Guide to GST Registration for Startups and Small Businesses in India:- www.deekpay.com

Are you looking to get your startup or small business registered for GST (Goods and Services Tax) but don't know where to start? Don't worry! Read below to learn more about GST, the registration process, and tax reliefs for startups and small medium businesses (SMBs).

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1. What is Goods and Services Tax (GST)?

2. Types of GST

3. Advantages of GST for start-ups and small businesses

4. Relief for start-ups and small and medium enterprises under GST

5. How to register GST for start-ups or small businesses

What is Goods and Services Tax (GST)?

This is a tax reform, which came into effect through an Act of Parliament on 29 March 2017, replacing many indirect taxes such as value added tax (VAT), excise duty, service tax, etc.

As a comprehensive place of consumption tax, GST is levied at every point of sale of goods and services. For example, you are a wholesaler who sells goods to a retailer, Mr X, who in turn sells them to a consumer, Mr Y. Initially, the tax is levied when Mr X buys from you. The tax is then further levied when Mr Y buys from Mr X.

Every business registered under GST is allotted a unique number known as GST registration number.

Types of GST

In India, there exists a dual GST system where the central and local governments collect taxes simultaneously but with a common tax bracket. However, there are three main types of GST:

State Goods and Services Tax (SGST) - A tax levied by a state government or Union Territory (UT) on goods and services manufactured or sold within the state or UT.

Central Goods and Services Tax (CGST) - A tax levied by the central government on the transaction of goods or services in the state.

Integrated Goods and Services Tax (IGST) - A tax levied by the Central Government when a transaction of goods or services takes place between two different states. The state government and the central government share the tax collected equally.

Advantages of GST Registration for Startups and Small Businesses

GST offers the following advantages to small businesses and startups:

If you file your returns as per GSTR-1 and GSTR-3B, no late fee will be charged to support startups and SMBs as per the 31st GST Council's statement.Starting a business in India has now become much easier.SMBs and startups just need to get registered with GST. Earlier, the process was relatively complicated. Simplified indirect tax system, harmonised into one system. Since the implementation of GST, many indirect and direct taxes like excise, VAT etc. have been included. This has made the tedious process of filing and administering tax returns much simpler. Ease of compliance and requirements, increased efficiency in documentation and ease of logistics to reach customer-intensive areas.

Relief for start-ups and small businesses under GST

There are no complex eligibility criteria for GST registration. In fact, businesses with an annual turnover of less than Rs. 40 lakhs are not required to register under GST. Thanks to this relief, many start-ups and small businesses with an annual turnover between Rs. 50,000 and Rs. 40 lakh can grow hassle-free without worrying about filing GST returns.

How to get GST registration for startups or small businesses

Wondering how to register a small business in India? Registering your business online into GST is very simple. There are some GST registration requirements. Simply follow the steps below:

Visit the GST portal at https://www.gst.gov.in/. Click on "Services" and then select "New Registration" under "Registration".

Generate a Temporary Reference Number (TRN) by filling in the following details such as PAN, Email ID and Mobile Number and click on "Continue".

Enter the OTP received on the given mobile number or email id and verify it.

After verifying your number, a TRN will be assigned. use it to log back in and complete the GST registration process and requirements.

Login to the portal using TRN, enter the captcha and complete the OTP verification. Click on the pencil icon under "Actions".

Enter your business information such as trade name and composition plan. Click "Save and Continue".

On the next screen, provide information on all business promoters and directors. Alternatively, you can enter the owner's details, if self-employed. You can enter the details of up to 10 promoters or partners on the portal. Then, click "Save and Continue".

Enter the details of the authorised signatory appointed by the promoter to submit the corporate GST return.

Submit details of the main location of your business, such as address, official contact details (email, phone number, etc.), nature of ownership, etc. Upload the relevant proof and click "Save and Continue".

Enter details of other locations where the business operates. For example, if you are an e-commerce business and use Amazon warehouses, then this section requires warehouse details.

Provide details of the top five goods and services you supply. Fill in the HSN code for the goods and the SAC code for the services.

Validate the submitted details. When complete, tick the Validate checkbox and electronically validate the name of the authorised signatory.

After signature verification, a success message appears on the screen and an Application Reference Number (ARN) is generated. Use it to track the status of your application. Once the process is complete, you will be informed of the allotted GST number.

reach a verdict

The GST registration process for startups and small businesses has now become much easier. Just as the success of a startup depends on the idea behind it being properly executed, if GST is properly implemented, it will greatly help in achieving financial goals.