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Do MSMEs need a GST number for Udyam certificate?
Posted on Friday, December 16th, 2022 | By IndusInd Bank
For any business to be legally recognized as a supplier of goods and services, registration in the tax system is the most fundamental requirement. Without registration, you can neither collect tax from your customers, nor claim any input tax credit of the tax paid by your enterprise.
As the name suggests, GST Registration is the process by which you can register your enterprise under India’s Goods and Service Tax (GST) system. Once the registration is complete, a 15-digit Goods and Service Tax Identification Number (GSTIN) is generated by the Central Government to help determine whether your business is liable to pay GST.
Do you need a GST registration from Udyam MSME Registration Certificate?
No, the Udyam MSME Registration portal states that it is not mandatory to have a GST number for registering your MSME. Only Aadhar number will be enough for MSME Udyam Registration, wherein PAN & GST linked details on investment and turnover will be fetched from the database of the Government. Meanwhile, the GST rules further state that businesses with turnover of above Rs. 40 lakhs should mandatorily register themselves as normal taxable entity. Conducting business operations without registering for GST is a criminal offence and will attract heavy penalties. Therefore, it is suggested to have a GST registration to operate the enterprise.
Apply for a GST Registration online: Step-by-step guide
GST registration process is fully online, free of cost and usually takes about a week to complete. Before you begin the registration, it is important to have all the necessary documents to make the process faster and simpler. Here is a table with the list of documents that sole business owners, LLPs or private companies will need while GST registration:
| Sole Proprietorship | LLP | Private Company |
|---|---|---|
| Either of the following: | Certificate of Incorporation (COI) of LLP | Certificate of Incorporation (COI) |
| – Certificate of Registration – Shop act license – Excise Certificate – Electricity/Water Bill | Memorandum of Association (MOA) and Articles of Association (AOA) of the LLP | Company’s MOA and AOA |
| PAN, Aadhar and passport size photograph of the proprietor | PAN, Aadhar and passport size photograph of all partners; Company PAN card | PAN, Aadhar and passport size photograph of all partners; Company PAN card |
| Current account or personal savings account statement | Company’s current account bank statement | Company’s current account bank statement |
| Copy of the electricity bill or water bill of the office | Copy of the electricity bill or water bill of the office | Copy of the electricity bill or water bill of the office |
| Commercial rent agreement copy | Commercial rent agreement copy | Commercial rent agreement copy |
| – | – | Copy of the board resolution |
Follow these 5 steps for GST Registration
Step 1: Log on to reg.gst.gov.in/registration and fill all the basic information including the email address and the mobile number on which you will receive an OTP. Once filled, click on ‘Proceed’.
Step 2: Verify your mobile number by submitting the OTP. A ‘Temporary Reference Number (TRN)’ will now be generated, which you must keep handy for further steps.
Step 3: Log in via your TRN number to access your application and fill the part B of the GST registration. This part seeks information about the principal place of business, goods and services of the business, authorized representatives and signatories, bank accounts and more. You will get the option to upload the documents along the way.
Step 4: Once you have filled the form, you will land at the verification page where you get to check that all the information provided by you in error-free.
Step 5: Digitally sign the application as instructed in the portal to generate the ARN number. The ARN, or the Application Reference Number receipt will be sent to e-mail and mobile phone number you had entered earlier.
The application is complete. You can track the status of your application using the ARN number. As mentioned earlier, it may take up to 7 days for the process to be completed after you’ve submitted your application.
MSME Udyam Registration
Similar to GST Registration, the MSME registration is also a free-of-cost, fully online, paperless process and is based on self-declaration. More than 1.25 small-scale businesses have registered themselves under Udyam. The MSME Udyam registration is a gateway to tax benefits, attractive MSME loans, subsidies and much more. Click here to see the benefits of MSME Udyam registration in India.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
