GST registration-New amendments

Obtaining a GST license under the Composition Scheme involves the following steps: 1. Check eligibility: Ensure your business meets the eligibility criteria for the Composition Scheme, such as having a turnover below the prescribed limit (currently ₹1.5 crores). 2. Create a provisional ID and password: Register on the GST portal (www.gst.gov.in) and create a provisional ID and password. 3. Fill Form GST REG-01: Fill out the registration form with required details, including business information, authorized signatory, and authorized representative. 4. Verify email and phone number: Verify your email address and phone number through the OTP sent by the GST portal. 5. Fill Form GST REG-04: Fill out the composition scheme application form, providing required details like business details, turnover, and tax payment details. 6. Upload documents: Upload required documents, such as: - PAN card - Aadhaar card - Business registration certificate - Authorization letter (if applicable) 7. Pay composition fee: Pay the composition fee, which is a percentage of your turnover (currently 1% to 5%). 8. File Form GST CMP-02: File the declaration form, stating that you are opting for the Composition Scheme. 9. Approval and GSTIN: The GST officer will review your application, and if approved, you will receive your GSTIN (Goods and Services Tax Identification Number). 10. File quarterly returns: File quarterly returns (Form GST CMP-08) and annual returns (Form GST CMP-09).

Does the officer personally come for inspection before approval of my application?

Eligibility for Composition Scheme

First, ensure that you meet the eligibility criteria for the composition scheme:

• Turnover limit: The aggregate annual turnover should be below ₹1.5 crore (₹75 lakhs for special category states).
• Type of business: It is available for manufacturers, traders, and small service providers (with some exceptions like e-commerce operators and service providers other than restaurant services).
• Tax rates: Businesses pay tax at a lower fixed rate (1% for manufacturers/traders, 5% for restaurants, 6% for service providers).

Steps to Apply for GST Registration (Composition Scheme)

1. Online Application on GST Portal

• Visit the GST portal.
• Select "New Registration" and fill in basic details such as PAN, email ID, and phone number.
• An OTP will be sent to verify the email and mobile number.
• Choose the "Composition Scheme" option while filling out the details.

2. Filling Out GST REG-01 Form

• Once basic details are verified, proceed with filling the GST REG-01 form.
• Under this form, you’ll need to provide:
  • Business name, address, and nature of business.
  • PAN, Aadhaar, and other identification details.
  • Details of the place of business (if renting, you’ll need a rent agreement; if owned, provide property tax receipts).
  • Bank account details.
  • Details of business partners/directors, if applicable.

Important: While filling out the application, select the composition scheme to be eligible for lower tax rates.

3. Upload Documents

• Upload the necessary documents like:
  • PAN card of the applicant.
  • Aadhaar card.
  • Proof of business address (electricity bill, property tax receipt, rent agreement, etc.).
  • Bank statement or canceled cheque.
  • Passport-sized photograph.

4. Submit the Application

• After filling in the details and uploading the documents, submit the application.
• Once submitted, you’ll receive an Application Reference Number (ARN) via email and SMS for tracking the status of your application.

5. Application Review and Verification

• The GST officer will review your application and documents.
• The officer may either approve or reject the application based on the information provided.

Is an Inspection Required?:

• Inspection is generally not required for composition scheme registration.
• However, if the GST officer finds any inconsistencies in the documents, address, or business details, they may initiate an inquiry or even a physical verification of the premises.
• In most cases, if the documents are clear and complete, no personal inspection is carried out.

6. GST Registration Approval

• If everything is in order, the GST officer will approve your application, and you will receive the GSTIN (Goods and Services Tax Identification Number).
• You’ll also receive the GST Registration Certificate (Form GST REG-06) online.

7. Intimation of Composition Scheme Selection

• Once the registration is approved, you need to file GST CMP-02 to inform the authorities that you are opting for the composition scheme.
• This form must be filed before the start of the financial year (or when you begin business).

8. Compliance After Registration

• After registering under the composition scheme, you are required to:
  • File quarterly returns in GST CMP-08.
  • File an annual return in Form GSTR-4.
  • Pay tax at the prescribed composition rates.