Introduction

On July 1, 2017, the Indian Government initiated a new act, termed the Goods and Service Tax Act (GST Act). The act was officially passed on March 29 the same year in the Parliament.
GST is an indirect tax that was formed to abolish several other indirect taxes in India, to create a single taxation regime for ease of collection and to increase the efficiency of the process.
Today, new GST registration has become mandatory for businesses with an annual turnover of Rs. 40 Lakh and above. In the Northeast and Hill states, registration is compulsory for companies earning more than Rs. 10 Lakh yearly revenue.
The GSTIN registration process is relatively simple and will hardly take between 7 to 10 working days to complete.

Types Of GST

State Goods and Services tax (SGST).	SGST refers to the tax payable on the sale of services and products within a state. It replaces previous taxes, including, Value Added Tax, Entry Tax, State Sales Tax, surcharges and cesses.
Central Goods and Services Tax (CGST).	The tax levied on the supply of intra- state products is CGST. The Central Government charges this tax. CGST replaced many taxes levied by the Centre, including Service Tax, Central Excise Duty, CST, Customs Duty, etc
Union Territory Goods and Services Tax (UTGST).	Taxes applicable to the sale of products and services in Union Territories, such as Andaman and Nicobar, Daman and Diu, Chandigarh, Dadra, etc.
Integrated Goods and Services Tax (IGST).	Sale of inter- state products and services leads to taxation. This is IGST. Basically, when businesses transfer services and products from one state to another need to pay this form of GST.

COMPULSORY REGISTRATION IN CERTAIN CASES

Sec.24: the following categories of persons shall be required to be registered under GST:

- Person making any inter-state taxable supply.
- Casual taxable persons making taxable supply.
- Person who are required to pay tax under reverse charge.
- Person who are required to pay tax under sec. 9(5) of CGST (i.e. Electronic Commerce Operator).
- Non-resident taxable person making taxable supply.
- Persons who are required to deduct tax under Sec 51, whether or not separately registered under this Act.
- Persons who make taxable supply of goods or services or both on behalf of other taxable person whether as an agent or otherwise;
- Input Service Distributer, whether or not separately registered under CGST.
- Every person supplying online information and database access or retrieval services from place outside India toa a person in India, other than a registered person.
- Every person supplying online information and database access or retrieval services from place outside India toa a person in India, other than a registered person.
- Such other person or class of persons as may be notified by the Govt. on the recommendation of the Council.

WHO IS NOT ELIGIBLE FOR GST REGISTRATION?

Sec 23(1)(a): Any person engaged exclusively in the business of supplying of goods or services or both they are not liable to tax or wholly exempt from tax under CGST or IGST.
Sec 23(1)(b): An agriculturist, to the extent of supply of produce out of cultivation of land.
Sec 23(2): The Government may, on the recommendation of the GST Council.

ADVANTAGES OF REGISTRATION

The following are advantages to a taxpayer who obtain registration under GST:

He is legally recognized as supplier of goods or services or both.
He is legally authorized to collect taxes from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/recipients.
He can claim Input Tax Credit of taxes paid and can utilize the same for payment of taxes due on supply of goods or services.
Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
Registered person is eligible to apply for Government bids or contracts or assignments.
Registered person under GST can easily gain trust from customers.

DOCUMENTS NECESSARY FOR NEW GST REGISTRATION ONLINE

Applicants must furnish some documents without fail to complete their GST registration process successfully. However, the documentation differs based on whether it is a business or an individual applying for the registration.

Sole Proprietors and individuals

2.Hindu Undivided Families.

3.LLPs and Partnerships.

Pan Card of Partnership Firm
Partner’s address proof.
Partner’s PAN card.
Deed declaring partnership.
Contact Details of Partners
Partner’s photograph.
Partnership Deed/LLP Agreement
Principal address proof for the business.
Proof of appointment for the signatory authority
The authorized signatory’s Aadhaar card.

4.companies.

PAN card belonging to the company.
PAN card and Photograph of all company directors.
Company’s primary address proof.
Contact Details of Directors
Proof of signatory’s appointment.
PAN card belonging to the signatory.
Articles of Association and Memorandums.
Signatory’s Aadhaar card.
Incorporation certificate from the Ministry of Corporate Affairs.
All director’s address proof.

PROCEDURE FOR REGISTRATION

Every person who is liable to be registered shall apply for registration within 30 days from the date on which he becomes liable to registration, before applying for registration declare his

In Part A of Form GST REG-01 on Common Portal.

On successful verification of these numbers, a reference number will be generated.

Applicant shall submit Part B of Form GST REG-01, duly signed, along with documents specified in the said Form at the Common Portal.

Form GST REG-02: Acknowledgement of Application

If these documents are found to be in order, the proper Officer shall approve the registration within 3 working days from the date of submission.

PENALTY FOR NOT REGISTERING UNDER GST

All the businesses required to register under GST mandatorily will have to pay a penalty of 10% of the tax amount payable up to a maximum of INR 10000.