GST is the Goods and Services Tax, which unifies the indirect tax applicable on the supply of goods or services or both done by the business entities or owners of the business. This was established by unifying various taxes like the Service Tax, VAT, Central and State Sales Tax, and several other taxes which were levied on the goods sold in the country with the intention of bringing uniformity and simplicity in the levy and collection of taxes.
For taking registration under GST, it is important that the business owner or supplier computes the aggregate turnover earned by him and ensures if the same is crossing or exceeding the threshold limit of exemption which is given by the GST Act. The threshold exemption, as specified by the GST Act, is as follows:
– In the case of the supply of Goods:
If the turnover is exceeding INR 40 Lakhs in case of a supply in the Normal Category States or
If the turnover exceeds INR 20 Lakhs in case of a supply in the Special Category States.
– In the case of the supply of Services:
If the turnover is exceeding INR 20 Lakhs in case of a supply in the Normal Category States or
If the turnover exceeds INR 10 Lakhs in case of a supply in the Special Category States.
For the purpose of the GST Act, the special category states shall include the following:
- Arunachal Pradesh
- Assam
iii. Jammu & Kashmir
- Manipur
- Meghalaya
- Mizoram
vii. Nagaland
viii. Sikkim
- Tripura
- Himachal Pradesh
- Uttarakhand.
As per the GST Act, there are certain business enterprises that need to take mandatory registration under GST, and if such business entities supply goods or services or both without taking registration under GST, then it shall be considered as a commission of the offense, which shall also attract penalties.
On submission of the application for registration with GST on a successful basis, it shall take 2 to 6 working days in total.
Who should register under GST?
As per the GST Act, the following persons shall take registration under GST namely:
– Individuals who were registered under the pre-tax laws of the country, which were in force prior to the establishment of GST
– Business entity or business owner earning an income or turnover exceeding the threshold limit specified by the GST Act
– Non-resident taxable person
– Casual taxable person
– Input Service Distributor (ISD)
– Agent of a Supplier
– Those liable to pay tax under the RCM or Reverse Charge Mechanism
– E-commerce operator
– Individuals making supply using an e-commerce platform
– A person who is making the supply of online information and database access or retrieval services located outside India to a person who is located in India.
Documents required for GST Registration
Following are certain documents that should be submitted on a mandatory basis for getting an easy registration under GST:
– Copy of PAN of the applying person
– Copy of Aadhar Card
– Business Incorporation or Registration Certificate
– Identity and address proofs of the promoters or partners of the business
– Copy of address proof of the premise of business
– Bank Account Details like Bank Account Statement or Cancelled Cheque or First page of Bank Passbook
– DSC or Digital Signature Certificate
– Copy of Board Resolution or Letter of Authorizations for appointing Authorized Signatory.
Using an Aadhar Card for Registering under GST
A business owner who wants to get registration under GST for paying tax on time and filing his returns and compliances can get it easily by using the Aadhar details or number. This would help him get the registration without the need for any physical verification. The approval shall also be granted within 3 working days.
In normal circumstances, the business entities would only be getting the GST registration after completion of the physical verification of place of business or the documents pertaining to the business and its promoters or partners and authorized signatory, which would take many numbers days, and this shall get extended if the GST official seeks for any additional clarifications or documents. This is usually done by the GST Authority to keep fraudulent entities and individuals out of the GST mechanism such that there is a transparent and neat system established in the country.
So, when the applicant opts for authentication using the Aadhar details, it can push or make the granting of registration for the applicant easy and fast, as it would only take 3 days then. In case registration cannot be granted, a notice of rejection shall be issued to the applicant. And for an applicant, to finish the authentication process using Aadhar, can opt for verification using the generation of a link, which will be sent to the mobile number and email address furnished by the applicant using the registration form. Once this is clicked, it will lead to a page where the Aadhar details should be filled out, leading to the generation of OTP to the email address and mobile number registered or linked with the given Aadhar number.
Once the OTP is correctly filled in by the person or the applicant, it will be authenticated and successfully completed, thereby making the registration easy and faster.
Thus, we can now conclude that any applicant looking out to get an easy registration under the GST Act, should use the Aadhar authentication such that they get the same granted within 3 working days. And if they choose for the physical verification, the same shall take more than 3 days and may even extend to 7 or even 21 working days making it a totally difficult process.
