Introduction
For any business operating in India, obtaining a Goods and Services Tax (GST) registration is a foundational step toward legal compliance. The process, conducted entirely online through the official GST portal and it is designed for convenience but can present certain complexities for newcomers. This guide explains the procedure and highlights common pitfalls to help entrepreneurs achieve a seamless registration.
The GST registration process: A step-by-step overview
The journey to receiving your GST Identification Number (GSTIN) is divided into two parts, ensuring a thorough and verified application.
Part A: Generating a Temporary Reference Number (TRN)
The process begins on the official GST portal (www.gst.gov.in), where you initiate a “New Registration.” Here, you will be prompted to provide fundamental information:
- State and district of operation.
- Legal name of your business, as per your Permanent Account Number (PAN).
- Email address and mobile number of the primary authorized signatory.
After entering these details, the portal will send a one-time password (OTP) to your email and phone for verification. Once verified, a Temporary Reference Number (TRN) is generated, which is valid for 15 days.
Part B: Submitting the detailed application
Using the TRN, you can log back into the portal to complete the detailed application form, GST REG-01. This section requires you to fill in comprehensive business information, including:
- Business Details: Information such as the business’s constitution (e.g., proprietorship, company).
- Promoter/Partner Details: Personal and identity information, including a photograph.
- Authorized Signatory: Details of the person authorized to act on behalf of the business.
- Principal Place of Business: The primary business location and its address proof.
- Goods and Services: A list of the items you will be supplying, identified by their HSN/SAC codes.
- Bank Account Details: While not mandatory during the initial submission, bank account information will need to be provided later.
Aadhaar authentication for expedited approval
Applicants can opt for Aadhaar authentication for quicker processing. Verifying identity through Aadhaar allows for quicker digital verification, often leading to approval within 7 working days. If you do not opt for Aadhaar authentication, your application may be subject to a physical verification of your business premises by a tax officer, which can extend the approval timeline.
Final submission and GSTIN:
The application is finalized with a Digital Signature Certificate (DSC) for companies or an Electronic Verification Code (EVC) for other entities. Upon submission, you will receive an Application Reference Number (ARN) to track your application status. Once approved, your GSTIN is generated, and the registration certificate can be downloaded from the portal.
Common difficulties and how to overcome them:
While the process is streamlined, but many applicants encounter difficulties that can cause delays or outright rejection. Being aware of these issues can help ensure a smooth application.
- PAN and Aadhaar Mismatches: Discrepancies in details between the PAN or Aadhaar card and the application can trigger immediate rejection. Solution is to ensure all details are identical across all documents and on the application form.
- Document-Related Issues: Rejections often occur due to improper documentation, such as blurry scans, incorrect formats, or missing documents. Use the checklist on the GST portal to prepare all documents in the correct format (e.g., PDF or JPEG) and size (under 1 MB) before starting the application.
- Incorrect Address Proof: A mismatch between the address on the application and the proof of address (e.g., electricity bill, rent agreement) is a frequent cause of rejection. The address on your documents must match the application exactly. If using a rented or shared property, a valid rent agreement or a no-objection certificate (NOC) from the owner is essential.
- Technical Glitches: The GST portal may experience technical issues, particularly during peak filing seasons. Attempt to file during non-peak hours. Prepare all necessary information and documents in advance to minimize time on the portal.
- Officer Queries: After submission, a tax officer might raise queries requesting clarification. Some of these queries can be generic, causing confusion for the applicant. Respond to queries promptly and with specific information within the given timeframe to avoid automatic rejection.
- Wrong Business Type Selection: Selecting the wrong business constitution (e.g., proprietorship instead of a company) can lead to mismatches and rejections. Double-check your legal business structure against your incorporation documents before filling out the form.
- Incorrect HSN/SAC Codes: Using the wrong codes to classify goods and services can lead to delays and complications later on. Carefully verify the correct HSN/SAC codes for your supplies before submitting the form.
Conclusion:
While the GST registration process can appear difficult and confusing, but following the step-by-step procedure and being mindful of common issues can make it a straightforward experience. Proper preparation and attention to detail are key to securing a successful and timely registration, allowing your business to operate compliantly and efficiently. By leveraging the Aadhaar authentication feature and carefully preparing your documents, you can confidently navigate the path to GST compliance.
Although these procedures give concise information on how to proceed for GST registration, but it is always advisable to consult an expert or professional for unnecessary delays and stay compliant.
