The Goods and Service tax (GST) introduced in 2017 by the Central Government eliminates all other indirect taxes in the country. The taxation policy eliminated the central excise duty, additional excise duty, service tax, State Vat entertainment tax, etc. thus, bringing a holistic taxation policy for the country.
GST as a tax is collected at the point of consumption, which, removes the previous tax collection policy at the origin. As the government has worked consistently to clarify GST procedures, it is also imbibing on technology to further enhance the process.
Nevertheless, it is mandated for all Companies under the GST umbrella to have a New GST registration and follow the taxation policy as required.
However, GST provides an exemption for petroleum products, alcohol drinks, and electricity. They are taxed separately by the State Government. India follows a dual GST model due to non-consensus between the State and the Central Government. Thus, to be administered by both the state and central Government, a dual GST is levied basis-
- CGST- the Central goods and service tax, collected by the central government
- SGST- the State goods and service tax, collected by the State Government
- IGST- the Integrated goods and service tax, collected by the central government on inter-supply of goods and service.
How to register GST-
Thus, GST registration mandates for all businesses with a turnover above 20 Lakh, while this limit is 10 Lakh for north eastern states. Recently to boost the Small and medium scale industries in India Government of India increase the threshold limit of GST registration for goods supplier as 40 Lakh. It is important to follow the GST registration procedureproviding all correct information. In case you find it difficult to fill the form or required details it is important you contact your tax consultant. In case you do not have one, it is imperative you look for the best tax consultant in your town.
The process for new GST registration can be done online. The government provides GST portal for online registration. As a trader, you need to register under normal taxpayers in the portal. To complete the GST registration procedure, the first step requires you to provide with a phone number, email Id and Pan Number of your business. Provide all these in the portal and you will receive a Temporary Reference Number (TRN).
To enter this number, you can either proceed or go to Services>Registration>New Registration and enter your TRN number. Once completed with OTP, you will now proceed to the “My Saved Application”. For completing the new GST registration process, you have to fill the form and submit within 15days. Next, your number and form are deleted and you are now required to proceed with part II.
Fill in the details
Further as part of the GST registration procedure, you are required to fill your GST Application Form. To complete the new GST registration form, you further need to provide a valid bank account number and IFSC. Your certificate of incorporation for private limited companies or partnership deed for partnership firm. For other entities, you have to provide a Registration Certificate of the business entity.
Additional documents require proof of a primary place of business. Also in the Business and Promoters tabs, provide all details like- photo of the promoter, director, partner. Ensure you save and continue with the registration.
Next, in the “Authorized Signatory” section provide all details like proof of appointment of Authorized Signatory and Photo of Authorized Signatory. In case you wish to e-sign the form, the mobile/email of the Authorized Signatory will be used. In you wish to sign with DSC (Digital Signature Certificate), the PAN of the Authorized Signatory must be linked to the DSC.
Nonetheless, a DSC is mandated for Companies and LLC’s. You have to use the DSC of the Authorized signatory as specified in the new GST registration form. In case you do not have a DSC you have to contact the certifying authorities.
The GST registration the procedure, further, requires front/first page of bank passbook/statement containing bank account number, branch number, address of account holder and latest/current transaction details.
Verify and Submit your form
Once your details are filled and correctly mentioned, ensure you have not missed any integral information. All mandate fields are important. Once completed, submit your form for verification. Verification can be done through either e-signature, DSC or EVC.
GST Registration Certificate
Once the form is submitted, an Application Reference Number (ARN) will be generated and send to your mobile number and email id. The ARN should be used to track your application status in the portal.
Once the application status changes to ‘Approved’, you will be notified with your GSTIN, providing you with temporary username and password to login in the portal and then change the username and password. On completion of the GST registration procedure, you will receive a Registration Certificate within 3-5days.
Start filling your GST returns
Once you have received your GSTIN, it is compulsory to file the GST Returns. It can be done online but has to be done monthly or quarterly based on the nature of your business. GST returns have to be filled in two tables. Once the table requires reporting outward supplies. The other, for availing input tax credit bases the invoices uploaded by the supplier.
However, the GST structure allows suppliers to upload the invoices on a real time basis. Yet, do not forget to upload all monthly invoices. The invoices can be viewed and locked by the buyers to avail input tax credit. The reconciliation of invoices for buys will take place offline.
GST is a mandate and advantageous
GST as the new taxation policy creates a uniform tax paying system, eliminating all hidden and indirect taxes. GST backed by GSTIN creates a fully integrated tax platform to deal with all aspects of GST. When levied at the final destination of consumption it builds a transparent taxation system for all, also supporting the development of a common national market.
While some argue that GST can have adverse effects on the economy and certain industries will face problems, the Government has made it compulsory and obligatory for traders to monthly file their GST returns if they are registered under GST and the Government is continuously working to simplify the process of GST in India.