Goods And Services Tax: A Basic Understanding Of The Registration Process

As a product or service vendor, it is essential for you to apply for Goods and Services Tax in situations where annual revenue meets the requirement for registration of GST. Businesses who do not file under the GST system would have to pay large fines and penalties.

What Is The Goods And Services Tax?

Goods and Service Tax (GST) refers to all retail suppliers, retailers, distributors, etc. The list also encompasses freelancers. Generally, GST comprises a number of federal taxes (such as CST, Service Tax, Excise Duty,) and State taxes (such as Entertainment Tax, Octroi, VAT, Luxury Tax, etc.).

In the case of products, companies with a revenue of more than Rs. 40 Lakhs will file as a taxable individual within the GST rule. Nevertheless, if you happen to belong to states with special status, you will file if your revenue reaches Rs. 20 lakhs. In the case of utilities, the revenue of more than Rs. 20 Lakhs must be reported as a taxable entity under the GST law.

Who Is Required To Register Under GST?

  • Companies or entities listed under the pre-GST tax system, i.e. VAT, sales fee, or utility tax.
  • Both non-resident taxable individuals or non-resident taxable individuals
  • Taxpayers who incur taxes below the reverse payment system
  • Input contract providers and vendors’ agents around the world
  • All operators of e-commerce
  • Men offering OIDAR services from across India
  • Business with turnover above the limit of Rs 40 lakhs in the respect of products and Rs 20 Lakhs in the situation of services
  • People who provide services via an e-commerce operator

There are three tax elements of GST. The first is the Central Goods and Service Tax (CGST), the second is State Goods and Service Tax (SGST), and the third is the Integrated Goods and Service Tax (IGST).

Elements Of GST

GST has 3 main tax components.

  • Central Goods and Service Tax(CGST)
  • State Goods and Service Tax (SGST)
  • Integrated Goods and Service Tax (IGST).

In the scenario of CGST and SGST, tax is levied by the state and central governments when a trade takes place within a state. Where IGST is also imposed by the national government in the context of multi-state trade, i.e. in which a transaction occurs among two different states.

Registration Process

The GST registration procedure is entirely digital, which implies that you’ll only enroll on a digital basis under the Gst system. Digital versions of the report are not needed. There are two aspects to the entire enrollment process. The first part is the creation of the GST registration form and part two is the completion of the registration form.

Part 1

Follow these steps to kick start the GST registration process

  • Check the official site of GST
  • Now, select the Utility tab, and then press Login > New Account.
  • Then place your telephone number, mailing address, and PAN phone in the right column below the Registration tab. Now, press the Continue button, and you will get an OTP in order to check your phone number and email address.
  • Your Temporary Registration Number will be produced after positive verification.
  • Now select the services listed, Login > New Account, and pick the Temporary Reference Number icon to sign in utilizing TRN.
  • Launch the TRN and the captcha. Here you’re going to have another OTP.
  • Once you have successfully checked the OTP, you will be brought to the My Saved Application tab.

Part 2

Part 2 is made up of 10 pieces. You would have to fill in all the necessary details and afterward send the information. Don’t forget to review all the specifics of your CA or tax consultancy before sending the specifics.

Once you have completed all the details, please visit the authentication page. Check the declarations box and send your request in any of the following ways.

  • By e-sign: you can obtain an OTP on your Aadhaar activated mobile number.
  • EVC: You’ll get the OTP on your verified mobile phone.
  • Electronic Signature: it is mandatory for you to validate a document with DSC in the event of business or LLP.

You should be able to see a ‘SUCCESS’ update on your computer after finishing the submission. In turn, you can collect the Application Reference Number (ARN) on your registered telephone phone and by email.