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GST Registration

What is GST Registration?
Every person carrying on the business of supply of goods or services or both under the GST regime and whose turnover is in excess the threshold limit of Rs. 20 lakhs (Rs.10 lakhs for North-eastern states) is required to register as normal taxable person under GST. This is called GST Registration. If the Turnover is Exempt under the act the supplier is not liable to be registered (Example RICE trader is not liable to be registered if deals only in Unbranded Rice and don't do Interstate Supplies)

Why is it Important?
In the current tax regime, multiple taxes are levied at different point leading to cascading effect of tax (i.e. tax on tax). This in turn leads to higher cost of goods and services. One of the major benefit of GST is single tax system and thereby enabling businesses to avail seamless input tax credit. To avail the seamless input tax credit, it is imperative to get GST registration.

New Registration Procedure
Registration to GST is a simple two steps process of Part A & Part B. Procedure for new registration is as follows:

PART A of Registration:
Access the GST website www.gst.gov.in In the Home page, click Services menu and select Registration -> New Registration. In this select the "New Registration" radio button Input the basic data like State in which you are operating, district, PAN and the legal name as per PAN, valid email address & Indian mobile phone number. The GST portal will communicate the One Time Password (OTPs) and the notifications to this email address and the mobile phone number. On clicking proceed, you will receive the mobile OTP and email OPT. In the next page, enter the mobile OTP and the email OTP in the respective fields and click "Proceed" This completes the Part A of GST registration and a Temporary Reference Number (TRN) will be generated. Save this TRN to proceed with Part B of registration process
TRN is valid for 15 days

PART B of Registration:
Access the GST website www.gst.gov.in In the Hope page, click Services menu and select Registration -> New Registration. In this select the "Temporary Reference Number (TRN)" radio button Enter the TRN number that was generated on submitting Part A of the registration process and proceed. This will trigger an OTP. Enter the OTP received and proceed further. At this stage, the status of the registration application will be shown as "Draft". Click on edit icon and proceed.
Part B of the application contains 10 sections.

  1. Business Details
  2. Promoter / Partner Details
  3. Authorised Signatory
  4. Authorised Representative
  5. Principal Place of Business
  6. Additional Places of Business
  7. Goods & Services
  8. Bank Account details
  9. State Specific Information
  10. Verification

Each of these sections contain multiple fields. Make sure to fill all the mandatory fields marked in red

Business Details:
In the Business Details section provide the basic details of the business. Pay attention while selecting the constitution of the business. Fill in the other business details and the existing GST registration details, if any Click save and proceed

Promoter / Partner Details:
In the Promoter / partner details enter the personal information, identity information and the residential Address of the partner or the promotor.
In case of director, enter the Director's Identification Number (DIN) allotted by the Ministry of Corporate Affairs (MCA)
Upload the photograph of the person, whose details are provided in JEPG format and the size should be less than 100 KB
If this person is the Authorised Signatory also, in the 'Other Information' section, mark the slider as 'Yes', else mark it as 'No'

Authorised Signatory:
In this section set the primary authorised signatory. It is mandatory to add a primary authorised signatory. All communications from the GST portal will be sent to email id and the mobile number of the primary authorised signatory as mentioned in the Part A of the registration application.
Up to 10 authorised signatories can be added
Enter the relevant personal information, identity information, Residential Address including PIN code and upload the relevant documents as a proof of authorisation as authorised signatory and the photograph in JEPG format and the size should be less than 100 KB
Details of multiple authorised signatories can be added by clicking the "Add New" button and entering the relevant information Click Save and Continue

Authorised Representatives:
Details of authorised representatives can be entered in this section, if desired
An authorised representative can be a GST Practitioner

Principal Place of Business:
In this section, provide the address of the business premises, contact information of the given location, Nature of possession of the premises and upload the relevant supporting document to support this information. The document should be in PDF or JPEG format and the size should be less than 1 MB.
In case the principal place of business is neither a own premise nor on rent, in the tab "Nature of possession of premises" select the option as "other" and upload the "No Objection Certificate (NOC)" from the owner of the premises
In the Nature of Business Activity section, select the appropriate check box indicating the nature of the business

Additional Places of Business:
In case the business is carried on from additional places also, enter the details which are similar to the principal place of business

Goods & Services Details:
In this section provide information related to 5 primary Goods & Services you supply. In this enter the name of the Goods & Services and the Harmonised System of Nomenclature (HSN)

Bank Account Details:
This section needs details of at least one bank account that is being used for business purposes. Upto 10 bank accounts can be added in this section. After entering the bank details like the Account Number, Type of account and the IFSC code of the bank, upload the supporting documents such as first page of the pass book or a cancelled cheque leaf bearing the tax payers name or the Bank Statement. More than one document can be uploaded in this section, if needed State Specific Information:
In this section any State Specific Information like the Professional Tax code, etc can be provided, if desired. Else this section can be skipped and move on to the next section

Verification:
In this section, you give verification stating that the information given are true and correct to the best of the knowledge. Once done, submit the application. For Companies and Limited Liability Partnerships (LLPs) it is mandatory to submit the application using the PAN based Class-II or Class-III Digital Signature Certificate (DSC)
Before submitting the application using the DCS, the same must be registered using the DSC registered service on the portal
Applicants other than Companies & LLPs, the can be submitted using either eSign or EVC option. Both these services are Aadhar based services and it is required to have the mobile phone number which is registered in the Aadhar data base
In case of EVC, an OTP will be sent to the mobile number and needs to be entered for authentication Upon successful submission of the application, an Acknowledgement Reference Number (ARN) will be displayed. This ARN number will be sent to the registered email and mobile phone number
Now the status of the application will change to "sent for verification". Upon satisfactory verification by the proper officer, GSTIN will be allotted.

TDS on Payments to Contractors or Sub-Contractors - Sec 194C

Who is responsible for Tax Deduction?
Any person responsible for paying any some to any resident contractor for carrying out any work(including supply of labour for carrying out any work) in pursuance of a contract shall deduct TDS under section 194C

When Tax has to be deducted?
Tax has to be deducted either at the time of credit of such sum to the account of the payee, or at the time of payment whichever is earlier

What is the rate of TDS?

Sl. No Nature of Payment TDS Rate if PAN available TDS Rate if PAN not available
1. Payment / Credit to resident individual or HUF 1% 20%
2. Payment/Credit to any resident person other than individual / HUF 2% 20%
3. Payment/ credit to Transporters NIL 20%

Note : TDS shall be deductible at basic rates. No Surcharge, Education Cess and SHEC shall be added

What is the meaning of "work" for the purpose to Section 194C?
The expression "work" in this section would include-

  • advertising;
  • broadcasting and telecasting including production of programs for such broadcasting or telecasting;
  • carriage of goods and passengers by any mode of transportation, other than railways;
  • catering;
  • Manufacturing or supplying of a product according to the requirement or specification of a customer by using the materials purchased from such customer, But does not include manufacturing or supplying of a product according to the requirements or specifications of a customer by using the materials purchased from a person, other than such a customer.

What is a Sub-Contractor as per Section 194C?
A "sub-contractor" would mean any person

  • who enters into a contract with the contractor for carrying out, or
  • for the supply of labour for carrying out the whole or part of the work undertaken by the contractor under a contract with any of the authorities or
  • for supply of, whether wholly or partly, any labour which the contractor has undertaken to supply in terms of his contract with any of the authorities mentioned under this section

What is TDS to Sub-Contractor?
Any person responsible for paying any sum to any resident in pursuance of a contract with the sub-contractor for carrying out, or for the supply of labour for carrying out, the whole or any part of the work undertaken by the contractor or for supplying whether wholly or partly any labour which the contractor has undertaken to supply shall deduct amount equal to 1 % of sum as income-tax on income comprised therein.

When TDS u/s 194C is not Deductible?

  • Petty Cases:
    To avoid tax deduction in petty cases, tax is required to be deducted at source under this section when the amount credited or paid to the contractor or sub-contractor exceeds Rs.30,000 in a single payment / credit or Rs.1,00,000 in aggregate during a financial year. In other words, tax is not deductible under section 194C if the following conditions are satisfies-
    • the amount of any (single) sum credited or paid to the contractor or sub-contractor does not exceed Rs.30,000/- and
    • the aggregate of the amount of such sums paid or credited during the financial year does not exceed Rs.1,00,000
  • Payment or Credit to transport operators
    If the recipient (may be an individual, firm, company or any other person) is a transport contractor (who is in the business of plying, hiring or leasing goods carriage ) and satisfies the following conditions, tax is not deductible if the recipient owns 10 or less than 10 goods carriage at any time during the financial year and he gives declaration to this effect to the deductor and he furnishes his PAN to the deductor.
    Deductor who makes payment to transporters without deducting TDS will be required to intimate the PAN details of the transporters to the Income-Tax Department in the prescribed format

Time Limit within which Tax is to Deposited

  • Where the payment is made by or on behalf of the Government - On the same day.
  • Where the payment is made in any other case than the government
    1. If the amount is credited in the month of March - On or before April 30th
    2. In Other months - Within 7 days from the end of the month in which the deduction is made.
 
     
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