A step-by-step guide for obtaining your GSTIN

Under the VAT and Service Tax regime, TIN number and Service Tax Registration Number were issued by the state and the Centre. However, under the Goods and Services Tax (GST) regime, all taxation will get consolidated into a single platform and taxpayers will be registered under a single authority. All the taxpayers who migrate and register under GST will receive a GSTIN — Goods and Service Tax Identification Number. Here is what the GSTIN format looks like- 

 

 

Under the GST regime, every business providing goods and services with a turnover exceeding Rs 20 lakh is required to register as a normal taxpayer. This registration is important because only a registered business can avail benefits like the seamless flow of Input Tax Credit (ITC) on their raw material purchases.

The GST registration process has been reopened from June 25 and will continue for the next 3 months.

How to get a GSTIN 

1. Log on to that GST online portal www.gst.gov.in

2. Go to 'Register Now' and fill in Part A of the application with your name, e-mail ID and mobile number

3. The portal will verify your details by sending an OTP to your mobile and email

4. Once the verification process is completed, you will receive the Application Reference Number (ARN) via mobile or email

5. Now you can fill Part B of the application using the ARN. The documents you will require in this step include:

• Photographs
• Constitution of taxpayer
• Proof(s) of place of business
• Bank account details
• Authorisation form

6. Fill in all the information and upload all the documents that are required in the application and submit the application using DSC or Aadhaar OTP

The GST officer will verify your application within 3 working days. The officer will either approve your application, in which case you will receive your Certificate of Registration (Form GST REG 06), or the officer will ask for more information using the Form GST-REG-03.

The additional details need to be provided within 7 working days. Once the details are provided, the officer can reject the application providing reasons for the same in the Form GST-REG-05. If the GST officer is satisfied with the details provided, then the application will be processed and you will receive a Certificate of Registration.

Advantages of getting a GSTIN

1. Legal recognition as a supplier of goods or services. This helps in attracting more customers

2. You will be more competitive than small businesses as buying from them will ensure input credit.

3. A person having GSTIN can take input credit on their own purchases and input services

4. You can make interstate sales without many restrictions (they will be treated as casual taxable persons). Thus, it widens the potential market for SMEs

5. Register on e-commerce sites or open own e-commerce website. This will widen the scope of business for a registered person

6. Registering for GST will ensure that your business is compliant (because most returns are automated). This, in turn, will give a good GST rating and help to boost the business.

Penalties for not registering under GST

An offender not paying tax or making short payments has to pay a penalty amounting to 10 per cent of the tax amount due subject to a minimum of Rs 10,000. The penalty will be high at 100 per cent of the tax amount due if the offender has evaded tax — where there is a deliberate fraud.

Archit Gupta is the founder & CEO ClearTax