If you run a business in India, be it in the services sector or the manufacturing one, and have an aggregate turnover of more than ₹20 lakhs, then it is mandatory for you to register for GST. However, registering your business under this new tax scheme involves more steps than meets the eye, and thus in today’s article, we will share with you a step-by-step guide on how you can register your business for GST online in India.
What is GST?
Before we delve into the intricacies of registering for GST, let us briefly understand the meaning of GST and its implications on you as a business owner.
In simple terms, the GST system can be understood as a new age taxation system that was introduced in 2017 by the government to abolish the earlier multiple taxation system. Before the introduction of the Goods and Services Tax, India had a system of Value Added Tax and Sales Tax, the slabs of which differed from state to state. Along with this, since there was minimal coordination between taxation departments, the same item would be taxed multiple times, costing the end customer an increased price.
GST in India is a four-tier taxation system that covers all major industries and has slabs of 5%, 12%, 18%, and 28% depending on the good being sold or the service being rendered. The taxation slab is standardized across the whole country, and a central repository is continuously maintained to ensure that the same item doesn’t get taxed more than once.
How to Register Your Business Online For GST?
Now that you understand the basics of GST, mentioned below is a glossary of the most significant steps you need to undertake in order to register your business for GST.
For the first step of the process, visit the official website of GST by clicking here, followed by clicking on the registration tab and new registration button.
Step 2 :
Once the new registration window has opened, initiate the Part A of the registration process. The GST registration process is divided into two parts A & B, and each of them needs to be individually completed in the span of 15 days from each other. In this section, you will need to enter the following details:
- Click on the New Registration radio button
- In the next section, select I am a taxpayer.
- Select your state and district by clicking on the dropdown.
- Enter the name of your business establishment, followed by your business PAN in case you have one, or your individual PAN in case you have registered for a sole proprietorship.
- Enter your business email address, followed by your business phone number. Kindly note that you will receive all the correspondence along with your OTPs at this address, so make sure that you are entering the correct information.
- Crosscheck all the information and click on proceed.
In the third step of the process, you will need to enter the two separate OTPs you received individually at your email address and phone number. Once shared, click on continue to proceed to the next step.
Note down the 16 digit TRN or Temporary Reference Number shown on your screen. The same will be shared with you via email as well as SMS, and you will require it in the upcoming stages when you initiate part B of the registration process.
Go back to the GST portal and click on new registration.
Select the TRN (Temporary Reference Number) radio button and enter your TRN followed by the captcha displayed on the screen. Once done, click on proceed to continue to the next step.
Enter the OTP shared with you via email and SMS, and click on proceed to continue.
Check for your application on the screen and ensure that its status is marked as drafts.
Click on the edit button and initiate part B of the registration process. Part B of the GST registration process has 10 sections, each of which needs to be completed individually to complete the application. While filling out this step, make sure that you keep the following documents handy:
- Your photograph or photograph of the business owner
- The Constitution of the business is the type of registration your organization has, for example, LLP, Pvt Ltd, Sole Proprietorship, etc.
- Proof of business location and address
- Bank account details of your business (this is not mandatory)
- Verification details via eKYC mandates.
Once you have entered all the details, crosscheck everything for accuracy and then click on next to proceed to the verification page. Tick on the declaration radio button and proceed to submit your application by following either of these steps:
- Using EVC, where OTP will be sent to your mobile number
- Using e-Sign where OTP will be sent to your Aadhar registered mobile number, and
- If you have a Pvt Ltd company or LLP through DSC or Digital Signature Certificate.
If you have completed all the above-mentioned steps without any error, then in this final step, you will be allotted an ARN or Application Reference Number. Once your application has been submitted, the local GST office will verify and crosscheck all the details to ensure that you have provided the correct information. Along with this, if you have selected the Aadhar e-Sign feature in the previous step, a physical check of your premises won’t be mandatory, and the entire process will be completed online.
The verification process normally takes 7 to 10 business days, and after that, you will be allocated your GST number.
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Registering your business for GST will not only allow you to claim government benefits and subsidies but also open doors and opportunities for your business. Being a registered entity in India arrives with a variety of benefits and opportunities, and now that you know the steps of registering your business online for GST, wait no more and get registered today.