The GST is an indirect tax and introduced in India on 1st July 2017. Mr. Narendra Modi, the honorable Prime Minister of India in his attempt to substitute all the central or state government levied indirect taxes accepted the Goods and Service Tax (GST) Bill. As per the outcome, it is now mandatory for the organizations engaging in the supply of services and goods covering the states to perform the online GST registration. The Goods and Services Tax (GST) is passed on 30th March 2017 by Lok Sabha and is going to progressively influence all the citizens of India. As you all know, that GST means Goods and Services Tax and it will be levied by the central and state governments and will be replace many of the indirect taxes like Service Tax and VAT etc.

GST Registration Online or How to Register for GST

All the persons who owns a valid Permanent Account Number (PAN) as per the recent Income Tax Law and within stipulated sales GST limit are eligible for registering for GST. Persons who have to reimburse casual traders, TDS must have to first register for Goods and Services Tax (GST). Existing assesses can get their provisional login ID and password for GST website from their VAT website or states ACES. When they login to the GST website, they will require to make a new user ID and password.

Compulsory Registration for GST Online

All the business establishments, whose sales is more than Ten lakhs rupees (for North-East states) or Twenty lakhs rupees will require to perform GST registration as a regular taxable entity. Online registration for GST is compulsory for entities engaging in the database access, retrieval or the provision of online information services, persons who are entitled for Tax deducted at source (TDS), business entities supplying services and goods through ecommerce companies, and taxable non-resident Indians etc.

Many businesses and entities in the India are needed to finished online GST registration. Those entities whose GST registration online is not compulsory can also perform GST online registration on the optional basis as GST registration let them get the benefits of legal recognition as the services and goods supplier by permitting the entity to impose GST on customers who benefitted from their services and goods. Those entities who finishes the GST registration online are entitled to get the tax credit.

Steps to register for GST Online

The step by step method to perform GST registration online is given below.

  • First, you need to login to the website
  • Then you require to click on the “Services” tab in the menu at the upper of the webpage
  • Now you will get 3 choices, such as “User Services”, “Registration” and “Payments”.
  • Choose “New Registration” by clicking on ‘Registration’
  • Now, it will redirect you to a new webpage, where you need to choose the option whether you are a GST practitioner or a taxpayer before inputting the information like the state, district and legal name of the business and the district name where the entity is situated, email address, mobile number, and Permanent Account Number etc. This is known as Form “Part A”.
  • The website will verify all the information which you already entered. Therefore, you will receive an email or one-time password (OTP).
  • You need to upload some documents which are based upon the type of business you are doing.
  • After receiving the Application Reference Number via SMS or email, you require to fill the Part B of the form
  • Then a GST officer will verify your application and it can be approved or you are requested to give some more information or documents till then the authorities will get the entire information to accept your application
  • For every state, the registration is done separately, if a trader has branches in different states, then he needs to register separately for every state
  • As GST is introduced in March 2017, we will need some time to get familiar with it and understand it completely. All the assesses have the option to cancel their registration after they registered themselves for the GST

Penalties for not Finishing GST Registration Online

Offenders who are failed to make the entire payment or do not pay tax can face a penalty which is up to ten percent of the tax amount. The minimum fine amount is ten thousand rupees. In the case of intentional tax evasions, offenders were imposed a penalty which is hundred percent of the amount of tax. In case of genuine mistake, the penalty will be ten percent of the tax amount.

For Inter-State supplies up to twenty lakhs, GST registration is not required.

Small service providers mainly offer inter-state services, but sometimes, from other states, they receive less amount from their customers. The total value of the services they provide on the country wide basis is rarely above the threshold value. The GST has taken a judgement to verify that service providers are permitted to engage themselves in inter-state supplies up to twenty lakh rupees with out need to register for the GST. These service providers can also export and purchase the commodities without paying the integrated Goods and Services Tax (GST).

What is IGST, SGST and CGST?

There are three types of taxes under GST:

  • Integrated GST (IGST)
  • State GST (SGST)
  • Central GST (CGST)

Intra-state transaction – if the place of supply of services/goods and the supplier are situated in the same state, then the supply is known as the intra-state supply. The State government impose SGST and central government will impose CGST on the intra-state transactions.

Inter-state transaction - If the supplier is situated at the different state/place to where the services/goods are supplied, then it is known as inter-state supply. The Central Government will charge IGST on inter-state supply.

IGST – On inter-state transactions, Integrated Goods and Services Tax is charged. This is also imposed on import and export of services/goods. The Central Government will get the revenue from this taxation.

SGST – The State Goods and Services Tax is imposed on the intra-state supply of services/goods. The exchequer of the State Government will get this tax money.

CGST – The Central Goods and Services Tax is imposed on intra-state supply of services/goods with SGST. The State and the Central Governments will estimate the revenue sharing proportion on the levy of SGST and CGST at a supply event. The taxation rate will never more than fourteen percent.