What do you mean by GST Registration?
GST is a value added tax imposed on goods and services which are sold for domestic consumption. Goods and Services Tax (GST) has brought uniformity in the tax regime.
All the different types of indirect taxes such as VAT, Service Tax, Excise Duty have been now merged into a single tax – GST. GST was turned out on 1 July in the year of 2017. The motive behind GST was – ‘One nation, One tax.’
For all the businesses whose turnover is more than 20 lakhs have to register for GST or what you call gst registration limit. All the online sellers who sell across India or globe through different marketplaces, need to enroll for GST excluding the category of goods or services which fall under exempt categories. This procedure of registration is known as GST registration.
Government has made the GST registration online. No paperwork, everything will be managed online, right from registering of GST to filing returns.
Certain businesses have to mandatorily register for GST. If they fail to do so, it will be considered an offence and a penalty will be charged.
The entire process of GST registration takes up to 2-6 working days. Online GST registration has reduced the corruption rates. The advantages of gst are numerous for all the business owners.
Who is Eligible to Register for GST Number?
The gst registration limit has been increased to 40 lakhs rupees.
- Online Sellers who sell on marketplaces such as Amazon, Flipkart, Shopclues, Snapdeal etc.
- All Businesses whose annual turnover is more than 20 lakh Rs per annum (10 lakhs for J&K, Uttarakhand & Himachal Pradesh)
- Businesses who operate in more than one state (inter-state sales).
- Organizations dealing with products and services at the global level (outside India)
- Companies who have previous registrations under pre GST laws – VAT, Service Tax and Excise Laws.
- All the agents and service distributors.
- Casual Tax payers.
GST Application Process and How To Check GST Registration Status
Checkout the gst registration online procedure which is divided into parts here, the Step 1 describes verification of mail id and mobile number, TRN generation. Step 2 describes how you can check your gst registration status, fill up the application form . GST registration process explained below:
Step 1 – User Credentials Application form generation for GST Registration
Generation of Temporary Registration Number:
- Navigate to the GST portal to check GST registration.
- Roll out to Services. Then click on Registration after that scroll over to New Registration from the menu.
3. Fill Out the below details of the registration form:
Temporary Reference Number
- I am a: Select Taxpayer from the drop down menu.
- State/UT & District: Select the state or union territory & the district for which registration is required.
- Legal Name of the Business: Enter the name of your business as mentioned in the PAN.
- PAN Details: Enter the permanent account number.
- Email Address: Enter your business mail address where an OTP will be sent.
- Mobile Number Details: Enter your mobile number.
After filling up the details, Click on Proceed button.
4. OTP Verification: You will receive two OTPs, one on the mobile number and another on the email address which was filled out in the form in order to validate your mobile number and email address. The OTP is valid only for a duration of 10 minutes. If necessary, you may generate the OTP.
Enter the OTPs and click on the Proceed button. Now, you will receive TRN acknowledgement on your registered email address and also on your registered mobile number.
5. TRN: In the TRN field, enter the generated TRN and enter the captcha as shown in the screen and click on the Proceed button. Enter the Mobile/Email OTPs and click on Proceed.
6. My Saved Application page will come after OTP is entered. Fill out the complete form and submit it in next 15 days. Please note if you do not submit the application form within 15 days, TRN will be expelled.
Step 2: GST Application Form
The Registration form consists of 10 options.
- Business Details: It is the first and default tab selected. All the information regarding Business details such as Trade Name, Center Jurisdiction are to be filled up here.
- Promoter/ Partners: This page will have fields related to the details of stakeholders chosen at the time of constitution of organization details. The maximum number of Partners or Promoters that you can add is 10.
- Authorized Signatory: This page displays the information of the authorized signatory. The maximum number of signatures that can be added are 10.
- Authorized Representative: The details of the authorized representative are displayed in this tab.
- Principal Place of Business: This page displays the details regarding the principal place of the business. Principal Place of Business is usually the primary location within the State where a taxpayer’s business is performed. The principal place of business is generally the address where the business’s books of accounts and records are kept and is often where the head of the firm or at least top management is located.
- Additional Places of Business: This page displays the details regarding additional places of the business operations.
- Goods and Services: All the goods and services supplied by the business, those details are shown in this tab. If you are offering goods, you will have to mention the HSN Code in the Goods tab. And if you are offering service, you will have to mention the SAC Code in the Services tab, mentioned below.
- Goods option: HSN Code.
- Services option: SAC code.
- Bank Accounts: The bank account which you are using to maintain the business is supposed to be mentioned here. You can add up to 10 bank accounts.
After completion of the process, ARN (Application Reference Number) will be originated and sent to your registered email detail and contact number. To track gst registration status/application status, you can use this number, and can check the status from Services > User Services > View or Download Certificates and click on the Download button.
GST Registration Certificate can be downloaded from the Services section and then roll over toUser Services. You can now have option to View and Download a Certificate by clicking on the Download icon.
Correction in GST registration can be easily possible at the time of doing registration and also later on, only by submitting FORM GST REG-14.
Documents Required For GST Registration Process
Below documents are required for GST Registration
Private Limited Companies
- PAN Card of the business
- Aadhaar Card of all the Directors
- Address Proof
- Bank Details
- AOA, MOA and Incorporation
- PAN Card of the Owner
- Aadhaar Card
- Address Proof
- Bank Details
- PAN Card partnership
- Aadhaar Card of all the partners
- Address Proof
- Bank Details
- LLP Certificate
Apart from the above documents, NOC for GST registration is required for GST registration in case an applicant has an office on rent and wants to show this place as an additional place of operations an NOC is required from the owner.
Why GST Is Mandatory In Online Business?
GST reduced the taxes for small businesses and startups. All the businesses with annual turnover of 20 lakhs do not have to pay GST. But, for all the ecommerce business owners, this is not applicable for you guys. All the online ecommerce sellers have to register for GST and pay GST.
So even if your turnover is 1 lakh, you compulsorily have to register for a GSTIN. Also, all the ecommerce sellers need to file monthly returns and pay all the taxes on the transactions which are qualified for taxes.
Now, there are two types of businesses – Direct Sellers & E-commerce Marketplace.
Direct sellers include the sales where the businesses buy products through vendors or manufacturers and sell to customers via their websites. These sellers can follow the standard GST filing rules. The impact of e commerce certainly have high margins.
E-commerce marketplace includes Flipkart, Amazon, Shopclues who bind the seller and consumers, and take commission on each sales transaction. As these marketplaces sometimes do not sell the products directly to the customers and here GST is handled differently. With gst number, Any individual can start ecommerce business in india from the home also and which certainly reduces the inventory cost.
When a sales transaction is made between the seller and consumer, there is a law in GST governing deduction of 2% of the sale before payment is made to the seller. This amount is paid to the government. The sellers can then claim that tax as deduction while GST filings.
Benefits of Doing Online Business on ECommerce Marketplaces:
Online stores can be set up using two ways – by building an ecommerce website from scratch, which is a very long process or by enrolling to one of the marketplaces such as Amazon, Flipkart etc.
As now you are already familiar with the GST registration process which is the basic requirement, you can easily start up your online e-commerce business. There is definitely need of e commerce to grow in the business community.
Let us take a look at the benefits of setting up an online store on e-commerce marketplaces
1. Easy to set up after GST registration process
All the major tasks such as designing, hosting, order processing, payment methods, are handled by the marketplace. So you just need to register as a seller and start setting up your products.
2. Brand Awareness
These marketplaces have already reached a level where people know them. So when you set up your online store here, it will increase the awareness of your brand among the millions of customers who surf these marketplaces. So, instead of going for online marketing, ads, email campaigns, etc to increase your visibility you can just enroll in one of these marketplaces!
3. Decreased Cost
One of the best things about selling on ecommerce marketplaces is the decrease in costs of your business. If you choose to sell on marketplaces rather than building up your own website, the advertising & marketing costs are cut down, as it is managed by the marketplace itself!
No maintenance cost and backend support cost needed. The warehousing and storage cost, office setup cost, all these are cut off.
4. Globalization of online business – Amazon Sellers get an Opportunity to sell their products overseas
Through the Global Sell Program, the sellers of India can sell their products overseas. The shipment, packaging all can be managed by the marketplace itself. So there is a chance of huge sales in the festival seasons. Your products could be sold out in different countries, seamlessly.
5. Instant access to millions of customers
These marketplaces already have a huge traffic on their website. So you don’t need to worry about the marketing and promotion of your products. Millions of customers can view your products as soon as you start up your online store!
Want To Start An Online Business With GST Number?
With the increasing demand in the online business where GST is mandatory, connect with us!
Why Contact MohitECommerce?
- Setting Up Your Online Store
- Training To Start An Online Business
- Learn To Earn With ECommerce Marketplaces
- Sell Your Products Online All Over India
If you take services from a CA or Consultant, professional fees will be charged which is generally in the range of 2000-5000.
By Going to the official website https://reg.gst.gov.in/registration/
Bank Details, etc.
By submitting all the necessary documents at the time of registration.
GST registration is a process of getting GST Number with all the documents which are needed at the time of registration.
GST is Goods & Service Tax
It usually takes 7-14 business days to get the GST number.
Any individual, E-Commerce sellers who wants to start an online business.