Registration for GST is compulsory for all businesses above the prescribed financial thresholds. Even for others, having a GST number makes it convenient for them to enter into various business relations or other documentation. 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. You have to select the ‘taxpayer type’ option, your state and district, and your contact details for receiving OTP.
- Your Temporary Reference Number (TRN) will be generated and forwarded to your email and mobile. Back at the GST portal, you must select the ‘New Registration’ option again 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 will have to fill in the Trade Name, the constitution of the business, District and Sector/Circle/Ward, commencement date, date of GST liability, etc.
- Here you can opt for ‘Option for Composition’ as well. With GST under the composition scheme, the number of GST returns is reduced. Notably, many businesses confirm their business loan eligibility through GST returns. That is yet another reason why you should consider a GST registration.
- 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 proprietor’s name, date of birth, mobile number, address, email address, gender, promoter’s designation, citizenship details, Aadhaar and PAN, Residential address is required.
- Details like authorized signatory, principal place of business, details of goods and services with the HSN codes for a maximum of five goods and five services need to be provided.
- You will also need to fill in your bank details. The state-specific information tab must be filled with 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.