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.

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). As per GST law, The 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.

GST registration is mandatory for businesses that cross the turnover limit; otherwise, they will face legal action and penalties.

What is GST Registration Turnover Limit?

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 special category states under GST rules are:

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

Who is Required to Register Under GST?

  • 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
  • e-commerce aggregator
  • Liable to pay tax under the reverse charge mechanism
  • TDS/TCS deductor
  • Online data access or retrieval service provider
  • Individuals who registered under Pre-GST law (i.e., VAT, Service Tax etc)

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

Types of Registration Under GST

  1. Regular GST Registration (GSTIN): Standard registration for businesses involved in the supply of goods and services, requiring a GST Identification Number.
  2. Composition Scheme Registration: Simplified scheme for small businesses with lower tax rates and reduced compliance, but with certain limitations.
  3. Casual Taxable Person Registration: Temporary registration for businesses that occasionally supply goods or services in a taxable area where they don’t have a fixed place of business.
  4. Non-Resident Taxable Person Registration: For foreign businesses supplying goods or services in India without a permanent business establishment.
  5. Input Service Distributor (ISD) Registration: For businesses distributing input tax credit to different branches having the same PAN.
  6. TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) Registration: For entities required to deduct tax at source or collect tax at source under GST provisions.
  7. E-commerce Operator Registration: Mandatory for operators facilitating online sales through their platform.
  8. URD (Unregistered Dealer): Dealers not registered under GST but involved in taxable supply; generally required to register if they exceed the threshold limit.

What are the Documents Required for GST Registration?

  • 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

Read More About: Documents Required for GST Registration

About GST Registration Process

The GST registration process involves seventeen steps. These steps include submitting various business details, scanned documents, and filling out Form REG-01 on the GST portal.

You can find instructions for completing the process in our article, “How to Register for GST Online?

Once you have completed the GST registration process, a GST officer will review your application and, upon approval, issues a GST registration certificate containing your GSTIN.

GST Registration Fees

As per GST law, no fees is required for obtaining GST registration through GST portal independently. That means you can register your business under GST for free without paying any charges to the government.

However, If any GST professional helps you with registration that will incur fees. If you’re comfortable using the GST portal and understand the required documents, you can register yourself (DIY).

Benefits of Registration Under GST

  • Input tax credit: Claim input tax credit on purchases and reduce your overall tax liability with GST registration.
  • Improves credibility: GST registration boosts your business’s credibility and trustworthiness in the eyes of customers and partners.
  • Removal of cascading: GST eliminates the cascading effect of taxes, ensuring a more efficient and fair taxation system.
  • Regulatory compliance: Stay compliant with tax laws and avoid penalties by registering for GST.
  • Simplified tax compliance: GST streamlines tax compliance, reducing the complexity and time spent on managing taxes.
  • Composition scheme: Small businesses can benefit from the composition scheme, which offers lower tax rates and simplified returns.
  • Tax evasion: GST registration helps curb tax evasion, promoting a more transparent and accountable tax system.
  • Interstate sales: Facilitate interstate sales seamlessly without multiple taxes by registering for GST.
  • Legal protection: Ensure legal protection and safeguard your business from regulatory actions with GST registration.
  • Lesser number of compliances: Enjoy a reduced number of tax compliances, making it easier to run your business.
  • Attracting foreign investors: Enhance your business’s appeal to foreign investors by demonstrating regulatory compliance through GST registration.

Penalty for Not Registering Under GST

Failing to register under GST can attract severe penalties and consequences.

Some penalties 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.

How to Check GST Registration Status?

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

The Features of GST Registration

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

These features are:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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

Benefits of GST Registration for Businesses Who Opt for GST Registration Voluntarily?

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

1. 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.

2. 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.

3. 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.

4. 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. What is GST registration number?

A GST registration number is a GSTIN, a 15-digit code that identifies that your business has been registered under GST in India.

2. How much is the fees for GST registration?

No fee” is required for registering your business under GST.

3. Is GST registration mandatory for all businesses?

No, GST registration is mandatory only for businesses whose turnover exceeds the specified threshold limits or those engaged in specific activities.

4. Who is not eligible for GST registration?

  • Small businesses with annual turnover below the specified threshold limit (currently ₹20 lakhs for most states, ₹10 lakhs for special category states).
  • Employees providing services as part of their employment.
  • Agriculturists supplying produce from cultivation.
  • Entities dealing in exempt goods or services exclusively.
  • Individuals supplying goods and services which are not liable to tax under GST.

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

GST registration usually takes between 2-6 working days.

6. 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. 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).

9. 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.

10. 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.

11. 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.

12. Can I have multiple GST registrations?

Yes, you can have multiple GST registrations for different states or multiple business verticals within the same state.

13. Can I modify my GST registration details?

Yes, you can modify your GST registration details through the GST portal by submitting an amendment application.

14. What is the difference between voluntary and mandatory GST registration?

Voluntary registration is when a business opts to register under GST, while mandatory registration is required by law based on turnover and business activity.

15. What happens if my GST registration application is rejected?

If your GST registration application is rejected, you will be notified with the reasons for rejection, and you can reapply after addressing the issues.

Author

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

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