Understanding The Registration Process For GST In India


If you refuse to apply for “Good and Service Tax” as a product or service vendor, you may face severe penalties and fines that also can lead to up to 100 percent of your overdue tax sum. GST registration means that you can obtain GST from your clients, too. Therefore it is crucial that you enroll for GST to stay compliant with the law.

When Should One Register For GST?

If any of the following apply to you, then you are required to register for GST

  • If you run an e-commerce company
  • If you’re an interstate business owner
  • If the intrastate business you own has an annual turnover of Rs.20 lac and above
  • For states with a special status, the required turnover is Rs. 10 lac
  • Any individual enrolled under a previous law ( i.e. VAT, Excise, Service Tax, etc.) would also have to register for GST.
  • Where a registered company has been passed to somebody else/demerged, the transferee will take registration, effective from the transition date.
  • Casual taxable person – A individual who periodically sells products and/or services in a jurisdiction in which GST applies but has no designated location of operation. According to GST, such an individual is regarded as a casual taxable person.
  • Non-resident taxable individuals – Whenever a non-citizen periodically sells goods/services in a jurisdiction where GST applies but has no permanent business establishment in India. He would be classified as a taxable non-resident citizen, according to the GST rules.
  • Agents associated with suppliers
  • Individuals who pay tax under the reverse charge tax
  • Individuals offering electronic data and information base accessibility or recovery service to an individual in India from a location outside India, apart from a registered taxable individual.

Registration Procedure For GST

The following steps will help you register for GST.

  • Visit the GST portal/website
  • Fill and submit the form GST REG-01 using your phone number, PAN number, and e-mail ID.
  • After the verification of the PAN number, you will get an OTP to verify your phone number.
  • Save the [ARN] application reference number that was sent to your phone number and e-mail address after authentication has been completed.
  • With the required documents submit the ARN number
  • Fill out the form GST REG-03 which generated automatically, if more detail is required.
  • A validation certificate will be given to you inside three business days after the verification of all the details provided.

Documents Required

  • Copy of the BoD / General Committee resolution and letter of approval or letter of permission
  • Evidence of company address like power bill or real estate tax receipt or Local Khata Copy or record of legal possession.
  • Evidence of bank account information that includes a duplicate of your bank statement, canceled check, or the Pass Book first sheet.
  • A photo of the authorized signatory
  • Certificate of incorporation
  • Photo of the stakeholder.

Track Your GST Registration Status

To track your GST registration status, follow the steps mentioned below

  • Visit the GST website/portal, http://gst.gov.in.
  • Select the tab which reads services
  • Click on “registration”
  • Select the option which reads “track application process”
  • Enter the ARN number you received while registering and click “search”
  • By doing this your status will be displayed on the screen and also you will receive the details on your registered phone number and e-mail address.

Penalties And Fines

Each registered individual is expected to file the appropriate returns according to their specific deadlines, such as GSTR 1 within the 10th of the following month, GSTR 2 by the 15th of the following month, and GSTR 3  within the 20th of the month following, as well as other returns.

Failure to do so will result in heavy penalization

Legal Consequences

A registered individual who files returns after the specified date will be liable to pay late fees of Rs. 100  for each day delayed, this can go up to a limit of five thousand rupees. In the same manner, a late fee of Rs 100/- for failure to supply Annual returns by the due date will be assessed on any day on which this loss occurs to be subjected to a cumulative amount estimated at a quarter percent of the revenue in a province.

Practical Consequence

Tax credit payable to the Distributor by the purchaser shall only be applicable to the recipient if the Distributor has received the information of the latter in the GSTR 1 and has deposited the correct monthly taxes to the federal government. The receiver will also claim responsibility only after accepting the payment in GSTR 2 that will arise after the distributor discloses GST ‘s share of the recipients in its GSTR 1. Therefore, if any of them fails to submit the return, the input tax will not be accessible, resulting in a split in the Input Tax Credit line. Even if the distributor does not file the returns, the receiver will not be entitled to claim the Input Tax Credit and will thus be barred from doing transactions with that specific Supplier.

Louis Jones

Greg Jones: Greg's blog posts are known for their clear and concise coverage of economic and financial news. With a background as a financial journalist, he offers readers valuable insights into the complexities of the global economy.