Online Businesses in India have a huge scope. Especially after the pandemic, Indian Market is booming for online businesses. If you want to start online business or shift to online mode of your existing business, you must know about GST and GST Registration. Let’s understand the important concepts of GST for an online business.
What is GST?
GST stands for Goods and Service Tax. In India, GST is an indirect taxation system that every business needs to know and follow.
Enrolling under GST is known as GST Registration.
In simple words, GST Registration Online is the procedure through which taxpayers get registered under Goods and Service Tax and obtain a Goods and Service Tax Identification Number (GSTIN).
What is GSTIN?
The GSTIN is similar to how TIN(Tax Identification Number) or (Service tax registration number) worked. It provides a unique identity to registered taxpayers.
As per GST Regulations, all the taxpayers having registration under GST are now consolidated onto a single platform. The GSTIN allows taxpayers to be compliant on the single GST portal using GSTIN.
The process of obtaining GSTIN is also known as GST Registration.
Importance of GST Registration in Online Business
- It is mandatory for every e-commerce aggregator to have GST Registration.
- You can sell your products on E-commerce platforms such as Amazon, Flipkart, Meesho etc, only if you are registered under GST.
- Input Service Distributors, Agent of supplies, Non-Resident Taxable Person, Casual Taxable Person also need to have GSTIN.
- Online businesses that do interstate supply of Goods also need to have GST Registration.
- Online Businesses having annual turnover above ₹20 Lakhs or ₹10 Lakhs in some states must also have GST Registration,
Stepwise Procedure to get GST Registration for Online Business
- Visit the official government GST Portal at- https://www.gst.gov.in/
- Navigate to the ‘Taxpayers’ tab and click the ‘Register Now’ option.
- On the Registration page, provide the required information.
- Verify the OTPs received on your mobile and email.
- Note down the TRN (Temporary Reference Number).
- Visit the GST Portal again and Login using your TRN.
- Consult CA/Tax Consultant/GST Practitioner and Submit your GST Registration Online Application Form.
- Register your Digital Signature Certificate, Verify and Submit your GST Application form.
- Track Application Status.
- After successful approval, you can download the GST Registration Certificate through the steps mentioned here: How to Download GST Registration Certificate
Document Requirement for GST Registration for Online Business
- PAN card
- Aadhaar card
- Business address proof
- Bank account statement and canceled cheque
- Company Formation Proof or the business registration proof
- Digital Signature Certificate
- Director’s or Promoter’s ID proof, address proof, and photograph
- Letter of Authorisation or Board Resolution from the Authorized Signatory
Benefits of GST Registration for Online Business
- GST Registration and GST Return Filing is completely online.
- Simplifies the business process and ensures transparency.
- Conducting online business after registering under GST is easy as there are fewer indirect taxes,
- GST Registration for Online Business ensures credibility.
- Online Businesses can have Online Bookkeeping and Accounting Service for their GST Compliances.
- GST laws, procedures, and tax rates that are applied similarly across the country aid in lowering compliance costs.
- Online businesses can also avail composition scheme under GST.
- Clear guidelines and various excellent standards of procedures have been established under the GST regime for E-Commerce Businesses.
- There are less restrictions on the interstate transportation of products.
- Online Businesses can have Input Tax Credit Online.
- GST Modification and GST Cancellation both can be done easily and online.
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