There were a lot of taxes earlier because of varying state legislations. Then Goods and Service Tax (GST) replaced the previous regime. Now the nation works on the One Country – One Tax model. This model already exists in 160 countries of the world. There are various GST-related services such as application, GST registration status, etc. All of these are available to taxpayers and businesses online. This service is an extension of the Digital India campaign. The online process provides much-needed ease of compliance. Now you can get register for GST with ease.
This guide will inform you about GST and the registration process. It will then explain how to check the status of the application.
What is GST
GST works as an indirect tax. This means that it doesn’t go directly to the govt. It goes to the business owner who makes a sale of goods or services. It clubs together 17 different taxes at various state levels. GST makes the country a common market with unified tax standards. GST is also a destination-based tax. It is collected at the place where the ultimate consumption takes place. The tax comes out of the pocket of the last consumer. It doesn’t depend on the journey the goods have taken.
It has several benefits:
- Uniformity for application and ease of compliance
- Removal of the tax-cascading VAT regime
- Increased Indian supply to the global import market
- Better revenue collection efficiency with digitalisation
Who has to register their business for GST?
The GST Act 2017 mentions which businesses fall under its regime. As per it, the following businesses will have to register for GST:
- A business with an annual turnover of at least ₹40 lacs (for goods)
- A business with an annual turnover of at least ₹20 lacs (for services)
- For the North Eastern States, the registration slab is at least ₹10 lacs.
- Any business registered within the VAT regime can also register.
How to register for GST
Suppose you have duly filled out the online application for GST registration. Now you must check the GST registration status on the same portal. To apply for GST registration, you need to visit the GST Portal. You must then make an application in Form Reg-01. You then need to submit the required documents in Form Reg-02. After this, a designated officer will do the verification. After successful verification, an Application Reference Number (ARN) is generated for your business. You will receive it within 3-7 business days on your registered email ID. You can check the GST registration status by using the ARN.
What is the format of ARN?
ARN is a 15-digit alpha-numeric code. The 15-digit format of ARN is as follows:
- The first two numbers are alphabet.
- The next two digits signify the state code.
- The following four numbers in the ARN represent the month and year.
- The next six digits after that are unique for each ARN. The system generates these 6 digits.
- The final number of the ARN displays the checksum digit.
A typical ARN has the following format: AB 01 02 03 002341 9
This number is valid until the GST Identification Number (GSTIN) is issued.
How to check GST registration status
Follow the details mentioned below to check the GST ARN status.
- Visit any web browser and open the GST Portal.
- Click on the ‘Services’ button.
- A horizontal drop-down menu will appear after this. Click on ‘Track Application Status’ from this menu.
- The next window will ask you to select a Module. The two options are Refunds and Registration. Click on Registration.
- Two options will be visible now, ARN and SRN. Click on the ARN radio button.
- After this, enter the ARN in the type box. Fill in the CAPTCHA and click on the Search button.
- The GST ARN status will now be displayed on the screen.
Different types of GST ARN status
There are 6 stages in the GST registration process. At each of these stages, the GST ARN status will be different. The different types of statuses are:
|Stage 1||Form assigned to approving Taxation Officer||This means that the GST application is successfully forwarded to an approving officer. It takes about 15 days after this for the application to be approved.|
|Stage 2||Clarification pending||If the officer wants any clarification, they will notify you. Then, submit proof supporting the clarification demanded.|
|Stage 3||Clarification filed, pending final approval||You have to submit the clarification within the period set by the approving officer. This period is set at 7 days. Then the screen will display this GST ARN status. After this, the approving officer will verify the clarification submitted by you.|
|Stage 4||Clarification not filed||Suppose you have not submitted the clarification proof within the set time. Until you submit it, the screen will display this GST ARN status. Please note that you must submit the proof within the set time. Otherwise, it might lead to the rejection of your application.|
|Stage 5||Application approved||If there are no clarifications, it takes about 2-3 days for approval. Once you get this GST ARN status your application is approved. After this, you can get the GST Identification Number (GSTIN) soon. You will also receive the GST registration certificate along with your GSTIN.|
|Stage 6||Application rejected||This GST ARN status means the approving officer rejected your application. This might be due to clarification not being filed in time. The reason for rejection will be mentioned. You can re-submit the GST application after you get this status.|
Take advantage of GST by registering your business. Thanks to the Digital India campaign, you can do GST registration online. You must keep soft copies of the documents ready at all times. The process lasts from filling out the application form to approval. Use the ARN to check the GST registration status. It can take up to 15 days for the application to be approved.
If you need more help with GST registration, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on their website!