Setting up a new business or the business is becoming big enough for you to need GST number? In this article, we discuss the steps to register your business for GST. Know the step by step procedure for GST registration.
GST registration is a mandatory process for any business entity supplying goods or services in the country. The only criteria for a business to be eligible for GST registration is a turnover of more than Rs 40 lakh. In a few instances, a lack of a GST registration can make businesses vulnerable to penalties under the GST Act.
GST registration entails a variety of benefits for businesses and the economy. The total indirect taxpayer base in the country has increased by 50% with the implementation of the Goods and Services Tax. This article focuses on the steps you will need to follow for your business's GST registration.
GST Number: A Breakdown
Before understanding the GST registration process, it is important to know the GST number. Here is a complete breakdown:
The GST number is a unique 15-digit number that has directly replaced the Tax Identification Number (TIN).
The initial two digits of the GST number are the State Code.
The 13th digit represents the total amount of times that a business entity has registered within a particular state
The 14th digit of the GST number represents 'Z' by default
The last digit of the GST number is the check code and can include a number or an alphabet
When to File for a GST Return?
GSTR-1: Filed monthly by the registered taxable supplier. Due on the 11th of every month
GSTR-2: Filed monthly by the registered taxable recipient. Due on the 15th of every month
GSTR-3: Filed monthly by the registered taxable person. Due on the 20th of every month
GSTR-4: Filed quarterly by the composition supplier. Due on the 18th of the month succeeding the quarter
GSTR-5: Filed monthly for the non-resident taxable person. Due on the 20th of every month
GSTR-6: Filed monthly for the input service distributor. Due on the 13th of every month
GSTR-7: Filed monthly for authorities carrying out the tax deduction at the source. Due on the 10th of every month
GSTR-8: Filed monthly by the tax collector or e-commerce operator. Due on the 10th of every month
GSTR-9: Filed annually by the registered taxable person. Due on 31st December of the next fiscal year
GSTR-10: Filed once the GST registration is canceled by the taxable person whose registration has been surrendered or canceled. Due within 3 months from the date of cancelation.
GSTR-11: Filed monthly by a person with UIN and claiming a refund. Due on the 28th of the month following when the statement was filed.
GST Registration: The Complete Process
Open the official portal, go to services, registration, and opt for new registration
Begin with Part-A of the registration by selecting the option 'taxpayer' and inputting the state and district from the menu
Type the name of your business and enter the business PAN details
Enter your email address and mobile number. The number you enter here will receive all the OTPs
As soon as you click on proceed, you will receive the OTPs on your mobile number and email ID. You can enter the one-time password or select RESEND OTP to receive it again
You'll get the 15-digit temporary reference number (TRN). This is required to complete Part-B of the registration in the next 15 days.
Visit the portal once more and click on 'new registration.'
Click on Temporary Reference Number and enter the TRN along with the captcha code to proceed
Input the OTP that you receive on your registered mobile number and email address
You will see the status of your application as 'drafts'. Click on the edit icon.
The Part B of the registration would require you to submit all the required documents and required information in 10 different sections
Once you complete Part-B, you will be notified of a successful application, and an Application Reference Number (ARN) is sent to your registered email address and mobile number
GST will start applying to your business as soon as all the data is authorized
If you want to know more about GST rates and GST registration process, you can visit Investment Simplified for this and other investment-related concerns.
The Road Ahead
The steps mentioned above will help you with the GST registration of your business. GST facilitates uniformity in the entire taxation process and alleviates the scope of tax evasion. Small businesses can leverage the composition scheme that allows enterprises with a business turnover of Rs 20 to 75 lakh to lower the tax burden on many small businesses. GST registration acts as valid legal proof of doing business. It opens the doors for enterprises to accept huge projects from MNCs, sell goods and services throughout the country, open a current bank account, and enhance the business's brand value.
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