Table of Contents
Introduction
Goods and Services Tax (GST) registration is a mandatory requirement for businesses that meet the prescribed turnover limits or engage in inter-state trade. GST is a unified tax system introduced to simplify indirect taxation in India. Registered businesses receive a GST Identification Number (GSTIN), which enables them to collect GST from customers and avail input tax credit.
This guide provides an in-depth look at GST registration, eligibility, the application process, required documents, and compliance requirements.
Who Needs GST Registration?
GST registration is mandatory for:
- Businesses with an annual turnover exceeding ₹40 lakh (₹20 lakh for service providers).
- Inter-state suppliers of goods or services.
- E-commerce sellers (Amazon, Flipkart, etc.).
- Individuals engaged in import/export.
- Businesses dealing with taxable supplies under reverse charge mechanism (RCM).
- Casual taxable persons (temporary businesses).
- Non-resident taxable persons conducting business in India.
Types of GST Registration
- Regular GST Registration – For businesses exceeding the turnover threshold.
- Composition Scheme Registration – For small businesses with turnover up to ₹1.5 crore (₹75 lakh for certain states), allowing them to pay a fixed lower tax rate.
- Casual & Non-Resident Registration – For businesses operating temporarily or from outside India.
- E-Commerce & TDS/TCS Registration – Mandatory for online platforms and businesses subject to tax deduction at source.
Documents Required for GST Registration
To complete GST registration, the following documents are needed:
- PAN Card of the business or applicant.
- Aadhaar Card of the authorized signatory.
- Business registration certificate (Partnership Deed, Certificate of Incorporation, etc.).
- Address proof (utility bills, rental agreement, or ownership documents).
- Bank details (Cancelled cheque, bank statement).
- Digital signature (DSC) for companies & LLPs.
Step-by-Step Process
- Visit the GST Portal – Go to www.gst.gov.in.
- Click on ‘Register Now’ – Choose ‘New Registration’.
- Enter Business Details – Provide PAN, email, and mobile number for OTP verification.
- Fill in Business Information – Enter details like business type, trade name, and address.
- Upload Required Documents – Submit scanned copies of the necessary documents.
- Receive Temporary Reference Number (TRN) – Use TRN to continue the registration process.
- Verification & ARN Generation – After submission, an Application Reference Number (ARN) is generated.
- GST Officer Verification – If required, an officer may request additional details.
- Receive GSTIN – Upon approval, a 15-digit GSTIN is issued via email and SMS.
GST Compliance After Registration
Once registered, businesses must comply with GST regulations, including:
- Issuing GST-compliant invoices with proper HSN/SAC codes.
- Filing GST returns (GSTR-1, GSTR-3B, GSTR-9, etc.) on time.
- Maintaining proper records of sales, purchases, and taxes paid.
- Paying GST dues before deadlines to avoid penalties.
- Renewing & updating GST registration details if business changes occur.
Benefits of GST Registration
- Legal recognition as a registered supplier.
- Input tax credit eligibility, reducing tax liability.
- Seamless interstate trade without restrictions.
- Better business credibility and opportunities to work with corporate clients.
- Easier compliance through digital tax filing.
Conclusion
GST registration is crucial for businesses to operate legally and take advantage of tax benefits. By following the correct registration process and maintaining compliance, businesses can avoid penalties and streamline their taxation. Whether a small trader or a large enterprise.
Disclaimer: The views expressed here are of the author and do not reflect those of Dhanvantree. Mutual funds are subject to market risks, please read the scheme documents carefully before investing.