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GST Registration for New Business


GST Registration for New Business

The Goods and Services Tax, right from its implementation on the 1st of July, 2017, has been the talk of a nation striving towards fulfilled development.  In this article, we look at the procedure for obtaining GST registration for new business. This post is particularly for our budding entrepreneurs, and of course anyone willing to learn.

The basic requisite for a business to have GST registration is that the turnover must be more than 40 lakhs, 20 lakhs for “Special category states”, except for the state of Jammu and Kashmir where registration is not required. We have a few exceptions though, which are listed and explained below.

GST Registration For Service Providers

Service providers in India, those involved in interstate or intra-state state supply of goods and whose turnover is within 20 lakhs, are exempted from registration. The decision was taken in the 23rd GST council meeting, which amends the earlier dictum where inter-state suppliers had to register for GST and file returns, irrespective of the amount of turnover.

Casual Taxable Person

A casual taxable person is anyone who occasionally undertakes transactions involving supply of goods and/or services, in a state or territory where he has no fixed place of business. He/she is taxable irrespective of the turnover of their business These type of taxpayers are not eligible for composition levy. The concerned person has to apply for registration at least 5 days before the commencement of business. He/she must make an advance deposit of tax to the extent he is liable. He can continue with the supplies of his services after getting a certificate of registration.

Know more about GST registration for Casual Taxable Persons.

Non-Resident Taxable Person

A Non-Resident taxable person is any person who partakes in receiving and supply of goods, but has no permanent business or residence in the country. Similar to a Casual Taxable person, there is no turnover limit. Unlike other taxpayers, a non-registered person is not required to submit his pan number, but should provide his tax identification number or unique identification number, which can be used to verify his identity. He/she must make his registration atleast five days before his commencement of business and must pay the required advance amount for which the concerned person is liable. Point to be noted, a non-registered tax person should not apply in a normal application form, but in another simplified version called form GST-REG-09.

He/she is responsible to electronically submit the application, along with an attested passport. He can do it either through the common portal or through a facilitated center notified by the commissioner. A non-registered person, if willing to extend his registration, can also do it through an application in FORM GST REG-11.  A non-taxable person can start with his operations immediately after issuing the certificate of registration. The refund of advance tax paid by a non-taxable person will only be returned after filing of all the returns for the period of registration.

Know more about GST registration for Non-Resident Taxable Person.

Reverse-Charge Mechanism

It is mandatory for a person undertaking reverse charge transactions to register for GST. Reverse-charge mechanism is a provision where the liability of tax is on the receiver of goods, and not the supplier. This is done on specific imports and other notified supplies.

Other Criteria

  • Any person who has registered in any of the previous tax systems like Excise duty, Service tax or VAT must register for GST.
  • In case of a transfer of a business from one person to another, the person to whom the rights are transferred to must register for GST.
  • Agents of a supplier.
  • E-Commerce operator.
  • Any person who supplies via an E-Commerce operator.
  • Any person supplying specific information from anywhere outside India, to a Non-Registered Indian citizen.

GST Registration For Multiple Branches

If you are planning to start a new business and open multiple branches, then separate GST registrations have to be obtained from each state and each branch. In case of different verticals in business, separate registration has to be obtained for each vertical.

Know more about GST registration for Branches.

Documents Required For Registration

The following are the documents required for GST registration in India:

  • Aadhar card of all Directors
  • PAN card of all Directors
  • Valid Indian mobile number
  • Valid E-Mail address
  • Prescribed documents
  • Business Address proof
    • a. If business place is rental, Rental agreement / Lease agreement
      b. NOC from the Landlord / Owner (even if the place is one of the Directors’)
  • Recent Electricity Bill
    Property Tax receipt
  • An authorized signatory who is a resident of India and who has a valid PAN number and other necessary details
  • At least one proprietor/Partner/Karta/Trustee/Member with valid PAN
  • Valid Indian bank account
  • Indian financial system code (IFSC) number of the bank
  • Jurisdiction details
  • Company PAN number
  • Incorporation Certificate
  • Memorandum of Association (MoA)

Click here for a complete list of documents required for GST registration.

Now, how do you go on and register yourself?

  1. Access the official GST portal
  2. Click on Services -> Registration.
  3. Under Registration, you will have two drop-down options; click on New Registration.
  4. Under that, you have to fill the required details like your mobile number, e-mail address and PAN. (PAN is mandatory for registration, you will have to apply with the help of the given links it in case you don’t have it). In case you are applying for GST registration for Company or LLP, enter the company’s or LLP’s PAN.
  5. You will get OTP’s on your mobile number and email for verification.
  6. Post entering the same, you will be a given a temporary identification number with the help of which you can further your registration process.
  7. Upload the required documents based on your business type and enter the information requested.

The officer may take 3 working days to review your application. If approved, you will be getting the registration certificate within 7 days of time along with the GST identification number. If it is pending, you may have to submit further documents to authenticate your application, post which the officer will make a decision on your application.

In case you require help with GST registration, visit India Filings.