General, GST, Tax

How to register under GST in India?

how-to-register-under-gst-in-india

GST (goods and service tax) is a unified indirect tax across the country on products and services. It has replaced various indirect taxes such as VAT (value added tax), excise duty etc. Before GST, tax was levied at each stage separately by the Union government and the State government at varying rates on the full value of goods. Under GST, tax is levied on value added at each stage (single tax collected at multiple points) with a full set- off for tax paid earlier in the value chain. Therefore final consumer will bear only the GST charged by the last dealer in the supply chain with set-off benefits at all previous stages. Transactions within the state include two component of GST: CENTRAL GST AND STATE GST. These are levied on goods and services; both centre and state will simultaneously levy GST across the value chain. In Inter – state transactions centre would levy and collect the integrated goods and service tax (IGST) which is roughly equal to central GST plus state GST.

GST REGISTRATION

For registration the applicant should have an aggregate turnover of 9 lakh (north-eastern India) and 19 lakh (rest of India).

BENEFITS OF REGISTRATION

  • Legally recognized as a supplier of goods and services.
  • Proper accounting of taxes paid on the input of goods or services which can be utilized for payment of GST due on the supply of goods and services.
  • Legally authorized to collect tax from his purchase and pass on the credit of the taxes paid on the goods or services supplied to purchaser or recipient.

Registration process

  • The registration process will take place online, through portal maintained by Central Government of India.
  • As per the information from GSTN ( GOODS AND SERVICES TAX NETWORK):
  1. Before applying for registration the applicant must declare his/her PAN ( permanent account number), mobile number , E- mail address , state/ union territory in PART A of FORM GST Reg. – 01 on common portal either directly or through a facilitation centre notified by the commissioner.
  2. PAN should be validated online by the common portal from the database maintained by CBDT (CENTRAL BOARD OF DIRECT TAXES); mobile number should be verified through a separate OTP (ONE TIME PASSWORD) send to the said Email ID; Email should be verified through a separate OTP sent to the said Email ID.
  3. After successful verification of PAN, mobile number, Email ID, a temporary reference number will be generated on said Email ID or mobile number.
  4. Using the reference number generated, applicant shall electronically submit an application in PART B of FORM GST Reg. – 01, signed or verified through EVC (electronic verification code) along with documents at the common portal.
  5. Documents include : PAN card of the company; proof of constitution like partnership deeds MOA (memorandum of association)/ AOA (articles of association); certificate of incorporation ; details and proof of place of business like rent agreement or electricity bill ; a cancelled cheque of your bank account showing name of account holder , MICR code , IFSC code and bank branch details ; authorized signatory like list of partners with their identity and address proof in case of partnership of firm.
  6. On receipt of an application, an acknowledgement shall be issued electronically to the applicant in FORM GST Reg. – 02.
  7. The application will be provided to the proper officer who shall examine the application and the accompanying documents and if the same are found to be in order, the proper officer will approve the grant of registration to the applicant within 3 working days from the date of submission of application.
  8. If application is found deficient either in terms of any information or any document required to be furnished / proper officer requires any clarification with regard to any information provided in the application , he may issue a notice to the applicant electronically in FORM GST Ref.- 03, within 3 working days from the date of submission of application and the applicant shall furnish such clarification , information or documents electronically in FORM GST Reg. -04 within 7 working days from the date of receipt of such notice.
  9. When proper officer is satisfied with the clarification, information or documents, he may approve the grant of registration to applicant within 7 working days from the date of receipt of such clarification / information / documents. A certificate of registration in FORM GST Reg. – 06 showing the principle place of business and additional places of business shall be made available to the applicants on the common portal and as goods and services tax. Identification number shall be assigned.
  10. Certificate of registration signed digitally by proper officer will be issued.
  11. Registration number will be issued to the applicant, certificate of registration signed and verified through EVC will be provided to the applicant at the common portal within 3 days after expiry of the period.

Hence GST will have a positive impact on common man. Impact of GST on prices of goods and services will largely depend on the item in question; it will also depend on respective state government and intervention with respect to controlling prices of essential commodities.

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CA Rachit Jain

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