A2Z Guide
Applying for GST Registration at the Time of Company Formation
FAQ
What we Answer
Yes, you can apply for GST registration at the time of formation of company. Registration process under GST is now integrated with SPICe+ AGILE Pro Form (or) SPICe-AGILE Form.
At the time of application of new company registration, it can also be applied for GST registration through SPICe+ AGILE Pro Form (or) SPICe-AGILE form.
You can apply for registration as a both Normal tax payer (or) as a Composition taxpayer.
However, one cannot apply for GST registration as
- Input Service Distributor (ISD),
- SEZ Developer,
- SEZ Unit or
- Casual Taxable Person,
- Non-resident taxable person,
- Non-resident online services provider etc.
The Director signing the SPICe+ AGILE Pro Form (or) SPICe-AGILE form will be the Primary authorized signatory for GST registration. However, you can later amend the authorised signatory, designation details after successful GST registration.
Follow the path on GST Portal for making the above changes.
Services > Registration > Amendment of Registration Core Fields
No. The registered office of the company as provided at time of formation of company will be the principal place of business for the purpose of GST.
However, if a person willing to have GST registration in multiple states needs to take fresh registration for each state on GST Portal after company formation.
Yes, you can opt for composition scheme at the time of formation of company.
MCA allows details of up to 3 Directors to be entered in the SPICe+ AGILE Pro Form (or) SPICe-AGILE e-form based on the class, category or sub-category.
Later on up to a maximum of 10 directors details can be added through amending details on the GST Portal.
Follow the path on GST Portal for making the above changes.
Services > Registration > Amendment of Registration Core Fields
While filing the MCA forms, you need to digitally sign it. The Same DSC will hold good for GST registration also. However, you can register DSC of the other 2 Directors maximum as authorized signatory on GST Portal later.
You need to register your DSC on GST Portal upon successful GST registration.
Only Indian citizens are allowed to sign the MCA forms.
You may need to login to the GST Portal using your TRN and correct the issues/ errors and then submit the form on the GST Portal.
Services > Registration > Application for filing clarifications
The status of the SRN Number generated at the MCA Portal, gets updated to “Pending for Processing” on GST Portal.
You will receive a response from the tax authorities within 3 to 5 working days on the status of your application. It will either be approved or will receive the notice seeking clarification raised by Jurisdictional Tax Officer, in case they have any queries w.r.t. the application and/or documents provided by you. In either case, it will be communicated to you via e-mail.
In case, the ARN gets approved, SRN status will be updated to “Approved” and intimation will be sent to the applicant by SMS and e-mail.
In case, the ARN gets rejected, SRN status will be updated to “Rejected” and intimation will be sent to the applicant.
Date of commencement of business during GST registration would be date selected as date of formation in the MCA forms.
Follow the path to search SRN details on the GST Portal.
Home > Registration >Track Application Status > SRN
Yes, you can search SRN details even without logging to the GST Portal.
S.No. | Status of the SRN | Action |
1 | Pending with MCA | SRN is generated but form not sent to the GST Portal |
2 | · COI (Certificate of Incorporation) issued by MCA · TRN (Temporary Reference Number) Generated – Pending with GST Common Portal | When TRN is generated and shared to the taxpayer after the information from MCA Portal is received on GST Portal. |
3 | · COI issued by MCA · Pending for Processing by GST Common Portal | Application successfully submitted on the GST Portal i.e. Form GST REG-01is submitted on the GST Portal and an ARN is issued. |
4 | · COI issued by MCA · Approved by GST Common Portal | Application Approved and GSTIN is sent to the taxpayer via SMS & email |
5 | · COI issued by MCA · Rejected by GST Common Portal. | Registration Application Rejected by GST Tax Officer |
The below Information can be updated by the applicant by filing amendment application on the GST Portal after successful GST registration.
- Additional places of business,
- Bank Accounts,
- Authorized representative and
- State Specific Information, if any,
To know more details about Applying for GST Registration on MCA website through SPICe+ AGILE Pro Form (or) SPICe-AGILE Application Form, click http://www.mca.gov.in/MinistryV2/agile.html & http://www.mca.gov.in/Ministry/pdf/AGILE-PRO_help.pdf
Composition Scheme
How It Benefits
The composition dealer shall not collect GST from customer instead he shall pay the GST from his own pocket at the concessional rate specified.
It is very simple & easy without much legal compliances. It is suitable for small business with less turnover and having less purchases or input tax credit.
- Seller of Goods – 1% on the turnover during the period
- Supplier of Services – 6% on the turnover during the period
You can opt for the Composition Scheme if a taxpayer engaged in the supply of goods or services having an aggregate turnover* within the limits specified from time to time.
A. Seller of goods:
- Upto 75 Lakhs – Uttarakhand & Northeastern states except Assam
- Upto 1.5 Crores – All other states
However, such a seller of goods can also render services upto higher of the below limits.
- Rs. 5,00,000 (or)
- 10% of turnover during the previous financial year
B. Supplier of Services:
- Upto Rs. 50 Lakhs – Exclusive supplier of services
- Upto Rs. 50 Lakhs – Seller of goods whose value of services exceeding the above limits
*Aggregate turnover wherever mentioned under this composition scheme shall be understood as
- Taxable supplies +
- Exempted supplies +
- Non-taxable supplies
- Sale of goods which are exempted or exported
- Sale of goods between two different states
- Sale of goods through electronic commerce operators
- Supply of services through electronic commerce operators as specified under sec 9(4). [Tranportaion of passengers, accommodation in hotels, housekeeping services]
- A manufacturer of notified goods such as ice cream, edible ice, pan masala, tobacco & tobacco products
- Casual taxable person
- Non-Resident Foreign Taxpayer
- A person registered as TDS Deductor/Tax Collector.
| Particulars | Supplying Goods | Supplying Services |
|---|---|---|
| Composition Scheme Name | Regular Composition Scheme | Composition Scheme under Notification no. 02/2019 |
| Rate of GST | 1% on the turnover during the period | 6% on the turnover during the period |
| When applicable? | Previous year turnover upto Rs. 1.5 Crore (Rs. 75 Lakh for northeastern states) | Previous year turnover upto Rs. 50 Lakh |
| To whom applicable? | Manufacturer & trader engaged in the supply of a. Goods only b. Goods & Services | Manufacturer, trader & any service provider supplying a. Services only b. Goods & Services, where the value of services exceeding below limits |
| To whom not applicable? | Exclusive Service Provider except for the restaurant business | Exclusive Seller of goods |
| Restriction on the supply of services | Value of supply of services shall not exceed higher of below limits a. Rs. 5,00,000 b. 10% of previous year turnover | Value of services shall not exceed Rs. 50 Lakh |
| Who cannot opt for composition scheme? | Manufacturer of notified goods | Both manufacturer & trader of notified goods |
Form GST CMP 08 (GSTR-4)
Quarterly returns to be filed on or before 18th day of next quarter. The GST as a percentage of sales (as mentioned in earlier tab) payable to the government.
Form GST CMP 02
To be filed once in a year, intimating willingness to opt composition scheme for next financial year atleast before end of the current financial year. For instance, select option before 31-Mar-2020 for FY 2021-22.
Regular Scheme
How It Benefits
The tax payer can collect the GST from customer and pay the same to the Government by way of filing returns.
All taxpayers (other than composition scheme dealers) shall be covered under regular scheme only.
GSTR-3B
Payment of net GST payable (Tax on sale less Tax on purchases) to the government on or before 20th day of next month.
GSTR-1
Information about the sale of goods or supply of services is required to file GSTR-1 on or before 11th of next quarter. However, the businesses whose turnover is more than 1.5 Crore shall mandatorily require to file the returns on a monthly basis.
GSTR-9
Annual return to be filed every year if the turnover of that particular year is more than Rs. 2 Crores.
GSTR-9C
Reconciliation Statement to be filed every year if the turnover of that particular year is more than Rs. 2 Crores.
Approach CA
For GSTR-9 & 9C, you may need to approach a CA.
Person under composition scheme willing to opt for the regular scheme shall need to file form GST ITC 01 to avail Input Tax Credit (ITC) on the opening stock of the financial year atleast before 30 days from the commencement of the relevant financial year. In other words, atleast before 01-Mar-2020 (Approx) for FY 2020-21.