Today we are going to discuss the procedure for registration under GST . After implementation of GST in India, number of questions are roaming in every other individual’s mind like
- Who is liable to register in GST?
- What is the procedure of GST registration?
- Can we claim Input Tax credit without registration?
- Time limit for registration under GST
- Is PAN mandatory to register under GST?
- Where the person under same PAN is operating from multiple states, will be required to obtain registration from each such states?
Here in this article, you will get an answer to your all such queries. Let’s proceed –
Liability to Register under GST
Our PM termed GST as Goods and Simple tax which arises the taxability on the supply of goods or services and every supplier in the GST has to register under the existing tax structure. Although, a small business whose aggregate turnover does not exceed 20 lakh in a Financial year need not register himself with GST (10 Lakh in specified states like Assam, Manipur, Sikkim, Meghalaya, Nagaland, Tripura, Himachal Pradesh, Arunachal Pradesh, Mizoram).
This threshold limit provides a liberty to the small taxpayers not to register under GST Law. However, this is completely optional. They can get registration if they voluntarily opt to register.
Aggregate Turnover Does Not Include –
- Aggregate Turnover does not include the value of Job worked goods, where the liability to pay tax, is of the Principal Supplier.
- Aggregate Turnover also does not include the value of Non-taxable or wholly exempt goods or services or both.
Some Cases Where Registration Under GST is Compulsory –
The following category of persons are compulsory require obtaining registration under GST irrespective of aggregate turnover –
- The Person supplying interstate taxable goods.
- Casual Taxable Persons.
- Persons liable to pay tax under RCM.
- Non Resident taxable persons.
- Required to deduct tax u/s 37.
- Agent or otherwise who are required to supply goods on behalf of another registered taxable person.
- Input Service Distributor.
- Persons making supply through Electronic Commerce Operator other than branded services.
- Aggregator supplying services in his brand name or trade name.
- Such other person or class of person, as may be notified by the Central Government or a State Government or recommendations of the council.
Procedure for GST Registration –
Here we are providing you a stepwise guide which will help you to register yourself on the GST Portal –
#1 First, you have to go to the GST Portal, there you will have to proceed with register Now under taxpayers (Normal).
#2 A form will appear where you have to select New Registration from the two options given above.
#3 Thereafter you are required to fill the credentials asking in the form –
- Select from the drop list – I am a taxpayer.
- Select your state or Union Territory in the next line.
- After that fill your district.
- Then enter your business name which is mentioned in your PAN.
- Enter your PAN.
- Enter your Email address. (OTP will be sent to this address for verification).
- Then enter your Mobile Number (OTP will be sent to this mobile number).
- Now, enter the captcha shown in the image.
#4 After filling the credentials, click on the proceed button which will take you to the verification step. In this step, you have to enter the OTP received on your Email id and Phone number.
#5 Once the verification gets completed, the system will automatically generate Temporary Reference Number (TRN) which will send to your given email id and mobile number.
#6 Now again, you have to go to GST Portal. Again click on Register now and this time you need to select TRN number option on the top of the page.
#7 In this option, you have to enter TRN number generated by the system and the captcha given below and click on the proceed button.
#8 Once again OTP will be generated and sent to your mobile number and email id. Enter this OTP and click on the proceed.
#9 Now, you can check the status of your application which will be shown as a draft. In order to complete this, select the edit button.
#10 Part B requires you to fill the relevant details and submit prerequisite documents which are as follows –
- Your Photograph.
- Constitution of the taxpayer.
- Business Place proof.
- Your bank account details.
- Authorization Form
#11 Once all the relevant details are completed then go to the verification page. Now, submit your application.
#12 After successful verification of your application, Application Reference Number (ARN) will be sent to your registered email and mobile.
#13 Once the ARN is generated, you can check the status by entering your ARN in GST Portal.
ITC without GST Registration
Before understanding weather ITC can be claimed without GST registration, let us first understand what is ITC.
ITC stands for Input Tax credit which allows a person to set off the taxes paid on inputs from the taxes to be paid on output.
Earlier, the scope of Input tax credit was limited due to various tax reforms existing in our country. But with the implementation of GST in India, its scope has been widened.
GST law clearly says that ITC can be availed by a registered taxable person in a specific manner.
A Further condition which must be fulfilled for claiming ITC are as follows –
- ITC can only be claimed if the goods and services on which GST has been paid at the time of receipt must be used for business purpose.
- One can avail the ITC in his Electronic Credit Ledger in a provisional manner on the GST common portal.
- The person who wishes to claim Input Tax Credit can claim such with the supporting documents i.e. debit note, tax invoice, supplementary invoice.
- GST Law says that ITC must have been paid through Electronic Credit/ Cash Ledger.
- The returns u/s 27 i.e. GST -1, 2, 2A, 6, 6A, 7, 7A are mandatory to file.
Time Limit for Registration under GST –
A person is mandatorily required to get register into GST within 30 days from which the aggregate turnover of such exceeds the limit prescribed mentioned above.
Whether the person under same PAN is operating from multiple states, will be required to obtain registration from each such states?
Under the Excise law, the manufacturer was permitted to obtain single registration for the operations throughout the country. But GST law made it compulsory to obtain a separate registration for each of the states from where he is operating a business and make payment of GST in terms of Section 19(1) of GST Law.
Whether a person operating multiple Business Verticals in a state can obtain for single registration?
The GST Law requires a person operating either single business vertical or multiple business verticals in a state to obtain a single registration but person may voluntarily get the separate registration for all such verticals. In such a case, all such verticals will be treated as the distinct person.
Is PAN Mandatory to apply for GST Registration?
Yes, GST is a PAN based number. Hence PAN is mandatory to register themselves under the GST law. However, it is not mandatory for the non-resident taxable person who registration can be granted on the basis of any other document as may be prescribed.
These are some of the basic queries relating to GST law in India. Hope you find this article helpful.
To Know About Place of Supply under GST follow the link.