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GST registration in India involves applying online through the GST portal. Provide your business details, including PAN, address proof, and bank account information. After completing the application and submitting required documents, your application will be verified. Once approved, you receive a GSTIN, enabling you to collect GST, file returns, and claim input tax credits.

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How to Register for a GST Number: A Complete Guide

Understand the process of registering for a Goods and Services Tax (GST) number in India. GST is an indirect tax on the supply of goods and services, replacing multiple previous taxes. This guide provides all the essential information on GST registration and compliance in India.

Page last updated

5 May 2024

written By

Afinthrive Advisory

How to Register for a GST Number: A Complete Guide

GST was introduced in India on July 1, 2017, with the implementation of the Goods and Services Tax Act, 2017. It aims to simplify the indirect tax structure, streamline compliance, and create a unified national market.

GST Registration is applicable on all goods and services except Petroleum products as of now. Goods & Service Tax (GST) is a consolidated tax, which essentially means that State and Central Indirect taxes have been merged. The entire country now operates under a uniform tax system. It now replaces service tax, excise, VAT, entertainment tax, luxury tax, octroi, CST, etc.

Tax Structure - GST is applied through various tax categories, including:

  • CGST (Central Goods and Services Tax): Levied by the Central Government on intra-state supplies of goods and services.
  • SGST (State Goods and Services Tax): Levied by State Governments on intra-state supplies of goods and services.
  • IGST (Integrated Goods and Services Tax): Levied by the Central Government on inter-state supplies of goods and services and imports into India.
  • UTGST (Union Territory Goods and Services Tax): Levied by Union Territory Governments on intra-Union Territory supplies of goods and services.

GST is charged at multiple rates depending on the goods and services, including 5%, 12%, 18%, and 28%. Certain goods and services may have a nil rate or may be exempt. Specific items like gold, petroleum, and alcohol are also subject to special rates.

The GST exemption limit was earlier Rs 20 lakhs for all businesses and services, but with the latest amendment, businesses with an annual turnover up to Rs 40 lakh are exempt from GST. Businesses with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1% tax. However, for services, the exemption limit is still Rs 20 lakhs, with service providers earning up to Rs 50 lakh eligible for the Composition Scheme and paying 6% tax.

GST registration is mandatory for businesses whose turnover exceeds INR 40 Lakh. If your sales are below this threshold, you may voluntarily opt for GST registration to avail of Input Tax Credit benefits. Additionally, anyone engaged in inter-state sales or purchases of goods or services must apply for GST registration, regardless of turnover.

Key Points to Remember:

  • Tax Rates: GST is levied at different rates, including 5%, 12%, 18%, and 28%, with some items exempt or taxed at nil rates. Special rates apply to gold, petroleum, and alcohol.
  • Registration: Businesses with an annual turnover above the threshold must register for GST, with registration also mandatory for inter-state suppliers.
  • Input Tax Credit (ITC): Allows businesses to claim credit for GST paid on purchases, reducing the tax burden and preventing cascading taxes.
  • Composition Scheme: Small businesses (below Rs. 1.5 crore turnover) can opt for the Composition Scheme, paying a lower tax rate with simplified compliance.
  • GSTN: The Goods and Services Tax Network (GSTN) is the IT backbone of GST, managing registration, returns, payments, and refunds.
  • Compliance: Timely filing of returns like GSTR-1, GSTR-3B, and GSTR-9 is required, and non-compliance may lead to penalties.
  • E-Way Bill: Goods movement above a certain value or distance requires generating an e-way bill on the GSTN portal to ensure proper tracking and documentation.
  • Anti-Profiteering Measures: The National Anti-Profiteering Authority (NAA) ensures businesses pass on the benefits of GST rate reductions to consumers.

Aadhaar Card is Mandatory for GST Registration

A new system for GST registration was introduced and activated from 21st August 2020, where the Aadhaar card is now mandatory for GST registration. Applicants seeking GST registration will have the option to authenticate via Aadhaar or opt for physical verification. If Aadhaar authentication is chosen, GST registration is granted within three days.

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characteristics for Goods and Services Tax (GST)

GST is a comprehensive tax levied on the supply of goods and services at various levels, including state and central levels.

Multi-Level Tax System

Businesses can claim credit for taxes paid on inputs, which helps avoid the cascading effect of taxes.

Input Tax Credit

GST provides a standardized tax rate across states, reducing the discrepancies in tax rates between different regions.

Uniform Tax Rates

Each business is assigned a unique GST Identification Number (GSTIN) for tracking and compliance purposes.

GSTIN

Businesses are required to file GST returns periodically, which could be monthly, quarterly, or annually, depending on their turnover.

Filing Frequency

Goods and services are classified under the HSN or SAC codes for easier identification and tax categorization.

Harmonized System of Nomenclature (HSN)

Key Points to Keep in Mind

1

Who Needs to Register for GST?

Any individual, business, or entity engaged in the supply of goods or services in India and whose turnover exceeds the prescribed threshold limits is required to register for GST.

2

Types of GST Registration:

- Regular GST Registration: For businesses with an annual turnover above the threshold limit. - Composition Scheme Registration: For small businesses with a turnover below the specified limit who opt for the composition scheme, offering simplified compliance and lower tax rates. - Voluntary Registration: Businesses below the threshold limit can opt for voluntary registration to avail benefits such as input tax credit.

3

Threshold Limits for GST Registration:

- For businesses supplying goods: INR 40 lakhs (INR 20 lakhs for special category states). - For businesses supplying services or making inter-state supplies: INR 20 lakhs (INR 10 lakhs for special category states).

4

Documents Required for GST Registration:

- PAN Card of the applicant - Aadhaar card or any identity proof of the applicant - Address proof of the business place - Bank account details - Digital signature (for certain businesses) - Incorporation certificate (in case of companies) - Photographs of the proprietor/partners/directors

5

GST Compliance Requirements:

Once registered, businesses need to comply with various GST regulations, including filing monthly, quarterly, or annual returns, payment of taxes, maintenance of proper records, and issuance of tax invoices.

6

Penalties for Non-Compliance:

Non-compliance with GST regulations may attract penalties, fines, or cancellation of registration. Penalties may vary based on the nature and severity of the non-compliance.

7

Benefits of GST Registration:

- Avail input tax credit on GST paid on purchases - Legally authorized to collect GST from customers - Access to a wider market and business opportunities - Compliance with tax laws and regulations

8

Cancellation of GST Registration:

- GST registration can be canceled voluntarily if the business ceases operations or there is a change in business structure. - GST registration can also be canceled by the tax authorities due to non-compliance or other reasons.

9

GST Rates and Slabs:

GST rates are categorized into four slabs: 5%, 12%, 18%, and 28%, with certain goods and services attracting a nil rate or exempt from GST. Special rates apply to gold, precious metals, and specific goods and services.

Documents Required
Documents Required

Here is the check list of documents required.

  • Aadhaar Card Copy
  • PAN Card Copy
  • Photograph
  • Details of items to be traded / services to be rendered
  • Trade Name
  • Address Proof (choose one):
  • Latest electricity bill or registry copy (if owned)
  • Consent affidavit with documents (if owned by a blood relative)
  • Rent agreement with documents (if rented)
Documents Required
FAQs

Get Answers to your most asked questions.

Who needs to register for GST in India?

Any individual, business, or entity engaged in the supply of goods or services in India whose turnover exceeds the prescribed threshold limits is required to register for GST.

What are the threshold limits for GST registration?

For businesses supplying goods, the threshold limit is INR 40 lakhs (INR 20 lakhs for special category states). For service providers or inter-state suppliers, the threshold limit is INR 20 lakhs (INR 10 lakhs for special category states).

What are the documents required for GST registration?

Documents required include PAN card, Aadhaar card or identity proof, address proof of the business place, bank account details, digital signature (if applicable), and photographs of the proprietor/partners/directors.

How can I register for GST?

You can register for GST online through the GST portal (www.gst.gov.in) by filling out the GST registration form (GST REG-01), uploading the required documents, and completing the verification process.

Is there a fee for GST registration?

No, there is no Government fee for GST registration. It is free of cost. However, professional charges may vary.

How long does it take to get GST registration after applying?

Typically, GST registration is processed within 3 to 7 working days from the date of submission of the application, provided all the documents and information provided are in order.

Can I voluntarily register for GST even if my turnover is below the threshold limit?

Yes, businesses below the threshold limit can voluntarily register for GST to avail benefits such as input tax credit and to comply with regulatory requirements.

Do I need to register separately for each state in India where I conduct business?

No, GST registration is done centrally through a single registration for the entire country. However, if you have multiple business verticals within a state, you may need to obtain separate registrations for each vertical.

What are the compliance requirements after obtaining GST registration?

After obtaining GST registration, businesses need to comply with various GST regulations, including filing monthly, quarterly, or annual returns, payment of taxes, maintenance of proper records, and issuance of tax invoices.

Can I cancel my GST registration?

Yes, GST registration can be canceled voluntarily if the business ceases operations or there is a change in business structure. Additionally, GST registration can be canceled by the tax authorities due to non-compliance or other reasons.