Goods and Services Tax (GST) is a comprehensive, destination-based indirect tax levied on the supply of goods and services in India. Implemented on 1st July 2017, GST has replaced several indirect taxes that were previously levied by the central and state governments. GST registration is mandatory for certain businesses and voluntary for others, depending on turnover and nature of operations. In this article, we will explore everything you need to know about GST registration in India.
What is GST Registration?
GST registration is the process by which a taxpayer gets registered under Goods and Services Tax. Once registered, a unique 15-digit GST Identification Number (GSTIN) is assigned. This number is used to track tax payments and compliance of the registered business.
Who Needs GST Registration?
GST registration is mandatory for:
- Businesses with aggregate turnover exceeding ₹40 lakhs (₹10 lakhs for NE and hill states) in a financial year (for goods).
- Service providers with turnover exceeding ₹20 lakhs (₹10 lakhs for NE and hill states).
- Inter-state suppliers of goods and services.
- E-commerce sellers and operators, irrespective of turnover.
- Input Service Distributors (ISD).
- Casual taxable persons and non-resident taxable persons.
- Agents of a supplier.
- Businesses under reverse charge mechanism.
Voluntary registration is also allowed, even if the turnover is below the threshold.
Benefits of GST Registration
- Legal recognition as a supplier of goods/services.
- Input tax credit (ITC) on purchases, reducing cost.
- Eligible to sell through e-commerce platforms.
- Easier to expand business nationally or globally.
- Enhances credibility among customers and suppliers.
- Mandatory for participating in tenders and formal contracts.
Documents Required for GST Registration
The documentation depends on the type of business:
For Proprietorship:
- PAN Card of owner
- Aadhaar Card
- Photograph
- Address proof of business (electricity bill/rent agreement)
- Bank account details (cancelled cheque or bank statement)
For Partnership / LLP:
- PAN Card of firm
- Partnership deed / LLP agreement
- Address proof of partners
- Aadhaar and PAN of partners
- Business address proof
- Bank details
For Private Limited / Public Company:
- Certificate of incorporation
- MOA & AOA
- PAN Card of company
- PAN & Aadhaar of directors
- Digital Signature Certificate (DSC)
- Board resolution/letter of authorization
- Business proof and bank details
How to Register for GST Online?
The process for GST registration is fully online through the GST portal (https://www.gst.gov.in/). Below is a step-by-step guide:
Step 1: Visit the GST Portal
Go to https://www.gst.gov.in/ and click on “Register Now” under “Taxpayers (Normal/TDS/TCS)”.
Step 2: Fill Part A of the Application
Enter:
- Legal name of the business (as per PAN)
- PAN of the business
- Email ID and mobile number
You’ll receive an OTP for verification.
Step 3: Receive Temporary Reference Number (TRN)
After OTP verification, you’ll get a TRN which is valid for 15 days.
Step 4: Fill Part B of the Application
Using TRN, log in and complete the application:
- Business details
- Promoters/partners/directors info
- Authorized signatory
- Principal place of business
- Bank account details
- Upload documents
Step 5: Verification
Once the application is filled, it can be submitted using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Step 6: GST Certificate Issued
If everything is in order, the GST Officer issues a GSTIN and certificate within 7 working days.
Types of GST Registration
- Normal Taxpayer – Regular business, eligible for ITC.
- Composition Scheme – For small taxpayers (turnover up to ₹1.5 crore) with lower tax rate but no ITC.
- Casual Taxable Person – Temporary business in a different state.
- Non-Resident Taxable Person – Foreign businesses supplying in India.
- E-Commerce Operator – Platforms like Amazon, Flipkart, etc.
GST Composition Scheme
Businesses with turnover up to:
- ₹1.5 crore (goods)
- ₹50 lakhs (services)
Can opt for the composition scheme with reduced tax rates:
- 1% for traders/manufacturers
- 5% for restaurants
- 6% for service providers
However, they:
- Cannot collect tax from customers
- Cannot claim input tax credit
- Must file quarterly returns
Penalty for Not Registering under GST
If a business required to register under GST fails to do so:
- A penalty of 10% of tax due or ₹10,000 (whichever is higher) is imposed.
- In case of deliberate evasion, the penalty can be 100% of tax due.
Post Registration Compliance
Once registered under GST, the business must:
- Display the GSTIN at place of business.
- File monthly/quarterly returns like GSTR-1, GSTR-3B.
- Maintain books of accounts and invoices.
- Comply with input tax credit rules.
- Issue GST-compliant invoices.
Cancellation of GST Registration
GST registration can be canceled:
- Voluntarily (if business closes or turnover goes below limit)
- By GST officer (for non-compliance or fraud)
- On conversion of entity (like proprietorship to company)
The taxpayer must apply for cancellation on the GST portal and file final returns.
Revocation of Cancellation
If the registration is canceled by the department, the taxpayer can file an application for revocation within 30 days of the cancellation order, provided all returns and dues are cleared.
Common Issues in GST Registration
- Mismatch of PAN and business name
- Incorrect mobile/email OTP
- DSC not working or not registered
- Business proof document not accepted
- Delay due to verification or query by officer
These issues can be resolved with careful filing and timely response to notices.
Conclusion
GST registration is not just a legal obligation but also a smart business move. It opens up opportunities for expansion, increases transparency, and offers significant input tax benefits. Whether you’re a small trader or a growing startup, getting registered under GST will help streamline your tax processes and make your business GST-compliant.
If you are unsure or face challenges in the registration process, it is advisable to consult a professional CA or GST practitioner to ensure a smooth experience.