Required Documents for GST Registration for Startups

It is exciting to start a new business, but it’s filled with a lot of tasks as well. Among the various registrations, registration under the Goods and Services Tax (GST) is a must for most businesses in India. You should get GST registration if you have crossed a certain turnover or are dealing in inter-state trade.

Before registration, you’ll be required to gather several important documents. In this blog, we are going to cover the documents required for GST registration for new entrepreneurs in a very simple and easy-to-understand way.

What is GST Registration?

GST registration is the process under which a business gets registered under India’s Goods and Services Tax system. After this registration, your business would receive a unique number, called GSTIN or Goods and Services Tax Identification Number, which is necessary for making legal transactions. Those businesses dealing in goods and services above a certain annual turnover are required to get themselves registered for GST.

With registration for GST, the following benefits would be given to your business:

• The government would recognize your business.
• Tax Credit You get tax credits on goods and services bought for your business.
• Business Growth: It enables the sale of products across states without any constraints.

Why is GST Registration Important?

GST is a tax imposed on the sale of goods and services in India. It helps simplify the taxation process and increases transparency for businesses. The registration for GST provides your business with a unique GSTIN (Goods and Services Tax Identification Number). This is important because:

1. Legal Compliance: It makes sure that your business operates legally.
2. Tax Advantage: Any GST paid on purchases for operations of the business is eligible for tax credits.
3. Business Credibility: GST registration enhances business credibility with customers and suppliers.
4. Interstate Trade: If you sell your goods or services to other states, registration under GST is compulsory.

Required Documents for GST Registration

Now that you understand why GST registration is so important, let’s move on to the documents needed for GST registration. The required documents depend on the nature of your business, but here is a general list of documents most businesses will need3

1. PAN Card: Permanent Account Number:

• For Sole Proprietor: PAN card of the owner is required.
• For Companies/LLPs: The PAN card of the company or LLP (Limited Liability Partnership) is needed.

2. Proof of Business Address:

    You will need to provide proof that your business is located where it claims to be. For owned property, this can include:

• For Owned Property: Copy of property deed, electricity bill, water bill, or a property tax receipt.
• For Rented Property: Rental agreement along with no objection certificate from the landlord.

3. Identity and Address Proof of the Business Owner/Authorized Signatory:

You will require valid proof of identity and address for the business owner or the person authorized to handle the GST registration. The accepted documents are as follows:

• Aadhaar Card
• Voter ID
• Passport
• Driving License
• Bank Statement

4. Bank Account Details:

You are required to submit a copy of a bank statement or a canceled cheque from the business account. This is to link your bank account with the GST registration process.

5. Business Constitution Proof:

If you are a company, an LLP, or a partnership, the following would be required:

• Certificate of Incorporation (for companies)
• Partnership Deed (for partnerships)
• LLP Agreement (for LLPs)

6. Harmonized System of Nomenclature (HSN) Code:

This is known as the code of products or services, which you are trading in. To open up a business one has to provide HSN codes. As a service, it is going to be in need of SAC.

7. Digital Signature Certificate (DSC)

For some business types, especially companies or LLPs, a Digital Signature Certificate is required. This is used to e-sign the GST application.

8. Photograph of the Business Owner:

Another thing required is a recent passport-sized photograph of the business owner or the authorized person applying for GST registration.

How to Apply for GST Registration:

Once you have all the necessary documents, you can easily apply for GST registration online at www.gst.gov.in. Adya Financial offers seamless GST registration services to help simplify the process.

• Visit the GST Portal: Go to the official website and click on “New Registration.
• Application Fill-up: Give all the required information like business name, PAN number, and address.
• Upload the Documents: Upload all of the above documents.
• Verification: GST authorities will check the entered information. They will issue the GSTIN number if it is fine and proper.

Benefits of GST Registration for New Business Owners:

Here are some of the benefits of GST registration after completing the process.

1. Legal Recognition: GST registration adds credibility to a business.
2. Tax Benefits: Input tax credit can be claimed on business-related purchases.
3. Wide Market Coverage: Under GST registration, one can sell products and services across state boundaries freely.
4. Simplified Tax Structure: Since GST supplants multiple indirect taxes, compliance would become simpler.
5. B2B Transaction: GST-registered businesses can transact with other registered businesses, without extra tax burdens to them.

Conclusion

Registration with GST is one of the steps for new business owners. It makes your business comply with tax laws, enables you to claim tax credits, and opens up new business avenues. You can easily complete your registration with GST without any hitch by collecting all the relevant documents in advance and going through the process.
The documents required are always with you, and you follow these steps to ensure the smooth completion of the registration process above.