GST Certificate: Benefits, Importance & Steps to Download

. 5 min read
GST Certificate: Benefits, Importance & Steps to Download

Goods and Services Tax or GST is a form of indirect tax in India and encompasses categories like service tax, excise duty, entry tax, and customs duty into a single tax scheme. It was rolled out in a special session of parliament three years ago and subsumed 17 existing indirect taxes including the excise duty and sales tax. Accordingly, it is aimed at reducing the complexities in the tax returns while carrying out business. The complete enrolment process is paper-free and it takes place online. On registration, the applicant will receive from the central government a unique identification number-GSTIN, which is a region-specific 15-digit number. GST registration is mandatory for any business with an annual turnover of more than Rs 20 lakh.

Sellers are obligated to register themselves for GST since 1st July 2017. After getting registered, the taxpayers are issued the GST Registration Certificate namely, Form GST REG-06. If you are a registered taxpayer you have to download the certificate from the GST portal because the government does not issue any physical certificate.

Benefits of having a GST Certificate

Every business unit registered under GST enjoys the following benefits:

  1. He/she will be recognised as a legal goods or services supplier and it enhances business reliability and integrity. A GST Certificate is essential if you cater to B2B customers.
  2. He/she will be legally sanctioned to collect tax from customers, and thereby, pass on the credit of the taxes collected on the goods or services provided to the procurers or recipients.
  3. Have the privilege to avail the input tax credit of taxes paid on the gains and also at the expense of taxes owing to the supply of goods or services.
  4. Uninterrupted movement of the input tax credit from dealers to receivers at the national level.
  5. Exporters can get a GST refund.

GST Turnover Limits

The general limits are listed below:

  1. Service Earners: For obtaining GST registration, over Rs.20 lakhs per year is necessary. However, in a few selected states, the limit is Rs 10 lakh.
  2. Goods Dealers: Over Rs.40 lakhs per year is the limit set in this case.

Irrespective of the limits, certain entities like individuals using e-commerce for supply, non-resident, or casual taxable people must obtain GST registration.

Rules and Responsibilities after GST Enrolment

The units under GST have certain responsibilities such as:

  1. Accumulating and forwarding GST expense from customers.
  2. Issue GST invoice as per guidelines.
  3. Fill appropriate GST returns per annum.
  4. Maintain all records systematically for future references.

When registering for GST, you should have the following documents:

  1. PAN card.
  2. Identity card ( Aadhar or voter card ) of Director, Proprietor or Partner.
  3. Contact details proof with phone number and email address of Director/Proprietor/Partner.
  4. Proof of the place of business with supporting documents like a property tax receipt, electricity bill, rent or lease agreement copy, and consent letter.
  5. Bank account number and statement.
  6. List of goods or services providing.
  7. Letter of Authorisation.
  8. Signatory photos that are authorised.
  9. Incorporation certificate for companies, and partnership deed for partnership firms.

Stepwise instruction on online GST Registration Process

  1. Visit the website-GST portal. Click the tab for services and choose a new registration option under the registration tab.
  2. Fill all the fields on the page duly ( PAN card, contact number, and email ID ).
  3. Subsequently, verify using the OTPs received in email and phone respectively ( valid for only 10 minutes ).
  4. Next, the Temporary Registration Number or TRN will be generated.
  5. Then  log in again in the same manner “Services〉Registration〉New Registration〉TRN number.
  6. Enter the TRN number. Also, enter the captcha text as suggested by the page.
  7. Verify using a new OTP.
  8. Thereafter it is until you are led to “My saved application”.
  9. Now, you have to fill the application and submit it within 15 days.

Guidelines for filling the GST Application Form

  1. First fill all the fields with correct information regarding the name of the company, PAN details, registration details, date of commencement of operations, etc.
  2. Enter details of partners, proprietors, or directors regarding personal details, designation, Director Identification Number, and Aadhar Card.
  3. Information regarding the place of business, establishment day, etc.
  4. Provide proof for the constitution of the establishment.
  5. Next fill in the official signatory information by Digital Signature Certificate (DSC), or e-sign. Note that DSC should be linked with PAN.
  6. Fill in the information regarding the primary place of dealing, goods and services, and bank account.

Verification and submission of GST Application

Verification can be done by three methods-by DSC, by e-signature, and by Electronic Verification Code (EVC). Subsequently, apply. Following that the applicant will receive an Application Reference Number via SMS and email to confirm the registration.

After the submission, it will take about 5 to 10 days to obtain the GST certificate. A unique GSTIN will be generated along with login and password details to log into the GST website. Applicants can download the GST certificate after three to four days of receiving GSTIN.

Find below easy to follow steps for downloading GST Registration Certificate

Step 1- Login to GST Portal.

Step 2- Click on ‘Services’ 〉 ‘ User Services’ 〉 ‘ View/Download Certificate’.

Step 3- Click on the ‘Download’ icon.

The certificate contains complete information about the business. On the first page, the basic details like name, the constitution of business, address, and date of registration of the business are displayed. You should take a printout of the registration certificate since it is required to be prominently displayed at all places of business in the State.

The second-page features ‘Annexure-A’ which carries information about the additional places of the business. On the third page ‘Annexure B’ contains the information of the person in charge of the business.

Three Years of GST in India

It has been three years since GST is operational in India. Hailed as the ‘One Nation One Tax’ system, it proved to be a win-win for businesses as well as the government. However, over a while, it has stabilised to a large extent through many issues that remain unresolved. GST is still a work in progress and calls for various amendments to suit the best business interest in a country like India.

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