What is GST Registration?
GST (Goods and Services Tax) registration is the process of obtaining a unique 15-digit Goods and Services Tax Identification Number (GSTIN) from the government. It is mandatory for businesses meeting certain turnover thresholds.
Educational Purpose: This information is for general awareness only. Consult a qualified tax professional for specific advice.
Turnover Threshold for GST Registration
- For Goods (Normal States): ₹40 lakh aggregate turnover
- For Goods (Special Category States): ₹20 lakh (Arunachal, Assam, J&K, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, HP, Uttarakhand)
- For Services: ₹20 lakh (₹10 lakh for special category states)
- Composition Scheme: ₹1.5 crore (goods) / ₹50 lakh (services)
Mandatory GST Registration (Even Below Threshold)
- Making inter-state taxable supplies
- Selling through e-commerce platforms (Amazon, Flipkart, etc.)
- Casual taxable persons (temporary business at exhibitions)
- Non-resident taxable persons
- Input service distributors
- Persons required to pay tax under reverse charge
Types of GST Registration
- Normal Taxpayer: Regular registration for most businesses
- Composition Scheme: Lower tax rate for small businesses (limited to intra-state supply)
- Casual Taxable Person: For temporary business activities
- Non-Resident Taxable Person: For foreign entities supplying in India
- Input Service Distributor: For distributing ITC to branches
Step-by-Step GST Registration Process
1 Visit GST Portal (www.gst.gov.in) and click 'Register Now'
2 Select 'New Registration' and fill Part A with PAN, mobile, email
3 Receive OTP on mobile and email for verification
4 Get Temporary Reference Number (TRN) on successful verification
5 Log in with TRN and fill Part B of the application
6 Upload required documents (address proof, bank details, etc.)
7 Submit Form GST REG-01
8 Receive Application Reference Number (ARN) on successful submission
9 GST officer verifies and approves within 7 days
10 Receive GSTIN and Registration Certificate (Form GST REG-06)
Documents Required for GST Registration
- PAN Card of business entity
- Aadhaar Card of proprietor/partners/directors
- Proof of business registration (COI, partnership deed, etc.)
- Bank account statement or cancelled cheque
- Address proof of principal place of business (rent agreement + NOC or ownership deed)
- Photographs of promoters/partners/directors
- Digital Signature Certificate (for companies and LLPs)
Composition Scheme
The Composition Scheme is for small taxpayers with lower compliance burden:
- Tax Rate: 1% for manufacturers, 5% for restaurants, 6% for other services
- Benefits: Lower tax rate, quarterly returns (CMP-08), annual return (GSTR-4)
- Restrictions: Cannot collect tax from customers, cannot claim ITC, limited to intra-state supply
Important Note: Failure to obtain mandatory GST registration attracts penalty: ₹10,000 or 10% of tax due (whichever is higher). Late registration fees apply.
Penalty for Non-Registration
- Penalty: ₹10,000 or tax amount evaded (whichever is higher)
- Interest on late payment of tax: 18% per annum
- Prosecution for serious offenses
Amendments and Cancellation
Changes in business details require filing Form GST REG-14 within 15 days. Cancellation of registration can be applied via Form GST REG-16.