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.

The procedure for obtaining a GST registration under the Composition Scheme is quite straightforward, provided all documents are in order. I recently assisted with a similar application, so here’s a clear breakdown of the steps:

1. Start the application on the GST portal
Go to the ‘New Registration’ section and verify your PAN, mobile number, and email.

2. Enter business and banking details
You will need to upload the address proof of your place of business, identity documents, photograph, and bank account details.

3. Opt for the Composition Scheme
In the application form, there is an option to choose the Composition Scheme. Once selected, the applicable rate is automatically applied.

4. Complete Aadhaar authentication
This step has become essential and helps speed up the approval process.

5. Submit the application and receive ARN
After submission, an Application Reference Number (ARN) is generated. If all documents are correct, approval is typically granted within a few days.

From my experience, the most common issues occur due to small errors in the form or incorrect documentation. To avoid delays, I had my process handled through GetMyCA — their team ensured everything was filed accurately, and the registration went through smoothly without any resubmission.

Hope this helps!