GST 101 : for Makers and Creators

The Goods and Services Tax, rolled out on July 1st, 2017, brought about a drastic change in India’s tax system. While being touted as a revolutionary change in our tax system, it had many people scratching their heads and small businesses scrambling to get everything in order. Here is all you need to know to tackle GST with ease.

What are the advantages of registering for GST?

You get legal recognition as a supplier of goods and services and you can collect taxes from any purchaser of your goods and services and pass on the credit or receipt to them.

Who has to register for GST?

Apart from the normal taxpayer, any company which has a turnover that surpasses the limit of Rs. 20 lakhs has to register. There are a few businesses which need to register for GST despite their turnover. These include e-commerce aggregators and operators and people who supply via them as well as any person registered under any pre-GST law.

Heads up

Businesses having an annual turnover less than Rs. 75 lakhs can register for the Composition scheme and pay nominal taxes based on the type of business. They only have to file one quarterly return instead of the three monthly returns. However, they cannot collect input tax credit or collect taxes from customers. Not applicable for service providers or e-commerce dealers.

What documents do you require?


•PAN card of the Company
•Proof of constitution like partnership deed,   Memorandum of Association (MOA) /Articles of Association (AOA) or a certificate of incorporation.
•Details and proof of place of business like rent agreement or electricity bill
•Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch details
•Authorized signatory like a list of partners with their identity and address proof for a partnership firm or a list of directors with their identity and address proof for a company.

Now that you’re ready with what you need, here is how to actually register for GST:

Any business can get registered through the GST Online Portal set up by the Government of India. Here is a step-by-step guide of the process:

Step 1: Log in to the online portal

Step 2: Fill in the details about PAN, mobile number and email-id in part A of Form GST Reg-01

Step 3: Wait for verification of details through mobile or email. You will receive an application reference number after verification.

Step 4: Use the reference number to fill in part B of Form GST Reg-02 and attach required documents

Step 5: A GST officer verifies your registration and gets back to you after 3 working days.


Now that you’ve finally registered for GST, here is how to pay taxes online:

Log on to the GST Online Portal with your username and password. Once logged on, go to the Create Challan option. Enter the amount to be paid and select your method of payment. There is a cap of Rs. 10,000 on over the counter payment per challan. Select the bank that you’re using after a summary of the challan is generated and pay via net banking.

There is no doubt that GST will burden smaller businesses with additional compliance and associated costs to increase the taxpayer base, but in the longer run, it will make them more competitive and bring them to the level of bigger enterprises. Furthermore, it will allow them to compete with enterprises from cheap cost centers such as China, Philippines and Bangladesh with ease.

All in all, a more level playing field for the little guys. 

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