Documents Required for GST Registration
Every business must comply with the GST registration company India rules and regulations. The taxpayer can get the registration to distinguish their business from others. A new GST registration company can get a unique 15-digit registration number. This unique number known commonly as the GST Identification Number or GSTIN can provide complete details about the business. The central government provides this number to a taxpayer when they apply for the unique number with the following documents:
- PAN card of the business or individual
- Aadhaar card
- Incorporation certificate or proof indicating the business registration
- The authorization letter or board resolution for the authorized signatory
- The address and identity proofs with photographs of business owners (Promoters/Directors)
- Bank account statement of the business or cancelled cheque
- Digital Signature
What is GST?
GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services across India. Implemented on July 1, 2017, GST replaced various indirect taxes that were previously imposed by the central and state governments, such as excise duty, service tax, value-added tax (VAT), and others.
The GST system is designed to create a unified taxation structure, simplifying the tax regime by streamlining different taxations into a single tax. It operates on a dual model, involving both the central and state governments:
- Central GST (CGST): Collected by the central government on intra-state supplies of goods and services.
- State GST (SGST): Collected by the state government on intra-state supplies of goods and services.
Who Needs to Register for GST?
Under India's Goods and Services Tax (GST) regime, registration is mandatory for businesses exceeding specified turnover thresholds, varying from ₹40 lakhs (₹10 lakhs for some special category states in Northeastern India) for most states to ₹20 lakhs for inter-state suppliers. Specific entities, regardless of turnover, such as those involved in inter-state supply, e-commerce operators, non-resident taxable persons, and those liable under reverse charge, must also register. Voluntary registration is an option for businesses below these thresholds, offering benefits like input tax credit and business expansion. Special cases like casual taxable persons, agents, input service distributors, e-commerce operators, and non-resident taxable persons also require registration. Timely registration is critical to compliance; failure can lead to penalties. Consulting tax professionals or official guidelines for precise and updated information on registration requirements and procedures is advisable.
Types of GST Registrations
- Regular Taxpayer Registration (Normal GST Registration)
- Composition Scheme Registration
- Non-Resident Taxable Person Registration
- Casual Taxable Person Registration
- Input Service Distributor (ISD) Registration
- Tax Deductor and Tax Collector Registration
- E-commerce Operator Registration
- OIDAR (Online Information and Database Access or Retrieval) Services Provider Registration
GST Registration Process + What is GSTIN
The GST registration process in India involves several steps and leads to obtaining a unique registration number known as the Goods and Services Tax Identification Number (GSTIN). Here's an outline of the registration process and an explanation of GSTIN:
- Eligibility Check
- Online Application
- Verification and Documentation
- Application Submission
- Verification by Tax Officer
- Certificate Issuance
Goods and Services Tax Identification Number (GSTIN):
GSTIN is a 15-digit unique identification number assigned to each taxpayer upon successful GST registration. It is based on the PAN of the business entity and the state code. The structure of GSTIN is as follows:
- First two digits: State code
- Next ten digits: PAN of the taxpayer
- Thirteenth digit: Entity code based on the number of registrations within a state
- Fourteenth digit: Alphabet Z by default
- Fifteenth digit: Checksum digit for verification purposes
GSTIN is used for all GST-related transactions, filing returns, and communication with tax authorities. It serves as a critical identification number for compliance and taxation purposes under the GST regime, helping track and streamline transactions across the country.
Online vs. Offline Registration
In the context of GST registration in India, businesses have the option to register either online or offline based on their preference and convenience. Here's a comparison between online and offline registration processes:
Online Registration:
- Convenience: The online registration process is accessible 24/7 through the GST Common Portal (https://www.gst.gov.in/), allowing businesses to apply from anywhere with an internet connection.
- Speedy Process: Typically, the online process is faster as it involves filling out forms, uploading necessary documents, and submitting everything electronically.
- Transparency: Applicants can track the status of their application, receive updates, and communicate with tax authorities through the portal.
- Ease of Documentation: Documents can be uploaded digitally, reducing the need for physical copies and making the process more streamlined.
- Efficiency: GST registration certificate and GSTIN are issued electronically upon approval, eliminating the need for physical collection.
Offline Registration:
- Assistance from Tax Professionals: Some businesses prefer offline registration as they can seek guidance and assistance from tax professionals or chartered accountants who can handle the process on their behalf.
- Physical Interaction: For those more comfortable with face-to-face interactions, offline registration provides the opportunity to visit the tax department office and submit the application physically.
- Local Assistance: In certain cases, businesses might prefer offline registration due to local circumstances or regional preferences where offline methods are more customary.