If you are a blogger, app developer, retailer, wholesaler, drop shipper, digital marketeer, online marketplace seller or own a mobile shop, grocery shop, clothing shop or basically any person who is doing business, you may have been asked for GST TIN number by different sources like Google Adsense, Facebook Ads, Hosting Companies or from local manufacturers or dealers, or from anybody who you purchase goods or get service from them.
We all know that, starting July 1st 2017, India has now one-tax-rule all over the country and you are more or less required to get a GST number.
Now, many people who were not a registered firm or never filed tax before are pretty much required to register for GST.
Online earnings and financial services are also put under GST at 18%, the details of which are still not clear. I may write about it in a separate post.
Now, let us consider that you are starting a new business, a sole-propreitership or a partnership or a pvt., ltd company or already has a firm and you are required to get registered under GST and get yourself a GST number.
How did I do it?
Let me take my own example of How I got my new proprietorship a GST number in 3 days for FREE.
I started my new firm Digital D Technologies on July 1st, 2017. I make android apps, blogs, sites and other freelancing work and the workload was getting a lot and decided to hire 2 people full time to assist in my work.
I rented the office space, got it furnished and bought PCs for staff use and set it all up in a week’s time. The date was 10th July 2017.
Soon, I got the rental agreement done and started the work. Previously, I had done an app for a client who happened to be a bank and they were to pay me the payment for the work done. It was a pretty decent figure and I had sent my personal details to write a bill and release payment.
Later I got a call that they can’t pay to individuals and so I sent my firm’s details. I had to get a bank account to clear the cheque they are about to give in my firm’s name.
Then, I had to get a current account in my firm’s name. I went to ICICI bank and asked for documents required. They told me that they wanted an ID proof, address proof and any business registration certificate.
Over the next few days, I searched for a CA to get my firm registered as a proprietorship firm but due to work load and other issues I couldn’t go and complete the formalities.
Soon after, the date approached to 25th July 2017. I got a call from the bank(client) that they need my GST number to release payment and I was told that they only paid to unregistered businesses if the amount is less than 5,000 rupees. I had only option now to get a current account in my firm’s name and get GST number.
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What is a sole-proprietorship firm?
It just flashed to my mind that whether I can get current account with minimal documents and if it is possible to get GST registration done online. So, I quickly googled ‘How to register sole proprietorship firm‘ and found many results along with 3-4 Ads from indiafilings, myonlineca etc., and few other quora answers.
What I got to know was that in India, there is no such thing as sole-propreitership as a separate entity and all you need is a current account in any bank along with your personal PAN number and you are good to go with your business.
I had a CA right opposite to my office and quickly went there to register and he asked me for rental agreement, photos and other documents. And when I asked about the price he would charge, he told 7,500 and after a few words, he reduced to 5,000 rupees without GST number. I though 5,000 rupees was more and I told I’ll come back in the evening but didn’t go eventually 😛
I then googled ‘Register Sole Proprietorship Firm’ and got various results. One of them was proprietorshipregister.com which asked 1,200 rupees which will give me 1 Government Proof on my Business name within 2 hours.
Then I quickly did some more research on this and found out that I can get a Udyog Aadhaar Certificate from MSME at http://udyogaadhaar.gov.in for FREE instantly. Thank you proprietorshipregister.com 🙂
I quickly filled up all the details, validated with my Aadhaar and got the Udyog Aadhaar for my firm within minutes.
Out of excitement, I called the ICICI bank again and told I have all the documents to open a current account. They saw the Udyog Aadhaar certificate and refused to accept it as a sole document. They demanded GST certificate or a labour certificate or anything else.
Now I researched for 10 more minutes and found about e-karmika, an online portal in Karnataka where I can get a labour registration certificate. I have 2 employees and it showed me 500 rupees for completion of application. Also, I had to get a seal and other documents and also I thought they will do manual verification which will further delay the process. So, I left the half filled application as it is and continued my research.
How to Register for GST Online?
I quickly stumbled upon the reg.gst.gov.in itself wherein I can register for GST.
I quickly filled in the details and selected voluntary registration option.
Also, I attached the Udyog Aadhar Certificate in the attach documents section. It was not mandatory but I think this will help the official who processes your application to verify. Remember, I attached only Udyog Aadhaar and nothing else.
After a quick Aadhaar OTP verification, the application got submitted and I was shown that I will get the ARN number to my registered email soon. I waited impatiently for 30 minutes and constantly refreshed the inbox. Nothing came. The time was about 4pm on 25th July, 2017
I forgot about it and went with my work.
At about 8:25pm on the same day, I got the Intimation of ARN generated email and tracked the status through it. It showed me Pending for Processing.
Note that, the timeline posted by GST portal is as below:
So, now I had to wait 3 days for the processing of my application. 3 days means, the application should get processed by Friday, 28th July 2017.
I waited till Friday and the bank called me once again to get the GST number. I told them that I had applied for it and would get it by the next day. I was tensed.
I kept checking on the status till midnight for the email about my application but nothing came as the status showed Pending for Processing since 3 days. I slept soon after.
At about 12:50 am on Saturday Morning(30th July), I got a notification on my phone, it woke me up and what I saw was this.
I felt relieved and quickly went back to sleep.
Saturday morning, I logged in to the system, changed username and password and logged in to the GST portal and downloaded my GST certificate and sent it to the bank(client).
As it was 4th Saturday, I thought ICICI bank would be closed and thought of going to bank on Monday, 31st July 2017.
Now I have my GST certificate under my firm’s name and soon will be getting a current account in firm’s name. Oh, did I tell you that the ICICI bank agreed to give me a Zero balance account for the first 6 months. Sweet, isn’t it? Usually the minimum balance to maintain is 10,000 rupees.
So guys, this is how I got my firm registered and got GSTIN for FREE without paying any fee to CAs. I know if you are a CA who is reading this, you would be angry on this but I am sorry 😛
If the CA I went to asked for about 2500-3000 rupees, I would have agreed and paid him. Haha. I saved 5000 bucks 🙂
I agree I need CA’s assistance whenever I have to file my returns but not this time 🙂
If you are also looking to register for GST, just follow what I told, no need to pay thousands of rupees on GST registration when you can do it for FREE.
Please comment on this post if it helped you and share with your friends and followers who might be interested in GST registration.
Thank you for reading it till here.
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