What is GST and GST Registration?(Overview)
The Goods and Service Tax (GST) is an indirect tax, which includes most of the State and Central taxes such as the service tax, Value Added Tax (VAT), central sales tax, excise duty, additional customs duty and so on. For introducing GST in India, the Government tabled the 122nd Constitutional Amendment Bill in the Parliament. The Parliament passed the Bill in August 2016 and was sent to the States for ratification. As many as 19 states ratified the Bill. Subsequently, it received the Presidential Assent on 8th September 2016 and was notified as to the 101st Constitutional Amendment Act, 2016. This Act conferred power on both the Central and State legislatures to levy GST rules on the supply of services and goods.
The GST was enforced as a comprehensive and destination-based indirect tax from 1st July 2017. Since then, it has been a big driving force of tax reforms in India. Over the last 2 and a half years, quite a few important changes have been made in the GST rules, keeping in mind the business dynamics in the country.
As per provisions of the Act, businesses exceeding an annual turnover of Rs 40 lakhs are needed to register themselves as a taxable entity. For Assam and other North-eastern states, this limit of threshold turnover was kept at Rs 10 lakhs. But, as decided in the 32nd GST Council Meeting dated 10th January 2019, states were given options to either opt for new limits or to continue with the previous limits. Assam opted to raise this limit to Rs 40 lakhs for sale of goods, which came into effect from 1st April 2019 onwards. There was no change in the threshold limits for service providers doing GST registration in Assam.
This process of registration is known as GST registration. GST registration is mandatory for certain types of businesses. As per the GST Act, penalties are applicable if a business operates without having a GST registration.
What are the benefits of GST registration?
Registration under the GST regime can bring the below-mentioned benefits to the Government and the businesses-
- A GST registration makes a business legally recognized as a supplier of services or goods
- GST provides a cost-efficient solution to the businesses to compete with others in the unorganized sector
- For the Government, it simplifies the system of tax administration, improves compliance and eliminates distortions in trade, consumption, and production.
- GST increases the revenue generation prospects for the Government
- GST helps a business to consolidate its warehousing facilities and to reduce the logistics costs.
- GST abolished the ‘cascading effect’ associated with the earlier taxation regime. Therefore, it reduces the production cost of businesses and makes export more competitive.
- GST registration makes a business legally authorized to collect tax from its purchasers or recipients and to pass on the credit against the taxes paid to them.
Who should register for GST? (Checklist)
The following entities should mandatorily register for GST registration in Assam.
- Individuals/businesses registered under the Pre-GST regime (i.e., VAT, Excise, Service Tax, etc.)
- Businesses with annual turnover above the threshold limit of Rs. 40 Lakhs
- Agents of a supplier & Input service distributor
- Non-Resident taxable person/Casual taxable person
- A person/business that supplies through an e-commerce aggregator
- Those paying tax under the reverse charge mechanism
- All ecommerce aggregators
- A person/business that supplies online information, database access and/or retrieval services from outside the country to a person/business in India (other than a registered taxable entity)
How to do online Gst registration in Assam?
Here is the step-by-step procedure for doing online GST Registration in Assam.
- Visit the Govt website portal
- Visit “Services” and then click “Registration”
- Click “New Registration”
- On the resultant page, fill in the following details-
- Select “Taxpayer” in the ‘I am a’ drop-down menu
- Select ‘Assam’ in the ‘State/UT’ drop-down menu
- Select ‘the name of your district in the ‘District’ drop-down menu
- Enter the legal name of your business, as mentioned in your PAN
- Fill in your PAN number
- Enter your E-mail ID and valid mobile number in appropriate boxes. OTPs will be sent to them.
- Click “Proceed”
- On the next page, enter the OTPs received in the space provided and click “Proceed”
- A Temporary Reference Number (TRN) will be provided will appear on your screen. Note this number for future use.
- Now, visit the GST again and go to Services>Registration> New Registration and fill in the following details-
- Select the button named ‘Temporary Reference Number (TRN)’
- Enter the TRN and fill in the CAPTCHA image in the space provided
- Click “Proceed”. You will receive OTPs on your E-mail ID and valid mobile number
- Enter the OTPs you have received on the resultant page and click “Proceed”.
- The next page will show the status of your application. Click the “Edit” icon on the right side
- On the next page, you will see 10 sections. Fill in all the relevant details and upload scanned copies of the relevant documents ( see the next section to know about the documents required)
- Next, visit the “verification” page and check the declaration box.
- Apply by any of the following methods-
- By e-Sign methods- You will receive an OTP on the mobile number linked to your Aadhaar card
- By EVC- You will receive an Electronic Verification Code on your registered mobile number
- If you are registering as a company, you must apply with a Digital Signature Certificate (DSC).
- After you apply, a message confirming the successful submission will appear on the screen. An Application Reference Number (ARN) will be sent to your Email ID and the registered mobile number. You can check the status of your application on the GST portal with the help of the ARN.
You will be allotted your permanent GST number after 7 working days, subject to the submission of proper documents. After you do online GST registration in Assam, this GST number (called the GSTIN or GST Identification Number) will appear on all the invoices submitted or received by you.
To make it easier to know where a business entity or taxpayer is from, every state in India has been given a State Code, which is a two-digit number. These codes are fixed and small so that there is less chance of mistakes in filing GST Returns and in processing GST invoices. The first 2 digits of a GSTIN signify the GST State Code.
The Assam GST Code is 18, as per the GST State Code List. For example, in GSTIN 18AAEPM0122C1Z8, the first 2 digits (18) denote the Assam GST Code and specify that the business is located in Assam.
What are the documents required for online GST registration in Assam?
The following documents are required to be submitted for GST registration in Assam-
- PAN card in the name of the Company
- Proof of constitution of business (anyone from partnership deed, Memorandum of Association (MOA), certificate of incorporation, registration certificate, Articles of Association (AOA), Society by-laws and so on)
- Proof of business address (anyone from rent/lease agreement, electricity bill, owner NOC and so on)
- Bank details (First page of bank passbook, a canceled cheque of the bank account showing the name of the account holder, bank statement)
- Authorization details (anyone from letter of authorization, copy of the resolution passed by the managing committee/BoD specifying the authorized signatory
Frequently Asked Questions
Yes. As per section 19 of the Model GST Law (MGL), every entity needs to have a Permanent Account Number (PAN) to be eligible for GST registration.
However, section 19 (4A) of the MGL says that PAN is not mandatory for a non-resident taxable person. He/she may be granted GST registration based on other valid documents submitted as specified.
No. Every person/business liable for GST registration will need to have separate GST registration in each of the States he/she operates. He/she needs to pay GST as per provisions mentioned in Section 19 (1) of the Model GST Law.
Yes. Any registration allowed under the GST Act can be canceled by a competent officer, as per provisions mentioned u/s 21 of the Model GST Law. The officer may, on his own or upon receiving an application filed by a registered taxable person/his legal heir or in case of death of a registered person, can cancel the registration. The cancellation has to be in the manner and as per the period prescribed in the Act.
Also, such cancellation of registration under one Act (i.e. the SGST Act) will be deemed cancellation under the other Act (say, the CGST Act) as well, as per section 21 (6) of the Model GST Law.