How to obtain a GST Number?

What is GST number?

GST Number is a 15 digit unique number. GST (Goods and services tax) is a common Indirect tax replaced by numerous Indirect taxes in India. The act came into effect on 1st July 2017 in India. The regulations are applicable to everyone purchasing goods and services at the same rate in India. In addition to this, if the purchase was made by a business for sale to a customer, then the business can claim an input tax credit to set-off GST liability. Hence, the GST liability is pushed to the end-consumer through the use of the input tax credit mechanism. GST Registration generally takes 2-6 working days.

How to apply for GST Number?

• Login to the GST Online Portal
• Fill up Form Part-A (PAN, Mobile Number and E-mail)
• The Portal verifies your detail by OTP/E-mail
• Upload the required documents
• Access and fill in Part B using received number
• You will get the Application Reference Number
• The GST Officer starts verifying your documents
• The GST Officer either rejects or accepts your application within 3 working days
• If any explanation is required you need to produce the documents required
• After all the clarifications GSTN number is allotted to you

Structure of 15 Digit GSTIN

The Goods and Service Tax Identification Number (GSTIN) is the unique number each taxpayer will receive once they have registered on the common portal. It is based on a taxpayer’s PAN.

For example: 22AAAAA0000A1Z9

22- (State code)

AAAAA0000A- (PAN)

1- (Entity number of the same PAN holder in a state)

Z- (Alphabet ‘Z’ by default)

9- (Check sum digit)

Who is liable to get registered under GST?

There are 2 types of GST registration:

Based on turnover

Any business whose turnover exceeds the threshold limit of Rs. 40 lakhs will have to register under GST as per the amendments made in 32nd GST Council Meeting. One may require the help of an expert due to the complications stated below before deciding whether to avail this exemption limit or continue to be in GST regime.

Covers only Goods and not Services: The limit is applicable only for sale of goods. For service providers limit continues to be Rs. 20 lakh for all states except for special states where it is Rs. 10 lakh.

Higher Exemption Threshold Limit for Supplier of Goods: There would be two Threshold limit for exemption from Registration and Payment of GST for the suppliers of Goods i.e. Rs. 40 lakhs and Rs.20 lakhs. States would have an option to decide about one of the limits within a weeks’ time. The threshold for Registration for Service Providers would continue to be Rs. 20 lakhs and in case of Special Category States at Rs. 10 lakhs.

Compulsory Registration for GST

Person covered under compulsory registration are mandatorily required to obtain registration irrespective of quantum of turnover

• The person engaged in the inter-state taxable supply of goods or services or both;
• A casual taxable person engaged in taxable supply;
• Persons liable to pay tax under reverse charge mechanism;
• A non-resident taxable person engaged in providing taxable supply;
• A person liable to pay tax under section 9 (5) of the Act;
• The person liable to deduct tax at source (TDS);
• Input Service Distributor;
• E-commerce operator;
• A person engaged in supplying goods or services or both through e-commerce operator who is required to collect tax at source (TCS);
• The person engaged in supplying online information and database access or retrieval services from a place outside India to an unregistered person;
• Persons engaged in the taxable supply of goods or services or both on behalf of another registered taxable person, whether as an agent or otherwise.

Common Documents required for GST Registration

1. For Sole Proprietorship / Individual

• Aadhaar card, PAN card, and a photograph of the sole proprietor
• Details of Bank account- Bank statement or a cancelled cheque
• Office address proof:
• • • Own office – Copy of electricity bill/water bill/landline bill/ property tax receipt/a copy of municipal khata
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.

2. For Partnership deed/LLP Agreement

• Aadhaar card, PAN card, Photograph of all partners.
• Details of Bank such as a copy of cancelled cheque or bank statement
• Proof of address of Principal place of business and additional place of business :
• • • Own office – Copy of electricity bill/water bill/landline bill/ a copy of municipal Khata/property tax receipt
    • Rented office – Rent agreement and NOC (No objection certificate) from the owner.

In case of LLP- Registration Certificate of the LLP, Copy of board resolution, Appointment Proof of authorized signatory- letter of authorization.

3. For Private Limited Company / Public Limited Company /OPC

• Company’s PAN card
• Certificate of Registration
• MOA (Memorandum of Association) /AOA (Articles of Association)
• Aadhar card, PAN card, a photograph of all Directors
• Details of Bank-bank statement or a cancelled cheque
• Board Resolution with Directors Id & Address Proof.

Suggested Read: Benefits of GST for Small Business and Start up