Educational Purpose: This guide is for educational purposes only. GST rules and turnover limits may change. Consult a tax professional for specific advice.
What is GST Registration?
GST (Goods and Services Tax) registration is mandatory for businesses exceeding specified turnover thresholds. Registered businesses receive a 15-digit GSTIN (Goods and Services Tax Identification Number) required for collecting tax, claiming input tax credit, and inter-state sales.
Who Must Register for GST?
● Aggregate turnover exceeds ₹40 lakh (₹20 lakh for special category states) for goods
● Aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category states) for services
● Inter-state suppliers of goods/services
● Casual taxable persons
● Non-resident taxable persons
● E-commerce operators and sellers
● Input service distributors (ISD)
● TDS/TCS deductors under GST
Important: Registration is mandatory within 30 days from the date liability arises. Failure to register attracts penalty of 10% of tax due (minimum ₹10,000) or 100% for fraud.
Step-by-Step Registration Process
1 Visit GST Portal: www.gst.gov.in
2 Click "Services" → "Registration" → "New Registration"
3 Fill Part A: PAN, mobile number, email (receives OTP and TRN)
4 Note down Temporary Reference Number (TRN)
5 Login with TRN and complete Part B: business details, promoters, authorized signatory, principal place of business, goods/services, bank account
6 Upload required documents
7 Submit application using DSC or EVC
8 ARN generated - officer approves within 3-7 working days (else deemed approved)
Documents Required
- PAN card of business/LLP/Company
- Proof of business registration (COI/Partnership Deed/Registration Certificate)
- Identity and address proof of promoters/partners/directors (Aadhaar, Voter ID, Passport, Driving License)
- Photograph of promoters (passport size)
- Proof of principal place of business (electricity bill, rent agreement with NOC, property tax receipt)
- Bank account proof (cancelled cheque, bank statement, passbook copy)
- Digital Signature Certificate (DSC) for companies/LLPs
- Authorization letter (for authorized signatory not being proprietor/partner/director)
Composition Scheme (Small Taxpayers)
For businesses with turnover up to ₹1.5 crore (₹75 lakh for special category states):
- Pay tax at lower rates: 1% for manufacturers, 5% for restaurants, 6% for other services
- Cannot collect tax from customers
- Cannot claim input tax credit
- Cannot make inter-state supplies or sell on e-commerce
- File quarterly returns (CMP-08) and annual return (GSTR-4)
Types of GST Registration
- Regular: Standard registration for most businesses - can claim ITC, collect tax, inter-state supply
- Composition: Small taxpayers with simplified compliance but restrictions
- Casual Taxable Person: Occasional supplies in a state (21 days minimum)
- Non-Resident Taxable Person: Foreign entities supplying in India
- Voluntary Registration: Even if turnover below threshold (useful for ITC or credibility)
- GST Registration for E-commerce Operators: Mandatory regardless of turnover
Post-Registration Compliances
- File GSTR-1 (outward supplies) - monthly/quarterly
- File GSTR-3B (summary return with tax payment) - monthly
- File GSTR-9 (annual return)
- File GSTR-9C (reconciliation statement) - if turnover exceeds ₹5 crore
- Maintain proper accounts and invoices
- Issue tax invoices, credit/debit notes, e-way bills for transport > ₹50,000
Fees and Timeline
- Registration fee: Nil (free online registration)
- Late fee for not registering on time: ₹200 per day (₹100 CGST + ₹100 SGST) up to maximum ₹5,000
- Processing time: 3-7 working days if documents proper
- Physical verification may be required for high-risk applications or composition scheme