In March 2017, the union government of India introduced a new system of taxation, Good & Service Tax (GST), in place of the earlier system, which will be applicable from July 01, 2017. GST is a comprehensive tax levied on the manufacture, sale, and consumption of goods and services on a national level. GST is a single tax replacing all previously existing indirect taxes. GST is a dual tax where the center and the states levy tax on goods and services. GST is categorized as follows:
- CGST: It is Central Goods and Service Tax. It is levied for intra-state(within the single state) transaction of goods and services but is charged by the Centre.
- SGST: It is State Goods and Service Tax. It is levied for intra-state(within the single state) transaction of goods and services but is charged by the State.
- IGST: It is Integrated Goods and Service Tax. It is levied for inter-state(between 2 or more states) transactions of goods and services.
- UTGST: It is Union Territory Goods and Service Tax. These taxes are levied on sales of products or services in any union territory.
There are 6 slabs of GST 0.25%, 3%, 5%, 12%, 18% and 28% for different kinds of products and services.
Documents Required For A GST New Registration
- For Salon and Spa
- Aadhaar card of the sole proprietor
- Photograph of the sole proprietor
- Details of Bank account of the sole proprietor
- Office address proof of the sole proprietor(electricity bill, lease agreement, etc)
- Partnership deed in case of partnership firm. No registration certificate is needed in case of sole proprietorship.
Who Should Register for GST?
- Individuals who are registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
- Businesses with turnover above Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
- Casual taxable person / Non-Resident taxable person
- Agents of a supplier & Input service distributor
- Individuals paying tax under the reverse charge mechanism
- Person who supplies via e-commerce aggregator
- Every e-commerce aggregator
- Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
Online GST Registration
Step 1: Go to the portal
Click HERE to go to the official government website for GST registration.
Step 2: Filling User Credentials
In the new GST registration window, click on the “New Registration” radio button for registering for the first time.
- Select the type of taxpayer from the dropdown menu.
- Now, choose the state/UT of your residence or the state where your business is located.
- Select the district of your residence or the state where your business is located.
- Enter the legal name of the business/entity. Afterwards, an automated verification will be done by the portal.
- Enter the details of the Permanent Account Number (PAN) of the business/Proprietor in the next field.
- Fill the email ID and mobile number of the Primary Authorized Signatory. An OTP will be sent on both of those for verification.
- Click the PROCEED button.
Step 3: OTP Verification & TRN Generation
Once you click the ‘PROCEED’ button, the next window will ask you for an OTP verification. Enter both the OTPs within the given time window.
Step 4: TRN Generated
On OTP verification, a TRN will be generated.
Step 5: Log in with TRN
Now you need to log in again using the TRN to start online GST registration within 15 days of receiving it. Now select the “Temporary Reference Number (TRN)” radio button on the New Registration page. Fill in the generated TRN and enter the captcha text. Click proceed. Your Dashboard opens.
Srep 6: Dashboard
The Dashboard window shows that the GST registration procedure is in a queue. Click on the pencil icon below the “Action” field to proceed further.
Step 7: Submission of Business Information
On this page, you need to enter Business Details including;
- Trade Name
- Constitution of the Business:
- Fill address.
- Fill in the date of commencement of business.
- Fill all the required details and click “Save and Continue” to go ahead.
Step 8: Submission of Partners/Promoters Information
On this page, fill in all the required details of promoters and directors like name, date of birth, address, mobile number, email address, and gender of stakeholders. The page also requires photos of the partners/promoters to be uploaded within a certain size limit. Click “Save and Continue” to proceed further.
Step 9: Submission of Authorized Signatory Information
Next, you need to fill in info about the authorized signatory of the company. An authorized Signatory is a person nominated by the promoters of the company and is responsible for signing on behalf of the company.
Step 10: Submission of Authorized Representative Information
The person will have access to the GST Portal and will be responsible for filing GST returns.
Step 11: Principal place of the Business
Here, you have to fill in the primary location of the place where business is/will be conducted. It asks for the following information:
- Address of the place.
- Official contact information
- Nature of the premises(rented, leased, own, etc). You also have to upload the necessary documents(Property Tax Receipt, Electricity Bill, Copy of the valid Rent / Lease Agreement).
- Nature of business activity.
- If you have other offices too, enter details of those. Click “Save and Continue”.
Step 12: Details of Products and Services You Offer
Mention the top 5 goods and services of your trade. You need to add HSN code (for goods) and SAC code (for services). Click “Save and Continue”. Fill in Bank details in the next step. Click “Save and Continue” to proceed for the last step of verification.
Step 13: Verification of Application
This is the last step of the online GST registration procedure. Verify all the previously entered details for final submission.
- Accept the declaration.
- Select the “Name of Authorized Signatory”
- Enter the place.
- And digitally sign the application using Digital Signature Certificate (DSC) if it is a company. Go with E-Signature or EVC if you are a sole proprietor.
Once you validate the signature, you will receive an Acknowledgment Receipt Number(ARN). Your application form has been submitted for approval. You can track the status of your application on the Dashboard. Once the application is verified(takes around a week) you will receive GSTN and other login information via mail. Once you receive login information, use them and complete any other requirements. If you face any issues, you can always register your queries using the ARN number.
GST return filing
Under GST, salon and spa businesses are treated as par with any other business organization. As per the GST returns rules and regulations, 3 monthly returns need to be filed.
1 Sales Return: The first return under GST is a sales return that needs to be filed by the 10th of the following month.
2 Purchase Return: The second return is filed before the 15th of the following month.
3 Consolidated Return: Based upon the sales and purchase return, the consolidated return is filed by the 20th of the following month.
Apart from the above three-monthly return, one more return needs to be filed -GST Annual Return has to be filed by 31st December of the next Financial year.
What is the GST registration fees?
There are no government charges for GST registration. Anyone can get the GST registration free of cost.
How do I register my business for GST?
Follow the above-given procedure step by step to complete the GST registration of your business online.
Is GST registration mandatory for small business?
Any business whose turnover exceeds 40 lakh INR in a financial year is required to register under GST. This limit is 20 lakh INR for service providers. For more details on the criteria of eligibility for GST registration, refer to the section given above- Who Should Register for GST?
How long does it take for GST registration to be approved?
GST registration normally takes between 3-7 working days to get approved. If you face any issues, you can always register your queries using the ARN number.