What Is A GST Number?
Every established company in India gets a GST number, which is is a tax identification number. GST is a unique 15 digit number issued to the applicant who is eligible for obtaining it.
What Is The Relevance Of GST Number In India?
GST was introduced to simplify the taxation system of India on 1st July 2017. Then, every invoice needs to have it printed on them and companies having an annual turnover of more than Rs. Twenty lacs need to apply for a GST number. Also, GST is a goods and services tax which is different for different products.
Who All Need To Apply For A GST Number?
The registration of a GST number is based on each state and the PAN number of the business owner. The following is a list of conditions which must be fulfilled to apply for it:
1. An annual turnover of more than Rs.20 lacs per annum (Rs. 10 lacs for North Eastern states)
2. Those suppliers who are registered with old tax policies such as VAT, CST irrespective of the threshold limit
3. Those businesses which have their set up in different states and cities
4. Company who supply goods and services to other states
5. Input service distributor who deducts tax at source
6. Paying tax under reverse change
7. Supplier agents
8. Supplying goods through e-commerce
9. Sellers on e-commerce such as Flipkart, Amazon
10. Those who provide online services/ database access/ retrieval services from outside India to a person based in India.
What Are The Benefits?
The following is a list of benefits offered by registering a GST number:
1. Authorised person to collect taxes through passing the credit of the tax paid
2. Claim Input Tax credit which has been paid to the supplier and utilisation of the same to pay the due taxes
3. Smooth cash flow from supplier to receiver throughout the nation
How To Register For A GST Number?
1. First, go to the governments GST portal website www.gst.gov.in and search for registration tab
2. In this tab, fill out all the details of the business such as the PAN number of the owner, email id, the state in Part A form GST reg-01
3. Next, you will have to verify an OTP received on your mobile number
4. After that, you will receive a temporary/provisional number as SMS and email
5. Then fill the form B of GST reg-02 which must be signed and uploaded on the website along with all the required documents depending on the nature of the business
6. Then you will receive an acknowledgement for GST reg-02.
7. In case of any information which needs more clarification, you will know about it through GST reg-03. Then, you will need to clarify the same by producing the documents in the department through GST reg-04 with seven working days.
8. You will get a notification when there are errors in your application form or documents, through GST reg-05, and your application may get rejected.
9. Finally, you will receive GST certificate by the department after thorough verification and approval in the GST reg-06.
Checklist of documents for registering a GST number:
The list is as follows:
1. PAN card of the owner/director of the company
2. Electricity bill/rent agreement of the business registered address
3. The momentum of Association or Article of Association
4. Bank statement or cancelled cheque of the company
5. Aadhar card copy of the owners/directors
Are you facing any challenges with the registration of GST number in India? At 3ecpa.co.in, we offer reliable services and assist you in registering GST number in India without any hassle.
3E Accounting India
3E Accounting India is a corporate service provider and accounting firm assisting clients with company formation and incorporation. We offer company secretary and business-related services in India.
