Finance

Insight into GST and Verifying the GST Application Status

Published

1 month ago

February 17, 2023

Insight into GST and Verifying the GST Application Status

Several countries, including India, Canada, and Australia, have implemented Goods and Services Tax (GST) as an indirect tax. GST is a consumption-based tax that imposes on the value-added at every stage of the supply chain. GST has replaced many indirect taxes and has simplified the taxation process for businesses. If you are a business owner in a country that has implemented GST, it is must essential to understand the basics of this tax system and the process of registering for it. Additionally, monitoring the progress your GST application status progress is crucial to ensure that you comply with regulations and can smoothly operate your business. In this article, we will provide insight into GST and verify the GST application status.

Overview of GST in India

In India, GST is a comprehensive tax that applies to the supply of goods and services. It levies on the value-added at each stage of the supply chain and is charged at the point of consumption. The final consumer bears the ultimate burden of this tax, which has three components – Central GST (CGST), State GST (SGST), and Integrated GST (IGST).

The central and state governments respectively impose CGST and SGST on intra-state supplies of goods and services, while IGST is collected by the central government on inter-state supplies of goods and services.

GST Registration Requirements for Businesses in India

In India, any person or entity involved in the supply of goods or services whose annual turnover exceeds the prescribed threshold must register for GST. The threshold for registration is Rs. 20 lakh for businesses operating within a state, except for the northeastern states, where the threshold is Rs. 10 lakh. For businesses operating in the northeastern states and Jammu and Kashmir, the threshold is Rs. 10 lakh. Certain businesses, such as e-commerce operators, are required to register for GST, regardless of their turnover. Failure to register for GST can result in penalties and fines, and it is a legal requirement for businesses that meet the turnover threshold to register and comply with GST regulations. After registration, businesses are required to file GST returns regularly and pay the tax on time.

Understanding the GST Application Status: How to Check and What to Expect

After a business has submitted its GST registration application, it can check the status of its application online. Here’s a detailed explanation of the GST application status:

Application Reference Number (ARN): Once the applicant submit the application, the applicant will receive an Application Reference Number (ARN) via email or SMS. The ARN is a unique 15-digit number that is generated when the GST application is successfully submitted.

Status of Application: To check the status of the application, the applicant can visit the GST portal and enter the ARN. The status of the application will be displayed, and it can be one of the following:

Pending for Processing: This means that the application is yet to be processed by the GST authorities.

Validation against Error: This means that the application has been found to have errors, and the applicant needs to rectify them.

Rejected: This means that the application has been rejected, and the applicant will need to reapply.

Approved: This means that the application has been approved, and the applicant will receive the GST registration certificate.

Timeframe for Application Status: The timeframe for the application to be processed and for the status to be updated can vary. Generally, it can take between 7 to 21 days for the application to be processed and the status to be updated.

Checking the Application Status: To check the status of the GST application, the applicant needs to visit the GST portal and click on the “Services” tab. Then, they need to select the “Registration” option and click on “Track Application Status.” After this, they need to enter the ARN and the captcha code, and the status of the application will be displayed.

Pros and Cons of GST

GST has several merits, including simplifying the tax structure, improving compliance, and creating a single national market. However, it also has some demerits, such as increasing the cost of compliance and temporary inflationary impact on certain goods and services. Smaller businesses may also struggle with the complexities of GST compliance, and there may be challenges in implementing the new tax system. Nonetheless, the overall positive impact of GST on the Indian economy makes it an important step towards creating a streamlined tax system.

Conclusion

In conclusion, gaining insight into GST and verifying the GST application status is crucial for businesses in India. The implementation of GST has brought a significant change in the tax regime in India, and it is essential for businesses to comply with GST regulations to avoid penalties and fines. The GST application status provides businesses with an update on their registration application’s progress, and it is recommended to track the status regularly. By tracking the status, businesses can ensure that their application is processed efficiently and that they receive their GST registration certificate promptly. Overall, understanding the importance of GST and staying informed about the GST application status is vital for businesses to thrive in the current economic landscape.