The Goods and Services Tax (GST) number is a unique identification number required for businesses to comply with tax regulations. Obtaining a GST number is crucial for operating legally and enjoying the benefits of GST. In this article, we will provide a comprehensive guide on how to obtain a GST number in a step-by-step manner, ensuring that your business can smoothly navigate through the registration process.
Understand the Basics of GST
Before diving into the registration process, it’s essential to have a basic understanding of GST. GST is a comprehensive indirect tax levied on the supply of goods and services across India. It has replaced numerous indirect taxes like VAT, service tax, and central excise duty. Under the GST regime, businesses with an annual turnover exceeding a specified threshold are required to obtain a GST number and comply with the relevant regulations.
Determine Your Eligibility
The eligibility for obtaining a GST number depends on several factors. If your business’s annual turnover exceeds the threshold limit set by the GST Council, or if you engage in interstate transactions, it is mandatory to obtain a GST number. However, even if your turnover is below the threshold, voluntary registration can provide several benefits such as claiming input tax credits and participating in the formal economy. Assess your eligibility based on your business operations and annual turnover.
Gather Required Document
To initiate the GST registration process, you need to gather the necessary documents. The common documents required include PAN (Permanent Account Number) card, identity and address proofs of the business owner/partners/directors, business registration certificates (e.g., partnership deed, company incorporation certificate), bank account details, and proof of the place of business (e.g., rent agreement, utility bill). Make sure to have these documents readily available in the prescribed format to streamline the registration process.
Online Registration Process
The GST registration process is primarily conducted online through the GST portal. Visit the GSTN (Goods and Services Tax Network) portal and select the “New Registration” option. Fill in the required details such as PAN, mobile number, email address, and state. After verifying the provided information, you will receive an OTP (One-Time Password) on the registered mobile number and email address. Enter the OTP to proceed. Then, fill in the GST application form with accurate details and upload the required documents. Finally, sign the application using a digital signature or E-Signature.
Verification and Issuance of GSTIN
Once you have submitted the application, the GST department will verify the details and documents provided. If any discrepancies or additional information is required, they may request clarification. Upon successful verification, the GST department will issue a GSTIN (Goods and Services Tax Identification Number) along with a provisional certificate. The certificate serves as proof of your GST registration and allows you to commence your business activities under the GST regime.
After obtaining the GSTIN, it is crucial to comply with ongoing GST regulations. This includes timely filing of GST returns, maintaining proper books of accounts, and adhering to tax payment deadlines. Familiarise yourself with the GST compliance requirements and ensure you are up to date with any changes or amendments introduced by the GST Council. Non-compliance can lead to penalties and legal consequences, so it is important to stay informed and fulfil your obligations as a registered GST taxpayer.
FREQUENTLY ASKED QUESTIONS
Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till a new one is issued?
Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be the same.
Whether traders of country liquor are required to migrate to GST from VAT as liquor is out of GST law?
If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
Obtaining a GST number is an essential step for businesses operating in India. By following the step-by-step guide outlined in this article, you can successfully register for GST and ensure compliance with tax regulations. Remember to assess your eligibility, gather the required documents, complete the online registration process, and fulfil post-registration compliance requirements. Stay updated with the latest GST regulations to maximise the benefits of the GST regime and seamlessly run your business in a formal and lawful manner.