What You Need to Know About the New GST Registration in 2022

Taxpayers register themselves for GST via the GST registration process. Once they have successfully registered, a special registration is assigned to them. This number is known as the “Goods and Services Tax Identification Number” (GSTIN). The 15-digit number is free of charge. You can verify your GST number and collect all the information. 

It allows businesses to collect taxes on the government’s behalf. After GST registration, the person can collect taxes from the customers. He/she can also claim the input tax credit on the tax he/she pays. Let’s get into the details of the new GST registration.

Criteria for GST Registration

People who meet the requirements below should register for GST:

• Businesses with turnover above Rs. 40 lakh in normal states. This is for the supply of goods only.
• For special category states, the turnover limit is Rs. 20 lakh for the supply of goods. The special category states include:
  • Arunachal Pradesh. 
  • Assam.
  • Himachal Pradesh.
  • Jammu and Kashmir.
  • Manipur.
  • Meghalaya.
  • Mizoram.
  • Nagaland.
  • Sikkim.
  • Tripura.
  • Uttrakhand.

Note: For suppliers of services, the threshold limit is lower. It’s Rs. 20 lakh for normal states. (For special category ones, the limit remains at Rs. 10 lakh.)

• Suppliers of interstate goods and services.
• People registered under the pre-GST law.
• People who pay tax under the reverse charge procedure.
• Non-resident taxable people.
• E-commerce operators provide a platform for supplies. People supplying through it should also register for GST.
• Input service distributors.
• People who supply online services from abroad to non-registered Indians.

Steps for New GST Registration

• Visit the GST registration portal through the link: https://www.gst.gov.in/
• Click on “Click the Services.” After that, click Registration.
• Choose “New Registration Option.”
• Go to the “I am” drop-down list. Select the “type of taxpayer to be registered” option.
• Choose the state for which registration is required. Select the district too.
• Enter the legal business name according to the PAN database.
• Indicate your email address. Also, enter your mobile number.
• Enter the captcha text correctly and proceed.
• On the OTP verification page, enter the OTP you have received via SMS.
• In the Email OTP field, enter the OTP you received via email. Click the PROCEED button.

(NOTE: The OTP for both cases is valid for 10 minutes only.)

• Your Temporary Reference Number (TRN) is displayed on your screen. 
• Login using the TRN and the captcha code.
• The “My Saved Application” page is displayed. Choose the edit icon under the “Action” column.
•  The Registration Application Form is shown.

There are 10 tabs on the top of the page. They are as follows:

• Business Details.
• Promoter/ Partners.
• Authorized Signatory.
• Authorized Representative.
• Principal Place of Business.
• Additional Places of Business.
• Goods and Services.
• Bank Accounts.
• State-Specific Information.
• Verification. 

      You have to select each tag and enter the details.

• Enter the details of the bank account.
• Submit the required document.
• A verification tab appears. The details of the verification submitted in the form are shown.
• Sign the application digitally through a Digital Signature Certificate (DSC). It’s known as “e-signatures” or “EVC.” This is mandatory for LLPs and companies. 
• To update, click the “Submit” button.
• Click Proceed. The DSC dongle must be kept inserted throughout the process.
• Select “Sign” from the pop-up window.
• Once done, the screen will display a confirmation message.

Documents Needed for GST 

• Sole Proprietorship
  • PAN card and address proof. 
  • Proof of business premises like electricity bills.
  • Cancelled cheque of the bank account. It shows all the details of the account holder.
• For Partnership Firm
  • Pan Card of the firm.
  • Partner Id.
  • Address Proof.
  • Partnership registration certificate.
• For LLP (Limited Liability Partnership)
  • COI of the company (certificate of Incorporation).
  • PAN card.
  • Partner Id.

Problems Faced at GST Portal and their Solutions

Error Display on the GST Portal:

Clear the cache if the portal displays an invalid provisional ID and password. You need to delete your browser history. Log in to the website again. You will receive a 10-digit token ID. If you get a 9-digit token number, place a zero at the end. Contact the GST helpdesk if you have any further problems.

OTP Issues: 

 You might not get the One Time Password (OTP) on the registered mobile number. The reason could be the “Do Not Disturb” status of the number. Fix the issue and start the registration process for GST again. For email OTP issues, check the spam folder. 

Changes in GST from 2022

The following changes were introduced in the GST in 2022–

• Government can restrict your Input Tax credit under these cases:
• Default in paying tax for small periods by a certain percentage.
• If the person uses ITC to pay taxes more than the limit.
• Obtaining excess ITC.
• Cancellation of GST if returns are not filed.

Tax officers can cancel the registration in the following cases: 

• Composite taxpayers fail to file returns for a fiscal year after the three-month deadline.
• Regular taxpayers fail to file returns for all continuous tax periods.
• Statements of outward supply must be filled in chronological order. The returns should be in sequence.  
• There will be consequences if sellers aren’t paid timely under GST. Previously, the interests were imposed on the buyer. Now the liability attached to it will increase with time. 
• Two-way communications are no longer relevant.
• The time to obtain an ITC has been extended. 
• GSTR 3B can’t be filled for the current period if GSTR 1 for the prior period is incomplete.
• The last date to fill GSTR 5 and GSTR 5A will be the 13th of next month.
• There will be a late fee if TCS Returns are not filled timely.

Conclusion

It is prudent for citizens of India to be well informed about the GST and its Registration. It’s a step to improve the economy and make it more formal. The changes brought in by the GST are for the benefit of trade and commerce. The article above has given you sufficient details for GST registration in 2022. 

For further details and help, you can visit Piramal Finance. There are many articles and blogs that will help you learn more about key finance topics.