Registration for GST is compulsory for all businesses above the prescribed financial thresholds. Even for others, having a GST number makes entering various business relations or other documentation convenient. For instance, while processing a business loan, lenders see GST registration as a sign of the authenticity of the business.
Step-by-step online GST registration
- Go to the GST portal and select the ‘New Registration’ option under Services>Registration. Then, select the ‘taxpayer type’ option, your state and district, and your contact details to receive an OTP.
- Your Temporary Reference Number (TRN) will be generated and forwarded to your email and mobile. Back at the GST portal, you must again select the ‘New Registration’ option and enter the TRN. After OTP verification, the application status will be shown as a draft.
- Click the ‘Edit’ icon in the application. Fill in the sections in the form and submit the required documents. In the ‘Business Details’ section, you must fill in the Trade Name, the business constitution, District and Sector/Circle/Ward, commencement date, date of GST liability, etc.
- Here, you can also opt for ‘Option for Composition’. GST under the composition scheme reduces the number of GST returns. Notably, many businesses confirm their business loan eligibility through GST returns. That is yet another reason why you should consider registering for GST.
- Upon selecting ‘Yes’ in the ‘Yes/No’ for the registration type, you will find several options to fill.
- If your business is a proprietorship type, information like the proprietor’s name, date of birth, mobile number, address, email address, gender, promoter’s designation, citizenship details, Aadhaar and PAN, and Residential address is required.
- Details like authorized signatory, principal place of business, and details of goods and services with the HSN codes for a maximum of five goods and five services must be provided.
- You will also need to enter your bank details. The state-specific information tab must contain the professional tax employee code number, state excise license number, and PT registration certificate.
- You can also choose if you want to verify your Aadhaar details.
- Once this is done, go to the verification page and submit your application through OTP verification. The Application Reference Number (ARN) is sent to your mobile and email.
You can verify the ARN status by entering ARN in the GST Portal. With the regular filing of returns, you will also be eligible for a business loan. If you get favorable business loan interest rates from your lender, you can check a business loan EMI calculator to check your monthly payments. With your GST registration and a business loan in place, growth and expansion beckons.
