Phoenix Auditing

GST Registration

  1. What is GST?
  2. Who are persons liable for registration under GST law?
  3. Who Should Register for GST? ( Compulsory Registration )
  4. Who are not liable for GST Registration?
  5. What documents required for GST Registration?
  6. What is Penalty for not registering under GST?
  7. GST Registration Process?

1. What is GST?

  • GST stand for “Goods and Service Tax” and it is levied on “supply” of goods and services or both, in India including the state of Jammu and Kashmir.
  • GST is a destination based tax on consumption of goods and services & levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available at setoff.
  • Only Value addition is taxed and burden of tax is to be borne by final consumer.

2. Who are persons liable for registration under GST law?

  • GST registration is mandatory for most persons and entities supplying goods or services in India.
  • In case of a person or entity supplying goods or services, GST registration becomes mandatory when the aggregate value of supply is more than Rs.40 lakhs.( w.e.f – 1st April 2019)
  •  In case the entity is operating in a special category state, GST registration becomes mandatory when the aggregate value of supply is more than Rs.10 lakhs per annum.
  • However for certain businesses, registration under GST is mandatory.

Note – “Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

3. Who Should Register for GST? (Compulsory Registration)

  • The person engaged in the inter-state taxable supply of goods or services or both;
  •  A casual taxable person engaged in taxable supply;
  •  Persons liable to pay tax under reverse charge mechanism;
  •  A non-resident taxable person engaged in providing taxable supply;
  •  A person liable to pay tax under section 9 (5) of the Act;
  •  The person liable to deduct tax at source (TDS);
  •  Input Service Distributor;
  •  E-Commerce operator
  •  A person engaged in supplying goods or services or both through e-commerce operator who is required to collect tax at source (TCS);
  •  The person engaged in supplying online information and database access or retrieval services from a place outside India to an unregistered person;
  •  Persons engaged in the taxable supply of goods or services or both on behalf of another registered taxable person, whether as an agent or otherwise.
  • It has to be noted that the above categories of person need to get compulsory GST registration irrespective of Turnover.

4. Who are not liable for GST Registration?

  • Exempted Goods or Services: 

Any person who is engaged exclusively in supply of those goods or services which are wholly exempted from tax or are not liable to pay tax under CGST or under IGST Act.

  • An Agriculturist:

 For those supply only which is produced out of cultivation of land.

  • Notified Person: 

 Furthermore, the government on the recommendation of the GST council     may issue notification & specify special category of persons who are not     liable for registration.

5. What documents required for GST Registration?

a) Details to be furnished – Applicant has to declare the following before applying for registration:

  •  PAN of Applicant
  •  Mobile number
  •  E-mail address
  •  State or UT

In Part A of FORM GST REG-01 on the Common Portal, either directly or through a Facilitation Centre notified by Commissioner.

b) Reference Number:

On successful verification of the PAN, mobile number and e-mail, a temporary reference number shall be generated and communicated to the applicant.

c) Application:

Using the reference number, the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code (EVC), along with documents specified in the form. 

d) Specified Documents:

The following specified documents are required to be submitted along with the application:

A. Documents required for Private Limited Company, Public Company (limited company) / One Person Company (OPC):

i) Company documents

• PAN card of the company

• Registration Certificate of the company

• Memorandum of Association (MOA)/ Articles of Association (AOA)

• Copy of Bank Statement

• Declaration to comply with the provisions 

• Copy of Board resolution

ii) Director related documents

• PAN and ID proof of directors

iii) Registered Office documents

• Copy of electricity bill/ landline bill, water bill

• No objection certificate of the owner

• Rent agreement (in case premises are rented)

B. Documents required for Limited Liability Partnerships (LLPs):

i) LLP Documents

• PAN card of the LLP

• Registration Certificate of the LLP

• LLP Partnership agreement

• Copy of Bank Statement of the LLP

• Declaration to comply with the provisions 

• Copy of Board resolution

ii) Designated Partner related documents

• PAN and ID proof of designated partners

iii) Registered Office documents

• Copy of electricity bill, landline bill, water bill

• No objection certificate of the owner

• Rent agreement (in case premises are rented)

C. Documents required for Normal Partnerships

i) Partnership documents

• PAN card of the Partnership

• Partnership Deed

• Copy of Bank Statement

• Declaration to comply with the provisions

ii) Partner related documents

• PAN and ID proof of designated partners

iii) Registered Office documents

• Copy of electricity bill / landline bill, water bill

• No objection certificate of the owner

• Rent agreement (in case premises are rented)

• Documents required for Sole proprietorship / Individual

iv) Individual documents

• PAN card and ID proof of the individual

• Copy of Cancelled cheque or bank statement

• Declaration to comply with the provisions

v) Registered Office documents

• Copy of electricity bill/ landline bill, water bill

• No objection certificate of the owner

• Rent agreement (in case premises are rented)

D. Acknowledgement:

On the receipt of an application, an acknowledgement shall be issued to the applicant in FORM GST REG-02.

6. What is Penalty for not registering under GST?

  • Penalty for not getting registration will be
  1. Rs.10,000 or
  2. 100% of tax evaded

[Whichever is higher]

7. GST Registration Process?

GST registration can be done online through the GST Portal. On submission of a GST registration application, GST ARN is provided immediately. Using the GST ARN, the application status can be checked and queries if any can be replied by the applicant. Within 7 days of ARN generation, the taxpayer would receive GST Registration Certificate and GSTIN.

Step 1: Go to the GST Portal

  1. Access the GST Portal ->https://www.gst.gov.in/
  2. Click on Services -> Registration > New Registration option.

Step 2: Generate a TRN by Completing OTP Validation

The new GST registration page is displayed. Select the New Registration option. In case you left a GST registration application without completing, the section TRN number option can be used to continue to fill the old application.

Fill the following details

  1. Select the Taxpayer type from the options provided.
  2. In the State/UT and District list, select the state for which GST registration is required and district.
  3. In the Legal Name of the Business (As mentioned in PAN) field, enter the legal name of your business/ entity as mentioned in the PAN database. There will be an automated check with the PAN database. Hence, ensure the name is the same as in PAN. In case a wrong name is mentioned in PAN, apply for correction of PAN first.
  4. In the Permanent Account Number (PAN) field, enter PAN of your business or PAN of the Proprietor. GST registration is linked to PAN. In case of company or LLP, enter the PAN of the company or LLP.
  5. In the Email Address field, enter the email address of the Primary Authorized Signatory.
  6. In the Mobile Number field, enter the valid Indian mobile number of the Primary Authorized Signatory. 
  7. Click the PROCEED button.

Step 3: OTP Verification & TRN Generation

On submission of the above information, the OTP Verification page is displayed. OTP will be valid only for 10 minutes. Hence, enter the two separate OTP sent to validate email and mobile number.

  • In the Mobile OTP field, enter the OTP you received on your mobile number.
  • In the Email OTP field, enter the OTP you received on your email address.

Step 4: TRN Generated

On successfully completing OTP verification, a TRN will be generated. TRN will now be used to complete and submit the GST registration application.

Step 5: Login with TRN

Now that TRN is generated, you can begin the GST registration process. In the Temporary Reference Number (TRN) field on the GST Portal, enter the TRN generated and enter the captcha text as shown on the screen. Complete the OTP verification on mobile and email. You will now be taken to the GST registration page shown below:

Step 6: Submit Business Information

Various information must be submitted for obtaining GST registration. In the first tab, business details must be submitted.

  • In the Trade Name field, enter the trade name of your business.
  • Input the Constitution of the Business from the drop-down list.
  • Enter the District and Sector/ Circle / Ward / Charge/ Unit from the drop-down list.
  • In the Commissioner ate Code, Division Code and Range Code drop-down list, select the appropriate choice.
  • Select if you would like to opt for the Composition Scheme.
  • Input the date of commencement of business.
  • Select the Date on which liability to register arises. This is the day the business crossed the aggregate turnover threshold for GST registration. Taxpayers are required to file the application for new GST registration within 30 days from the date on which the liability to register arises.

Step 7: Submit Promoter Information

In the next tab, details of the promoters of the business must be submitted. In case of a company, the director’s information must be submitted. In case of Proprietorship the proprietor’s information must be submitted. Details of up to 10 Promoters or Partners can be submitted in a GST registration application.

The following details must be submitted for the promoters:

  • Personal details of the stakeholder like name, date of birth, address, mobile number, email address and gender.
  • Designation of promoter.
  • DIN of the Promoter, only for the following types of applicants:
    • Private Limited Company
    • Public Limited Company
    • Public Sector Undertaking
    • Unlimited Company
    • Foreign Company registered in India
  • Details of citizenship
  • PAN & Aadhar
  • Residential address.
  • Photo of promoter.

In case the applicant provides Aadhar, aadhar e-sign can be used for signing the GST returns instead of a Digital Signature.


GST Registration – Promoter Information

Step 8: Submit Authorized Signatory Information

The authorized signatory is a person nominated by the promoters of the company to be responsible for filing GST returns of the company and maintaining the necessary compliance. The authorized signatory will have full access to the GST Portal and will be able to undertake a wide range of transactions on behalf of the promoters. The promoter of a company can also be an authorized signatory.

In case a promoter was selected as an authorized signatory in the previous section, this section will be auto-populated with the relevant details. The details required for authorized signatory is same as that of the promoters.

Step 9: Principal Place of Business

In this section, the details of principal place of business must be provided by the applicant. The Principal Place of Business is the primary location within the State where a taxpayer’s business is performed. The principal place of business is generally the address where the business’s books of accounts and records are kept and is often where the head of the firm or at least top management is located. Hence, in case of company or LLP, the principal place of business would be the registered office.

For the principal place of business enter the following:

  • Enter the address details of the principal place of business.
  • Enter the official contact details like Email address, telephone number (with STD Code), mobile number field and fax number (with STD Code).
  • Select the nature of possession of the premises.

If the principal place of business is located in SEZ or the applicant is SEZ developer, necessary documents/ certificates issued by Government of India are required to be uploaded by choosing ‘Others’ value in Nature of possession of premises drop-down and upload the document.

In this section you will have to upload documents to provide proof of ownership or occupancy of the property as follows:

  • For Own premises – Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal copy or copy of Electricity Bill.
  • For 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 Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
  • For premises not covered above – 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. For shared properties also, the same documents may be uploaded. .

Step 10: Additional Place of Business

In case you have additional place of business, enter details of the property in this tab.

Step 11: Details of Goods and Services

In this section, the taxpayer must provide details of top 5 goods and services supplied by the applicant. This is just an indicative list and the business of the applicant will not be restricted in any way to the goods and services mentioned in this part.

For goods supplied, provide the HSN code and for services, provide SAC code. In case, you have more than 5 goods or services, you can add the top 5 goods or services you are dealing with.

Step 12: Details of Bank Account

In this section, enter the number of bank accounts held by the applicant. If there are 5 accounts, enter 5. Then provide details of the bank account like account number, IFSC code and type of account. Finally, upload a copy of the bank statement or passbook in the place provided.

Step 13: Verification of Application

In this step verify the details submitted in the application before submission. Once verification is complete, select the verification checkbox. In the Name of Authorized Signatory drop-down list, select the name of authorized signatory. Enter the place from where the form is filled. Finally, digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC. Digitally signing using DSC is mandatory in case of LLP and Companies.

Step 14: ARN Generated

On signing the application, the success message is displayed. You will receive the acknowledgement in next 15 minutes on your registered e-mail address and mobile phone number. Application Reference Number (ARN) receipt is sent on your e-mail address and mobile phone number. Using the GST ARN Number, you can track the status of your GST registration application.


GST Registration – Place of Business

Step 10: Additional Place of Business

In case you have additional place of business, enter details of the property in this tab.

Step 11: Details of Goods and Services

In this section, the taxpayer must provide details of top 5 goods and services supplied by the applicant. This is just an indicative list and the business of the applicant will not be restricted in any way to the goods and services mentioned in this part.

For goods supplied, provide the HSN code and for services, provide SAC code. In case, you have more than 5 goods or services, you can add the top 5 goods or services you are dealing with.

Click here to find HSN code and SAC code.

GST Registration – Goods & Services Supplied

Step 12: Details of Bank Account

In this section, enter the number of bank accounts held by the applicant. If there are 5 accounts, enter 5. Then provide details of the bank account like account number, IFSC code and type of account. Finally, upload a copy of the bank statement or passbook in the place provided.

GST Registration – Bank Account

Step 13: Verification of Application

In this step verify the details submitted in the application before submission. Once verification is complete, select the verification checkbox. In the Name of Authorized Signatory drop-down list, select the name of authorized signatory. Enter the place from where the form is filled. Finally, digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC. Digitally signing using DSC is mandatory in case of LLP and Companies.

Step 14: ARN Generated

On signing the application, the success message is displayed. You will receive the acknowledgement in next 15 minutes on your registered e-mail address and mobile phone number. Application Reference Number (ARN) receipt is sent on your e-mail address and mobile phone number. Using the GST ARN Number, you can track the status of your GST registration application.