GST Registration: A Step by Step Process
Under the Goods and Services Tax (GST) regime, businesses are required to register themselves for a Goods and Services Tax Identification Number (GSTIN). Before we get into the GST registration steps, here’s what you need to know about GSTIN.
What is GSTIN?
A GSTIN is a unique identity for your business that is comprised of 15 digits. The need for a GSTIN arises when you file your GST returns against the returns of your vendors. The GSTIN allows you to ensure that all your transactions are transparent, thus lowering your chances of tax evasion.
Why do you need a GSTIN?
Here are a few reasons for you to have a GSTIN in place:
An Increase in Credibility
Your GSTIN allows you to be known as an authentic supplier of goods and services. By filing your GST returns in timely fashion and ensuring your business is transparent, you can better your credibility in the eyes of the government.
Claiming Input Tax Credit made easy
A GSTIN registration makes it easy for you to claim Input Tax Credit (ITC). You can expect to receive income tax returns on the tax you pay if you make your GST online payment consistently. Be sure to submit your GST number correctly so that you receive your input tax credit without hassle.
Expand your market
If you want to broaden your horizons and make sure you can conduct inter-state transactions, you will have no choice but to register your business to a GST number. A GSTIN can enable you to sell your products or goods online via E-commerce.
What does a GSTIN look like?
This is what the GST number format and structure looks like:
- The first two digits of the GSTIN signify the state code as per the Indian Census 2011
- The following ten characters denote your Personal Account Number (PAN)
- The 13th character represents your registration number with the submitted PAN
- The following two characters are ‘Z’ and a check code respectively
How to Register your Business to a GSTIN
At this point, you probably know why you need a GSTIN for your business. If you are wondering how to register for GST, this is how you do it:
You start by heading over to the GSTN portal and hitting the ‘Register Now’ button that you will find under the ‘Taxpayers (Normal)’ tab.
Continue by clicking on the ‘New Registration’ option and selecting the ‘Taxpayer’ tab in the menu that pops up under ‘I am a.’ Make sure you enter your state and district correctly along with your name, mobile number, email address, and PAN. You can expect to receive a one-time password on the mobile number you submitted.
When you get your OTP, enter it and hit ‘Continue.’
In step 4, you will get a Temporary Reference Number (TRN).
At this point, make sure you hit ‘Register now’ as you go back to the GSTN portal.
Be sure to enter your TRN and the CAPTCHA code that pops up and proceed.
Now, your application will be displayed to you as a draft on the GST portal. Click on the edit button.
Your application will be shown to you as a draft on the official GST site. Select the edit button.
You will have to submit a few documents, including bank account details, proof of constitution, proof of business location, photographs as proof of identification, and an authorized form.
Proceed to the verification page, confirm the declaration, and submit your application.
Finally, you will receive a message informing you that the confirmation was successful, after which you will be able to find your Application Reference Number (ARN) on the mobile number and the email address you submitted.
If you are new to the concept of GSTIN, this should be enough to get you started as you proceed to carry out a GST online registration to get a GSTIN assigned to your business.
Many businesses have managed to get away with producing a fake GST invoice temporarily but eventually got caught when the irregularities became apparent when they had to file their GST returns.