The GST Application Process and How it works

If you are looking for a simple, accessible guide to the Goods and Services Tax (GST), the GST application process, and so on, look no further. To start with, the Goods and Services Tax is a tax structure implemented to replace the numerous indirect taxes that existed at different stages under the previous tax regime. Considering all the confusion it caused, the Goods and Services Tax seems to be an excellent replacement as its underlying principle is ‘One Nation, One tax.’ Before we get into the idea of completing your GST online registration process, you should know how and why GST is useful.

What advantages can you expect from the Goods and Services Tax system?

Here are some noteworthy features of the Goods and Services Tax system:

  • Under the previous tax structure, as a consumer, you would have to pay a whole range of indirect taxes at different stages like transportation, production, and so on. These taxes would vary with each state and add to the confusion. These would ultimately result in a significant boost in the price of goods or services in question, the brunt of which the customer would have to face.

  • Before the GST implementation, companies would find their turnover affected by a buffet of taxes like services tax, Value Added Tax (VAT), and excise duty. Furthermore, VAT would be different in each state. However, with the advent of GST, companies, and individuals registered under the GST regime can expect new rules and provisions to avoid paying GST until they get to a point where they reach a specific yearly turnover threshold.

What Disadvantages can you expect from the Goods and Services Tax?

Here are some disadvantages of the Goods and Services Tax you can expect:

  • The GST regime’s primary problem is the significant boost in the money and time needed for companies to update their accounting software or purchase all new software to make sure they are GST compliant.
  • Secondly, companies have no choice but to hire tax professionals to help employees operate under the GST rules. Substantial operational expenses can cause major problems.

  • Finally, small and medium-sized businesses companies are forced to deal with the hike in tax since the yearly turnover threshold to register for GST is now Rs. 20 Lakh.

What is GSTIN?

A Goods and Services Tax Number (GSTIN) is an exclusive, unique identification number that businesses get after completing the GST registration process. It is a 15-digit number and has the following structure:

  • The first couple of digits of your GST number represent the code of the state you are based out of.
  • The next ten characters that represent your Personal Account number or PAN.
  • The next two digits represent the entity code, which is a code that shows you how many registrations were done in the state.
  • The last digit of the GSTIN is a check code, which is used to determine errors.

Handling your GST Online Registration

Follow these steps to complete the GST registration process seamlessly:

  • Go to the GST portal online (www.gst.gov.in) and log in with your details.
  • Then, hit the ‘Services’ tab and visit the ‘New Registration’ section, after which you will need to enter all the essential details like your PAN, email ID, and mobile number. Once this is done, hit proceed.
  • You should receive a One Time Password (OTP) on your phone or email at this point. Once you verify your details, you will get a Temporary Reference Number (TRN).
  • Then, go to ‘Services,’ click on ‘Registration’, and hit ‘New Registration.’ Enter your TRN, the captcha code that pops up and continue.
  • After this, you will get another OTP. You will be directed to the ‘Saved Applications’ page, where you will have to click the edit option and proceed to the next step.
  • At this point, you will be required to fill in all the necessary business details like your business name, partners, business location, and so forth. You will also need to supplement this with vital documents like proof of business location, bank account details, registration certificate of business, proof of authorized signatory, proof of incorporation of the business, and so forth.

Finally, hit ‘Save’ and make sure your information is saved. At the end of the GST registration process, you should get an Application Reference Number (ARN).

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