Multiple taxes are being clubbed under GST and thus the cascading of taxes that have been prevalent in our system will all be subsumed. But, timely GST registration will help you avail Input Tax Credit with many other benefits of GST. While our earlier post was more focused on how an existing supplier can register under GST, this blog will elaborate on how new businesses can register under GST.
Recap: What is GST Registration Process and Why is it Important?
The process of GST registration implies that if you are in the business of providing taxable supply of goods and/or services under GST regime, and the aggregate turnover of your business exceeds the threshold limit of Rs. 20 lakh/10 Lakh* you will be required to register as a normal taxable person. It is important to be GST registered as it will enable you to avail various benefits such as input tax credit and more.
Recap: What is the process for Exiting Registered Suppliers to migrate to GST?
- For Existing Registered Supplier, a provisional certificate of registration will be allotted to the supplier upon enrollment in Form GST REG-25. (In case a supplier has obtained multiple registration on the basis of single PAN under existing law, such a supplier will be granted only one provisional Registration. In case of centralized registration under Service Tax, a supplier will be granted with single provisional registration in the state or union territory in which he was registered earlier.)
- Within 3 months, suppliers are required to submit PAN, mobile number and e-mail ID to register under the existing law in Form GST REG-24.
- If the details submitted are satisfactory, final registration certificate will be issued in Form GST REG-06.
- If the details submitted are not satisfactory, a show cause notice will be issued in Form GST REG-27, and there will be a hearing on the same before a cancellation order of provisional registration is issued.
- If the show cause notice hearing is also not successful, or the supplier fails to provide the necessary details within the preconditioned time period, the provisional registration allotted in Form GST REG-25 will be cancelled by issuing an order in Form GST REG-26. In case the show cause notice hearing is complete and satisfactory, final registration certificate will be issued in Form GST REG-06.Here’s an example to illustrate the Existing Supplier Registration Process:-
What is the process for New Businesses to be GST Registered?
- For instance you are a regular supplier or a composite tax payer. In this case you will have to start with providing some basic information such as your PAN, Mobile no. and Email ID in Form GST REG – 01, Part – A.
- The information provided by you will be verified by GSTN and an application reference number will be generated.
- You will now submit details such as Application reference number and other required document in Form REG-01 Part – B which will be acknowledged in Form GST REG – 02.
- If the details submitted are complete and satisfactory, then with 3 working days you will receive a Certificate of GST Registration in Form GST REG – 06.
- If details submitted are not satisfactory then a notice will be used by GSTN seeking additional details/clarification from you in Form GST REG – 03.
- You will provide additional details/clarifications in Form GST REG – 04 within 7 working days from the date of receipt of Form GST REG-03.
- If the additional details/clarification submitted by you are satisfactory, a Certificate of GST Registration in Form GST REG – 06 will be issued within 3 days from date of receipt of Form GST REG-01 or Form GST REG-04.
- You will receive If the additional details/clarification submitted by you is not satisfactory, then your registration application will be rejected using Form GST REG-05.Here’s an example to illustrate the GST New Registration Process –
The procedure for all new business registration will remain the same, irrespective of the type of stakeholder you might be. But, the Forms will vary for every type of stakeholder. Please refer to the below mentioned table mentioned below: