Since the GST (Goods and Services Tax) has been introduced into the Indian economy, it has considerably changed the taxation system of the country. While the GST is said to simplify the taxation process and increase the ease of doing business in the long term, it is very important for the businesses and stakeholders to understand GST and the role of the GSTIN or the Goods and Services Tax Identification Number which is going to have an immediate impact on the functioning of their business.
The Tax Identification Number, now known as the GSTIN is a 15 digit unique code that is assigned to every business that registers itself under the GST. You can apply for a GSTIN by registering for GST which is a cost-free process facilitated by the Government of India. You can register for GST in the following two ways:
- Online registration on the GST portal
- Offline Registration by visiting the GST Seva Kendra.
The Criteria For Applying For GSTIN
If you’re not sure whether your business is supposed to register under GST or if it is eligible to do so, then go through the following criteria for the applicability of GSTIN –
- All those goods supplying business ventures who have an annual turnover that exceeds ₹ 40 lakh in a financial year need to register themselves as a normal taxable entity. This threshold is ₹20 lakh for Jammu and Kashmir, Himachal Pradesh, Uttarakhand and Northeastern states of India.
- All those service providers whose annual turnover exceeds ₹20 lakh in a financial year are required to register for the GST as a normal taxable entity. For the special category states i.e. Jammu and Kashmir, Himachal Pradesh, Uttarakhand and Northeastern states, the annual turnover limit is ₹10 lakh.
Businesses For Whom GST Registration Is Mandatory Regardless Of Annual Turnover
- Any casual taxable person
- Any Input Service Distributor (ISD)
- Agents or suppliers of goods via an e-commerce portal
- Inter-State Goods and Services suppliers
- Any Non- resident taxable entity
- Those who are liable to pay tax due to the reverse-charge mechanism.
- TDS/TCS deductor
- Online data access/ Retrieval service provider
Important: In the event of operation from more than one state, registration is required for each state where the business is under operation.
Necessary Documents For GST Registration
For Proprietor
- PAN
- Aadhaar
- Photograph
- Electricity Bill
- Rent Agreement (if rented)
- Bank Statement/Cancelled Cheque (after registration)
For Partnership Firm
- PAN of the Entity
- PAN, Aadhaar, Photo of the partners
- Authorized Signatory Letter
- Electricity Bill
- Rent Agreement (if rented)
- Bank Statement/Cancelled Cheque (after registration)
For Private Limited Companies/LLP
- PAN of the Entity
- Certificate of Incorporation
- PAN, Aadhaar and Photo of the Directors/Partners
- Authorized Signatory Letter
- Electricity Bill
- Rent Agreement (if rented)
- Digital Signature Certificate
- Bank Statement/Cancelled Cheque (after registration)
With the issuance of the notification 62/2020 dated 20/08/2020, a change has been made in the registration process. The change states that anyone who is registering for the GST has to be mandatory to go through the Aadhaar Authentication Process which is supposed to happen on the date of the submission of the application. In the event that a person chooses not to go for Aadhaar Authentication, then a physical verification of the place of the concerned business is deemed necessary. Only after the authentication or the physical verification can the registration number be issued. A notice in the form GST REG-03 is issued within 21 days from submission of an application made without going through Aadhaar authentication or a failed authentication. The officer has to take action upon the application within 21 days from the date of submission of the application where the Aadhaar Authentication has not opted or where it has failed. If the SCN is not issued within those 21 days by the officer, the registration will be deemed approved.
Note: GST Returns have to be mandatorily filed if a taxpayer gets his/her firm registered under GST. Defaulting in compliance can lead to huge penalties.
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