GST Registration Online - A start to finish guide

Latest update

November 2021

1. Functionality has been introduced on the GST portal for taxpayers to withdraw their application for cancellation of registration (Form REG-16) provided no action has been initiated by the tax officer against their application.

2. Now the effective date of suspension of a taxpayer is also displayed on the portal when his profile is accessed using "Search Taxpayer" functionality.

24th September 2021

An applicant shall undergo Aadhaar authentication for filing an application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23. (Notification No. 35/2021–Central Tax)

What is GST registration?

A unique GST identification number is issued to the taxpayer after filing an online application on the Common portal. Any person having a GST number means he is registered under Goods & Service Tax. Registered taxpayers are required to collect tax from customers and deposit it to the Government.

GST registrants will enjoy the following benefits-

• Legally recognized as supplier
• Tax can be collected from customers
• Taxes paid on purchases can be reduced from output tax liability (Input Tax Credit)
• No inter-state sale restrictions
• Competitive advantage in the market

Types of registration under GST

Voluntary registration

Any individual or business who is not required by law to get registered under GST may apply for registration on a voluntary basis. In that case, he has to follow all compliances in Goods and Services Tax as if he was liable for registration. Further, voluntary registration may be canceled if the business has not been commenced within six months from the date of registration.

Mandatory registration

Every person is legally bound to register in the GST regime if,-

• he is engaged in the supply of goods or services, and the aggregate turnover of his supplies exceeds the GST threshold limit i.e 40 lakhs in the case of goods and 20 lakhs for services.
• he is covered under the compulsory GST registration criteria. This means it is mandatory for a specified category of persons to register under GST even their annual turnover is less than the applicable threshold.

Temporary registration

A tax officer may register the person on a temporary basis if during any proceedings he finds that such person liable to register under the Act and has failed to apply for same. Any person to whom temporary GST registration is granted shall apply for a new GST number within a period of ninety days from the date of the temporary registration.

Registration under composition levy

Small taxpayers whose turnover is less than Rs 1.50 crores have an option to register under the GST composition scheme. In this scheme, GST levied at the reduced rates and also fewer GST compliances need to follow.

Who should apply for GST registration?

(1) Any person who is engaged in the exclusive supply of goods, and his aggregate turnover of such supplies exceeds Rs 40 lakh in a financial year

(2) Any person who is engaged in the supply of services, and his aggregate turnover of services exceeds Rs 20 lakh in a financial year.

(3) Inter-state state supplier of goods or services

(4) Person liable to pay tax under reverse charge mechanism

(5) Casual taxable person

(6) Non-Resident taxable person

(7) E-commerce operator

(8) A person who requires to deduct tax under section 51 of CGST act, 2017

(9) Input service distributor

(10) Any person who is engaged in the supply of goods or services on the behalf of another taxable person

(11) Every person supplying OIDAR  services from a place outside India to an unregistered person in India

(12) Persons notified by the government

Who is not required to register under GST?

(a) Supplier of exempted or non-taxable goods/services

(b) Agriculturists

(c) Inter-state supplier of services and his aggregate turnover is less than Rs 20 lakhs

(d) Supplier covered under the reverse charge mechanism and making only reverse charge supplies

What is the time limit to register for GST online?

1. Every person who is liable to be registered under Section 22 or Section 24 shall file a registration application within 30 days from the date on which he becomes liable to registration.

2. A casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.

3. Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located. 

What documents will be uploaded while applying for registration on the common portal?

The list of required documents is given below:

(1) PAN card of the applicant

(2) Aadhaar card of the applicant

(3) Cancel cheque copy or bank A/c statement

(4) Business address proof i.e. rent agreement or property tax receipt/electricity bill

(5) MOA, AOA, and certificate of incorporation in case of a company

(6) Partnership deed in case of a firm

Some facts related to the GST registration process

• No registration fees

This section is about how much you need to pay to get registered in the GST regime. The Government portal provides a self-registration facility. You will not be required to pay any fees if you apply for registration through the government site. However, the enrollment process on the GST site is time-consuming and required a large number of information and documents. You can register for GST online at very low prices with the help of Tax Gyata experts.

• Online process

The registration process for GST is completely online which means any kind of hard copy or physical printout is not required to submit. Moreover, the applicant is not required to visit any office or authority to enroll for GST. The registration application can file digitally while seating at home. If you find any difficulty at the time of applying for GST, you can approach Tax Gyata consultants for GST consultancy.

• Aadhaar Authentication

The Aadhaar Authentication process has been introduced under GST law with effect from 21.08.2020 for the persons applying for registration.

Under Aadhar authentication, an authentication link is sent on the registered mobile number and email id. On clicking the verification link, a window for Aadhaar Authentication will open where an applicant needs to enter Aadhaar number and the OTP received on the mobile number linked with Aadhaar.

Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails at the time of validation, would be subjected to site verification by the tax department. However, tax authority based on the documents produced can grant registration.

What is the validity period of GST registration?

There are no time restrictions given in law for the validity of the GST number. GSTIN is valid for a lifetime if It has not been canceled by the tax officer nor surrendered by the taxpayer. However, In the case of a casual taxpayer or non-resident taxable person, the validity of GSTIN is limited for a period of 90 days or the period mentioned in the registration application.

Steps to track GST application status

After submission of registration application on the common portal, the status of an application can be tracked by following steps given below - 

Step 1: Go to GST official website

Step 2: Navigate to ‘Services’ > ‘Registration’ > ‘Track Application Status’.

Step 3: Select the “Registration” tab from the dropdown menu.

Step 4: Enter ARN or SRN in the respective field and click on the 'SEARCH' button.

Step 5: The application status will be displayed on the screen.

When registration can be canceled?

Registration under Goods and Services Tax can be canceled by the tax officer either on his own motion or on an application filed by the taxpayer or his legal heirs. Once registration is canceled, the taxpayer will no longer be liable to pay or collect tax in the GST regime.

The tax officer can initiate suo moto cancellation proceedings in the following cases:

• Taxpayer has contravened any of the provisions of GST law
• Composition dealer has not filed three consecutive returns
• A regular taxpayer (other than composition dealer) has not filed a return for six consecutive months
• The business has not been commenced within 6 months in case of a voluntary registration
• Registration has been obtained by means of fraud, willful misstatement, or by suppression of facts.
• An invoice or bill has been issued without the supply of goods or services
• Provisions of Rule 86B have been violated. As per Rule 86B, specified taxpayers cannot utilize input tax credit (ITC) more than 99% to pay tax dues.
• The benefit of tax rate reduction or input tax credit has not been passed to the recipient of goods/services (violation of anti-profiteering measures)
• No business is conducted from the declared place of business.
• ITC availed in violation of statutory provisions

Whether cancelled GST registration can be restored?

Section 30 of the CGST Act gives an option to taxpayer to restore his registration by making the application within 30 days from the date of service of the cancellation order. Revocation is not allowed for UIN holders, GST practitioners or, GST cancelled on taxpayer request. It is important to note that the restoration application can be filed only after filing GST returns along with interest and penalties if registration has been cancelled due to the non-filing of returns. Tax official may reject the application only after giving an opportunity of being heard to the taxpayer.

Deemed Registration

As per Section 26, the grant of registration or the Unique Identity Number (UIN) under the SGST Act or the UTGST Act shall be deemed to be a grant of registration/UIN under the CGST Act subject to the condition that the application for registration/UIN has not been rejected.

Whether registration certificate can be amended?

As per section 28, every registered taxpayer shall inform the proper officer of any changes in the registration certificate. The requirement for amendments in registration may arise due to several factors such as a change in address, change in contact number, change in business details, and so on.

Amendment application can be categorized into two types:

1. Application for amendment of Core fields - Approval of tax official is required.
2. Application for amendment of Non-Core fields - Auto approved after successful filing by the taxpayer. 

Consequences of not registering under GST

if it is statutorily required to get registration under Goods and Services Tax and the same is not done yet,

• Tax dues shall be paid with the penalty*
• Tax cannot be collected from customers
• Input tax credit cannot be availed or transferred
• Goods or conveyances may be confiscated or detained

*Penalty for not obtaining GST registration would be higher of the following,-

100% of tax dues

OR

Rs 10,000

For example, Mr. Subermanyam fails to register for GST, and his tax dues as assessed by authorities are Rs 50,000. In the given situation, Mr. Subermanyam shall be liable to pay tax dues with a penalty of Rs 50,000 (100%. of tax dues).