GST replaced most of the taxes prevalent in India before July 2017. It brought most of the businesses under a single roof and presented a unified tax system. Unlike the earlier taxation system, which was complex and cumbersome, the GST mechanism has been praised for being smooth and seamless.
As per the GST Act, 2017, businesses with turnover above Rs 40 lakhs have to register for GST (Goods and Services Tax) compulsorily. There is an exemption in the limit for special category states such as Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand. GST registration is mandatory for service providers with turnover exceeding Rs 20 lakhs. Businesses can also choose to register voluntarily, even if their turnover is below the threshold.
The threshold limit for registration varies for different business types. For instance, E-commerce operators, i.e., people selling goods through e-commerce websites, have to register for GST compulsorily, regardless of the turnover. Similarly, casual taxable persons or non-resident taxable persons also have to register for GST mandatorily.
GST registration is a one-time, online and completely paperless process through the GST portal. There are no charges for GST registration on the portal. However, if you take the services of a professional, they might charge a nominal fee for their services.
Follow the step by step guide to understanding how to get GST number for your business.
Step 1: Go to the GSTN (Goods and Services Tax Network) portal. Select New Registration and select the category as Tax Payer (Select any other category depending on the type of registration required, such as a casual or non-resident taxable person). Select the state and district in which you wish to register.
Note that business outlets in different states will require separate registration under different States. Similarly, e-commerce operators will have to register in all the states where they deliver goods.
Step 2: Fill in the legal name of your business and furnish the PAN details. PAN is compulsory for GST registration. For individual taxpayers, their name and their PAN should be used for registration. An OTP is received on the registered mobile number and email provided on this page.
Successful verification of mobile number and email address at this stage generates a Temporary Reference Number (TRN). You have 15 days to complete the application from the date of the generation of TRN.
In case you are not able to complete the process in 15 days, the TRN will expire. However, you can register again and get a new TRN.
Step 3: Log in to the GST portal again and access your application using TRN. After verifying your credentials through an OTP, the portal takes you to the next step.
Step 4: Part B of the Form GST REG-01 for normal taxpayers is to be filled at this stage by furnishing all necessary details about your business. You will need to upload proof of your business place, your photograph along with bank account details, the constitution of the taxpayer, and authorization form.
PAN and Aadhar of all directors is mandatory in the case of companies, along with incorporation certificate, Memorandum of Association and PAN of the Company.
Step 5: After the details are captured on the portal, a verification page appears. Complete the verification using e sign (OTP sent to the Aadhar linked mobile number) or EVC (OTP sent to the registered mobile number). Companies have to use the DSC (Digital Signature Certificate) to complete the verification process.
Step 6: Successful verification through e sign, EVC or DSC generates an Application Reference Number (ARN). This ARN can be used to track the status of your application on the portal.
Usually, it takes 3-5 days to get a GST number. In case of clarification sought on your application, it might delay the process slightly.
GST number of GSTIN (GST Identification Number) is a 15 digit unique identification number assigned to businesses registered under the GST Act. The first two digits of the GSTIN indicate the state of registration. The next ten digits are the PAN of the entity. The 13th digit of GSTIN corresponds to the entity type. 14th digit, as of now, is “Z” for all registrations while the last digit is a randomly assigned number.