What is GST Registration?
GST registration is the process through which a business obtains a GSTIN (Goods and Services Tax Identification Number) under India’s Goods and Services Tax system. Once registered, a business is legally permitted to collect GST from customers and claim Input Tax Credit (ITC) on eligible purchases.
Under GST law, businesses whose turnover exceeds the prescribed threshold must obtain GST registration as a normal taxable person. The threshold limit depends on the type of business activity and its location.
In general, GST registration becomes mandatory when the annual turnover exceeds:
- ₹40 lakh for businesses supplying goods (₹20 lakh for special category states)
• ₹20 lakh for service providers (₹10 lakh for special category states)
Small businesses may also opt for the Composition Scheme under Section 10 of the Central Goods and Services Tax Act, 2017 if their turnover falls within the following limits:
- ₹1.5 crore for traders and manufacturers
• ₹50 lakh for certain service providers
However, some categories of businesses must obtain GST registration regardless of turnover.
Who is Required to Register for GST?
Under GST law, the following categories of taxpayers are required to obtain GST registration.
- Businesses Exceeding the Turnover Threshold
GST registration becomes compulsory when the aggregate turnover exceeds the prescribed limits:
- ₹40 lakh for businesses supplying goods
• ₹20 lakh for service providers
• ₹20 lakh / ₹10 lakh thresholds for special category states
Special category states include:
- Manipur
• Mizoram
• Nagaland
• Tripura
Once the turnover crosses these limits, GST registration becomes mandatory.
- Interstate Suppliers
Businesses supplying goods or services from one state to another must obtain GST registration, even if their turnover is below the normal threshold limit.
Example:
A manufacturer located in Rajasthan selling goods to customers in Delhi must obtain GST registration even if the turnover is less than ₹40 lakh.
- E-commerce Sellers
Businesses selling goods or services through online platforms must obtain GST registration regardless of turnover.
This includes sellers operating through marketplaces such as Amazon, Flipkart, or other digital platforms.
Typical examples include:
- Online product sellers
• Drop-shipping businesses
• Service providers offering services through digital platforms
- Casual Taxable Persons
A casual taxable person refers to someone who occasionally supplies goods or services in a state where they do not have a fixed place of business.
Example:
Setting up a temporary stall at a trade fair or exhibition in another state to sell products.
Such businesses must obtain GST registration before starting their operations.
- Non-Resident Taxable Persons
Foreign individuals or businesses that occasionally supply goods or services in India must obtain GST registration as non-resident taxable persons.
- Agents and Input Service Distributors
GST registration is also required for:
- Persons acting as agents supplying goods or services on behalf of another registered taxpayer
• Input Service Distributors (ISD) who distribute input tax credit among different branches of the same organization
- Businesses Liable Under Reverse Charge Mechanism (RCM)
Businesses required to pay tax under the Reverse Charge Mechanism (RCM) must obtain GST registration.
This may apply when:
- Goods or services are purchased from certain notified suppliers
• Transactions fall under categories specifically notified under RCM
- Voluntary GST Registration
Even if a business does not fall under the mandatory registration criteria, it can choose voluntary GST registration.
Some advantages of voluntary registration include:
- Ability to claim Input Tax Credit (ITC)
• Improved credibility with clients and suppliers
• Eligibility to sell through e-commerce platforms
• Opportunity to participate in government tenders
GST Registration Online Process – Step-by-Step
GST registration can be completed online through the official GST portal.
Step 1: Visit the GST portal – www.gst.gov.in
Step 2: Click on Register Now and select New Registration
Step 3: Enter basic details such as PAN, mobile number, and email ID for OTP verification
Step 4: After verification, a Temporary Reference Number (TRN) will be generated
Step 5: Complete Part B of the application form with business details, bank information, and required documents
Step 6: Submit the application using Digital Signature Certificate (DSC) or E-Signature
Step 7: After verification by the GST officer, the GSTIN will be issued
If all details are correct, the GST number is generally issued within a few working days.
Documents Required for GST Registration
Proprietorship
- PAN card of the proprietor
• Aadhaar card
• Business address proof (electricity bill, rent agreement, or property tax receipt)
• Bank account proof (cancelled cheque or bank statement)
Partnership Firm
- PAN card of the firm and partners
• Aadhaar cards of partners
• Partnership deed
• Business address proof
• Firm’s bank account details
Private Limited Company
- PAN card of the company and directors
• Certificate of Incorporation
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Business address proof
• Company bank account details
GST Registration Fees
There is no government fee for GST registration in India.
However, many businesses prefer to take assistance from tax professionals such as chartered accountants or consultants to ensure proper documentation and compliance.
Typical professional charges may range as follows:
- Proprietorship: ₹1,000 – ₹3,000
• Partnership / LLP: ₹2,500 – ₹5,000
• Private Limited Company: ₹4,000 – ₹8,000
Some professionals also offer packages that include GST return filing and compliance services.
Overview of GST Registration
GST is a unified indirect tax system introduced in 2017 to simplify India’s taxation structure. It replaced several earlier taxes such as VAT, service tax, and excise duty.
Once registered under GST, a business receives a unique GSTIN, which enables it to collect GST from customers, file tax returns, and claim input tax credit.
Failing to obtain GST registration when required can lead to penalties and legal consequences. Therefore, understanding the registration requirements is an important step for businesses engaged in trading, manufacturing, or providing services in India.
If you have any further questions or need assistance, feel free to reach out to us at admin@ushmaassociates.com or info@nricaservices.com, or contact us via call/WhatsApp at +91 9910075924.
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Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.