A common man finds the present tax laws registration process very complex. Although most of the process (like in service tax and VAT registration) are online still the common people finds them lengthy & time consuming.
Any registration with tax authorities provides a unique identification number so that all the data related to a particular business can be agglomerated and correlated.
Registration under GST will provide following advantages:
- Legal recognition as supplier of goods or services
- Proper accounting of taxes paid on input goods or services
- Pass on credit of the taxes paid to purchasers or recipients.
Registration under GST is based on following assumptions:-
- GST cannot be collected from customers or claimed as input, if a person is not registered.
- There will be a maximum limit of exemption under GST above which the registration is compulsory.
- Anybody can take registration on voluntarily even if he has not crossed the maximum limit of exemption.
- There is also compounded levy scheme under which a person can pay a fixed rate of GST without entering the credit chain. Only those persons can opt for this scheme who has crossed a higher limit of turnover. Generally, they are called large tax payer.
- Person carrying on interstate supply or who is liable to pay GST under reverse charge, is compulsorily required to take registration.
- All UN bodies seeking to claim refund of taxes paid by them would be required to obtain unique identification number.
- A unique identification number will also be given by the states to government authorities / PSU not making outward supply of goods but are making interstate purchases.
- The concept of Input Service Distributor (ISD) presently being followed in center’s may continue if GST law so provides.
- All existing persons who are already registered with various center and state laws, would be allotted a GST registration number called GSTIN on voluntary basis. Dealers who are under exempted limit will have option to remain in GST chain.
- Tax authorities on enforcement case may allot suo moto registration.
STRUCTURE OF GST REGITRATION NUMBER
| State Code | PAN | Entity Code | Blank | Check Digit | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 |
| State code as defined in Indian Census 2011 | It is the PAN of the legal entity | Alpha Numeric code, depending on no. of registration of an entity in a state |
Kept blank for future use |
It is the check digit for internal use |
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PROCEDURE FOR RREGISTRATIONUNDER GST
New applicants can directly visit the website of GST and register themselves online.
DOCUMENTS REQUIRED UNDER GST REGISTRATION
| Relevant Box No. in the Registration Form | Document required to be uploaded | Reason for requirement |
|---|---|---|
| 2. Constitution of Business | Partnership Deed in case of Partnership Firm ; Registration Certificate in case of other businesses like Society, Trust etc. which are not captured in PAN. |
In case of Companies, GSTN would strive for online verification of Company Identification Number (CIN) from MCA21. Constitution of business / applicant as per PAN would be taken except for businesses such as Society, Trust etc. which are not captured in PAN. Partnership Deed would be required to be submitted in case of Partnership Firms. |
| 11. Details of the Principal Place of business | In case of Own premises – any document in support of the ownership of the premises like Latest Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy In case of Rented or Leased premises – a copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy In case of premises obtained from others, other than by way of Lease or Rent – a copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy Customer ID or account ID of the owner of the property in the record of electricity providing company, wherever available should be sought for address verification. Case |
This is required as an evidence to show possession of business premises. If the documentary evidence in Rent Agreement or Consent letter shows that the Lessor is different from that shown in the document produced in support of the ownership of the property, then the case must be flagged as a “Risk Case”, warranting a post registration visit for verification. GST Law Drafting Committee may add penalty provision for providing wrong lease details. |
| 12. Details of Bank Account (s) | Opening page of the Bank Passbook held in the name of the Proprietor / Business Concern – containing the Account No., Name of the Account Holder, MICR and IFS Codes and Branch details | This is required for all the bank accounts through which the taxpayer would be conducting business. |
| 17. Details of Authorised Signatory | For each Authorised Signatory Letter of Authorisation or copy of Resolution of the Managing Committee or Board of Directors to that effect | This is required to verify whether the person signing as Authorised Signatory is duly empowered to do so. |
| Photograph | Proprietary Concern – Proprietor Partnership Firm / LLP – Managing/ Authorized Partners (personal details of all partners is to be submitted but photos of only ten partners including that of Managing Partner is to be submitted) HUF – Karta Company – Managing Director or the Authorised Person Trust – Managing Trustee Association of Person or Body of Individual –Members of Managing Committee (personal details of all members is to be submitted but photos of only ten members including that of Chairman is to be submitted) Local Body – CEO or his equivalent Statutory Body – CEO or his equivalent Others – Person in Charge |
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Separate application forms are to be designed for:
(1) Multiple registration for business verticals of same legal entity (it must be registered already) within a State;
(2) Application for registration in more than one State (that can be filed at one go);
(3) Amendments to existing Registration(s);
(4) Cancellation of Registration(s);
(5) Option to avail / withdraw from the Compounding scheme;
(6) Enrolment of Tax Practitioner or Facilitation Centre if provided for in the GST Law;
(7) Assignment of Role (by a dealer) to TP/FC, as agent of the dealer if so provided for in the GST Law;
(8) Application for new registration on account of Succession / Amalgamation / De-merger etc. of existing GST registrants;
(9) Application by UN bodies for getting a Unique Identification Number (ID).
We will keep on updating the GST registration process till it becomes final .