Before the Goods and Services Tax (GST) system was implemented in India, businesses had to register themselves under the state’s Value Added Tax (VAT) regime. After registration, they would receive a unique Taxpayer Identification Number (TIN). However, with the introduction of the Goods and Service Tax, businesses are required to register and acquire an exclusive GST Identification Number (GSTIN).
What is a GST Identification Number?
A GSTIN is an identification number that is exclusive to each business. It is made up of 15 digits and is needed when you are obligated to file your GST returns. Additionally, a GSTIN allows transparency of every transaction that happens, thereby ensuring you do not evade your taxes. There are a bunch of reasons why you need a GSTIN. Here are a few reasons:
- A GSTIN helps you expand your marketing horizons and ensure you carry out inter-state sales and operations. If you want to do business via E-commerce consistently, you will need to register your business to a GSTIN.
- A significant part of your business’ success is your authenticity and trustworthiness. Having your GSTIN ready will help you come across as a legitimate business. You will have to ensure that you file your GST returns on time and do so transparently so that you have no issues with the government or the market.
- Finally, a GST number can help you claim your Input Tax Credit without problems. If you make your GST online payments consistently, you will get income tax returns on them. It should go without saying that you must enter your GSTIN correctly to ensure a seamless process.
How do you know if you need to get a GSTIN?
Keep in mind that not every taxpayer needs to get their hands on a GSTIN. Registering for a GST number is entirely predicated on your annual turnover limits.
- In normal category states, you will have to carry out a GST online registration for a GSTIN if the sale of goods exceeds a turnover of Rs. 40 lakh every year. If you are providing a service, the annual turnover must exceed Rs. 20 lakh.
- However, for special category states, the turnover for the sale of goods must exceed Rs. 20 lakh and that of services must exceed Rs. 10 lakh. The special category states include Jammu & Kashmir, Sikkim, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Meghalaya, Nagaland, Manipur, Assam, Tripura, and Mizoram.
What are the Steps to Follow to Register on the GST Portal?
The GST online registration process via the GST portal online is tedious, but these steps will help you sift through this without an issue.
- The first step involves logging into the GST portal website.
- Then, click on ‘Services,’ select ‘Registration,’ and click on ‘New Registration.’
- The third step involves filling in the details correctly and proceeding.
- Next, enter your email ID and phone number and get the OTP.
- You will receive the OTP, and you will have to enter this to get your Temporary Reference Number (TRN).
- Once you note your TRN, head back to the main page of the GST portal.
- Then, head over to ‘Services’ and click on ‘Registration.’
- Then hit the TRN tab instead of ‘New Registration.’
- After this, enter your Temporary Reference Number and fill out the CAPTCHA code.
- Then you will be directed to the ‘My Saved Application’ page.
- Here you will have to fill this form within 15 days and submit the necessary documents including, bank account details, proof of ID, business location, and so on.
- After the submission of details hit ‘Save and Continue.’
- Finally, you will have to provide information when you go to the ‘Authorized Signatory’ tab.
It is essential to note that there has been malpractice on numerous occasions from which businesses have profited from GST implementation. A plethora of companies have managed to evade taxes by producing a fake GST invoice. However, many businesses got caught when they had to file their GST returns.
There you have it – a simple, easy-to-comprehend guide to help you navigate the troubles of GST registration and make the process significantly less daunting.