All You Need To Know About The Registration Statuses Under The GST Act

All You Need To Know About The Registration Statuses Under The GST Act

The outdated tax system made it extremely complicated to assess and file taxes well before Goods and Services Tax (GST) took effect. Several indirect taxes have been levied at various levels, leading to double taxation and its cascading effect. Such indirect taxes comprise Value Added Tax ( VAT), Utility Tax, Luxury Tax, and many more.  Luckily, the Goods and Services Tax (GST) was able to negate this issue. The Goods and Service Tax removes every one of these indirect taxes imposed at different rates, allowing you to pay only one tax to the government on the transactions you make. GST has also helped in curbing tax avoidance and corruption.

GST Registration: For Whom Is It?

You are responsible to have the GST enrollment procedure carried out if you find yourself in one of the mentioned circumstances:

  • If you own and run an online business, or are a provider of e-commerce services
  • If you have a revenue of rs. 40 Lakh or above and a revenue of Rs. 20 Lakh and above, if you happen to be in a special status state,
  • If you operate a company in Himachal Pradesh, Jammu and Kashmir, or Uttarakhand and the revenue is Rs. 10 Lakh

Once you have completed the registration process, it will take around 15 days for your registration application to be processed. Meanwhile, you can use the Application reference Number that you have been given, to track your GST registration status.

How To Track Your GST Enrollment Status?

At this point, it is quite clear that is it important to register for GST if you happen to meet the specified requirements. Here is how to track your GST registration status:

  • You will need to sign in to the authorized GST portal and select the Services page. then clock on the registration option.
  • Now, you’ll find 3 choices, out of the three given options, one of them is the “Track Application Status”. Choose that option.
  • Now fill in the Application Reference Number and enter the captcha code exactly as shown on the computer screen.

If you have followed the steps correctly and filled in the right information then, you will be shown the status of your GST registration.

Types Of GST Registration Statuses

In order to apply for registration, you would be required to fill out the form in 2 segments of the GST REG-01 form. After you have completed the GST registration process, you are bound to obtain a Temporary Reference Number (TRN).

Use the TRN to complete the next portion of the GST application. You will provide verification as well as the ARN at the conclusion of the registration procedure. Here are the different GST registration statuses that you will be subject to in the process of registration for GST.

Pending Verification

This means that the GST registration form that you sent has been received but has not been authenticated as yet.

Validation Error

This happens when the PAN number (Permanent Account Number) that you typed in is incorrect. It is advisable to rectify this issue as soon as possible and make sure that you double-check all the information you type in before submitting it.

Provisional STatus

This means the registration application that you sent has been approved, you will receive a provisional GST number during this period.

Migrated

This implies that the migration from the previous taxation system to the current one has been successfully completed.

Canceled

This means that the application that you submitted has failed verification, this may be due to a number of reasons, one of them being typing in the incorrect information.

It is important that for every business entity to register themselves under the GST scheme if they meet the criteria specified for it. Failure to do so will result in heavy fines and penalties. To help avoid this, make sure you enroll under the GST act, GST also has a lot of benefits to offer and it is no doubt that most of the business entities are happy with this major tax reform.

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