Goods and Services Tax (GST) is a significant reform in the Indian tax system, replacing various indirect taxes with a single comprehensive tax. GST registration is mandatory for businesses that meet certain criteria. This guide provides a detailed overview of GST registration, including the process, required documents, fees, and more.
GST registration is the process by which a taxpayer gets registered under Goods and Services Tax (GST). Once registered, the taxpayer is assigned a unique Goods and Services Tax Identification Number (GSTIN). This registration is mandatory for businesses whose turnover exceeds the prescribed limit and for certain other categories of taxpayers.
GST registration is crucial as it ensures that businesses comply with the Income Tax Act 1961 and the GST law. Without proper registration, a business cannot legally supply goods or services, claim input tax credit, or collect GST from customers. Additionally, registered businesses enjoy a more formal status, which can enhance credibility with customers and suppliers.
As of the current regulations, businesses with an annual turnover exceeding ₹20 lakhs (₹10 lakhs for special category states) must register for GST. Additionally, certain categories of businesses, regardless of turnover, must register for GST.
Go to the official GST portal www.gst.gov.in and click on the ‘Services’ tab.
Under the ‘Registration’ tab, click on ‘New Registration’.
Fill in the required details:
Verify the email address and mobile number with the OTPs sent to them.
After verification, a Temporary Reference Number (TRN) is generated. Note this TRN for future reference.
Log in to the GST portal using the TRN. Enter the CAPTCHA details and complete the verification.
Complete the GST registration application by providing additional details such as business address, bank account details, and the nature of the business.
Upload the required documents (listed below).
Apply using either an Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC).
Upon successful submission, an Application Reference Number (ARN) is generated. Use this ARN to track the status of your application.
The following documents are required to register GST:
GST registration is free of cost. There are no government fees for registering under GST. However, professional fees may be applicable if you hire a tax consultant or CA to assist with the registration process.
You can check the status of your GST registration application on the GST portal using the ARN. Follow these steps:
Also Read: GST Filing
Goods and Services Tax (GST) registration is mandatory for businesses that meet certain criteria under the GST law in India. The type of GST registration a business requires depends on factors like the nature of the business, turnover, and the place of business. Below are the different types of GST registration available:
Businesses with an annual turnover exceeding the prescribed limit (Rs. 40 lakh for goods and Rs. 20 lakh for services in most states) must register under regular GST.
This registration is suitable for businesses engaged in the supply of goods and/or services within the same state or across different states.
Filing of monthly or quarterly GST returns will be required during the regular GST registration.
Small businesses with an annual turnover of up to Rs. 1.5 crore can opt for the Composition Scheme to simplify their tax compliance.
Under the Composition Scheme, businesses pay tax at a fixed rate based on their turnover, and they are not eligible for an input tax credit.
This scheme is ideal for small traders, manufacturers, and service providers who want to avoid the complexities of regular GST filings.
Individuals or businesses that occasionally supply goods or services in a state where they do not have a fixed place of business. For example, someone setting up a stall at a trade show in another state.
A Casual Taxable Person must register for GST at least five days before commencing business in the respective state.
The registration is valid for 90 days, extendable further upon request.
Non-resident individuals or businesses that supply goods or services occasionally in India without a fixed place of business here.
Similar to the Casual Taxable Person, registration is mandatory five days before starting business activities.
The registration is valid for 90 days and can be extended.
An Input Service Distributor is a business that receives invoices for services used by its branches and distributes the tax paid (input tax credit) to those branches proportionally.
The ISD must be registered separately from the regular GST registration.
The registration is crucial for companies with multiple branches to distribute input tax credits appropriately.
E-commerce operators facilitating the supply of goods and services through their platform must register for GST, regardless of their turnover.
These operators are responsible for collecting TCS (Tax Collected at Source) and remitting it to the government.
GST registration is a crucial step for businesses in India to comply with tax regulations and avail the benefits of the GST system. The process, though straightforward, requires careful attention to detail and proper documentation.
Following the outlined steps and ensuring all required documents are in place, businesses can successfully register for GST and operate legally within the Indian market.
The GST registration limit is ₹20 lakhs in annual turnover for most states and ₹10 lakhs for special category states.
You can check your GST registration status on the GST portal using the Application Reference Number (ARN).
Key documents include the PAN card, proof of business registration, identity and address proof of promoters, business address proof, bank account proof, and a digital signature.
GST registration is free of cost. There are no government fees involved.
The process includes visiting the GST portal, filling in the required details, verifying email and mobile number, completing the application, uploading documents, and submitting the application.
GSTIN stands for Goods and Services Tax Identification Number, a unique 15-digit number assigned to each registered taxpayer.
Yes, businesses can opt for voluntary registration even if their turnover does not exceed the threshold limit.
The composition scheme is designed for small businesses with a turnover of up to ₹1.5 crores, allowing them to pay a lower GST rate without claiming input tax credit.
Once the application is submitted and verified, the GSTIN is usually issued within 3-7 working days.
Benefits include legal compliance, input tax credit, market expansion opportunities, and enhanced business credibility.
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