Goods and Services Tax (GST) is expected to come to fruition by July 1, 2017. It will subsume most indirect taxes, such as service tax, excise, and so forth, and replace them with a flat rate that will be sector specific. As with any other tax, the procedures for enrollment and subsequent filing of forms on the portal can be tedious and cumbersome. This blog provides an overview of India’s GST registration process and explains why there is a need for automation in that area.
The registration process sets forth at www.gst.gov.in. Depending on the credentials, the user can begin the application process as a “New User” or “Existing User.” On the next web page, use the Provisional ID and the password supplied by the state VAT department. If you do not have either a Provisional ID or password, contact your state VAT department.
On the next web page, fill in the details to generate One Time Password (OTP) and, subsequently, the password for your login. On the next web page, answer the security questions —these will come handy should you ever forget your login details.
Login with the details set up in STEP 1. Based on existing data with the state VAT department, some of the tabs will stay populated, and these cannot be edited. The details that will already be filled are:
- Legal name of business (as per PAN)
- Legal name of business (as per current tax act)
- PAN of business
Details relating to the ‘Trade Name’ can be edited, and the application should ensure that other pending details are filled accurately.
The next web page revolves around the personal particulars of the promoters/owners. It is a straightforward process and should be a breeze for any applicant possessing the information. If the stakeholder is also the Authorised Signatory, then select the “Also Authorised Signatory” option.
Upon nominating yourself as the Authorised Signatory, you will have to replicate the procedure in STEP 3, using your personal details. Again, nothing technical, —just a tedious fill-in-the-blanks process.
This is where the technical part begins. For the “Principal Place of Business,” fill in the complete official address and the official contact details and submit documentary evidence for the same. This is to be duplicated on the next web page, i.e., “Additional Places of Business.”’.
On the ensuing web page after completing the STEP 5, fill in the information relating to the goods and services provided by your business. On the “Goods” tab, you must include details relating to the relevant HSN applicable to your business.
Link the bank account on the following page after completing STEP 6. The next page should include details relating to the substantiation of the application and will require a Digitally Signed Certificate or E-signature.
The process on the applicant’s end is now complete. An acknowledgement confirming your registration for GST should be transmitted to your email and phone number within few minutes.
The enrolment procedure calls for multiple submissions of several details for a single entity, as well as for every other body under the aegis of the applicant. Such monotonous and duplication of study can cause clerical errors. These can be avoided by using specialized software.
Although GST simplifies the indirect tax regime, it is a complex tax system in totality. To be fully compliant with the GST Act, a supplier needs to ensure that multiple forms are filled during registration and throughout the general course of business. All this hassle and consumption of workforce hours can be warded off by automating the entire operation.
To learn more about how Avalara can help you with GST automation, contact us through https://www.avalara.com/in/products/gst-calculation/
This blog is contributed by Vatsal Bhandari, financial and legal consultant at Gurgaon.