Did you know that after the GST was implemented, it swiftly replaced most of the indirect taxes in India? According to a stat, as of January 2023, the number of registered taxpayers was 14 million. This noteworthy figure emphasizes the significance of the Goods and Services Tax (GST) for both citizens and businesses.
This blog will give you a complete route map for getting a new GST registration, including the process and how to apply.
What is GST?
The Goods and Services Tax (GST) is one type of indirect tax. It was approved in the Parliament on March 29, 2017, and went into force on July 1, 2017. The GST is the country’s only domestic indirect tax law.
Expanding on this, the tax is imposed under the GST framework at each point of sale. Both state and central taxes are applied to sales within the same state, and the integrated GST applies to all interstate sales.
Why Does it Matter?
We will now consider the significant advantages of GST. Before the introduction of GST, managing several taxes was challenging. But now, tax administration is considerably more straightforward. This is because all states charge the same amount of goods and services taxes.
With these consolidated under the new GST framework, businesses now face fewer compliance requirements, and government administration is streamlined. The central government establishes the rates and policies and introduces uniform legislation that facilitates compliance, such as e-way bills and e-invoicing.
Additionally, the new GST number eliminated the tax cascade effect, which allowed you to pay taxes on taxes.
You can also explore how GST changed the face of SMEs and enhance your knowledge of the GST era.
What is new GST Registration?
Today, new GST regulations require a business with a turnover of more than Rs. 40 lakhs (for goods) and Rs. 20 lakhs ( for services) to register as a regular taxable entity. This process is called GST registration. For firms located in hill states and Northeastern states, the turnover limit is Rs. 10 lakh.
Process for New GST Registration
We will review the guide to new GST registration, but before that, we need to know who can register for GST.
Eligibility
- Registered Individuals
- Non-Resident and Casual Taxable Individuals
- Reverse Charge mechanism in GST Taxpayers
- E-commerce Aggregators
- Businesses Exceeding Turnover Thresholds:
- General (Turnover exceeding Rs. 40 lakh)
- Special States (For Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and North-Eastern states, the threshold is Rs. 10 lakh)
- Input Service Distributors and Supplier Agents.
- E-commerce Suppliers
- Internet Information Providers
- High Turnover Businesses (turnover exceeding Rs. 20 lakh)
New GST Registration Documents Required
| Category | Documents Required |
| For Individuals/Sole Proprietors | – PAN Card of the individual- Aadhaar Card of the individual- Address Proof- Details of Bank Account- Photographs of the individual you can easily download your PAN card by name and date of birth. |
| For Businesses Under LLP and Partnership Firms | – Copy of the Partnership Deed- Proof of Registration of LLP– Address Proof of Business- PAN Card of Partners- Address Proof of Partners- Photograph of Partners- Proof of Appointment of Authorized Signatory- Aadhaar Card of the Signatory- Bank Account Details |
| For Private Limited Companies | – Incorporation Certificate issued by the Ministry of Corporate Affairs- Memorandum of Association- Address Proof of the Business- Details of Bank Account- PAN Card of the Company- PAN Card of Directors- Address Proof of Directors- Authorized Signatory’s Appointment Proof- PAN Card of the Signatory- Signatory’ Aadhaar Card |
New GST Registration Charges
The new GST registration process is totally free, as registration of your company under GST does not incur any fees.
But be ready for fines if you fail to finish the registration as advised:
- Ten percent of the outstanding payment, or Rs. 10,000, late registration penalty, whichever is more.
- Penalty for tax Evasion: 100% to 300% of the amount of tax that was due but not paid.
How to Apply For New GST Registration?
Applying for GST is simple, especially if you have the correct direction. The new GST registration process is as follows are the following:
Step 1: Start with your online GST registration process by accessing the GST portal at www.gst.gov.in. Once there, click the “Service tab” and then “Registration.”
Step 2: Next, you will want to click “New Registration.” From the drop-down option, pick “Taxpayer,” then select your state and district.
Step 3: Add all your asked document details.
Step 4: Once you enter the OTPs from your phone and email, you will receive a TRN. Note it down as you’ll need it soon.
Step 5: Returning to the GST portal, click “Registration Now” once more, this time choosing “Temporary Reference Number (TRN).” Enter the TRN and captcha code, then forward.
Step 6: You must confirm another OTP, which will subsequently indicate the state of your application. Click the edit icon to upload any necessary paperwork and input further specifics across various areas.
Step 7: Tick the declaration checkbox to verify in one of three ways: E-sign (you’ll receive an OTP on your Aadhaar-linked mobile), EVC (a code sent to your mobile), or DSC for enterprises.
After verification, you will receive a success message and an Application Reference Number (ARN) to monitor your application’s state.
Key Takeaways
Businesses in India mainly apply for a new GST number to streamline tax compliance and remove cascading taxes. Though simple, the procedure calls for proper recordkeeping and attention to detail. Although GST registration is free, late penalties can be severe. Therefore, take care at every stage and successfully apply for a new GST number.
Frequently Asked Questions
- What fresh guidelines govern new GST registration?
As the case may be, businesses whose turnover surpasses the threshold limit of Rs. 40 lakh for most states or Rs.10 lakh for special states must register as an average taxable business under Goods and Services Tax (GST).
- Who isn’t eligible for a new GST apply?
Companies that deal only in exempt items or services and those with annual sales below the minimum amount (₹20 lakhs for most states, ₹10 lakhs for special category states) are not eligible for GST registration.
- Can I accept the bill without a GST number?
Yes, you can accept a bill without GST if the provider is not registered under GST or if the items or services are excluded from GST.
4. What are the new GST Registration Rules?
Starting July 10, 2024, you must use biometric Aadhaar authentication for GST registration across India. This rule comes from the 53rd GST Council meeting and is meant to improve verification methods. The new guidelines were announced in a notification dated July 10, 2024.