What is Registration Process in GST
All existing registered persons, whether with the Centre or State under any of the tax statues being subsumed in GST, would be allotted a GST registration number called Goods and Services Tax Identification Number (GSTIN) on voluntary basis. Dealers who are below the GST threshold will have option to remain in GST chain. Lets have a look at registration process in GST.
Registration of a business with the tax authorities implies obtaining a unique identification code from the concerned tax authorities so that all the operations of and data relating to the business can be agglomerated and correlated. In any tax system this is the most fundamental requirement for identification of the business for tax purposes or for having any compliance verification program. Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
- Legally recognized as supplier of goods or services.
- Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
- Pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
Basically following will be assumptions for registration in GST:
- A Legal Person can not can collect GST and pass on GST without GSTIN.
- A Person having the turnover below the specified threshold limit would not be required to obtain registration. Once the amount of turnover exceeds the specified threshold limit person would be required to obtain registration within 30 Days. However Person can go for voluntary registration.
- There will be another relatively higher threshold of Gross Annual Turnover (to be calculated on all-India basis) to be called Compounding turnover up to which the registered person can opt to pay tax at a specified percentage of the turnover, without entering the credit chain. Such registered person will neither be allowed to collect tax from his customers nor claim any input tax credit. Compounding dealers shall remain under compounding scheme till their turnover crosses threshold or they opt for out of the scheme. Such dealers don‟t have to apply every year to remain under the compounding scheme. However, if the compounding dealer opts out of compounding in a financial year, for any reason, but eligible and wish to avail compounding in the next financial year, such dealer will have to apply afresh for compounding in the beginning of the financial year in which he wishes to claim compounding scheme.
- Irrespective of turnover, if a taxable person carries out any inter-state supply and / or is liable to pay GST under reverse charge, he will be compulsorily required to take registration. Such person shall neither be eligible for exemption threshold nor for Compounding scheme.
What is GSTIN (Goods and Service Tax Identification Number)
Each taxpayer will be allotted a State wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Structure will be as follows-
|PAN||Entity Code||Blank||Check Digit|
- 13th digit would be alpha-numeric (1-9 and then A-Z) and would be assigned depending on the number of registrations a legal entity (having the same PAN) has within one State.
- 14th digit of GSTIN would be kept BLANK for future use.
New Registration in GST
New applicant can apply for registration:
(1) at the GST Common Portal directly
(2) at the GST Common Portal through the Facilitation Center (FC) Multiple applications can be filed at one go where a taxable person seeks registration in more than one State or for more than one business vertical located in a single / multiple State(s).
Following scanned documents are required to be filed along with the application for Registration –
|Relevant Box No. in the Registration Form Document required to be uploaded Reason for requirement||Relevant Box No. in the Registration Form Document required to be uploaded Reason for requirement||Relevant Box No. in the Registration Form Document required to be uploaded Reason for requirement|
|Constitution of Business||· Partnership Deed in case of Partnership Firm ; · Registration Certificate in case of other businesses like Society Trust etc. which are not captured in PAN. In case of Companies||GSTN would strive for online verification of Company Identification Number (CIN) from MCA21.
Constitution of business / applicant as per PAN would be taken except for businesses such as Society
Partnership Deed would be required to be submitted in case of Partnership Firms.
|Details of the Principal Place of business||· In case of Own premises – any document in support of the ownership of the premises like Latest Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy
· In case of Rented or Leased premises – a copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy
· In case of premises obtained from others, other than by way of Lease or Rent – a copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy
· Customer ID or account ID of the owner of the property in the record of electricity providing company, wherever available should be sought for address verification.
|This is required as an evidence to show possession of business premises. If the documentary evidence in Rent Agreement or Consent letter shows that the Lessor is different from that shown in the document produced in support of the ownership of the property, then the case must be flagged as a “Risk Case”, warranting a post registration visit for verification. GST Law Drafting Committee may add penalty provision for providing wrong lease details.|
|Details of Bank Account (s)||Opening page of the Bank Passbook held in the name of the Proprietor / Business Concern – containing the Account No., Name of the Account Holder, MICR and IFS Codes and Branch details||This is required for all the bank accounts through which the taxpayer would be conducting business.|
|Details of Authorised Signatory||For each Authorised Signatory:
· Letter of Authorisation or copy of Resolution of the Managing Committee or Board of Directors to that effect
|This is required to verify whether the person signing as Authorised Signatory is duly empowered to do so.|
· Proprietary Concern – Proprietor
· Partnership Firm / LLP – Managing/ Authorized Partners (personal details of all partners is to be submitted but photos of only ten partners including that of Managing Partner is to be submitted)
· HUF – Karta
· Company – Managing Director or the Authorised Person
· Trust – Managing Trustee
· Association of Person or Body of Individual –Members of Managing Committee (personal details of all members is to be submitted but photos of only ten members including that of Chairman is to be submitted)
· Local Body – CEO or his equivalent
· Statutory Body – CEO or his equivalent
· Others – Person in Charge
Refer to CBEC Website for More
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