Online Business GST Registration

Online Business GST Registration – An Overview

The Goods and Services Tax (GST) is a comprehensive,-stage, destination-based tax that has been implemented across India July 1, 2017. It’s a single domestic tax law that has replaced multiple taxes levied by the central and state governments.

Since the introduction of GST in 2017, it has replaced a multitude of pre-existing taxes, simplifying the taxation process for businesses in India. Before, businesses had to deal with a variety of taxes such as Value Added Tax (VAT), Service Tax, Excise Duty, and many others. Now, with GST, all these taxes have been merged into a single, unified system.

Online GST Registration is a process through which a taxpayer can register for GST via an online portal that is made available by the government. It is not only convenient and easy but also eliminates the need for physical presence at a government office. The process is efficient, less time-consuming, and ensures a high level of accuracy.

Every business or individual that provides goods and services in India is required to register for GST if their annual turnover exceeds Rs. 20 Lakhs (Rs 10 Lakhs for North-Eastern States). Failure to register for GST can result in heavy penalties.

Online GST registration involves several steps, including filling out an application form with all the necessary details, submission of relevant documents, and verification by the authorities. Once these steps are completed, a unique GST Identification Number (GSTIN) is assigned to the registrant.

Online Business GST Registration Components?

GST is broken down into three primary components. These components help to create a seamless tax system and are integral in understanding the structure of GST.

1. Central Goods and Services Tax (CGST): The Central Goods and Services Tax, or CGST, is the component of GST that is collected by the Central Government on an intra-state supply of both goods and services. This means that for any goods or services supplied within a state, CGST is applied along with the state GST. The revenue collected under the CGST falls directly into the Central Government’s pocket.
2. State Goods and Services Tax (SGST): On the other hand, there’s the State Goods and Services Tax, or SGST. SGST is collected on transactions occurring within a state by the State Government. Similar to CGST, SGST is imposed on the sale of goods and services within the boundaries of a state. The revenue generated from SGST goes to the coffers of the State Government.
3. Integrated Goods and Services Tax (IGST): Finally, we have the Integrated Goods and Services Tax, or IGST. This component of GST is collected by the Central Government for inter-state supply of goods and services. So, whenever goods or services are supplied from one state to another, IGST comes into play. Essentially, IGST is the sum total of CGST and SGST, and the revenue from it is shared between the Central and State Government.

Documents Required For Online Business GST Registration

Proprietorship Documents:

1. Business PAN (Permanent Account Number)
2. Identity and Address Proofs for Proprietor:
   • Aadhaar card, passport, voter ID, driver’s license, or any other government-issued photo ID.
3. Business Address Proof:
   • Rental agreement, electricity bill, or property tax receipt.
4. Bank Account Details:
   • Canceled cheque or bank statement displaying the account holder’s name, account number, and IFSC code.
5. Photographs:
   • Recent passport-sized photographs of the proprietor.
6. Digital Documents:
   • Ensure all documents are in digital format (PDF or JPEG).

 LLP (Limited Liability Partnership) Documents:

1. LLP Registration Certificate
2. Business PAN (Permanent Account Number)
3. Identity and Address Proofs for All Partners:
   • Aadhaar card, passport, voter ID, driver’s license, or any other government-issued photo ID.
4. Bank Account Details:
   • Canceled cheque or bank statement displaying the account holder’s name, account number, and IFSC code.
5. Digital Signature Certificate (DSC):
   • Mandatory for authorized signatories in the LLP.
6. Photographs:
   • Recent passport-sized photographs of all partners.
7. Digital Documents:
   • Ensure all documents are in digital format (PDF or JPEG).

Private Limited Company Documents:

1. Certificate of Incorporation of the Company
2. Business PAN (Permanent Account Number)
3. Identity and Address Proofs for All Directors:
   • Aadhaar card, passport, voter ID, driver’s license, or any other government-issued photo ID.
4. Bank Account Details:
   • Canceled cheque or bank statement displaying the account holder’s name, account number, and IFSC code.
5. Digital Signature Certificate (DSC):
   • Mandatory for authorized signatories in the company.
6. Photographs:
   • Recent passport-sized photographs of all directors and authorized signatories.
7. Digital Documents:
   • Ensure all documents are in digital format (PDF or JPEG).

The following documents can serve as proof of address for a director:

• Aadhaar Card
• Passport
• Voter ID Card
• Driver’s License
• Bank Statement
• Utility Bill (e.g., electricity bill, water bill)
• Property Tax Receipt
• Rental Agreement
• Any Other Government-issued Address Proof 

Online GST Registration Process

1.  Visit the GST Portal
2. Click on “Register Now”
3. Fill out the Part A of the GST REG-01 form with your PAN, mobile number, and email
4. Receive an OTP for Verification
5. Complete Part B of the Form with the OTP and Required Documents
6. Submit the Application and Receive an Application Reference Number (ARN)
7. Wait for Processing and Verification by Tax Authorities
8. Receive the GST Registration Certificate and GSTIN

Upon successful verification, you will receive your GST Registration Certificate and GSTIN (Goods and Services Tax Identification Number). The certificate will be issued to you in Form GST REG-06 and the GSTIN will serve as your unique identification number for all GST-related operations.

Who should avail GST Registration Service?

• Businesses with Turnover Above the Threshold Limit: If your aggregate turnover in a financial year exceeds Rs.40 lakhs, you are required to register under GST. This limit is Rs.20 lakhs for businesses in the North-Eastern States, Jammu & Kashmir, Uttarakhand, and Himachal Pradesh.
• Casual Taxable Person / Non-Resident Taxable Person: If you conduct transactions occasionally in a state or union territory where GST applies, you may need to register despite not having a permanent business there. This also applies to non-resident taxable persons.
• Agents & Intermediaries: Agents who supply goods on behalf of their principal every agent and every principal shall also be liable to register.
• E-commerce Aggregators: Businesses that supply goods or services through an e-commerce operator are required to register for GST.
• People Paying Tax under Reverse Charge Mechanism: If you are required to pay tax under reverse charge, registration is compulsory.

What is a GST Certificate?

A GST Certificate is a crucial document that serves as proof of a business’s registration under the Goods and Services Tax (GST) regime in India. Once a business completes the GST registration process, the government issues the GST Certificate. This document is made available for download on the GST portal.

This certificate contains key information about the business such as the Legal Name of Business, Trade Name if any, Constitution of Business (i.e., whether it’s a partnership, private limited company, etc.), Address of Principal Place of Business and Additional Place of Business. It also mentions the Date of Liability, Period of Validity (for non-lifetime tax payers), Type of Registration (whether it’s a normal taxpayer, non-resident taxable person, etc.), and Particulars of Approving Authority.

Online Business GST Registration Tax Rates

The GST Council has divided the tax brackets into five categories: 0%, 5%, 12%, 18%, and 28%. In addition to these, some goods and services also attract cess over and above the 28% GST rate.

These rates are designed to ensure that essential goods and services remain affordable, while luxury items and harmful products are taxed at a higher rate. The aim is to ensure that the tax structure is progressive, such that the burden falls more heavily on those with the ability to pay. It’s important to note that the tax rate applicable to your business depends on the type of goods and services you provide.

Keep in mind, however, that these rates are subject to change and may differ based on the state’s regulations. Therefore, it’s always a good idea to check with an expert or visit the official GST portal for the most updated information.

What is GSTIN?

GSTIN is an acronym for Goods and Services Tax Identification Number. It’s a unique 15-digit number assigned by the Central Government to business entities registering under the GST regime. This number is crucial to GST implementation and is used to track GST transactions across India.

What does GSTN (Goods and Service Tax Network) refer to?

The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN serves as a comprehensive solution to address your indirect tax needs. It operates as the platform responsible for managing the Indirect Taxation system for GST, enabling you to prepare, submit, amend returns, and fulfill your indirect tax obligations through it.

Penalties for Non-Compliance with GST Registration

Opting for GST Registration Voluntarily

Voluntary GST registration is a provision under the GST Act that allows businesses and individuals below the threshold limit to register for GST. This means even if your annual turnover does not exceed 20 lakhs (or 10 lakhs for North-Eastern states), you can still opt for GST registration.

Advantages of Voluntary GST Registration

Business Expansion: With a GST number, you can sell goods or services inter-state and even internationally. This removes the geographical limitations attached to your business.

Legal Recognition: Having a GST number gives your business legal recognition as a supplier of goods or services. This not only adds to your business credibility but also allows you to collect GST from customers and avail input tax credit.

Eligibility for Government Tenders: Certain government tenders require GST registration. By voluntarily registering for GST, you become eligible to apply for such tenders.

GST Return Filing

A GST return is a document that lists the details of income which a taxpayer is required to file with the tax administrative authorities. This information is used by the tax authorities to calculate the net tax liability. In the context of GST, a registered dealer has to file GST returns that include:

• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)

Significance of GST Return Filing

Filing GST returns is crucial for maintaining transparency and accuracy in the GST system. It ensures that every transaction is recorded, thereby preventing tax evasion. Every registered dealer, regardless of the size or type of business, is required to file GST returns.

How to Submit GST Returns

Filing GST returns online is a straightforward process. Here’s a simplified step-by-step guide:

1. Login to GST Portal: Use your unique username and password to login to the GST portal.
2. Go to ‘Services’: Click on ‘Services’, then ‘Returns’, and finally ‘Returns Dashboard’.
3. Select the Financial Year and Return Filing Period: From the drop-down menu, select the financial year and the return filing period for which you want to file the return.
4. Prepare Online: Click on the ‘Prepare Online’ button if you want to prepare the return by entering details in the GST portal.
5. Enter Details: Depending on the form selected, various tabs will appear. Please provide all the required information and proceed to submit the form.

Penalties for Failure to File GST Returns

Failure to file GST returns within the stipulated deadline can lead to penalties. The late fee is Rs. 25 per day for every day the GST return is late if tax liability is involved, and Rs. 10 per day if not. It’s essential to be mindful of the deadlines and comply with the regulations to avoid such penalties.

How Can We Help You Regarding Online Business GST Registration?

Working out the complexities of GST (Goods and Services Tax) registration and filing returns can be a challenging task, especially for individuals or businesses who are new to the world of business and taxation. But fear not, because we’re here to help you.

Our team of experts will guide you every step of the way, ensuring that you stay compliant, avoid penalties, and reap the maximum benefits from your GST registration.

• Consultation Services: We offer comprehensive consultation services wherein we’ll provide you with a clear understanding of the GST registration process. Our experts will walk you through the intricacies, answer all your questions, and ensure that you’re well-informed about GST rules and their implications for your business.
• Registration Assistance: Our specialists can assist you in completing your GST registration smoothly and efficiently. We’ll take you through the process, help you fill out the necessary forms correctly, and ensure that your application is promptly submitted to the authorities.
• Filing Returns: GST return filing is a crucial aspect of GST compliance. We’ll help you understand the different types of GST returns, their deadlines, and the process of filing these returns. We’ll also assist you in preparing and filing your GST returns on time to avoid any penalties.
• Voluntary GST Registration: Want to register for GST voluntarily? We can guide you through the benefits, process, and implications of voluntary GST registration. Our experts will help you make an informed decision based on your business requirements and future plans.
• Penalty Mitigation: We can help you understand the penalties associated with GST non-compliance and provide strategies to avoid them. If you’ve already incurred penalties, we’ll guide you through the process of resolving these issues and negotiate with the authorities on your behalf, if necessary.

FAQs

What documents are required for online business GST registration?

The list of necessary documents for online business GST registration includes:

• PAN card of the business
• Aadhaar card of the proprietor/partners/directors
• Business registration document
• Proof of business location
• Bank account statement/Cancelled cheque
• Digital Signature

How long does online business GST registration take?

The GST registration process usually takes about 2-6 working days.

What if I have multiple business verticals, do I need separate GST registrations?

As per GST law, if you have multiple business verticals within the same state, you can obtain separate GST registration for each business vertical, if required.

What are the types of GST?

There are four types of GST:

• Central Goods and Services Tax (CGST)
• State Goods and Services Tax (SGST)
• Integrated Goods and Services Tax (IGST)
• Union Territory Goods and Services Tax (UTGST)

Can I cancel my GST registration?

Yes, you can apply for cancellation of your GST registration, if you are no longer required to be registered under GST, or if you have closed down your business.

The A to Z of GST Terms

So, you’re trying to make sense of all the jargon related to GST? Let’s break it down for you.

1. Ever wondered what GST stands for? It’s short for Goods and Service Tax.
2. Then you have your TRN, or Temporary Registration Number. This unique 15-digit reference number is generated once you’ve completed Part-A of the GST application and confirmed your mobile number and email id.
3. Once you’ve filed your GST application, you’ll be given an ARN, or Application Reference Number. You can use this number to check the details of your application.
4. On the digital side, we have the DSC or Digital Signature Certificate. This certificate acts as a proof of your identity in the digital world, ensuring your data stays safe.
5. Now, let’s look into the types of GST. The SGST is the State Goods and Services Tax, levied by the State Government. Then there’s the CGST, or Central Goods and Services Tax, which is imposed by the Central Government. IGST, or Integrated Goods and Services Tax, is applied in case of interstate supply of goods and services. And finally, we have the UGST, or Union Territory Goods and Services Tax, levied by the Government Union.
6. Every business that registers for GST is assigned a unique identity15-character number, known as the GSTIN or Goods and Services Tax Identification.
7. Next up is the GSTR or GST Return. This document captures your income, details which you need to file with the authorities to calculate your tax liability. There are a total of 11 types of GSTR.
8. The GSTN, or Goods and Services Tax Network, is a non-profit, public-private partnership company that provides the necessary IT infrastructure and services for the implementation of GST.
9. When it comes to paying taxes for inputs used in your business, the credit you receive is known as ITC or Input Tax Credit.
10. Products worldwide are classified using a 6-digit uniform code known as the HSN Code or Harmonised System of Nomenclature. There are more than 5000 products classified under this system.
11. Services under GST are classified using a unique SAC Code. Each service has its own distinct code.
12. In certain special supply categories, the liability to pay tax is on the recipient of goods rather than the supplier. This is known as Reverse Charge.
13. Finally, the Aggregate Turnover is the total value of all taxable supplies. This is used to determine the threshold for GST.

And there you have it! A simplified guide to GST jargon. Happy tax filing!