Sep 23,2022 | 9 min read

Goods & Service Tax | Need Of GST | How To Register | Documents Required

Describe GST:

The term "goods and services tax," or GST, is short for that. India began implementing it on June 1st, 2016. Indirect taxes like the service tax and excise tax have been eliminated.

It has three parts: CGST, SGST, and IGST. The advantage of this tax system is that it has decreased the tax on goods by instituting an input tax credit. It also offers a chain mechanism to ensure that everyone pays tax, similar to how service tax did in the past.

GST, or Products and Services Tax, is a brand-new, all-encompassing tax that will be imposed on the sale, production, and consumption of goods and services across the country. The GST, regarded as one of the major tax reforms in the nation, is anticipated to harmonise state economies and boost overall economic growth.

A GST would be imposed by the Central and State governments on all services and items produced, manufactured, and imported in India. Exports are exempt from GST.Currently, the idea calls for two tax rates to be applied at the state and central levels for the first two financial years, after which they would be combined into a single tax rate.

The Need for GST:

State-by-state variations exist in VAT rates and rules. Additionally, it has been noted that states frequently cut these rates in an effort to draw in investors. The Central Government as well as the State Government suffer revenue losses as a result.

The GST, on the other hand, implements consistent tax laws that apply to all states and a variety of industries. In this case, the central and state governments would split the taxes according to a predetermined and pre-approved formula. Additionally, since there won't be any additional state-levied taxes, it will be much simpler to supply goods and services uniformly across the country.

Due to disagreements over some crucial aspects of the new tax legislation among numerous states, the GST rollout missed many dates. However, according to current reports, the GST is set to go into effect across the country on April 1, 2016.

Signing up for GST:

The GST registration process is a crucial step in joining the GST system. The readers of this post will be able to get answers to their questions about the GST registration procedure. A portal managed by GSTN will be used for the online registration of GST (Goods and Services Tax Network). In order to assist businesses with the GST registration procedure, the government will also select GSPs (GST Suvidha Providers).

The GST Registration appears as follows:

  1. The applicant must complete Part A of Form GST REG-01 on the GSTN Portal by entering his PAN, mobile number, and email address.

  2. The mobile number and email address are then validated using an OTP, and the PAN is then verified on the GSTN Portal (one-time-password). The applicant will receive an acknowledgment on Form GST REG-02.

  3. After that, the applicant must complete Part B of Form GST REG-01 and provide the application reference number. The relevant documents can be attached before submitting the form. Through DSC or E-Signature, the authentication would be completed by signature.

  4. Form GST REG-03 will be supplied if more information is needed. Within seven working days of the date of receipt of Form GST REG-03, the applicant must respond on Form GST REG-04 with the necessary information.

  5. The registration certificate on Form GST REG-06 for the principal place of business and for each additional location will be granted if the applicant has submitted all the necessary information via Form GST REG-01 or Form GST REG-04. However, the registration application would be refused using Form GST REG-05 if the details provided are not satisfactory.

  6. However, in order to register, the applicant who is required to deduct TDS or collect TCS must submit an application on Form GST REG-07.

Online registration for GST:

In India, the Goods and Services Tax (GST) has been established to replace a number of other levies. The only GST registration was approved by Parliament on March 29, 2017. However, it didn't take effect in India until July 1. The threshold limit for GST registration is 40 lakhs for a supplier of commodities and 20 lakhs for a supplier of services, per the modifications made at the 32nd council meeting. Additionally, the North-Eastern States have the choice of 20 lakhs or 40 lakhs. After registering under this regime, you will be given a special GSTIN (Goods and Service Tax Identification Number). GST registration has a number of benefits. Additionally, you can claim an input tax credit and collect GST from customers.

Visit the Online GST Portal to complete your online GST registration quickly and conveniently. Although it is simple to complete the form on the GST online portal, you still need professionals to complete the form with proper information and submit the required documents. A few of the terms used while drafting for GST registration are difficult for many taxpayers to understand. Due to this, GST registration should first be completed with the aid of professionals. At Legaldocs, you may complete your GST registration through a straightforward and efficient process.

Documents needed for the applicant's PAN registration:

  • The Indian Income Tax Department issues a laminated "PAN card" with ten alphanumeric characters, known as a permanent account number, to any "person" who applies for one or to whom the department assigns the number without a request.

  • ID card, Aadhaar Based on their biometric and demographic information, Indian citizens and passport holders can freely get a 12-digit unique identity number called Aadhaar.

  • A certificate of incorporation or proof of business registration The Registrar will be the one to issue the Certificate of Incorporation. You have the option to incorporate your corporation as either a one-person company or a private limited company. You must prepare the list of required documents for the registration process.

  • Promoters' and Directors' identity and address documentation with photos. promoters' addresses and proof of identity. The promoters must provide Aadhaar, PAN, voter ID, ration card, etc. as proof of identity and Aadhaar, Voter ID, Ration Card, etc. as proof of address. The promoters can be the owner, partner, director, or any other authorised person.

  • Address verification for the business location Any of the following papers may be used to prove an address for GST registration purposes: among other proofs of ownership for the property, a recent property tax receipt, a copy of the municipal account, or a copy of an electricity bill

  • statement of a bank account or a cancelled check. A check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed is known as a "cancelled check. After being used or paid for, the check is "cancelled," making it impossible for it to be used again. Digital signatures By adopting Digital Signatures for GST, or DSCs, in place of a handwritten signature on GST forms, you may easily file them. You receive DSCs from Capricorn, so you can submit GSTR with ease as an authorised signatory. enjoy the many benefits that digital signature certificates offer. Verify that online transactions are secure and real.

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