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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 should register for GST?
All the businesses supplying goods whose turnover exceeds INR 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is INR 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.
The turnover limit is INR 20 lakh, and in the case of special category states, INR 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
- Casual taxable individual
- Non-resident taxable individual
- Composition registration
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 north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.
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.
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.
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.
Important facts about GST registration
- 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.
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”.
- 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.
- 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.
- 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.
- 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 ‘
- Enter OTP sent on mobile or email in the verify OTP page. And, click on the ‘Proceed’ button.
- The My Saved Application page is displayed. Under the Action column, click the Edit icon.
- 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.
- 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.
The application form is divided into 2 parts – Part A and Part B.
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.
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.
Any eligible person can apply for GST registration on the GST portal, by visiting www.gst.gov.in on the web browser. After the verification of 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 thirty days from that date. However, if the submission was delayed, then the GST registration is valid from the date of grant of the registration.
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
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 INR 10,000.
FAQs on GST Registration
Is GST registration free of cost?
Yes, no charges are applied while registering for GST.
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.
What income qualifies for GST?
The amount of 40 lakh INR (supply of goods in normal state), 20 lakh INR (supply of goods/services in 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.
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.
Is GST compulsory?
Yes, you are required to register for GST once your turnover exceeds the specified limit.
How many days does it take for GST registration?
GST registration usually takes between 2-6 working days.
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 death of a registered individual, the legal heirs can apply for cancellation.