GST Registration in India: Complete Step-by-Step Guide

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. Any business whose turnover crosses the prescribed threshold, or that falls under certain specified categories, is required to obtain GST registration.

This guide explains who needs to register for GST, the applicable turnover limits, the documents required, the step-by-step online registration process and the consequences of not registering when required.

What Is GST Registration?

GST registration is the process by which a business or individual is enrolled under the Goods and Services Tax law and allotted a unique 15-digit Goods and Services Tax Identification Number (GSTIN).

Once registered, a business becomes legally authorised to collect GST from customers, claim input tax credit on purchases, and is required to file periodic GST returns.

Who Needs GST Registration?

Turnover-Based Registration

Under current rules, the general turnover thresholds are as follows, subject to the applicable notifications for the state concerned:

• Suppliers of goods: generally required to register once aggregate turnover exceeds Rs. 40 lakh in normal category states (subject to conditions) and Rs. 20 lakh in special category states.
• Suppliers of services: generally required to register once aggregate turnover exceeds Rs. 20 lakh in normal category states and Rs. 10 lakh in special category states.
• The higher goods threshold of Rs. 40 lakh does not apply to every goods business - conditions relating to inter-state supply, notified goods such as ice cream, pan masala and tobacco, and the specific state can bring the lower limit back into play.

Aggregate turnover is calculated on a PAN-India basis and includes taxable supplies, exempt supplies, exports and inter-state supplies of a person having the same PAN.

Compulsory Registration Irrespective of Turnover

Certain categories of persons are required to register under GST regardless of their turnover, including (subject to the applicable provisions and any exemptions notified from time to time):

• Persons making inter-state taxable supply
• Casual taxable persons making taxable supply
• Persons required to pay tax under reverse charge
• Non-resident taxable persons
• E-commerce operators and persons supplying through e-commerce platforms, subject to applicable conditions
• Input Service Distributors (ISD)
• Persons required to deduct TDS or collect TCS under GST
• Agents supplying on behalf of other taxable persons

Voluntary Registration

A business below the threshold limit can also apply for GST registration voluntarily. This can help in claiming input tax credit, appearing more credible to larger customers, and being able to supply inter-state without turnover restrictions.

Documents Required for GST Registration

The exact list can vary depending on the constitution of the business, but commonly required documents include:

For Proprietorship

• PAN card and Aadhaar card of the proprietor
• Photograph of the proprietor
• Address proof of the principal place of business (electricity bill, property tax receipt, rent agreement with NOC, etc.)
• Bank account proof (cancelled cheque, bank statement or passbook front page)

For Partnership Firms / LLPs

• Partnership deed or LLP incorporation certificate
• PAN of the firm/LLP
• PAN and Aadhaar of all partners
• Address proof of the principal place of business
• Authorisation letter or board resolution for the authorised signatory

For Companies

• Certificate of Incorporation
• PAN of the company
• MOA and AOA
• PAN and Aadhaar of directors and authorised signatory
• Board resolution authorising the signatory
• Address proof of the registered office

Step-by-Step GST Registration Process

Step 1: Visit the GST Portal

The GST registration application is filed online on the official GST portal (www.gst.gov.in) using Form GST REG-01.

Step 2: Generate a Temporary Reference Number (TRN)

Part A of the application requires basic details such as PAN, mobile number and email ID. Once verified through OTP, a Temporary Reference Number is generated.

Step 3: Complete Part B of the Application

Using the TRN, the applicant logs in again to complete Part B, which requires details of the business, promoters/partners, authorised signatory, principal place of business, additional places of business, goods and services to be supplied, and bank account details.

Step 4: Upload Documents

Scanned copies of the required documents are uploaded in the prescribed format and size.

Step 5: Verification and ARN Generation

The application is submitted using a Digital Signature Certificate (DSC), e-Sign, or an Electronic Verification Code (EVC). On successful submission, an Application Reference Number (ARN) is generated, which can be used to track the status of the application.

Step 6: Processing by the Officer

A GST officer examines the application. If everything is in order, the registration is approved. If clarification is required, a notice is issued in Form GST REG-03, to which a reply must be filed in Form GST REG-04 within the prescribed time.

Step 7: GSTIN Allotment

Once approved, a Certificate of Registration (Form GST REG-06) is issued along with a unique GSTIN. In the normal course, GST registration is generally processed within a few working days of a complete application, though timelines can vary depending on document verification and any queries raised.

What Is a GSTIN?

GSTIN is a 15-character alphanumeric code. The first two digits represent the state code, the next ten digits are the PAN of the business, followed by an entity code, a default check character and a checksum digit.

Penalty for Not Registering Under GST

A person who is liable to register but fails to do so, or who supplies goods or services without registration, may be liable to penalty under the applicable provisions of the GST law, in addition to being required to pay the tax that should have been collected, along with applicable interest. Persistent or wilful non-registration can also expose a business to more serious consequences under the law.

Frequently Asked Questions

Is GST registration free?

Yes, there is no government fee for GST registration. However, if a tax professional is engaged to assist with the process, professional fees may apply separately.

Can I have multiple GST registrations?

Yes, a business can obtain separate GST registrations for different states, and in certain cases for different business verticals within the same state, subject to the applicable conditions.

What happens after I cross the threshold limit mid-year?

Once aggregate turnover crosses the applicable threshold, registration becomes mandatory and an application must generally be filed within the time limit prescribed under the GST law.

Can GST registration be cancelled?

Yes, GST registration can be cancelled voluntarily by the taxpayer or by the department under specified circumstances such as discontinuation of business or continued non-compliance.

Conclusion

GST registration is a foundational compliance step for any business that is liable to register, whether due to turnover or the nature of its activity. Applying with accurate documents and information helps ensure smooth approval and avoids future disputes with the tax department.