GST stands for Goods and Service Tax. This is a taxing structure that was implemented in the year 2017. It replaced all the other indirect taxes and became one uniform tax for the entire country. The purpose of GST is to create less confusion and hassle for the public at large.
GST requires one to register as only people who have registered would be able to pay the tax. People who register can easily avail benefits of input credit under the GST Acts, be it the CGST act or the SGST act.
A person who has not registered will be kept outside the GST portal regime. Some people fall within the category that allows them to avoid taxes. The law gives them an option to avoid registration. However, there is a prescribed list of criteria. Only if one falls within the scope of it, can one avoid taxes. If not, the person is an unregistered person who falls within the purview of the act.
Certain steps need to be followed while registering for the GST process online. They are as follows:
Step 1
Go to the portal and click on the register now under taxpayers.
Step 2
Under Part A, new registration needs to be selected. After this option, the taxpayer needs to choose. The state and district have to be selected and the businessman’s details like the name of the business and the PAN of the business have to be entered.
Details like the email address and mobile number of the person have to be entered. The OTP that is received should be entered for the verification process. Once these formalities are completed, one has to proceed with the completion of the registration form.
After this, a temporary reference number will be received via email or message and that too needs to be noted down. These details will be received by the person on the information he provides.
Step 3
After this, the person will have to go on the GST Portal once again and select the option of register now. The temporary reference number that was saved before will have to be entered again and the captcha code will again have to be entered. Once this is done, one has to proceed to the next step.
Step 4
Once again an OTP will be received on the registered mobile number. Once that is entered the status of the application will be shown. The status can be tracked through this.
There is an edit option that can be clicked on.
Step 5
Step 5 has part b which has 10 sections to be dealt with. All the documents that the taxpayer needs, should be kept handy as that information will be required here. Documents like:
- Proof of place of business
- Account details
- Bank details
- Authorization forms
- Photographs of the taxpayer.
- Constitution of the taxpayer
- These documents should be kept ready.
Step 6
After the step of submitting all the documents is cleared, the person can go to the verification page and check off the declaration. The application can be submitted by using DSC. It can also be submitted by using an OTP that will be sent to the number that is linked to the taxpayer’s Aadhar card. It can also be sent using EVC. In this, the OTP will be sent on the registered mobile number. The taxpayer should provide the correct mobile number and email address.
Step 7
After this, a message will be displayed and the application reference number will be sent to the registered email and the mobile number. The ARN is given so that the application can be tracked.
Under the GST Act (CGST Act and SGST Act), a person needs to register for GST:
- If there is an annual turnover above Rs 20 lakh for an interstate business
- If the business in any of the listed special states
- If the taxpayer owns an e-commerce business under the CGST Act or SGST Act.
- If under section 9(5), the taxpayer is liable to pay taxes. This section has all the criteria for a person to pay tax.
- If the taxpayer owns any interstate business
If you fail to register for GST, then under the GST ACT (CGST Act and SGST Act) you are liable to pay a heavy penalty for the same. Registering for GST is beneficial as this gives you the right to collect tax from the customers too. Unregistered people are not abiding the law and will get into a problem sooner or later. For a smooth sailing GST experience, one must adhere to all policies.
The registration process has been made easy and user-friendly. It is quite understandable. One must register on the GST portal as soon as possible.
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