GST Registration is one of the primary steps that businesses take to scale up their operations, streamline interstate trade, claim input tax credits, and reduce overall costs. This registration also adds to business credibility, and makes way to expand into a larger market, thereby increasing growth opportunities.
The Goods and Services Tax (GST) has been a landmark reform in India's taxation system, as it was introduced to streamline India's complex taxation landscape by unifying multiple indirect taxes, including VAT, service tax, and excise duty. The aim was to ensure a smooth flow of goods and services throughout the nation.
Businesses having an annual turnover exceeding the specified threshold limit (INR 40 lakhs for Goods, INR 20 Lakhs for Services) are required to register under GST. However, businesses with a turnover below this limit are also required to obtain GST Registration if they operate in certain specific sectors.
The GST Registration process is kept straightforward, but many business owners/entrepreneurs face many issues during the GST Registration process. The process requires businesses to provide accurate information, i.e., Business Name, its PAN, and Address, but many end up submitting an erroneous GST Registration application with wrong or incorrect information. In this article, we'll highlight some common GST Registration errors that businesses often make during the GST Registration process and provide guidance on how to fix those GST Registration mistakes.
Common GST Registration Errors and How to Fix Them
1. Incorrect/Mismatched PAN Details
Filling in incorrect or wrong PAN details is one of the most commonly seen errors during GST Registration. In many cases, it is also seen that the PAN details used don't match the name or business type. Such errors cause an immediate halt of the process as GST Registration is a PAN-based process.
How to fix it?
To tackle this problem, cross-check the PAN on the Income Tax Department website to ensure that the Business and PAN details completely match and no details are mismatched.
2. Mismatch in Aadhaar Authentication
Many businesses' Aadhaar data doesn't match their GST Registration application, commonly due to a mobile number mismatch that leads to failure of OTP verification.
How to fix it?
Before applying, it's crucial to verify that the mobile number linked to your Aadhaar is active and that you can access it easily. Go for eKYC before going for GST registration. If facing repeated failure of Aadhaar verification, choosing the physical verification option can help.
3. Wrong Business Type/Structure Selection
Many business owners are confused while selecting their correct business structure (Proprietorship, Partnership, LLP, or Company) when filing their GST Registration application, and often mark their business structure incorrectly. It causes a document mismatch and submission of wrong information in the GST Registration application, and thus delays your registration.
How to fix it
In case of confusion, check your business documents to determine your business type before selecting in the GST Application form.
4. Mismatching/Incorrect Address Details
Mismatch in address details of principal business place and supporting documents, i.e., electricity bills or rent agreements, is among the common errors responsible for GST Application rejection.
How to fix it
Ensure that the business address on your registration form, rental agreement, and utility bills match exactly. If you have rented a co-working or shared office, it's important to have a no-objection certificate (NOC).
5. Filling in Personal Bank Accounts details
It is seen that small businesses or those into freelancing use their personal bank accounts during GST Registration, instead of business bank accounts information. It may cause challenges in later stages, such as while filing GST returns.
How to fix it?
Make sure you have a business bank account and use its statement or a cancelled cheque during registration.
Apart from these common errors and their way out, applicants are found to make a few other errors while applying for GST Registration. This is the reason it is always advisable to seek professional help for a fully error-free GST Registration application.
Conclusion
Applying for GST Registration requires meticulous filing of the required business information and uploading essential documents in the specified format. Any error (even a small one) may require resubmission or sometimes rejection of your GST application. It will eventually delay your registration and may cost more than average. Therefore, it's better to go for professional help to get your GST Registration done hassle-free.
Consult GST Registration Experts like Setindiabiz to obtain your GST Registration number easily within a shorter time span and at an affordable market price.
CAclubindia
