The much-anticipated GST is finally going to be implemented from 1st July 2017 onwards in India. It is expected to bring a major change in the business industry by eliminating multiple taxes and improving tax compliance standards.
If you run a business that’s based on the selling of either goods or services, then you are required to apply for GST registration if you want to collect GST from your customers or claim input credit, which is one of the biggest features of GST.
Although GST has its merits, not every business needs to apply for it. There is a turnover based liability criterion for GST registration that has been set by the GST counsel. According to this criterion the businesses in the North-East India, Sikkim, Himachal Pradesh, J & K, and Uttrakhand that have the annual turnover below Rs. 10 lakh do not require GST registration. For the rest of India, the threshold is Rs. 20 lakh.
Even if your turnover doesn’t exceed the threshold limit you may still need to register for GST as per paragraph 5 in Schedule III of MGL. It requires you to register for GST if you are a/an:
- Casual taxable person
- Person who is required to deduct tax under section 37
- Input service distributor
- Electronic commerce operator
- Person who supplies goods and/or services on the behalf of other registered taxable persons
- Aggregator who supplies service under this trade name of brand name
If you want to register for GST then follow these steps:
- Go the official GST portal i.e. www.gst.gov.in and log in to your account using the provisional ID and password that’s provided to you by the VAT authority of your State.
- Enter your email address and mobile number.
- You will receive an OTP on your provided email address and mobile number for verification. So, enter the same in the appropriate sections and click the “CONTINUE” button. You can also click the “RESEND OTP” button if you have not received the OTP for some reason.
- Once verification is complete you can enter your new credentials and create a standard account. You need to provide a unique username which should be of 8 to 15 characters long and can contain numbers or a few certain special characters. You also have to provide a new password which again should be 8 to 15 characters long and must contain at least one alphabet, one number, one uppercase letter, one lowercase letter, and one special character.
- Answer a few security questions which can help you in the future in retrieving your password in case you forget it.
Once you are done you can click the SUBMIT button, after which you will be automatically logged out.
The next screen will be like this:
You can see a message on the top informing you that your username and password have been created. With this, the PHASE 1 is also completed.
- Login with your new credentials by clicking the ”Existing User Login” button.
Once you have entered your login details you will get a message:
Click the “Continue” button.
- You will see your dashboard now. Click the “dashboard” menu.
- You need to upload your DSC (Digital Signature Certificate) now. For that, click on the Register/Update DSC command.
You will see the following screen now:
To register your DSC you have to download and install the DSC client installer from the DSC Registration page of the GST Common Portal first. Once it’s done you can select the PAN of the authorized signatory from the drop-down list.
- Mark the checkbox and click on “PROCEED”
The next screen will be like this:
- Choose the correct certificate and click the Sign button. You will receive a message on the display if the registration is successful.
- Go back to the dashboard and fill the sections provided under the Enrolment tab such as business details, promotor/partners, bank account details, etc.
You will need to provide the application reference number and upload a few mandatory documents which are as follows:
- Constitution of Business- Registration certificate or a partnership deed.
- Details of bank accounts- scanned copy of the passbook’s first page or a bank statement.
- Recent Photograph
- Proof of principal place of business- Any of the following: latest receipt of property tax, electricity bill, memorandum of association and articles, municipal khata copy, or any other certificate or document issued by the government that can serve as a proof of your business place. In case the property is rented you can also provide a rent or lease agreement.
Once you have completed all the sections you can see the last tab:
Mark the checkbox, choose the authorized signatory, enter the name of the place and finally submit with your DSC. The next screen should be like this:
You will also receive an ARM which can be used for future correspondence, so make sure you note it down somewhere.
- If your application is approved then a certificate of registration will be issued to you within 3 days of submission. You will be also notified of the same through the registered mobile number and email address.
Note: If additional information is needed then another form GST REG-03 will be provided to you. You can respond by submitting a filled-out Form GST REG-04 within 7 days after receiving the form GST REG-03.
GST has numerous benefits. It can allow you to offer reduced prices on goods and services to your customers, make invoicing simpler, eliminate entry tax, etc. Thus, it is in your best interest to register yourself as soon as possible.