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 it 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. You can also Verify GST number to know the complete details.

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.

What is GST Registration?

GST registration is the process of obtaining a unique identification number for a business liable to pay Goods and Services Tax (GST). Under GST, firms with an annual turnover of more than Rs.40 lakh (or Rs.20 lakh for some special category states) must register as normal taxable entities. This threshold may vary depending on the type and location of the business. GST registration is mandatory for businesses that cross the turnover limit; otherwise, they will face legal action and penalties. GST registration helps in ensuring compliance and transparency in the tax system.

Who should register for GST?

All the businesses supplying goods whose turnover exceeds INR 40 lakh in a financial year are required to register as normal taxable persons. However, if you have a business in the northeastern states, J&K, Himachal Pradesh and Uttarakhand, the threshold for goods suppliers is INR 20 lakh and service providers INR 10 lakh.

Also, here is the list of certain businesses for which registration under GST 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

1. 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 normal taxable people. However, the threshold limit is Rs 10 lakh if you have a business in the northeastern states, J&K, Himachal Pradesh and Uttarakhand.

2. 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.

3. 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.

4. Composition registration

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

GST Registration Fees

Many businesses wonder if there are any fees for GST registration. The answer is no. According to the GST law, no fees are prescribed for obtaining GST registration through the portal independently. That means you can register your business under GST for free without paying any charges to the government.

However, you may need to pay some fees to a professional who can help you with the GST registration process, especially if you are still familiar with the online portal and the required documents. Alternatively, you can opt for a DIY (Do it Yourself) approach if you have the necessary knowledge and skills to complete the GST registration independently.

Everything About GST Registration Process

The GST registration process is a mandatory requirement for businesses in India that meet specific turnover thresholds. It involves several steps, beginning with the submission of necessary documents such as the PAN card, Aadhar card, and business registration proof on the GST portal. After filling out the application form and uploading documents, a GST officer reviews the application, and upon approval, issues a GST registration certificate containing the GSTIN.

Following registration, businesses must comply with GST regulations, file regular returns, and maintain accurate records. Voluntary registration is also available for businesses below the turnover threshold who wish to avail themselves of input tax credits and participate in inter-state trade.

Non-compliance or failure to register under GST can lead to penalties and legal consequences. Therefore, understanding and adhering to the GST registration process is crucial for smooth business operations.

Related Read: What is GSTIN Number & Why It Is Required?

Important facts about GST registration

Now that you know the procedure for registration under GST, let’s discuss some facts.

  • Any business that has a turnover of over 20 lakh INR is required to register for GST.
  • If you are a supplier of goods to more than one state, you are required to register for GST in all the states you supply goods.
  • There is no registration fee for GST.
  • Failing to file for GST will result in a fine of 10,00 INR or 10% of the due amount.

What is GST Registration Turnover Limit?

GST registration is obtaining a unique identification number for a person or entity that supplies goods or services in India. GST registration is voluntary for any person or entity, irrespective of turnover. However, it becomes mandatory when the turnover surpasses specific thresholds, depending on the category of the state and the nature of the supply.

The turnover limit for GST registration is the aggregate turnover of a person or entity in a financial year. Aggregate turnover is the overall value of all taxable supplies, exempt supplies, exports, and inter-state supplies of a person having the same PAN, excluding taxes under GST. For service providers, the aggregate turnover also includes the value of inward supplies on which tax is payable under the reverse charge mechanism.

The states and union territories in India are classified into two categories under GST: normal category states and special category states. The special category states are those states that have been granted special status under Article 370 or Article 371 of the Constitution of India or are located in the country’s North-Eastern region or the Himalayan region.

The special category states under GST rules are:

  • Arunachal Pradesh
  • Assam
  • Jammu and Kashmir
  • Ladakh
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagaland
  • Sikkim
  • Tripura
  • Uttarakhand
  • Himachal Pradesh

The turnover limits for GST registration differ for normal and special category states. The following table summarises the turnover limits for different types of supplies and states:

Type of Supply Normal Category States Special Category States
Goods Rs 40 lakhs Rs 20 lakhs
Services Rs 20 lakhs Rs 10 lakhs
Both Goods and Services Rs. 20 lakhs Rs 10 lakhs


The aggregate turnover is calculated by adding the value of all supplies made by a person or entity in a financial year, excluding the following:

  • Value of inward supplies on which tax is payable under reverse charge mechanism
  • Value of supplies on which tax is collected at source under section 52
  • Value of exempt supplies
  • Value of non-GST supplies
  • Taxes under GST

The formula for calculating aggregate turnover is:

Aggregate Turnover = (Value of all outward supplies + Value of all inward supplies liable to reverse charge) – (Value of inward supplies + value of supplies taxable under reverse charge + Value of exempt supplies + Value of non-GST supplies + Taxes under GST)

It is important to calculate the aggregate turnover based on PAN, even for businesses with multiple locations. This is because GST registration is required for each state or union territory from where a person or entity makes a supply if the aggregate turnover exceeds the threshold limit. Therefore, a person or entity may have to obtain multiple GST registrations for different states or union territories, depending on the turnover in each state or union territory.

How to Check GST Registration Status?

After Applying for GST Registration you will have an Application Reference Number (ARN). A GST registration application is processed after 15 days of submission, but you can check the GST registration status online on the GST portal.

How to Download the GST Registration Certificate?

A GST registration certificate is a valid document that shows a business has neem registered under the GST regime. Any business in India whose turnover exceeds the threshold limit for GST registration is required to get registered under GST.been

Any eligible person can apply for GST registration on the GST portal, by visiting on the web browser. After the verification of the application is done by the officer, the registration is approved. The registration will be effective from the date when liability for registration arises, in case the application was submitted within 30 days from that date. However, if the submission was delayed, then the GST registration is valid from the date of grant of the registration.

Who is exempt from GST registration?

There are some categories of persons who are exempt from GST tax rate slabs and registration, either by law or by notification.

These features are:

  • Persons engaged in exempt or nil-rated supplies: No GST registration is needed for persons who only supply tax-free goods or services. For instance, fresh fruits and vegetables sellers are exempt from GST.
  • Agriculturists: An agriculturist is a person who cultivates land personally to produce agricultural produce. Such a person is exempt from GST registration due to the size of the supply of produce out of land cultivation. This is because agricultural activities are considered as neither a supply of goods nor a supply of services under the GST law.

    However, if an agriculturist engages in any other taxable activity, such as processing, packaging or trading of agricultural produce, then he or she will be liable to register under GST.
  • Persons below the threshold exemption limit: The GST law provides a threshold exemption limit for businesses based on their annual turnover. The turnover is the aggregate value of all taxable supplies made by a person in a financial year. The threshold exemption limit is Rs. 20 lakhs for most states and Rs. 10 lakhs for special category states, such as the northeastern and hilly states.

    If a person’s turnover does not exceed the threshold exemption limit, then he or she is not required to register under GST. However, some persons are not eligible for this exemption and have to register under GST regardless of their turnover. These include persons who supply goods or services across state borders, persons who occasionally undertake taxable transactions, and persons who are not residents of India but make taxable supplies in India.

The features of GST registration

GST registration has some key features that are important to understand before applying.

These features are:

  • PAN-Based and State-Specific Registration: GST registration is based on the applicant’s Permanent Account Number (PAN) and is valid only for the state or union territory where the business operates. Therefore, a business entity with multiple branches across different states or union territories must obtain separate GST registrations for each state or union territory using the same PAN.

  • Registration for Each State or Union Territory: If a business operates in multiple states or union territories, it must register separately in each location where it has a business establishment, regardless of its turnover. This is to ensure that the GST is collected and distributed among the states or union territories according to the place of supply rules.

  • Separate Registration for SEZ Units: A business entity with a unit in a Special Economic Zone (SEZ) or an SEZ developer will have to obtain a separate GST registration for the SEZ unit or the SEZ area, as the case may be. This is because the SEZ units or areas are treated as separate territories for GST and are eligible for certain exemptions and concessions.

  • Display of Registration Certificates: A registered person is required to display his GST registration certificate prominently at his principal place of business and every additional place of business. The registration certificate contains the GSTIN, the registered person’s name, the address of the place of business, and the date of validity of the registration.

  • Single GSTIN for Each State: A registered person is allotted a single GSTIN for each state or union territory where he is registered. It uniquely identifies the registered person, the state or union territory and the PAN of the registered person. The GSTIN can be verified online through the GST portal or a GSTIN verification app.

  • Non-Tax-Specific Registration: GST registration is not specific to any particular tax, such as Central GST, State GST, Integrated GST or Cess. A registered person is liable to pay all the applicable taxes under the GST regime, depending on the nature and location of the supply. A registered person can also claim input credit for the taxes paid on the purchases, subject to certain conditions and restrictions.

Related Read: Find GST Number Search By PAN

Advantages of GST registration

  • Legal recognition of a business
  • Uniform accounting of taxes
  • Businesses will be eligible to avail of several benefits under the GST regime
  • Legal authorisation of collecting tax from sales made

Penalty for not registering under GST

Failing to register under GST can attract severe penalties and consequences. Some penalties involved are:

  • A penalty of Rs. 10,000 or 10% of the tax due, whichever is higher, for not registering despite being liable to do so.

  • A penalty of Rs. 10,000 or the tax amount, whichever is higher, for collecting GST but not depositing it to the government within three months.

Benefits of GST registration for businesses who opt for GST registration voluntarily?

Businesses that have registered for GST can enjoy several benefits, such as:

  • Working capital reduction for composition dealers: Composition dealers are small businesses with a turnover of Rs.20 to 75 lakh who can pay a lower tax rate under GST. By registering for GST, they can reduce their working capital requirement by claiming input tax credit.
  • Decreased tax liability: GST registration allows businesses to collect GST from their customers and avail input tax credits. This reduces their tax liability and avoids double taxation. It also simplifies the compliance process, as businesses only need to file one consolidated return instead of multiple returns for different taxes.
  • Advantage of engaging in interstate business without restrictions: GST registration enables businesses to engage in interstate trade without any restrictions or barriers. They can sell their goods and services across the country without paying additional taxes or obtaining any permits. This expands their market reach and customer base.
  • Competitive advantage: Businesses not liable to register for GST can also opt for voluntary GST registration to gain a competitive edge in the market. By registering for GST, they can enhance their credibility and legitimacy among their customers and suppliers.

Frequently Asked Questions (FAQs)

1. Is GST registration free of cost?

Yes, no charges are applied while registering for GST.

2. What is the turnover limit for GST?

A business whose aggregate turnover exceeds Rs 20 lakhs has to mandatorily register under GST. This limit is set at 10 lakh INR for North Eastern and hilly states which are flagged as special category states.

3. What income qualifies for GST?

The amount of 40 lakh INR (supply of goods in a normal state), 20 lakh INR (supply of goods/services in a normal state) 20 lakh INR (supply of goods in a specific state), or 10 lakh INR (supply in a specific state) and above would be required to qualify for registration under GST.

4. Who is not eligible for GST registration?

Individuals engaged in supplying goods or services that are not liable to be taxed or individuals who are engaged in supplying goods or services that are wholly exempted from tax are not required to obtain GST registration.

5. Is GST compulsory?

Yes, you are required to register for GST once your turnover exceeds the specified limit.

6. How many days does it take for GST registration?

GST registration usually takes between 2-6 working days.

7. Can I file for cancellation of GST registration?

The registration, which is granted under GST, can be cancelled only for a few specified reasons. The cancellation can either be initiated by the department on their own or the registered person can apply for cancellation of their registration. In case of the death of a registered individual, the legal heirs can apply for cancellation.

8. What are the rules for GST registration?

The rules for GST registration depend on the type of business, the annual turnover, the place of supply, and the nature of supply

9. Is GST filed every month?

The frequency of GST filing depends on the type of taxpayer and the type of return. For example, regular taxpayers with an annual turnover of more than Rs.5 crore must file two monthly returns (GSTR-1 and GSTR-3B) and one annual return (GSTR-9).

10. Can I register for GST myself?

Yes, you can register for GST yourself by visiting the GST portal and filling out the online application form.

11. How long is a GST registration valid?

The GST registration for regular taxpayers has no expiry and is valid until it is surrendered or cancelled.

12. Is a bank account mandatory for GST registration?

Yes, a bank account is mandatory for GST registration. As per rule 10A of the CGST Rules, 2017, the newly registered taxpayer has to furnish the banking details within 45 days from the date of registration approval or the due date of filing the first return, whichever is earlier.


Khushali is a content marketer at Razorpay. A logophile, traveler and inbound marketing enthusiast, she loves questioning the 'why' and 'how' of almost everything.

Write A Comment

Disclaimer: Banking Services and Razorpay powered Current Account is provided by Scheduled Banks