusive indirect tax on manufacture, sale and consumption of goods and services throughout India and will wholly replace the taxes levied separately by the central and state governments. In this article, we will discuss the GST registration process to make it understandable to all of its stakeholders and well before it assumes permanency next year.
GST Registration Requirements
Goods and Service Tax Registration is compulsory for all the persons who are required to get themselves registered under GST Law. So, any person whose taxable supply turnover is over 25 lakh would be required to register for GST in India. You can also register for GST voluntarily to claim the Input Tax Credit, or ICT.
In the above paragraph, the term ‘person’ refers to or includes proprietorship, Hindu Undivided Family, Company, LLP, Society, partnership firms and other legal entities.
GST registration should be done within 30 days of exceeding the Rs. 25 lakh turnover, a figure mentioned above. There’s a different GST registration procedure for New Applicants and for Existing Applicants (this shall be dealt later).
GST Registration Number
Each taxpayer will be allotted a State wise 15-digit Goods and Services Taxpayer Identification Number (GSTIN) based on their PAN. The first two digits will denote the State Code, the next 10 will notify the PAN Card number, the next digit will stand for the Entity Code and the last two digits are reserved for Check Digits.
One major advantage is that the same GST number can be used across India.
How to register?
The taxable persons will network with the authorities through a portal called ‘GST Common Portal’ and it will be set up by the Goods and Services Tax Network (GSTN). The portal will have back-end integration with the respective Information Technology (IT) systems of the Centre and the States.
Registration for new applicants
The registration can be done directly at the GST Common Portal or alternatively at the GST Common Portal through the Facilitation Center (FC).
It has to be noted that a taxable person is allowed to file multiple applications at once if he/she looks to register in more than one state or for more than one business verticals that are located across states.
After applying, if everything pans out as expected, the assesses will be provided with an Acknowledgment Number
Taxpayers would have the option to sign the submitted application through digital signatures. Get one of you have not already! However, in case you don’t have one, there is a way: taxpayers would then have to sign a copy of the submitted application form printed from the portal and send it to a GSTN-operated central processing center.
The processing center would not wait for the receipt of the signed copy of the summary extract and would process the application.
However, if the signed copy is not received within 30 days, a reminder will be mailed or SMSed to the authorized person, all through the portal.
If the copy is still not received within 30 days after such reminder has been sent, the concerned tax authority will be directed by the system to initiate the action and cancel the registration.
Once the application has been approved and a GSTIN has been generated, it will be sent to the applicant along with a login ID and a temporary password.
Registration for Existing Applicants
Existing registrants are those who are either registered with the states or with the centre or with both.
The process for existing applicants involves transferring verified existing data from the old database to the new GST Common Portal. Then only a GSTIN will be generated.
It should be noted that the process of migration of data must be started adequately in advance so that the business of existing registrants does not undergo losses. The transition will then be more satisfying.
For Taxpayers registered under State VAT/Excise, GSTIN will be generated by NSDL in case of all VAT TINs whose PAN has been authenticated. The GSTIN will be mailed along with a password to respective State Tax Authorities as well so as to have an alternate record.
If you are a taxpayer and not registered under a State, Service Tax portal will check from the GST portal if a GSTIN has been generated for combination of State and PAN. If it has not been generated, GST portal needs to be requested to generate the same. It will be communicated to the taxpayer then asking him/her to provide the remaining data to the GST Portal.
If the verification is not done within the specific period, the GSTIN will be suspended till the concerned taxable person does what needs to be done.
Documents Required for GST Registration
The following documents would be required to obtain GST registration:
GST common portal carries out introductory authentication or confirmation including real-time PAN validation with CBDT portal. Also note that under GST regime, registration will not be allowed without a valid PAN. So make sure you have one.
Input Tax Credit
The person shall be eligible for Input Tax Credit in respect of all his purchases from the date of application but the application for registration should have been filed within 30 days. However, purchases prior to the date of registration – in case the registration application is not filed within the prescribed time limit of 30 days – will not be eligible for ITC.