All You Need to Know about GST Registration Online in India

With the introduction of Goods and Service Tax (GST) in India, starting from 1st July 2017, this tax reformation has created a single national market, common tax base, and common tax laws across the Centre and the State. Cascading Mitigation feature of GST provides the Input Tax Credit at every stage of supply for the tax paid earlier. Extensive use of Information Technology through GSTIN has led to greater transparency in taxation.

GST is an indirect tax that replaced multiple indirect taxes imposed earlier, such as Central State Tax, Excise, VAT, Service tax, etc. GST rules for registration and other similar laws have been approved by the GST council and are placed in the public domain.

Following is the step by step process for online GST registration of sole proprietorship:

• Visit the official website of GST online https://reg.gst.gov.in/registration/
• Select the option "Services" from the menu and choose the option of "Registration" from the drop-down menu.
• Select the category of registration and choose “New Registration”
• Fill the form by selecting a category from the down menu such as taxpayer (in the case of a sole proprietor), tax-deductor, tax-collector, etc. Further complete the details such as state, district, Legal Name as mentioned in the PAN, PAN number, Email id, and contact number (For OTP and login credential).
• Once the form is completed, click on “Proceed” to generate the TRN (Temporary Reference Number) by completing the OTP validation. OTP remains valid for 10 minutes and the applicant has to complete the validation by entering two separate OTP received on mail id and mobile number.
• After validation is completed, TRN (Temporary Reference Number) is generated online and is received on the registered mail id that can be used to Login and complete the GST registration application.
• Login with generated TRN and enter the captcha text, as shown on the screen. OTP is generated every time the applicant login the portal. Proceed by entering an OTP to the next portal.
• 10 stage of the registration process has to be completed for GST registration. Following are the stages of GST registration:

1. Business Details: Complete the business details by entering all the mandatory fields such as Constitution of business, Commissionerate Code, Division Code, Range Code, a reason to obtain the registration, date of commencement of business, etc.
2. Promoter/Partner Information: Complete the details of the owner, such as name, father's name, DOB, Email id, Mobile Number, Residential address. Upload the passport size photograph of the owner in JPG format of size up to 1 MB
3. Authorized Signatory: Complete this information by nominating the authorized person who will be responsible for GST registration, have complete access to the GST portal, and will be responsible for undertaking a wide range of transactions.
4. Principal Place of Business: Details of the principal place of business have to be provided, which will be the primary location for operations in the business. Complete the necessary details and upload the documentary evidence of the principal place of business such, as electricity bill in PDF format up to 1MB.
5. Additional Place of Business: Enter the details in this tab in case an applicant has any additional place of business
6. Details of Goods and Services: Provide the top 5 categories of goods or services provided by the sole proprietor. This list is indicative and the applicant is not restricted up to these goods.
7. Bank Details: give the details of the bank such as account number, bank name, IFSC code, etc, up to a maximum of 5 bank accounts.
8. Verification of application: complete the GST registration application by verifying the application through digitally signing it using Digital Signature Certificate (DSC) of the authorized signatory.

• Within 15 minutes of completing the verification, acknowledgment is received on registered mail id and phone number. ARN (Application Reference Number) is generated on registered mail id that can be used to track the status of the GST registration application.
• After an authority approves the application, the GST certificate is received on mail id with the GST number and other details of the business.

Following are the key-points for GST registration Online depending upon the type of taxable person:

• Every business shall apply to the respective state where he is situated within 30 days of GST applicability on him.
• A casual taxable person and the non-resident taxpayer shall apply at least 5 days before the commencement of business.
• GST registration is PAN based and thus is the mandatory requirement for applying GST registration certificate
• GST certificate must be different for every unit operating in a different state. GST is region-specific registration.

Following is the list of documents required for GST Registration to be submitted by an applicant to tax authorities with application online:

• Apply PAN card of entity
• PAN of directors, proprietor, partners (depending upon the kind of applicant)
• Valid contact details such as Email-id and Phone Number of authorized signatory in case of company and proprietor in case of proprietorship
• Proof of Principal place of business such as property tax paid or registry in case the premise is owned.
• If the premise is rented, supporting documents for the principal place of business shall be attached such as rent agreement/lease deed/NOC from landlord
• Bank details of entity or proprietor such as Bank Name, Account Number, IFSC Code, and Branch.
• Complete list of goods and service
• DSC of authorized signatory is mandatory in case the applicant is Company or LLP
• COI if the applicant is the company

Although GST registration in India is compulsory in case the annual turnover of the sole-proprietorship firm exceeds INR 40 Lakhs in the preceding year, certain proprietorship firms take the voluntary registration certificate to get legal recognition. However once registered under GST, several compliances are mandatory, failing which department levies hefty penalty.

• Normal registration

• Turnover exceeding INR 1.5 Crore: file the form GSTR 3B and GSTR 1 monthly
• Turnover less than INR 1.5 Crore: file the form GSTR 3B every month and GSTR 1 quarterly

• Registration under Composition scheme:

• Quarter return: file form GSTR-4 every quarterly
• Annual return: file form GSTR-9A every quarterly

Contact our team of experts to get any tax-related consultation and advice on subjects such as GST, Income Tax, Return filing, and other similar topics.