Establishing your business can be complex and competitive. While you can take care of the competition with a proper business strategy, actual business processes can be streamlined by opting for the right registrations.
Among these, GST registration online is one of the essentials for any business whether voluntarily adopted or mandatory.
Apply for GST registration, and maintain compliance with timely GST return filing online.
Businesses That Have to Go for Mandatory GST Registration
If your business falls under one of the following criteria, then going for a GST registration online is essential:
- Annual turnover of INR 40 lakhs when selling products (INR 20 lakhs for special category states, i.e., hill states of Uttarakhand, Himachal Pradesh, and Northeast India).
- Annual turnover of INR 20 lakhs when dealing in services (INR 20 lakhs for special category states, i.e., hill states of Uttarakhand, Himachal Pradesh, and Northeast India).
- E-commerce business or aggregator.
- When operating across state borders.
- A casual taxable person who has no fixed business.
- A non-resident taxable person, i.e., a foreigner or foreign business.
- If you are liable to pay GST as a service provider instead of your supplier (Reverse Charge Mechanism).
- Acting as an Input Service Distributor or an agent for the same.
Alongside the above, any business can apply for the GST registration process online voluntarily and access any of the benefits.
GST Registration Online: A Brief Process
Whether you are a voluntary applicant for the GST registration online or have reached the mandatory threshold, the process is fairly simple. All you need to do is gather the listed documents, file an application on the official portal, and opt for GST Return filing online.
Your document checklist for the application process is as follows:
- A PAN card (your basic tax ID)
- Aadhaar Card (Proof of identity)
- Proof of business registration
- Bank account details
- Proof of address for the place of business
Using the above, you can get started on the GST registration process online with the below simple steps:
- Verify your eligibility for GST Registration online.
- Gather all necessary documents.
- Fill out the online application form.
- Upload all documents, as mentioned.
- Provide complete and accurate data in your GST registration form.
- Validate these and receive a Temporary Reference Number (TRN).
- Fill in Part B of Form GST REG-01 using the TRN.
- Provide an acknowledgment using Form GST REG-02.
- Apply and track the application to stay apprised of any change.
For queries, you receive a notification vis-à-vis the GST REG-03. To respond with any additional documents, you will have to use the GST REG-04. All queries and additional documents need to be provided within 7 days.
Once your application has been checked and verified, your business will receive a 16-digit GST Registration Number (ID). For the entire process, the complete estimated time frame is 7-10 working days, barring any issues.
Benefits of Opting for GST Registration
By opting for the GST Registration online, businesses can lower their tax liability. Further, they can streamline their processes, maintain tax compliance, facilitate the transaction of their products, and use GST registration as a legal safeguard.
Some of the most definite benefits that a business can enjoy with the GST registration process are:
- Removal of the cascading effect of taxes with a unified tax collected by the Central Government on behalf of the states.
- Being eligible for Input Tax Credit (ITC) and, thus, being able to offset purchases against sales.
- Boost the faith of the clients and investors in your business.
- Get access to bid on government contracts across sectors.
- Ensure logistical efficiency with the streamlined IGST and e-way bill system.
- Claim reimbursement on unused input taxes.
- Get access to various GST linked schemes meant for Startups and other businesses such as the Composition Scheme.
- Get loans and funding easily from banks and other financial institutions.
Alongside these, you can avoid attracting any penalties due to not opting for the GST registration online. For instance, if a business has crossed the threshold for GST exemption and is yet to register, it may attract a fine of INR 10000, or 10% of the total tax that is due.
Plus, without a GST registration, businesses may also face the following:
- Vehicles or goods being detained or confiscated at the state borders.
- Not being able to claim any credits as Input Tax (ITC).
- Missing out on government contracts or large public tenders.
- Missing out on projects with larger companies.
- Restrictions or additional checks when applying for loans.
Thus, applying for GST Registration online is a need-of-the-hour for all businesses.
What to do After GST Registration Online: Filing and Compliance
Once you have your 16-digit GST registration in hand, it is important that you display this at every place of business. Any deviation from this can attract legal action and penalties.
Further, it is mandatory for businesses to go for GST Return Filing online to avoid any undue penalities. To ensure GST compliance, this is the first step. To add, businesses also need to do the following:
- Upload accurate data against the GSTR-1 form.
- Maintain proper documentation for a GST audit.
- Reconcile the GST returns against the ledger.
- Understand the Reverse Charge Mechanism and whether or not it is applicable to their business.
- Keep the GST authorities apprised of any changes in the business.
- For turnovers greater than INR 2 crore, go for a mandatory GST audit.
- Do all corrections before the Annual GST Return filing online.
You may also seek professional help from a facilitator that offers GST registration and filing services. Not only will this simplify the process, but also have an intermediary to tackle any issues that may arise.
Wrapping Up
Whether your business falls in the mandatory GST bracket or voluntary, having the registration is one way to ensure a smooth business process. Thus, once you complete your business registration, applying for GST registration online should be your next step. Further, with GST Return filing online, you can enjoy a simpler tax filing process.