The introduction of the Goods and Services Tax helped transform India’s taxation system for the better. As per the new laws, all eligible businesses must register for GST and complete the GST enrollment to pay their dues, file returns, and stay compliant.
India’s taxation system and infrastructure underwent a massive overhaul thanks to the Goods and Services Tax, better known as GST. The first step towards getting a GST license involves obtaining a provisional identification number. All eligible businesses that are yet to complete their registration must start the enrollment process as soon as possible. To kickstart the GST registration process, businesses have to file an enrolment form and provide some necessary supporting documents. Here’s an in-depth look at the processes involved in GST enrollment, and how businesses can complete the registration. You might find all this highly complex, so don’t worry if you can’t handle it; that’s what Vakilsearch is here to do for you!
What are the GST and GSTIN?
The Goods and Services Tax, better known as GST, is a value-added tax levied on services and goods traded within the country. It is an indirect tax that the consumers pay while purchasing goods or services. Additionally, businesses selling goods and providing services have to pay their share of the dues to the government. Hence, the tax provides the government with additional revenue and eliminates the cascading effect of taxes. The tax came into force in April 2017 and all eligible businesses have to register under this new regime.
The GSTIN, which stands for Goods and Services Tax Identification Number is a tag provided to taxpayers in every state. The number has a predetermined format as per the GST laws in India and consists of 15 digits. The first two digits of the GSTIN represent the state code, and every Indian state has a unique code. While in the past, the Indian taxation system consisted of various indirect taxes, such as VAT and Excise tax, the GST has subsumed several of them. For instance, the GSTIN has replaced the eleven-digit Taxpayer Identification Number or TIN, associated with the VAT. Around the country, businesses are migrating towards the GST system, and hence, business owners need to start their GST registration as soon as possible.
What is An Enrollment Number?
The GST enrollment number helps users log in to the government’s official GST portal. On registration, users receive a One-Time Password or OTP on their registered email ID and mobile number.
Obtaining a Provisional ID and Password
Newly registered businesses can obtain their provisional ID and password for the GST portal directly from their state’s VAT department. All existing taxpayers will receive a unique provisional ID and password, which are mandatory to enrol for the GST. Users can use these to log onto the GST portal and obtain a GST provisional certificate.
Documents Required for Registration
To enrol for the GST, individuals need to have the provisional certificate ID and password, along with the documents mentioned below.
- Personal email id to receive notifications and confirmation
- Bank account number and IFSC code
- Proof of business: Partnership deed, registration certificate, LLP Agreement as a PDF or JPEG file
- Photograph of partners, Karta of HUF, and owners as a JPEG file of under 100KB size.
- Proof of appointment of the authorized signatory as either PDF or JPEG file under 1MB size.
- Bank account details, including an image of the bank account number, branch address, and account holder’s address. These may be found on the bank statement or the front page of the passbook and should be submitted as either a PDF or JPEG file under 1MB size.
Users can enrol for GST registration through the government’s official GST portal using their provisional user ID and password. The Login page requires the individuals to input their provisional ID provided by the State tax department via email or SMS. Next, the users have to complete a two-step verification process using their One-Time Password and later setting five security questions.
As you can see, the process can get complicated at this point as applicants need to complete various steps. Additionally, users need to ensure they provide accurate details to prevent further delays in processing the application. As a result, most individuals rely on third-party legal service providers to help with their enrolment. Vakilsearch offers premium GST registration services that help business owners complete their enrolment with ease. To register your business under the GST regimen, reach out to us and schedule an appointment with our legal experts.
If you are not comfortable using the internet, make sure you take external help when applying for GST enrolment. Users must ensure they have all the required documents before starting the enrolment process to prevent delays. Hence, the first step in registering for the GST regimen is procuring the required supporting documents. If you have any doubts or are not comfortable using the GST system, feel free to reach out to us, at Vakilsearch for assistance. We also offer a GST rate finder service that lists out the GST rates of all goods and services that are available in India.
- Guide for GST Registration Process Online
- Apply for GSTIN Number India
- GST Registration for small business