The introduction of the Goods and Services Tax has helped to improve India’s taxation infrastructure significantly. It has subsumed various indirect taxes, making it easier for individuals and businesses to clear their tax liabilities. Certain companies have to mandatorily register under the GST regime and obtain a GSTIN.
The Goods and Services Tax, also known as GST, is a multi-stage tax charged at every point of sale. It has replaced several indirect taxes such as the service tax, value-added tax, central sales tax, excise duty, and additional customs duty. The GST’s introduction occurred through the implementation of the Goods and Services Act, which came into effect on 1 July 2017.
Businesses that register under the GST regime receive a GST Identification Number to help with taxation purposes.
What is GST Registration?
GST registration is the process by which business organisations and entities can fall under the purview of the GST Act, 2017. While enrollment is not mandatory for all businesses, doing so provides various benefits. Additionally, registration is compulsory for businesses that cross an annual turnover threshold limit.
Initially, the GST Act stated that businesses exceeding an annual turnover of ₹20 lakhs must register themselves as taxable entities. An amendment made on 1 April 2019 raised this limit to ₹40 lakhs for manufacturers or goods. However, the threshold limit for service providers remains at ₹20 lakhs.
Additionally, for certain businesses, it is a criminal offence to operate without a valid GSTIN. Hence, business owners must keep themselves updated regarding GST registration and the GSTIN.
What is the GSTIN?
The GST Identification Number (GSTIN) is a unique registration code that businesses receive after completing their registration. It appears on all invoices submitted and received by registered taxpayers and organisations. Even sole proprietors and partnership businesses can apply for and obtain a GSTIN.
small taxpayers need to file only eight returns, including four GSTR-3B and GSTR-1 returns, saving them from having to file 16 returns.
The following individuals and organisations should mandatorily have a GSTIN in India.
- Businesses involved in inter-state supply of goods and services
- Businesses registered under old tax services, such as VAT, Excise, and Service Tax
- Agents of a supplier
- Input service distributors
- Businesses that supply online information, database access, and/or retrieval services from outside India to a person/business within the country
- E-commerce aggregators
- Businesses that supply through an e-commerce aggregator
- Other individuals and businesses as notified by the Central/State Govt, on recommendation by the GS Council.
Need to know how to calculate GST percentage? Our GST calculation formula makes it simple and accurate.
What to Know About Obtaining a GSTIN?
Individuals can apply for a GSTIN online through the official GST apply online portal. To register on the portal, you will have to provide the following details:
- Type of applicant
- State/UT and District
- Name of your business
- PAN number
- E-mail ID and valid mobile number
All the OTPs sent by the portal remain valid for ten minutes. Following this interval, users will have to request another OTP to proceed.
If you want to find a particular item’s GST rate or SAC/HSN code, you can do so by utilizing Vakilsearch’s Rate/HSN Finder service. Individuals can search for a product and find its relevant details, including the interest rate and code.
Users should store the system-generated Temporary Reference Number for future reference.
Individuals will have to upload several supporting documents to complete the registration process. Some of the documents required are as follows:
- PAN card
- Proof of business address
- Proof of Business Registration
- Identity and address proof of directors
- Authorisation and bank details
Users can submit their applications via OTP, EVC, or DSC methods. However, the GST registration for companies requires the DSC of directors.
Additionally, on successful application, individuals will receive an Application Reference Number they can use to check the status of their application.
Once your application is approved, you will receive your GSTIN and can start using it.
Why Do Companies Need GSTN?
Goods and Services Tax Network (GSTN) is a technology platform that was created to support the implementation of the Goods and Services Tax (GST) in India. It acts as a portal for businesses to register for GST, file their returns, and pay taxes. Here are some reasons why companies need GSTN:
- Compliance: Companies need to comply with GST regulations, which include registering for GST, filing returns, and paying taxes. GSTN provides a platform for companies to complete these tasks easily and efficiently.
- Centralized System: GSTN provides a centralized system for all GST-related activities. Companies can access the portal from anywhere in India and complete their tasks online.
- Automation: GSTN automates many tasks related to GST compliance, including filing returns, generating invoices, and tracking payments. This reduces the burden on companies and allows them to focus on their core business activities.
- Input Tax Credit: GSTN enables companies to claim Input Tax Credit (ITC) for taxes paid on inputs used in their business. This helps to reduce their tax liability and improves their cash flow.
- Transparency: GSTN provides transparency in the GST system. Companies can track their GST payments and returns, and the government can track the tax payments and collections.
- Seamless Integration: GSTN can be integrated with accounting and invoicing software used by companies. This enables companies to generate GST-compliant invoices and file returns seamlessly.
In conclusion, companies need GSTN to comply with GST regulations, automate GST-related tasks, claim Input Tax Credit, and benefit from the transparency and seamless integration provided by the platform. It helps businesses save time and effort and focus on their core activities.
How Can Vakilsearch Help?
Vakilsearch can help you with everything from scrutinising and uploading the required documents, filing your registration application for the issuance of the GSTIN: https://reg.gst.gov.in/registration/. You can apply through and utilise the truly digital platform of Vakilsearch with just a few simple steps.
Post submission of your application, we will coordinate with the concerned authorities for expediting your application. We will also help resolve related queries, if any, from the concerned department. Our legal experts will also keep you updated regarding your application status along the way. Obtain your GSTIN with no hassles and delays by partnering with Vakilsearch!
