GST Registration – All you wanted to know

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Registration of a business with the tax authorities implies obtaining a unique identification code from the concerned tax authorities so that all the operations of and data relating to the business can be agglomerated and correlated. In any tax system this is the most fundamental requirement for identification of the business for tax purposes or for having any compliance verification program.

Registration under GST will also be required to:

  • Establish Legal Identity of Supplier of Goods and Services
  • Proper accounting of Input GST and proper utilisation of Input GST while paying the Output GST.
  • Pass on the credits of Taxes paid on supplies to purchasers / recipients.

Categories of Registrants

 

Type of Registration Turnover Limit ITC GST
No Registration Below threshold limit Not Available Not to Charge
Compounding Turnover Based Registration Below Higher threshold limit Not Available Not to Charge
Regular Registration Above threshold limit Available Charge
Compulsory Registration * Not Applicable Available Charge

* Interstate Sale or GST Payment on reverse charge mechanism

Type of Registration

Unique Identification Number – A unique identification number (UID) would be given to all Government authorities / PSUs that do not make outwards supplies (hence not liable for GST Registration), but are making inter-state purchases. These UIDs would be given by respective states through GST portal. The suppliers supplying GST goods/services to these organisations are required to mention the UID on the invoices and treat such supplies as B2B supplies. The GST would not be charged on them but the invoices need to be uploaded on GST portal by the supplier.

Regular GST Registration – Every Business (requiring registration) need to get itself registered via GSTIN portal. The separate registration would be required for every state and for every business vertical in the state.

Structure of Registration Number

 

State Code

PAN Entity Code Blank

Check Digit

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

In the GSTIN, the State Code as defined under the Indian Census 2011 would be adopted.

13th digit would be alpha-numeric (1-9 and then A-Z) and would be assigned depending on the number of registrations a legal entity (having the same PAN) has within one State. This way 35 business verticals of the same legal entity can be registered within a State.

14th digit of GSTIN would be kept BLANK for future use.

Registration Methods

New applicant can apply for registration:

  • at the GST Common Portal directly
  • at the GST Common Portal through the Facilitation Center (FC)

GST Common Portal directly

A new applicant need to apply for PAN based GST Number through GST Common Portal. (Having a PAN is mandatory for GST Registration). The GST common portal shall carry out preliminary verification, including real-time PAN validation with CBDT portal, Adhaar No validation with UIDAI, CIN (Company Identification) with MCA and other numbers issued by other Departments through inter-portal connectivity before submission of the application form. Taxpayers would have the option to sign the submitted application using valid digital signatures (if the applicant is required to obtain DSC under any other prevalent law then he will have to submit his registration application using the same). Once a complete application is submitted online, a message asking for confirmation will be sent through e-mail and SMS to the authorized signatory of the applicant. On receipt of such confirmation from the authorized signatory, Acknowledgement Number would be generated and intimated to the applicant. In the absence of digital signature, taxpayers would have to send a signed copy of the summary extract of the submitted application form printed from the portal to a CPC to be operated by GSTN.

GST Common Portal through FC

If applicant files application through the Facilitation Center, then the above procedure shall be followed by him through the FC by making available the requisite documents to the FC. The User ID and Password of taxable person will however be forwarded by portal to the e-mail furnished by the taxable person (that of primary authorized signatory) and by SMS to the mobile number furnished by taxable person or by post, if the taxable person so desires. It will not be sent to FC.

GST Application approval procedure

The application form will be passed on by GST portal to the IT system of the concerned State/ Central tax authorities for onward submission to appropriate jurisdictional officer (based on the location of the principal place of business) along with the following information –

(1)   Uploaded scanned documents;

(2)   State specific data and documents;

(3)   Details if the business entity is already having registration in other States;

(4)   Details of the PAN(s) of individuals mentioned in the application which are part of the other GST registrations;

(5)   Acknowledgment number;

(6)   Details of any record of black-listing or earlier rejection of application for common PAN(s).

(7)   Last day for response as per the 3 common working day limit for both tax authorities as set out through Holiday Master.

On receipt of application in their respective system, the Centre / State authorities would forward the application to jurisdictional officers who shall examine whether the uploaded documents are in order and respond back to the common portal within 3 common working days, excluding the day of submission of the application on the portal, using the Digital Signature Certificates.

After verification, if the information and the uploaded documents are found in order, the State and the Central authorities shall approve the application and communicate the approval to the common portal within 3 common working days. The portal will then automatically generate the Registration Certificate.

Applicant can download the Registration Certificate from the GST common portal.

Once the application is approved and GSTIN is generated, the same along with Log-in ID and temporary Password will be sent to the authorized signatory. This credential will be permanently used to access the GST Common Portal subsequently.

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