This article contains all the necessary information regarding GST. It also summarizes the necessary details that would be required to apply for a GST registration number.
Lok Sabha passed the GST Act on 29 March 2017, and it came into effect on 1 July 2017. The Goods and Services Tax or GST is a comprehensive and multi-stage tax that is levied indirectly on the supply of goods and services. Under the new taxation rules, everyone needs to apply for a GST registration number.
The new taxation system has many advantages associated with it:
• Removes the cascading tax effect
• Simplified online procedure
• Reduced compliance
• Defined e-commerce treatment
• Organizing the previously unorganized sector
• Improving logistics’ efficiency
APPLYING FOR GST REGISTRATION
Under the GST, some of the many categories of people who are required to apply for the GST registration number include people supplying goods and services across states, casually taxable people, taxable individuals who are not residents, agents, e-commerce operators, and some others.
There is a proper procedure for the registration under GST which has been mentioned below.
Firstly check if you need to apply for a GST registration number or not. See if you are applying compulsorily or voluntarily.
In some cases, the company director/sole-proprietor/trustee/partner may be registering under GST voluntarily. For such people, it is necessary to complete two e-learning courses namely, “Registering for GST” and “Overview of GST.” He needs to pass the quiz.
This part can be skipped in the following cases:
• The person/company which is registering is experienced in managing other GST-registered businesses
• The person who has prepared/prepares GST return is an ATA (Accredited Tax Adviser) or ATP (Accredited Tax Practitioners)
• The ATA or the ATP has completed both the e-Learning courses within the last two years
STEP 3: SUBMISSION OF APPLICATION UNDER GST REGISTRATION
Registration for GST can be done in two ways, either on paper or you can go for the company registration in Delhi online. You also have to submit some other documents along with the application in correspondence to your business’ type.
In order to be able to register voluntarily, you must have a GIRO plan for the GST payment and refund. Duly filled GIRO application form must be emailed after applying for online registration or enclosing it with the Form GST F1.
If you are doing the company registration in Delhi online, a compulsory registration is completed in a period of 2 working days while a voluntary registration may take up to 10 business days. In the offline process, 10 working days are required for the processing of the application whereas a voluntary registration takes about a month.
In order to quicken your registration process, go for the online system. In fact, you will also come to know in case you have not filled any important details or have not attached any required supporting documents.
In case any application is incomplete and does not have any required document, it will be considered withdrawn and shall not be processed.
Before you are registered for GST, do not charge or collect GST.
After successful application, the applicant will receive a letter with details like the GST registration number and the effective date of registration. The effective date of registration is the date from which you have to start charging and collecting GST on all the taxable goods and supplies.
In case you are late in your application for the compulsory registration, your effective filing date will be back-dated to when you were liable to be registered.