How to Register for GST on your Own? A Complete Guide

Goods and Services Tax, or GST, is a form of indirect tax that has been merged from various other taxes such as VAT, service tax, and excise duty. It took almost 17 years for the final draft to be ready and was finally passed by the Indian Parliament on March 29, 2017. GST was enacted solely to tame the cascading impact of taxes because businesses had been paying multiple taxes. However, businesses are now only required to pay a single tax under the GST bill, which came into effect on July 1, 2017.

There is, however, a certain checklist of documents that businesses must have to register for GST. There are many types of businesses running in India and for every other type, they must have certain documents in hand to get their GST certificate. This article outlines all the documents that are required for you to register for GST and become eligible for all the tax rebates. It simplifies the registration process for you. Further, we have provided information about GST registration, which is very important before enrolling.

Which Business Should Register for GST?

The GST Act mandates the registration of all businesses that have annual turnovers exceeding Rs. 40 lakhs or Rs. 10 lakhs (only for businesses located in the North Eastern Region and other hilly states such as Himachal Pradesh and Uttarakhand).

Additionally, some businesses must obtain a GST registration before starting a business in India, in addition to the above requirements. Those business types that fall under this category are mentioned below in detail:

1. Inter-state Business

Businesses that make interstate transfers of goods and services are required to register under GST. Failure to do so may result in penalties.

2. Contractual Business

Businesses that provide manpower or goods for contractual work to different states are also required to register for GST.

3. Importing Goods or Services

Businesses that import goods or services from abroad into India are also required to register for GST.

4. IT Companies

Any big corporations doing business in India need a GST certificate if their activities fall under the jurisdiction of the country.

5. Internet Service Provider or Telecommunications Company

GST registration is also required of any business that offers internet or telecommunication services to its customers.

6. E-commerce Business

Regardless of the amount of revenue a business generates in India, companies that operate completely through digital platforms and do not own physical locations must also register for GST.

Why is GST Important?

To reduce the burden of taxation and make it easier and more transparent, GST was implemented. GST has many advantages over the older taxation system, which makes it an absolute winner. It provides a multitude of benefits to any business, small or large, which makes that registration essential. The following are some of the benefits of GST:

1. Simple and Transparent Process

GST registration and filing are completely online, which makes the process very quick and clear. It has made being a businessperson much easier than it was before, which is the reason why new budding entrepreneurs are now making their way into businesses. After submitting all the necessary documents without any errors, you will likely receive your GSTIN number and Registration Certificate via email within a week.

2. Small-cap Businesses Are Exempted From Taxation

Taxes were once levied on all businesses that have over Rs. 5 lakhs turnover in a year. Now, however, following the implementation of the GST Act, businesses with a turnover below Rs. 5 lakhs do not have to pay any taxes.

3. Reduced Charges

There used to be multiple taxes owed by the same business, so the amount of tax was greatly increased. However, after the amalgamation of all taxes into one tax, i.e., GST, the amount of taxes got reduced significantly.

4. Easy Tax Filing System

The GST portal, which is operated and maintained by the Central Government of India, allows anyone to file their taxes. The portal paved the way for a digital taxation system and made the process fast and transparent. In case you hesitate to file the returns on your own, you can always hire a CA to file them on your behalf.

Document Checklist For GST Registration

In the registration process, different types of documents are required for different types of businesses. Based on the type of business, any individual can register their business on the GST Portal on their own if they have the following documents:

1. Sole Proprietor OR Individual

• Sole proprietor or individual’s PAN card
• Sole proprietor or individual’s Aadhar card
• Owners passport size photographs
• Sole proprietor or individual’s bank account details
• Address proof of the business location

2. Partnership Firm

• PAN card for all the business persons involved
• A copy of the partnership deed
• Passport size photo of all partners involved in the business with duly signed
• Address proof of partners
• Aadhar card of the authorised person
• POA of authorised signatory
• Details of bank account
• Registered office address proof

3. Limited Liability Partnership Firm

• PAN card of all the involved partners
• Registration Certificate copy
• Board Resolution copy
• LLP agreement copy
• POA (Proof of appointment) copy
• Passport size photo of all involved partners
• Address proof of all involved partners
• Aadhar card of all involved partners
• Bank account details of all involved partners
• Address proof of the registered business location

4. Society or Trust or Club

• PAN card of the concerned
• Registration Certificate of the society or trust
• Passport size Photograph and PAN card of the authorised persons (secretary or promoters)
• PAN and Aadhaar cards of the authorised persons (secretary or promoters)
• Board Resolution copy
• Address proof copy of the registered office
• Copy of any government or private bills validating your address, namely, water, telephone, or electricity bills (for self-owned properties only)
• Rent agreement (at least three months old) and NOC from the owner (for rented properties only)
• Bank account details
• Registered office address proof

5. Company (Public, Private, and One Person) (Indian and Foreign)

• PAN card of company director
• Certificate of incorporation copy given by Ministry of Corporate Affairs
• MOA (Company’s Memorandum of Association)
• PAN and Aadhar cards authorised person of the company (if any foreign company starts in India, they have to mandatorily appoint an Indian director for registration)
• PAN card and address proof of all the individual directors of the company
• Passport size photographs of all the individual directors of the company
• Board resolution of the company
• Bank account details of the business
• Address proof of the registered office

Conclusion

Nevertheless, we would like to emphasise that GST is beneficial to small and large businesses alike. This new taxation method has several advantages over the previous system that required multiple registrations for businesses. However, after the implementation of GST from July 1, 2017, all businesses that have a turnover of over Rs. 40 lakhs or Rs. 10 lakhs (only for North Eastern Region and other hilly regions) can register for GST and benefit from one of the easiest taxation systems.

Also read:

1) What Happens to Indian's Tax Money after Payment?
2) Top-10 Highest Tax Paying States in India
3) Why Do We Pay Income Tax in India? Importance, Applicability & more
4) Types of Direct & Indirect Taxes in India
5) OkCredit: All you need to know about OkCredit & how it works.

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FAQs

Q. I own several businesses, so do I need to register for GST certificates for each of them?

Ans. No, if a business or branch exists in more than one state or union territory, they can all be enrolled under the same GSTIN number. The reason is that the GST Act limits a person to get a single GSTIN number for a specific State/UT.

Q. When do we have to file our GST returns?

Ans. GST returns can be filed on a monthly, quarterly, or annual basis, depending on the business.

Q. What is the GSTIN number and what is its use?

Ans. A GSTIN is a 15-digit unique identification number for your business, which gives your business identity and allows you to log in to the portal to file returns.

Q. What is GST return?

Ans. A GST return is the process of uploading all the purchases and sales invoices of your business into the GST portal.