What is GST (Goods and Service Tax) ? GST Registration Process Business in India
GST implies to Goods and Service Tax. The GST was implemented right after the demonetisation. This is the reason it is considered as the second major step taken by the central government of India. The objective behind this step was to eradicate unequal distribution among the citizen of the country. The slogan of the initiative was ‘One Nation, One Tax’. The government wanted to remove all the small and indirect taxes by implementing one comprehensive tax. In the old tax system the small and indirect taxes were imposed on the people whereas, GST replaced all those tax systems implanted since the manufacture of the products.
Who falls under the GST?
- The people who are already a registered candidate under taxes like VAT and Service Tax.
- GST is applicable on the business that earns a turnover more than 2 lakh rupees. When it comes to the states like, Jammu, North-East, Himachal Pradesh and Uttarakhand GST is applicable if the turnover crosses 10 lakhs.
- The GST is applicable on the supply agent, distributor, and non-resident taxable person.
- He GST also covers the people who provide e-commerce service, and the people who fill the reverse charge.
Required documents for GST registration for business
When a person owns and operates a business all by himself is known as entrepreneur. According to the mandate of central government of India, every business needs to come under the coverage of GST. Here is the comprehensive list of documents that is required to register the business under the GST.
- Pan card
- Passport size photos
- Aadhar card
- Bank Account details
- The entrepreneur needs to submit the location details of the business, the entrepreneur needs to submit the electricity bill, governmental papers of the business, if the property is rented then the entrepreneur needs to submit the documents regarding the rented property.
- Author letter
- Digital signature
- The entrepreneur needs to produce the proof of business registration.
- If the business is operated by the partnership then the details of all the partners are required.
- In the case of accompany, the authority will ask for the director’s database at the time of registration.
Registration process for GST
For registration an entrepreneur needs to fill the GST RE-01 form. In order to register under GST Pan Card is crucial. The steps are stated below.
- In order to register the business one needs to go to the official website. After going to the website one needs to click on the Taxpayer option. The entrepreneur needs to fill all the details according to the information given on the Pan Card. The entrepreneur needs to give the mobile number and e-mail id.
- Then a six digit OTP will come both on the email id and mobile number. The entrepreneur needs to enter the OTP. Once the OTP is entered then a TRN number will be generated. After that OTP will come con both email id and on the mobile number for one more time. After entering the OTP a form will appear. The entrepreneur needs to fill all the details in the form. After filling the form the candidate needs to attach all the documents.
- The entrepreneur needs to provide all the details related to business. One needs to provide reliable details so that the transparency is maintained. The details will include the trade name, all the information of the location like, constituency, city, district, and state.
- If the business is run by partnership then the candidate needs to provide all the details regarding the partners. The professional information will include name, address, email id, mobile number, identification proof, passport picture, author letter and digital signature.
- If the business has representative then the entrepreneur needs to provide all the details.
- The location details of the business as in where it is established are essential. The entrepreneur needs to provide all the contact information of the business along with address. The details will represent the nature of the business. If the business is spread more than one place then all the details are needed to submit.
- If the business has warehouse then the location details is needed to produce.
- The complete information regarding the products that are manufactured in the factory. The entrepreneur needs to select an HSN code.
- The entrepreneur needs to produce all the bank account details. So that the authority will know how much tax one is paying. One needs to attach the relevant documents that will provide the proof of the account.
- One needs to verify all the details that are provided at the time registration.
Penalty for not registering for GST
When the business falls under GST slabs but the entrepreneur did not register his business then he needs to fill the penalty. The penalty is as follows,
- If the entrepreneur has paid less tax, then he has to pay extra ten thousand rupees.
- If the tax is skipped then 100 percent tax will be repaid.
From the above article it is important that GST is crucial. One needs to register the business by filling all the details regarding the business. The government made the tax system so that everyone can follow it.
Some Other Business Ideas:
- How to start PVC Pipe making or manufacturing business in India
- Patanjali Distributorship, dealership, franchise, Business in India
- MSME Online Registration Process
- Best Government Subsidy For Small Business in India