GST – A Step towards the Economic Growth of the Nation

Last Updated at: January 04, 2020
239
GST

Introduction

Just like the digital transformation, setting a front foot for economic growth is quite an essential aspect for our nation. And so, to provide a boost to the financial system of India, GST (Goods and Services Tax), and a unified tax came into action from 1st July 2017. The idea and committee for GST were set up back in 2000, and with continuous efforts, it was finally brought to work in 2017.

The significant benefit of GST was the elimination of the cascading tax system, allowing the individuals the file their taxes without much chaos. Along with this, as per the statistics, GST is going to play a significant role in the globally allowing sustained growth and a transparent working system.

The procedure of Goods and Service Tax Registration

Unlike a few years ago, when people had to run from one government office to the other to get all their legal work, GST registration and even the filing of taxes can be done online quickly, without the need for offline procedure.

Get online GST registration

Who has to register for GST?

It is compulsory to register for GST if:

  • The annual business turnover is above Rs 40 lacs, and for the north-eastern and northern states, including Jammu and Kashmir, Himachal Pradesh, etc., the turnover is over Rs 10 lacs.
  • Inter-state and e-commerce business.
  • Paying taxes under the reverse-charge.
  • Paying taxes under section-9.

The step-by-step procedure of GST registration is as mentioned below:

  • Open the GST portal. (www.gst.gov.in)
  • On the same page, click on the option ‘Register under Normal Taxpayers’.
  • A new page opens up where you are provided with two options. One is the New Registration, and the other is log in through TRN (Temporary Reference Number).
  • Click on the ‘New Registration’ option, and fill in the details asked for on the page.
  • After entering the email address and mobile number, an OTP is sent on both the email address and mobile no.
  • Enter and verify the OTP, both for email and mobile number, then click on continue.
  • Next, a TRN (Temporary Reference Number) is provided and also sent on mail and phone number. Note it down and keep it safe.
  • Once noted, click on ‘Proceed’.
  • Open the GST portal again. Select the ‘Register Now’ option.
  • A page opens up. Select the option of ‘TRN’.
  • Next, enter the TRN along with the CAPTCHA, and click on proceed.
  • Again, an OTP is sent on the email and mobile number. Check the same and enter it.
  • Once done and proceeded, a new page opens up where a table of application status is provided. Click on the ‘edit’ icon to edit and fill in your registration application.
  • This is Part-B of the registration form, where all the business details need to be filled in.
    These include:
  • Photographs
  • Bank account statements
  • Address proof of the business
  • Form for authorization and incorporation
  • Taxpayer’s constitution
  • Details of the partners(if any)/businessman
  • After filling in all the details, click on the verification page. Verify all the information, and submit the form using either EVC, e-sign or DSC. (Note: DSC is mandatory for companies and LLPs)
  • Once submitted, the process is completed successfully.
  • Just after this, the Application Reference Number (ARN) is sent on the provided email and mobile number.

This ARN must be kept safely as it is used to check the application status, along with filing GST and other future purposes.

As such, in some easy steps, the GST registration can be completed along with the submission of the documents.

Penalty for not registering under GST

In case, a company or an individual fails to register themselves for the GST, even after being eligible, they will be liable to pay the penalty. The penalty is of a minimum amount of Rs. 10,000 else one has to pay 10% of the total tax.

Conclusion

Depending on the various types of business, the taxpayers have to pay the GST accordingly. As such, there is a long list of the different kinds of GST registration that has to be followed.

Along with this, while submitting the GST registration form, no fake documents must be submitted as it is a punishable offence.

As such, the GST registration process is a quite simple and easy process where anyone can do it.

Frequently Asked Questions (FAQs)

1. When can an individual claim refund amount on GST?
  • According to the LUT (Letter of Undertaking), any person who comes under the business of traders and exports can claim their refund amount. This is because they are exempted from the export taxes.
2. Is GST applicable for agents and brokers having a turnover of fewer than Rs20 lacs?
  • Yes, all the agents and brokers must register themselves under GST even if the turnover is less than Rs.20 lacs. It is because they are involved in a business of taxable supplies which is made in replacement of some other person.

 

GST – A Step towards the Economic Growth of the Nation

239

Introduction

Just like the digital transformation, setting a front foot for economic growth is quite an essential aspect for our nation. And so, to provide a boost to the financial system of India, GST (Goods and Services Tax), and a unified tax came into action from 1st July 2017. The idea and committee for GST were set up back in 2000, and with continuous efforts, it was finally brought to work in 2017.

The significant benefit of GST was the elimination of the cascading tax system, allowing the individuals the file their taxes without much chaos. Along with this, as per the statistics, GST is going to play a significant role in the globally allowing sustained growth and a transparent working system.

The procedure of Goods and Service Tax Registration

Unlike a few years ago, when people had to run from one government office to the other to get all their legal work, GST registration and even the filing of taxes can be done online quickly, without the need for offline procedure.

Get online GST registration

Who has to register for GST?

It is compulsory to register for GST if:

  • The annual business turnover is above Rs 40 lacs, and for the north-eastern and northern states, including Jammu and Kashmir, Himachal Pradesh, etc., the turnover is over Rs 10 lacs.
  • Inter-state and e-commerce business.
  • Paying taxes under the reverse-charge.
  • Paying taxes under section-9.

The step-by-step procedure of GST registration is as mentioned below:

  • Open the GST portal. (www.gst.gov.in)
  • On the same page, click on the option ‘Register under Normal Taxpayers’.
  • A new page opens up where you are provided with two options. One is the New Registration, and the other is log in through TRN (Temporary Reference Number).
  • Click on the ‘New Registration’ option, and fill in the details asked for on the page.
  • After entering the email address and mobile number, an OTP is sent on both the email address and mobile no.
  • Enter and verify the OTP, both for email and mobile number, then click on continue.
  • Next, a TRN (Temporary Reference Number) is provided and also sent on mail and phone number. Note it down and keep it safe.
  • Once noted, click on ‘Proceed’.
  • Open the GST portal again. Select the ‘Register Now’ option.
  • A page opens up. Select the option of ‘TRN’.
  • Next, enter the TRN along with the CAPTCHA, and click on proceed.
  • Again, an OTP is sent on the email and mobile number. Check the same and enter it.
  • Once done and proceeded, a new page opens up where a table of application status is provided. Click on the ‘edit’ icon to edit and fill in your registration application.
  • This is Part-B of the registration form, where all the business details need to be filled in.
    These include:
  • Photographs
  • Bank account statements
  • Address proof of the business
  • Form for authorization and incorporation
  • Taxpayer’s constitution
  • Details of the partners(if any)/businessman
  • After filling in all the details, click on the verification page. Verify all the information, and submit the form using either EVC, e-sign or DSC. (Note: DSC is mandatory for companies and LLPs)
  • Once submitted, the process is completed successfully.
  • Just after this, the Application Reference Number (ARN) is sent on the provided email and mobile number.

This ARN must be kept safely as it is used to check the application status, along with filing GST and other future purposes.

As such, in some easy steps, the GST registration can be completed along with the submission of the documents.

Penalty for not registering under GST

In case, a company or an individual fails to register themselves for the GST, even after being eligible, they will be liable to pay the penalty. The penalty is of a minimum amount of Rs. 10,000 else one has to pay 10% of the total tax.

Conclusion

Depending on the various types of business, the taxpayers have to pay the GST accordingly. As such, there is a long list of the different kinds of GST registration that has to be followed.

Along with this, while submitting the GST registration form, no fake documents must be submitted as it is a punishable offence.

As such, the GST registration process is a quite simple and easy process where anyone can do it.

Frequently Asked Questions (FAQs)

1. When can an individual claim refund amount on GST?
  • According to the LUT (Letter of Undertaking), any person who comes under the business of traders and exports can claim their refund amount. This is because they are exempted from the export taxes.
2. Is GST applicable for agents and brokers having a turnover of fewer than Rs20 lacs?
  • Yes, all the agents and brokers must register themselves under GST even if the turnover is less than Rs.20 lacs. It is because they are involved in a business of taxable supplies which is made in replacement of some other person.

 

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