MSME: Understanding GST and How to Apply for It

Posted on Monday, June 19th, 2023 | By Indusind Bank

Goods and Services Tax, popularly referred to as GST, is a comprehensive indirect tax levied on the supply of goods and services in the country. It has replaced multiple taxes such as central excise, service tax, VAT, and more, simplifying the taxation system and promoting a unified market across the country. If you’re a business owner, understanding GST is essential for compliance and seamless operations. In this blog post, we will explore what GST is and guide you through the process of applying for it. 
 
What is GST? 
 
GST is a destination-based tax that is levied at each stage of the supply chain, from the manufacturer to the consumer. It is categorized into three types: Central GST (CGST), State GST (SGST), and Integrated GST (IGST). CGST and SGST are applicable for intra-state transactions, while IGST is levied on inter-state transactions. 
 
Applying for GST 
 
Applying for GST is a straightforward process that can be done online. Here’s a complete guide to help you navigate through it:  

1. Determine Eligibility: Ensure that your business meets the eligibility criteria for GST registration. Generally, businesses with an annual turnover exceeding Rs. 40 lakhs (annual turnover of Rs. 10 lakhs for North-Eastern states) must register for GST. 
 
2. Gather Required Documents: Prepare the necessary documents for the registration process. This may include PAN card, Aadhaar card, proof of business address, bank account details, and more. Be sure to check the specific document requirements based on your business type. 
 
3. Access the GST Portal: Visit the official GST portal (www.gst.gov.in) and create an account. Provide the required information, such as your PAN, email address, and mobile number, to generate a temporary reference number. 
 
4. Fill the Application Form: Complete the GST application form with accurate details about your business, such as business name, address, nature of the business, and more. Double-check the information before submitting to avoid any errors. 
 
5. Submit Documents: Upload the necessary documents as per the requirements outlined in the application form. Ensure that the documents are clear, valid, and in the specified formats. 
 
6. Verification and Approval: Once you submit the application and documents, the GST officer will verify the information provided. If any additional details or documents are required, they will communicate with you. Once verified, you will receive your unique GST identification number (GSTIN). 
 
7. Compliance and Filing Returns: After obtaining the GSTIN, you will need to comply with GST regulations, maintain proper records, and file regular GST returns based on your business turnover. 
 
IndusInd Bank Current Account: The Perfect Partner for Your Business 
 
As you embark on your business journey and obtain your GST registration, managing your finances effectively becomes crucial. IndusInd Bank offers a comprehensive Current Account solution tailored to meet your business requirements. Here are some unique features of the IndusInd Bank Current Account: 
 
1. My Account, My Number: Choose a personalized account number that is easy to recall, making it convenient for your business operations and financial transactions. 
 
2. Group Accounts: Group various businesses under one account and assign shared authorized signatories for seamless management and consolidated reporting. 
 
3. Pre-approved Business Loans: Fulfill your immediate capital needs with pre-approved business loans at attractive interest rates, providing you with the necessary financial support to grow your business. 
 
4. Cheque and Cash Pickup/Drop-off: Enjoy the convenience of a cheque and cash pickup and drop-off service, which can be requested from the comfort of your office. 
 
5. Mobile and Internet Banking: Effortlessly manage your account from any location and at any time with the user-friendly mobile and internet banking interface, allowing you to stay on top of your finances and make transactions with ease. 
 
IndusInd Bank understands the unique needs of businesses and strives to provide comprehensive banking solutions. By opening a Current Account with IndusInd Bank, you gain access to a range of benefits designed to simplify your financial operations and support your business growth. 

Open IndusInd Bank Current Account, NOW! 

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.