What is GST ? Why its Important? How to Register For GST: A Step-By-Step Guide

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How to Register For GST: A Step-By-Step Guide


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What is GST?

Goods & Services Tax Law in India is a comprehensivemulti-stagedestination-based tax that will be levied on every value addition.

To understand this, we need to understand the concepts under this definition. Let us start with the term ‘Multi-stage’. Now, there are multiple steps an item goes through from manufacture or production to the final sale. Buying of raw materials is the first stage. The second stage is production or manufacture. Then, there is the warehousing of materials. Next, comes the sale of the product to the retailer. And in the final stage, the retailer sells you – the end consumer – the product, completing its life cycle.

So, if we had to look at a pictorial description of the various stages, it would look like:

register for gst

Why is GST Registration Important?

GST registration is critical because it will enable you to avail various benefits that are available under the GST regime. One such benefit is to avail seamless input tax credit. Multiple taxes are being clubbed under GST and thus the cascading of taxes that is prevailing currently will no longer be the case.

Also, timely registration will help you avoid any kind of interface with tax authorities.

Applicability

GST will apply when turnover of the business exceeds Rs 20 lakhs (Limit is Rs 10 lakhs for the North Eastern States). [Earlier the limit was Rs 10lakhs and Rs 5lakhs for NE states.

Migration to GST

All existing Central Excise and Service Tax assessees and VAT dealers will be migrated to GST. To migrate to GST, assessees would be provided a Provisional ID and Password by CBEC/State Commercial Tax Departments.

Provisional IDs would be issued to only those assessees who have a valid PAN associated with their registration. An assessee may not be provided a Provisional ID in the following cases:

  1. The PAN associated with the registration is not valid
  2. The PAN is registered with a State Tax authority and Provisional ID has been supplied by the said State Tax authority.register for gst register for gst register for gst 
  3. There are multiple CE/ST registrations on the same PAN in a State. In this case, only 1 Provisional ID would be issued for the 1st registration in the alphabetical order provided any of the above 2 conditions are not met.

The assessees need to use this Provisional ID and Password to login to the GST Common Portal (https://www.gst.gov.in) where they would be required to fill and submit the Form 20 along with necessary supporting documents.

Penalties for Not Registering Under GST

An offender not paying tax or making short payments has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000. The penalty will be high at 100% of the tax amount when the offender has evaded i.e., where there is a deliberate fraud.

However, for other genuine errors, the penalty is 10% of the tax due.

Multiple Registrations Under GST

A person with multiple business verticals in a state may obtain a separate registration for each business vertical. register for gst  register for gst  register for gst 

PAN is mandatory to apply for GST registration (except for a non-resident person who can get GST registration on the basis of other documents).

A registration which has been rejected under CGST Act/SGST Act shall also stand rejected for the purpose of SGST/CGST act.

The documents that are required to register for GST are:

  • Photographs
  • Constitution of taxpayer
  • Proofs of place of business
  • Bank account details
  • Authorization form

Watch this video to know how to register for GST

 

4 Comments
  1. sonu shah says

    Hi Abbas Ansari,
    Thanks for sharing
    Hope it will be helpful for everyone

    1. Abbas Ansari says

      Hii…most wlcme

  2. BTHawk says

    Great blog, thank you for sharing
    GST Billing Software from BTHawk helps you to create Simple GST Invoicing and Reports for Your Business.GST Invoice Softwareis the fastest way of making your business GST ready.

  3. company registration says

    Well done job on private company, your blog is really well written.

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