GST Registration entails submitting an application on the GST Portal for a unique GST Number or GSTIN, also known as a GST Identification Number.
GST incorporates various indirect tax compliances such as excise, service tax, CST, VAT, and others, making tax payment easier and faster. GSTIN is required by the taxpayer in order to collect and pay GST on outward supplies (sales) and claim GST Input tax credit on inward supplies (purchases). GST also lowers the cost of tax compliance for small businesses. In reality, now that the GST system has been implemented, start-ups and small businesses have more time to improve their operations and explore new opportunities. Additionally, the installation of GST has permitted the establishment of centralized registration, which has simplified the process of starting a new firm while also reducing the high administrative expenses formerly incurred due to several state tax incidences. Furthermore, as a consequence, the demand for Business loans has increased dramatically, which has drastically benefited the country’s economy. Know how many types of GST registration and process.
Various Types of GST Registration
GST registration can take many forms under the GST Act. Before deciding on the best kind of GST Registration, you should be aware of the many options available. The following are the many types of registration under gst:
Normal Taxable Person
This is the case for the vast majority of Indian enterprises. To become a regular taxpayer, you do not need to make a deposit. These types of taxpayers likewise do not need to renew their enrollment as their GSTIN does not have an expiration date.
Composition Taxpayer
The composition scheme is available to all businesses with annual revenue of up to ₹ 1.5 crores. To determine turnover for the composition scheme, the total turnover of all enterprises with the same PAN must be summed together. However, do note that such taxpayers cannot claim the input tax credit.
Non-Resident Taxable Person | Types of GST
A non-resident taxable person comes to India occasionally and conducts business in India. A non-taxable person may not have a fixed place of business in India.
In other words, as per GST Law of India, a taxable person residing outside India and coming to India to occasionally undertake transactions in the country but has no fixed place of business in India is a non-resident taxable person in terms of Section 2 (69) of the GST Law.
You can use our GST calculator to know how much GST you owe before you register.
Casual Taxable Person
Normally, most people who start a business have a permanent office or other places of operation. A casual taxable person is one who does not have a permanent office, factory, or another place of business. Even if such businessmen do business in an irregular manner, they must pay GST: https://www.gst.gov.in/.
A casual taxable person, at the time of submitting an application for registration under sub-section (1) of section 19, makes an advance deposit of tax in an amount equal to the estimated tax liability of such person for the period for which the registration is sought, while a normal taxable person does not have to make any deposit of money to obtain registration.
E-commerce Operator Registration
GST Registration
Regardless of the value of the supplies they make, e-commerce operators are required to get GST registration. They also have to pay GST on the commission they receive from different suppliers, without being able to claim any exemptions.
Foreign E-Commerce Operator
Any online retailer without a physical location within India’s taxable area is considered a foreign online retailer. They must designate an agent on their behalf in order to operate in India. An operator of this kind must register under the GST law and in every state where their operations are carried out. Operators tasked with collecting TCS must register themselves and obtain a unique TCS Collection Number, which is different from normal registration. If an online retailer does not maintain a physical presence in any State or Union Territory, they may nonetheless apply for registration using their registered head office address.
TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) Registration
- Tax withheld from an employee’s compensation by the corporation is known as TDS.
- The Income Tax Act of 1961 allows for the deduction of TDS in this situation
- TCS is given to the merchant when the buyer purchases the items
- TCS covers the selling of minerals, scrap, timber, tendu leaves, and other such items
- TDS deductions apply to professional fees, dividends, wages, interest, brokerage and commission, and other payments
- TDS is subtracted when a bill surpasses a specific rate, but TCS is imposed regardless of the amount paid
- TCS is gathered based on the specific product type at a fixed rate.
Input Service Distributor (ISD) Registration
- Step 1: Under the CGST Act, Input Service Distributors are required to be registered under GST.
- Step 2: The process for registering an Input Service Distributor is the same as for a regular GST taxpayer.
- Step 3: To register, a separate application must be submitted using form GST REG-01 on the GST portal.
- Step 4: There is no turnover limit or threshold for registration as an Input Service Distributor.
- Step 5: Register as an Input Service Distributor if you are a GST taxpayer who wants to distribute input tax credits on input services.
Regular GST Registration (GSTIN)
- Step 1: Visit the GST portal at https://www.gst.gov.in and click on ‘Register Now’ under the ‘Services’ tab
- Step 2: Choose ‘New Registration’ and enter details in Part A:
- Select ‘Taxpayer’ from the ‘I am a’ drop-down menu
- Choose the state and district
- Enter the business name
- Provide the business PAN
- Input the active email ID and mobile number (OTPs will be sent here)
- Enter the image shown on the screen and click ‘Proceed’
- Step 3: On the next page, enter the OTP sent to your email and mobile number, then click ‘Proceed’. Note the Temporary Reference Number (TRN) displayed on the screen for future steps.
- Step 4: Return to the GST portal and click ‘Register’ under the ‘Services’ menu
- Step 5: Select ‘Temporary Reference Number (TRN)’, enter the TRN and captcha details, then click ‘Proceed’
- Step 6: Enter the OTP sent to your email and registered mobile number, then click ‘Proceed’
- Step 7: Check your application status on the next page and click the Edit icon on the right side
- Step 8: Complete the 10 sections and upload the required documents:
- Photographs
- Business address proof
- Bank details (account number, bank name, branch, and IFSC code)
- Authorisation form
- Taxpayer constitution
- Submit the documents and proceed.
- Step 9: On the ‘Verification’ page, review the declaration and submit the application using one of the following methods:
- Electronic Verification Code (EVC) sent to the registered mobile number
- Digital Signature Certificate (DSC) for companies
- e-Sign method with an OTP sent to the Aadhaar-linked mobile number
- A success message and Application Reference Number (ARN) will be sent to your email and mobile number.
Frequently Asked Questions
What are the different types of registration in GST?
GST registration types include Regular Registration, which is for businesses exceeding the turnover threshold; Composite Scheme for small businesses with lower turnover; and Casual Registration for temporary businesses. Each type is designed to accommodate varying business sizes and needs, ensuring compliance with GST laws.
Who is eligible for GST registration?
If a business surpasses the statutory threshold limit in terms of turnover, then any type of business entity—including corporations, partnerships, and sole proprietorships—may register for GST. In order to comply with GST requirements, enterprises who participate in interstate supply or those that are mandated to deduct tax at source must register.
Is GST registration free?
The registration for GST is usually free. On the other hand, professional fees for compliance, filing returns, and record-keeping may be expensive for firms. The intricacy of the company and the use of consultants or accountants' services affect these expenses.
Who is not eligible for GST registration?
GST is not applied on non-taxable items for human consumption, such as gasoline and alcohol. Products given to developers of Special Economic Zones are exempt from sales tax.
What is the age limit for GST registration?
The age to register for GST is unlimited. Rather than the owner's age, eligibility is determined by turnover and business activity. Regardless of age, both people and companies are eligible to register for GST registration as long as they meet the turnover and business requirements.
