What is GST Registration?
The process by which a taxpayer gets registered under Goods and Service Tax (GST) is GST registration. Once the registration process has been completed, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15-digit GSTIN is provided by the Central Government and helps to determine whether a business is liable to pay GST.
What are the types of GST Registration?
Under the GST Act, GST Registration can be of various types. You must be aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:
- Normal Taxpayer: Most businesses in India fall under this category. You need not provide any deposit to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this category.
- Casual Taxable Person: Individuals who wish to set up a seasonal shop or stall can opt for this category. You must deposit an advance amount that is equal to the expected GST liability during the time the stall or seasonal shop is operational. The duration of the GST Registration under this category is 3 months and it can be extended or renewed.
- Composition Taxpayer: Apply for this if you wish to obtain the GST Composition Scheme. You will have to deposit a flat under this category. The Input tax credit cannot be obtained under this category.
- Non-Resident Taxable Person: If you live outside India, but supply goods to individuals who stay in India, opt for this type of GST Registration. Similar to the Casual Taxable Person type, you must pay a deposit equal to the expected GST liability during the time the GST registration is active. The duration for this type of GST registration is usually 3 months, but it can be extended or renewed at the type of expiry.
What is the procedure of GST registration?
The step-by-step procedure that individuals must follow to complete GST Registration is mentioned below:
Step 1: Visit the GST portal – https://www.gst.gov.in. Click on the ‘Register Now’ link which can be found under the ‘Taxpayers’ tab. Select ‘New Registration and fill in the below-mentioned details:
- Under the ‘I am a’ drop-down menu, select ‘Taxpayer’.
- Select the respective state and district.
- Enter the name of the business.
- Enter the PAN of the business.
- Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them.
- Enter the image that is shown on the screen and click on ‘Proceed’.
Step 2: On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes. Once the details have been entered, click on ‘Proceed’.
Step 3: You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.
Step 4: Visit the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu. Select ‘Temporary Reference Number (TRN)’. Enter the TRN and the captcha details. Click on ‘Proceed’. You will receive an OTP on your email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’.
Step 5: The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it. There will be 10 sections on the next page. All the relevant details must be filled in, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below:
- Business address proof
- Bank details such as account number, bank name, bank branch, and IFSC code.
- Authorisation form
- The constitution of the taxpayer.
Step 6: Visit the ‘Verification’ page and check the declaration, Then submit the application by using one of the below-mentioned methods:
- By Electronic Verification Code (EVC). The code will be sent to the registered mobile number.
- By e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.
- In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
Step 7: Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID. You can check the status of the ARN on the GST portal.
What are the due dates for filing the GST returns?
All businesses that have registered with GST are required to file their GST returns using application forms either online or offline. The GST returns form is a document containing details of all purchases, sales, output GST (on sales), and input tax credit (GST paid on purchases) to calculate an assessee’s GST responsibility over a particular tax period. Currently, a regular business has to file 2 monthly returns (GSTR-1 & GSTR-3B) and 1 annual return (GSTR-9), thereby making a total of 26 GST returns in a year.
|GSTR-1||To be filed by all regular taxpayers. The form contains details of all outward supplies of goods and services during the applicable tax period.||For turnover less than 1.5 crores, every quarter (31st of the next month). If more than 1.5 crores, every month (11th of the next month).|
|GSTR-3B||To be filed by all regular taxpayers. The form declares the summary of all GST liabilities for an applicable tax period.||Every month (20th of the next month)|
|CMP-08 (GSTR-4)||This applies only for taxpayers under the composition scheme and is to declare the summary of outward supplies and import of services liable to the reverse charge mechanism.||Every quarter (18th of the next month)|
|GSTR-5||To be filed by non-resident taxpayers who do not wish to claim Input Tax Credit (ITC)||Every month (20th of the next month)|
|GSTR-5A||To be filed by Online Information and Database Access or Retrieval (OIDAR) service providers outside India for services to unregistered persons in India||Every month (20th of the next month)|
|GSTR-6||To be filed by Input Service Distributors for distribution of ITC||Every month (13th of the next month)|
|GSTR-7||To declare TDS liabilities||Every month (10th of the next month)|
|GSTR-8||To declare Tax Collected at Source (TCS) by e-commerce operators||Every month (10th of the next month)|
|GSTR-9||To be filed by all regular taxpayers to declare details of purchases, sales, ITCs, refunds claimed, demand created, etc.||Every year (by the 31st of December of the following year)|
|GSTR-9A||To be filed by GST composition scheme taxpayers declaring the details of outward supply, inward supply, taxes paid, refund claimed, demand created, input tax credit and reverse due to opting out or opting in to the composition scheme.||Every year (by the 31st of December of the following year)|
|GSTR-10 (Final Return)||To be filed by any taxpayer whose GST registration has been cancelled or surrendered.||Within 3 months of the date of cancellation|
|GSTR-11||To be filed by Unique Identity Number (UIN) holders in order to claim GST refund through RFD-10.||Every quarter (only if applicable, by the 28th of the following month).|
What if the GST return is not filed within the specified time frame?
As per Section 46 of the CGST Act, 2017 any notice in FORM GSTR-3A is issued, to any registered person who is unsuccessful to file an annual return requiring them to provide such return within 15 days. Further, Section 62 offers an assessment for the non-filing of GST returns of registered persons who fail to provide an annual return.
If any individual does not file any GST return to the prescribed authority, then the subsequent returns cannot be filled. For instance, if the general sales tax return -2 has not been filled to the authorities then the next return GSTR-3 and the subsequent return cannot be filled. Hence, the non-filling of the return of GST has a cascading effect; this can lead to heavier penalties and fines.
If any offence is committed under the GST Act then the penalty will have to be paid as prescribed under the CGST Act, 2017. The late filing of the returns may attract a penalty called a late fee. This fee can be up to 100 per day as per the act. The state GST will charge 100 and the central GST will charge its own 100 which make it a total of Rs. 200/-day. The maximum penalty can be Rs. 5000/-. However, there is no late fee of the IGST in the matter related to delay filling.
Alongside the late fees, the total interest that has to be paid is at 18% per annum. It has to be considered by the taxpayer for the tax to be paid. The period of time will start from the next day of filing to the date of payment.