GST Registration is a process by which a taxpayer gets himself registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration. 

Please note – If you are operating from more than one state, then you will have to take separate registration for each state you are operating from. 

Now, you must be wondering if every business is required to register under GST? Let’s understand GST registration and its procedure in detail. 

Who is eligible to register under GST? 

All the businesses supplying goods whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand. 

The turnover limit is Rs 20 lakh, and in case of special category States, Rs 10 lakh, for the service providers. 

Also, here is the list of certain businesses for which GST registration is mandatory irrespective of their turnover: 

  • Casual taxable person / Input Service Distributor (ISD)
  • Non-resident taxable person
  • Inter-state supplier of goods and services
  • Supplier of goods through an e-commerce portal 
  • Any service provider
  • Liable to pay tax under the reverse charge mechanism
  • TDS/TCS deductor
  • Online data access or retrieval service provider

To find out how much GST you must pay for your goods or services, simply use an online GST calculator.

What are the documents required for GST registration?

Take a look at the list of documents that you will need for registering your business under GST: 

  • Permanent Account Number (PAN) of the applicant
  • Copy of the aadhaar card
  • Proof of business registration or incorporation certificate
  • Identity and address proof of promoters/directors with a photograph
  • Bank account statement/cancelled cheque
  • Authorisation letter/board resolution for authorised signatory
  • Digital signature

Types of GST registration

Normal taxpayers

Most businesses in India fall under this category. 

Businesses whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand. 

Casual taxable individual

Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations.

The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.

Non-resident taxable individual 

Individuals who reside outside India but occasionally supply goods or services as agents, principals, or in other capacities to Indian residents are liable to file for registration under this category. 

The business owner must pay a deposit equal to the expected GST liability during the GST active tenure. The normal tenure is 3 months. However, individuals can extend or renew the registration if required.

Composition registration

Businesses with an annual turnover of up to Rs 1 crore are eligible for registration under composition scheme. Under this scheme, businesses have to pay a fixed amount of GST irrespective of their actual turnover. 

Procedure for GST registration

The procedure to obtain a GST registration is easy and free. A taxpayer seeking a normal registration can visit the GST portal and fill the registration Form GST REG-01. 

  • Visit GST portal 
  • Click on ‘Registration’ under the ‘Services’ tab and then click on ‘New registration

GST New RegistrationThe application form is divided into 2 parts – Part A and Part B. 

  • Select the ‘Taxpayer’ as the type of taxpayer from the ‘I am a’ drop-down list
  • From the State/UT and District drop-down list, select the state and district for which registration is required 
  • In the Legal Name of the Business field, enter the legal name of the business/ entity as mentioned in the PAN database
  • In the Permanent Account Number (PAN) field, enter PAN of the business or PAN of the Proprietor

GST registration

  • In the email address field, enter the email address of the primary authorised signatory
  • In the mobile number field, enter the valid mobile number of the primary authorised signatory

GST Mobile & email OTP

  • Enter the captcha and click the ‘Proceed’ button
  • After completing the process, move to Part B. After verification, you will receive a Temporary Reference Number (TRN). The TRN will be sent to the registered email address and mobile number

GST TRN GenerationPart B

  • Click on ‘Services’ > ‘Registration’ > ‘New Registration’ option and select the Temporary Reference Number (TRN) button to log in using the TRN
  • In the TRN field, enter the TRN generated and the captcha text shown on the screen. Then, click on ‘Proceed

GST TRN login

  • Enter OTP sent on mobile or email in the verify OTP page. And, click on the ‘Proceed’ button

GST Mobile OTP verification

  • The My Saved Application page is displayed. Under the Action column, click the Edit icon

GST application

  • On the top of the page, registration application form with 10 tabs open. Click on each tab to enter the details like business details, promoter/partner details, authorised signatory, principal & additional place of business, goods & services detail, state information, aadhaar authentication and verification 

GST details

  • Now click on ‘Save and continue’. Once the application is submitted, sign it digitally using DSC and click on ‘Proceed’
  • After submission, you will receive an Application Reference Number (ARN) via email or SMS to confirm your registration

GST ARN GenerationPenalty for not registering under GST

All the businesses required to register under GST mandatorily will have to pay a penalty of 10% of the tax amount payable up to a maximum of Rs 10,000

Frequently asked questions (FAQs)

Is GST registration mandatory?

Yes, GST registration is mandatory for the following persons. 

  • Businesses that supply goods with a turnover of more than Rs 40 lakh in a financial year. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand 
  • Service providers with the turnover limit of Rs 20 lakh, and in case of special category States, Rs 10 lakh
  • Casual taxable person / Input Service Distributor (ISD)
  • Non-resident taxable person
  • Inter-state supplier of goods and services
  • Supplier of goods through an e-commerce portal 
  • Any service provider
  • Liable to pay tax under the reverse charge mechanism
  • TDS/TCS deductor
  • Online data access or retrieval service provider 

Can I apply for multiple GST registrations?

If a business runs operations in two different states, you will have to obtain separate registrations for each state. 

Can I apply for multiple registrations within a state?

Yes, you can apply for multiple registrations within a state. But, the government has removed the procedure of allocating multiple registrations for different business verticals for the ease of operating business. 

Who can register for the composition scheme under GST?

Any manufacturer or trader having a turnover of less than Rs 1.5 crore in a financial year can opt for the composition scheme. This limit will apply to restaurants (not serving alcohol). 

However, the threshold limit is Rs 75 lakh for North-eastern states and Himachal Pradesh. 

Service providers having a turnover of less than Rs 50 lakh can avail the GST composition scheme. 

What turnover should be considered for the GST registration threshold limit?

 Aggregate turnover of businesses is considered for GST registration threshold limit. 

Aggregate turnover means the aggregate value of all taxable goods & services supplies. It excludes inward supplies liable to RCM but includes exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same PAN computed on an India basis.

Please note that the CGST, SGST, IGST, UTGST, and cess should be excluded while calculating aggregate turnover.

What are the benefits of registering under GST?

For normal registered businesses

  • Operate business without restrictions in different states
  • Avail input tax credit

For composition dealers

  • Lower impact on working capital
  • Limited compliance as compared to other taxpayers
  • Less tax liability 

For businesses that voluntarily opt-in for GST registration

  • Operate business without restrictions in different states
  • Avail input tax credit
  • Competitive advantage compared to other businesses

How to cancel GST registration?

Taxpayers can apply for cancellation of GST registration using Form GST REG-16. 

Form GST REG-16 must include

  • Details of raw materials, semi-finished, finished goods held in stock as on the date on which cancellation of registration is applied
  • GST liability on such goods
  • Details of tax payment

The proper officer issues an order of cancellation in Form GST REG-19 within 30 days from the date of application. 

How to activate cancelled GST registration?

Cancelled GST registration can be activated (revoked) only when the tax officer has cancelled the registration on his notion. A taxable person, whose registration has been cancelled, can apply for revocation within 30 days from the date of the cancellation order.

They have to file for revocation using Form GST REG-21, either directly or through a facilitation centre notified by the tax commissioner. 

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