Any business that falls under the eligibility of GST should get registered to avoid any legal case of avoiding tax payment. Whether you are dealing with goods or service, if your business annual turnover falls under the category of Rs 10 lac to Rs 40 lac, a GST registration for goods is important. The process is quite like GST registration for service, however, not every businessman is knowledgeable enough to know the process.
This article presents you with the complete guide on understanding the process of GST registration for goods online.
What is GST Registration?
Businesses that have revenue exceeding the threshold of Rs. 40 lakhs, Rs. 20 lakhs, or Rs. 10 lakhs, need to register as regular taxable persons under the Goods and Services Tax (GST). Once registered, the business gets a Goods and Services Tax Identification Number (GSTIN), a special 15-digit registration number, which identifies your business under the tax regime. Not having a GST registration number after falling under the tax slab can be result into hefty fine from the tax department.
Which Business is Eligible for GST Registration for Goods in India?
To get the GST registration for goods in India, there are specific business falling under the category-
- Business registered under the law prior to the GST.
- Companies whose annual revenue exceeds the barrier of Rs. 40 lakhs, Rs. 20 lakhs, or Rs. 10 lakhs, depending on the situation.
- Non-resident taxable person or casual taxable person
- Supplier’s agents and input service distributors
- An individual running online business.
- All e-commerce aggregators providing online data service to individuals in India from locations outside of India, except registered taxable persons.
Documents required to complete the process of GST Registration for Good in India:
There are certain GST registration requirements for goods as a part of process. It is best to be ready with documents for easy and quick process-
- PAN Card
- Aadhaar card
- Proof of business registration (trade license)
- Identity and Address proof of business and promoters
- Bank Account statement/Cancelled cheque
- Digital Signature
- Letter of Authorization/Board Resolution for Authorized Signatory
Step-by-step Guide to Complete GST Registration for Goods Online
There are different steps mentioned below to complete the GST registration for goods online–
Step 1- Visit Portal
Visit the official website of GST Portal and click on the services tab. Go to the “Registration” tab and select “New Registration.”
Step 2- Entering Details
In the drop-down menu ‘I am a’ – select Taxpayer.
- Select State and District
- Enter the Name of the Business along with the PAN details.
- Mention email address and mobile number of your business or personal.
- You will receive OTPs on your registered email ID and mobile number.
- Click on Proceed
Step 3- Enter OTP
Click on Continue after entering the OTP.
Step 4- Receiving TRN
Next you will receive a 15-digit Temporary Reference Number (TRN) on your email ID and mobile number. Take note of the TRN. Using this TRN number, you need to complete the rest of the GST registration for goods within the next 15 days.
Step 5- Log in with the TRN number
Enter the Temporary Reference Number (TRN) in the GST Portal’s Temporary Reference Number (TRN) box and the captcha text as displayed on the screen. Finish the email and cell phone OTP verification.
Step 6- Submitting Business Information
Here you need to submit all your business information. Ensure you are fully prepared with information to avoid any cancellations or mistakes.
In the Trade Name section, enter your business name.
Enter the business constitution.
Enter the District or Sector in the drop-down list.
In the drop-down list select any of the one- Commissionerate Code, Division Code, and Range Code.
Go to the Composition Scheme.
Enter the date of business commencement.
Select the Date on which the goods business crossed the turnover falling under the GST registration category. You will need to apply for a new GST registration within 30 days from the date of aggregated business turnover.
Step 7- Enter Promoters Details
Enter the details of company’s directors and promoters. If there are no promoters, the proprietor enters the same.
For promoters, the following details are included-
Personal details of the stakeholder.
DIN of the Promoter in case the company is:
- Private Limited
- Public Limited
- Public Sector Undertaking
- Unlimited Company
- Foreign Company registered in India.
- Citizenship details
- PAN & Aadhaar
Step 8- Submitting Authorized Signature
This involves submitting an authorized signature. The nominated or designated individual will oversee the filing of the business’s GST returns. Additionally, the individual is required to uphold the company’s requisite compliance. The GST Portal will be fully accessible to the designated signatory.
Step 9- Submitting Business Location
- This step involves providing the location of the business. It refers to the books of accounts the company holds. The registered office is, therefore, the company’s or LLP’s principal place of operation.
- You need to submit the necessary documents, including your official mobile number and email address.
- In case the business is in the SEZ zone, you need to upload the necessary documents issued by the Indian Government on ‘Others’ value.
In this section, you will need to provide ownership details of the property.
- Own Premises – Any proof of ownership of the premises, such as a copy of a recent property tax receipt or an electricity bill.
- Leased Premises – A copy of the current rent or lease agreement.
- Non-covered Premises – Consent letter along with any documentation proving the consenter’s ownership of the premises.
Step 10- Additional Places of Business
Here, you need to enter the property details. If you work as a seller and use a seller’s warehouse, you can mention the location of the business.
Step 11- Details of Goods
Now enter all the details about the goods you deal with. Mention at least 5 goods supplied for goods provided by HSN and for the Services provided by SAC.
Step 12- Enter Business Account Details
Enter your business bank account details.
Step 13: Enter Code Number
Under the State Specific Information Tab, enter the professional tax employee code number and the State Excise License number with the name of the license holder.
Step 14- Verifying the Application
Do verify all the details mentioned and the documents submitted. Then, use a Digital Signature Certificate to sign the application.
Step 15- ARN Generated
Once done, you will receive an Application Reference Number via SMS or email. You can use this ARN number to track the GST certificate.
Downloading the Registration Certificate
Once your GST registration is approved, you can download the certificate from the official website www.gst.gov.in.
As mentioned earlier, the GST registration process for goods is quite like the service process. It may seem daunting, but following the right way can help you get things done quickly. The aim is to get the registration done and follow the right tax regime.
1) What is the penalty for not doing the GST registration?
Ans: Every business falling under the annual turnover slab should register with GST. Non-registration can lead to the penalty of 10% of total tax amount.
2) What is the deadline to register for GST?
Ans: After meeting the requirements, a business that must register for GST within 30 days.
3) What is the duration of a GST registration?
Ans: A GST registration has no set expiration date. As a result, it is enforceable until it is given up, suspended, or revoked. The date when the GST registration certificate is granted, the authorities establish the validity time for just two types of people: non-resident taxable individuals and casual taxable individuals.
4) Is it possible for someone to collect GST without a GST registration?
Ans: No, only the GST registered member is eligible to collect the GST.
5) Who isn’t eligible for GST registration?
Ans: If your business related to goods doesn’t fall under the tax slab, you are not eligible to register for the GST.
6) Is it difficult to register for the GST?
Ans: The overall steps of registering to the GST is quite long, but not difficult. If you are well-guided and have documents ready, things can be easy. Get all the details about GST registration requirements for services.
7) How to file GST returns?
Ans: You need to visit https://www.gst.gov.in/help/returns for filling the GST returns. The frequency depends on the business turnover.
8) How many days does it takes to get the GST registration done?
Ans: GST registration usually takes between 2-6 working days.
9) Is it possible to cancel the GST registration?
Ans: There could be only few reasons under which the GST can be cancelled. It can either be done by the tax department or by the business owner for some reasons.
10) What if my GST application is rejected?
Ans: You can try again for the GST registration after sometimes with all the right documents. But before you can reapply, you must wait for a definitive refusal, which can be ten days.