Goods and service tax (GST) was fairly relatively new term in 2017, but not everybody knows what it means. That is what the real problem is, the only know what it means but do not have in-depth knowledge about it hence leading us back to the stage we were in 2017. There are many start-ups that are happening in Indian due to various schemes set out by the government such as ‘Startup India’. Though this gave a rise to many businesses in India but they still lacked to understand how GST really works and what has to be done in its registration process. If you are on how to register for GST you have come to the right place as I will show how many aspects there are involved in this process for registration of GST in India.
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First we need to see some important facts that are related to GST registration procedure in India. These facts will help us to understand when you need to register for GST and who needs to register for GST in India.
The first point that is to be understood is that which businesses are liable to register for GST. These are those businesses which earn an annual of rupees 20 lakhs.
There are some States in India which require businesses to register for GST if there annual total comes out to be Rs.10 Lakh. These concerning States are Himachal Pradesh, Mizoram, Meghalaya, Sikkim, Jammu and Kashmir, Assam, Nagaland, Tripura, Arunachal Pradesh and Uttarakhand.
This is an eye opener fact as it tells that if you are supplying goods in different states then you would need to pay GST for those concerning States.
The fees that is required for you to pay for registration of GST is NIL.
If you fail to register for GST the penalty which is imposed on you is a minimum of Rs. 10,000 or 10% on the amount which has not been paid yet.
If a business tries to evade this tax then there will be hundred percent of tax owed.
Before we go into the matter of how we can register for GST, there are certain documents that you must possess. These documents are given so that a valid GST registration can be done. Here are the documents which are required for GST registration:
A PAN (Permanent Account Number) of the business being run and the directors of that specific business.
A phone number and e-mail are common but it needs to be kept in mind that the phone number should be a valid Indian number of the person/ director (Primary Authorised Signatory).
Next should be a document that shows proof on where the business is placed. This can be an electricity bill or if the land/ building is taken on lease then a rent proof must be given.
It should also be mentioned the bank accounts of the company.
These are the main documentations that should be produced if one wants to achieve registration of GST in India.
Know we come to the main question which is the GST registration procedure. I am going to explain this process step by step so that it becomes clearer on how everything is done. The first thing that you should know is that this registration is done online through the GST registration portal. This would involve on going to India’s GST site and clicking of new registration. This is how it’s done:
In the next step you are required to fill out some details. A page like this will open up in front of you:
While filling out these details keep in mind the facts which were mentioned above. Like the PAN number should be of the company and later when asked you should put in you PAN number. Also, remember that there are some States which ask for GST registration to be done on a smaller turnover rate. Once you’ve done this a temporary reference number (TRN) will be generated through which you can use it to finish the GST registration.
The next step would be to login with your TRN number so that you can fill out the business information.
After this the next step would involve in completing all of the following boxing on the following website:
This online application for GST registration needs to be filled out so that you can generate your Application Reference Number which comes in handy for further processes.
To track the status of your GST would be simple as you would have to go on the website and click on registration, then on track application status. This would require you to put in Application Reference Number, which is generated after you have successfully completed all of the GST registration details.
This is surely a long process and it would be difficult to do it alone. So to counter this there are software’s that are available online which help in the GST registration procedure, for example BTHAWK. They would help in simplifying all of the issues and problems you may face while registering for GST.
In conclusion, it can be said that every little detail needs to be remembered while filling out the GST application form or else you may have to end up paying a hefty fine that will cause further problems in your business. Even though GST is still not that much of a familiar concept in the Indian economy for many businesses, there is a need that people should know how the GST registration procedure in order to gain the advantages which it brings out. I hope this would help in solving the problem on how to register under GST.
To know more about such wonderful software visit GST billing Software