GST: Here’s everything about government rules, online registration process and required documents
Most states mandate restaurants with annual sales of more than Rs 20 lakh to register for GST. A restaurant in a state that falls under a special category must register for GST if its total annual revenue exceeds Rs 10 lakh
The Goods and Services Tax (GST) has largely superseded other indirect taxes in India including excise duty, VAT, and service tax. In March 2017 the Goods and Service Tax Act was approved by the Parliament, and it became effective in July of the same year. Under this law, the sale and supply of goods and services are subject to the Goods and Services Tax (GST). Every value addition in India is liable to the comprehensive, multi-stage Goods and Services Tax Law, which is dependent on the location.
Any business with a revenue of over Rs 40 lakh must be registered for GST, as stipulated by the Goods and Services Tax Act. Earlier, the turnover limit was Rs 20 lakh, but it has been increased in some cases. However, the turnover needs to be at least Rs 10 lakh for Himachal Pradesh, Uttarakhand, Jammu & Kashmir, and the northeastern states. No organisations or business entities can conduct business without adhering to the required GST registration laws.
Here’s the step-to-step guide to completing GST registration online:
- Visit the official portal for GST registration.
- Under the ‘Taxpayers’ tab, select ‘Register Now’.
- Choose ‘New Registration’ from the menu.
- Insert all required information, including your business name, PAN information, email address, and mobile number.
- Fill out the Captcha to continue.
- Paste the OTP that was sent to your email address and mobile number.
- You will see a number on the page titled Temporary Reference Number (TRN). TRN should be noted for future use.
- Return to the GST service site now, and select ‘Register from the menu under ‘Taxpayers’.
- Choose TRN and then type in the captcha and TRN.
- You will receive another OTP after clicking ‘Proceed’.
- Key in this OTP and press ‘Proceed’.
- Your online GST registration application’s status will be displayed. Click the ‘Edit’ icon that you will find on the right-hand side.
- Add the required information and a scanned copy of the supporting documents.
- You must then review the declaration after clicking the ‘Verification’ tab.
- Add your electronic signature.
- The screen will display a success message, and you’ll receive an Application Reference Number (ARN).
On the portal, you can look up the ARN’s status.
Required documents for GST registration:
- PAN Card
- Aadhaar Card
- Address proof of the business owner or the promoter
- A passport-size photograph
- Bank account details such as passbook, bank statement or cancelled cheque
- Address proof for the business location
- Digitally scanned signature
- Letter of authorisation
Most states mandate restaurants with annual sales of more than Rs 20 lakh to register for GST. A restaurant in a state that falls under a special category must register for GST if its total annual revenue exceeds Rs 10 lakh. The same rules apply to manufacturers, traders, and service providers. If a business’s overall turnover reaches the threshold amount, GST is required. Once a company registers for GST, it is required to apply the tax on all sales of products and services.
