GST Registration Process After Company Incorporation in India 

“GST registration is a mandatory compliance requirement for companies involved in supplying any goods or services. Not registering for GST may lead to penalties and other legal consequences. This blog explains the registration process in detail.”

After a successful incorporation of a company in India, compliance becomes the next major step. It is mandatory to stay compliant to operate a business without any hassle.

GST registration is one of the most crucial compliance steps. Businesses need to check whether GST registration is required based on their turnover, business model, and the nature of their supplies. Even when the registration is not mandatory, businesses register early to support vendor onboarding, build credibility, issue tax invoices, and claim input tax credit.

This guide takes the reader through the process of GST registration after a company’s incorporation in India. If you are a new business, this guide will make you understand the basic if GST registration process.

Why GST Registration Matters Immediately After Incorporation

When a new company exceeds a certain turnover or supplies goods and services where registration is mandatory, it becomes important to register for GST to avoid any hurdles in the future. Whether the company makes certain inter-state taxable supplies, sells through specified e-commerce platforms, or simply needs a GSTIN for B2B customer onboarding, GST registration is mandatory.

For many businesses, sometimes the reason for GST registration is not the threshold, but commercial. For example, a corporate customer might ask for your GSTIN for vendor registration. In case of not having one, the onboarding slows down, and purchases and orders get affected.

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What is the Criteria for GST Registration Eligibility?

A business can register voluntarily for GST, even when mandatory thresholds are not met. Businesses do that to claim input tax credit, work with GST-registered customers, or expand their operations more smoothly under GST. However, the following must compulsorily register for GST:

• Businesses that are registered under the pre-GST law
• Businesses with turnover above INR 40 lakh, 20 lakh or 10 lakh, depending upon the scenario
• Non-resident taxable person / casual taxable person
• Those who are paying tax under the reverse charge mechanism
• Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered tax person
• Every person who is supplying online money gaming from outside India to a person in India
• Persons making interstate supplies with an exception. Inter-state service providers are not required to compulsory register for GST up to the turnover threshold of ₹20 lakhs (or ₹10 lakhs in special category states)

What are the Types of GST Registration in India

There are different types of GST registrations that vary based on business, turnover, and frequency of return filing. Here are the most common types of GST registration in India:

• Regular GST Registration: This registration applies to a regular taxpayer who meets the turnover criteria under the GST law. Taxpayers can claim input tax credits under this law. They have to file either GSTR-1 or GSTR-3B, either monthly or quarterly.
• Composition Scheme: This registration type is designed for smaller businesses and professionals with a lower turnover. In this registration, businesses cannot claim input tax credits, collect GST from customers, or make interstate sales.
• Casual Taxable Persons: This registration is for taxpayers that sell occasionally, like a stall in a fair or exhibition. It is valid only for 90 days.
• Non-Resident Taxable Persons (NRTP): This is for individuals who are supplying goods or services occasionally in India without having a fixed place of business here. This is valid for 90 days.
• Input Service Distributor (ISD): This registration type is used by the businesses which have multiple branches across India. The head office receives invoices for common services and distributes the available Input Tax Credit (ITC) among its branches.
• Unique Identity Number (UIN) Registration: This is a special class of GST registration issued to certain international organisations and diplomatic missions, such as embassies, consulates, and UN bodies. Any amount of tax (direct or indirect) collected from bodies like this is refunded back to them.
• TDS Deductors: This is applicable to government departments, local authorities, and specified entities that are required to deduct Tax Deducted at Source (TDS) on certain payments and deposit it with the government.
• E-Commerce Operator Registration: This registration is mandatory for e-commerce platforms. These operators are required to collect Tax Collected at Source (TCS) from sellers and deposit it with the government.
• OIDAR Registration: This registration is required by the foreign providers, who are selling in India online. Services such as cloud services, digital subscriptions, online databases, and software services supplied to customers in India.

What are the Documents Required for GST registration

Here is the list of core documents that are required for GST registration in India:

• PAN card of the Applicant
• Aadhaar card
• Incorporation certificate or proof of business
• Address and Identity proof of Promoters/Director with Photographs
• Address proof of the business
• Bank Account statement/Cancelled cheque
• Digital Signature
• Board Resolution for Authorised Signatory / Letter of Authorisation

What is the GST Registration Process in India

The registration process of GST is simple and can be done online. Here are the main steps to register for GST:

Step 1: Generate Temporary Reference Number (TRN) from GST Portal

Visit the GST portal and fill out Part A of the form GST REG-01. This will require some of your basic details like business name, PAN, email address, and mobile number. After verification from authority, a Temporary Reference Number (TRN) will be generated.

Step 2: Complete the Registration Form

Use the TRN and log into the GST portal. Fill out Part B of Form GST REG-01. Here you will need to provide detailed information about your business like, the type of GST registration, business details, principal place of business, bank account details, and details of the authorised signatory.

Step 3: Upload the Required Documents

Upload the necessary documents required for your application. These documents may include identity proof, PAN, address proof, and other business documents, as mentioned above.

Step 4: Complete Aadhaar Authentication

Aadhaar authentication must be completed to verify the entity.

Step 5: Verify the Details and Submit the Application

Review the information and submit the application using either an Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC), as applicable. Once the application is submitted and approved, you will receive your GSTIN and GST Registration Certificate.

Penalties

If a business fails to register for GST when it needs to do so, it may face certain penalties under the GST law. In cases where the tax has not been paid or it is underpaid due to an error, the penalty is 10% of the tax due, subject to a minimum penalty of INR 10,000. If the offender has deliberately evaded paying taxes the penalty can be 100% of the tax amount.

In addition to the penalty, businesses will also be required to pay the outstanding amount along with any applicable interest.

Can one Make Amendments in GST Registration

If your business details change you can carry out amendments in GST registration. The amendments are divided into two categories:

• Core Amendments: These include key changes to the business details, like legal name of the business, principal place of business, partners/directors, or authorised signatory. These changes require approval from a GST officer.
• Non-Core Amendments: These include changes like, bank account details, contact information, or the list of goods and services offered. Generally, these services do not require approval of a GST officer.

Businesses should apply for any such GST registration amendment through the GST portal, within 15 days of the change.

Conclusion

After the successful incorporation of your company, GST registration is one of the crucial compliance requirements. Having a GST registration might help you to build credibility of your company, create trust between clients and vendors, and have the ability to claim input tax.

Not registering for GST can affect your business operations, as your business can be subject to heavy penalties depending upon the nature of offence. This makes it important to register your business on time.

Understanding the correct GST registration type for your business is important, this requires a thorough knowledge of how GST works in India. Which is exactly where we can help you. Stratrich Consulting has years of experience in helping companies, to get the GST registration correct. Contact today to make your business compliant and ready to commence operations.