Ease of doing business for MSMEs: The Goods and Services Tax (GST) is an indirect tax imposed on the supply of specific goods and services. It was introduced by the government in July 2017 and replaced a number of other indirect taxes, including excise duty, value added tax, purchase tax, service tax, etc. Companies that sell products and have a yearly revenue of more than Rs 40 lakh in states that fall under the standard category and more than Rs 20 lakh in places that fall under the special category must register for GST. Notably, there is no cost associated with GST registration.
Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands, and Chandigarh are considered normal category states or union territories. Telangana is a state in the regular category, although it has a minimum turnover restriction of Rs 20 lakh.
Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, and Arunachal Pradesh are among the northeastern states that have received special category status under the GST, in addition to Puducherry, Himachal Pradesh, and Uttarakhand. Jammu & Kashmir, Ladakh, and Assam are special category states as well, however they must have a minimum annual revenue of Rs. 40 lakh.
If a company’s annual revenue exceeds Rs 20 lakh for regular category states companies and Rs 10 lakh for special category states enterprises, then the company must register for GST. With the necessary documentation, such as the applicant’s Aadhaar card, PAN, business registration certificate, ID and address proof of the promoter, address proof of the business premises, bank account statement, and a letter of authorization to be an authorised signatory, GST registration can be completed on the GST portal.
A and B make up the two portions of the GST registration. Here’s how to register your small business for GST online:
Part A:
- Visit gst.gov.in and choose Services. Choose Register and New Registration from the services menu.
- Choose Taxpayer from the drop-down list under “I am a” to register as that kind of taxpayer.
- Choose the state and district for which registration is necessary from the State/UT and District drop-down lists.
- Enter the name of your company in the “Legal Name of the Company” area according to the PAN information.
- Enter the PAN of your company or the PAN of the proprietor along with the email address and cellphone number in the “Permanent Account Number (PAN)” area. Click Continue after entering the captcha.
- The next window will show your completed and pending registration applications (colour-coded) for the given PAN. Applications are deemed approved when they are coloured green, rejected when they are coloured red, and pending when they are coloured orange. Choose Continue.
- Enter the OTP that was sent to your email address and cellphone number, then click “Proceed.”
- You will see and get your 15-digit Temporary Reference Number (TRN) through email and your mobile device.
- You have 15 days from the time the TRN is generated to finish Part B of the application.
Part B:
- Visit gst.gov.in and choose Services. Choose Register and New Registration from the services menu.
- Click on Continue after selecting Temporary Reference Number (TRN), entering your TRN, and solving the captcha.
- Check the OTP that was delivered to your email and mobile number.
- Under “My Saved Application,” a “Dashboard” will appear with information about your application. The status of your application will be displayed as “Draft.” Under “Action,” select the edit symbol (which looks like a pen).
- Company Details, Promoter/Partners, Approved Signatory, Authorised Representative, Main Location of Business, Other Places of Business, Products and Services, State Specific Information, and Aadhaar Authentication and Verification are the 10 tabs that will be visible on the new page. To enter the information, click each tab.
- Once all the information has been entered, choose the authorised signatory’s name from the drop-down list under “Name of Authorised Signatory.”
- Enter the location where the form was submitted in the Location section, such as Delhi, Mumbai, etc.
- The application must now be digitally signed using a Digital Signature Certificate (DSC), e-sign, or an e-verification code (EVC), with the OTP being delivered to the Aadhaar-registered mobile number in each case.
- A “Success” message for the application will be shown.
- Your registered cellphone number and email address will get an acknowledgment of the submitted application’s success along with the application reference number (ARN).
- On the GST site, click “Track Application Status” to check the status of your application.
- Assigning the 15-digit Goods and Services Taxpayer Identification Number (GSTIN) and registration certificate in Form GST REG-06 takes around six days.
