What is Goods and Service Tax (GST)?
GST has been made mandatory for almost all the people and the companies in India which supply goods and sell any kind of products or services in India. If the aggregate value of the supply is more than 20 lakhs per annum, then the person whose business is obligated to get itself registered for GST. For business entities working in states with special categories, the minimum aggregate value of 10 lakhs per annum. In simpler words, GST or Goods and Service Tax is an indirect tax that is levied on the supply of goods and services. The GST registration online has replaced many indirect tax laws that previously existed in India.
GST Registration Process Online
- The foremost step in getting your company’s new GST registration online is to obtain a GST application form. For this you need to obtain the temporary GST registration number. This temporary GST registration number can be easily obtained on the official website. To obtain a valid temporary registration number the applicant needs to submit a valid Indian mobile number with his/ her email address and PAN card number. After you verify yourself with the OTP sent to your registered mobile number the portal will take you to my saved application page automatically. In this section, you will have to proceed and fill in all the details within 15 days of issuing the new GST registration application.
- The next step is to correctly fill the GST form which contains around 10 sections online. You need to separately fill in all the details of the section of your GST application. It is advisable for the applicant to consult a CA or a tax consultant before filling the application form.
- In one of the sections of the application, the applicant needs to submit a valid Bank account number along with the proof of his/her business law company. There are different rules and requirements for different types of companies apply for GST. If your company comes under the umbrella of a partnership form you need to submit a deed of the partnership while filing for a GST application of the concerned company. For other types of companies and corporations registration certificate of the business entity along with the proof of business, address is also required to be submitted by the applicant to the online portal for GST registration online.
- This is relative relief and easier step as easy a structures with step by step procedure is provided online on the official website for GST application. You just need to fill in all the tabs with the required correct information and details. You also need to fill in the authorized signatory information in which you need to use in e sign on the form.
- The most important step in getting your business entity registered for GST is to verify your application. To proceed further you need to register your digital signature certificate online on the official website of the GST application. A digital signature certificate is deemed compulsory for all the companies and all the limited liability partnerships. Only the digital signature of the authorized signatory which is specified in the registration form can be used in the digital signature certificate. There is another option available to verify your GST application.
- Not only you can verify your new GST registration application by using a digital signature but and an e-signature and easy it is also equally valid when registering for a GST application. On completely filling up the GST application form and successfully verifying the same an application reference number also called GSTIN is generated and sent to the registered mobile number and email ID. This is a very handy tool as it can be used to track the status of your company’s GST application.
- Once your GST application is approved an email and SMS to the registered mobile number will be sent by the concerned government authorities. A login password and username are then provided for the applicant’s login to the official application website of the government. This username is also called GSTIN. After this step, you log in to your GST portal after using the provided username and password you are required to log in to your personalized page and check for the progress of the application.
- When each and every step is completed and your GST application is successfully approved you will be able to download the registration certificate for your company is GST within 5 to 7 business days. After using your valid credentials to log in to the official website of GST you will easily be able to download your registration certificate which will complete the process of GST application of your company or business entity.
Documents Required for New GST Registration Online
- A passport-sized photograph of the applicant.
- An identity proof can be in the form of a PAN card, aadhar card, election card, voter ID, or passport.
- A partnership deed that has been duly signed by all the partners has also required in case the applicant company is a partnership firm.
- For all the proprietor firms and business entities, the shop act registration is required to be submitted.
- For all the private limited companies and one-person companies, a certificate of incorporation has to be submitted along with the GST application.
- You also need to submit a proof of address for your company’s office. Electricity bills or phone bills can be submitted as the address proof of your company. If the office of your business entity is rented, a rent agreement along with a no-objection certificate signed by the landlord is required to be submitted by the applicant.
- Address proof for your private address is also a needed document for successful registration. A telephone bill or an electricity bill of your home address can work as the address proof for your GST application.
- An authority letter in the name of the authorized person is also required to be submitted along with all these other documents in your GST application.
Advantages of GST Registration
- GST has a lot of advantages and the first one is that it reduces the number of indirect taxes which are levied upon the product and services provided by a business entity. GST is a transparent tax that is made to use only if the applicant has registered his/her company through the official GST portal for a GST application. The celebration of reduction in the number of indirect taxes and their swapping with one and absolute text for the GST is only possible if a company has registered for GST.
- One of the most major benefits of GST is that there is no additional cost which is levied upon the registered retailers who buy and sell a certain product or service of a business entity. the process of buying and selling a crystal clear as there are hidden taxes in the various steps of retail which effectively breakdown the cost of doing business. show with the help of GST the cost of doing business get to lower levels for all types of companies, firms, and business entities.
- GST ultimately helps accompany in bringing down the price of the products and services which also benefit the people. By this, the consumption rate for various products and services provided by the companies is also increased which helps to increase the profit levels of the companies directly.
- The system of taxation which existed before the introduction of GST was complicated on various administration levels as it had layered division of transaction values into goods and services eligible for taxation. GST has introduced such an activation system which cuts all these divisions of transactions and provides a separate system for levying taxes on goods and services provided by various societies.
- GST is only levied at the final destination of conception which ultimately helps in removing various economic distortions which once hindered the progress of the market. The introduction of the GST taxation system shows that when all the taxes are integrated the possible burden is plate equally between all the manufacturing and services.
Disadvantages of GST Registration Online
- GST taxation system might impact the real estate market of India in a negative way. It can add up to 10 percent to the overall cost of the new properties and new houses. This can also result in the reduction of demand by about 12 percent in the real estate market. This was commented on by some Indian economists when GST taxation was initially introduced.
- It was pointed out by some experts that GST is not a new concept but just a new name for the already existing central excise tax also called the service tax. It was also speculated that there was no significant reduction in the multiple layers of the taxes which are applied to the different levels of retailing in the market.
- The aviation industry was also affected by the introduction of the GST taxation system as the services taxes went up to more than fifteen percent which is almost double the previous taxes percentages.