GST Registration in India

The full form of GST is Goods & Services Tax. It is an all-in-one tax that subsumes a variety of state (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty).

GST Registration refers to the process of obtaining a unique identification number for businesses that are liable to pay Good and Service Tax. According to the GST law, businesses whose revenue exceeds the threshold of Rs. 40 lakh (goods) or Rs. 20 lakh (services) are required to register for GST and pay taxes on their taxable good & service.

Many enterprises in India are required to register under the GST regime. When businesses are required to secure a Goods and Services Tax registration but fail to do so, they are subject to severe fines and legal repercussions. The GST certificate registration process is entirely online and requires no manual intervention.

If you want to register your business under the GST system, connect with our Chartered Accountants & Consultants at Registrationwala.

Benefits of Goods and Services Tax Registration

The features of goods and services tax registration are as follows:

• One of the key advantages of registering under GST is the ability to claim input tax credit (ITC). This allows the businesses to reduce their tax liability by offsetting the GST paid on purchases and business-related expenses (excluding personal expenses) against the GST collected on sales. For instance, if a business pays Rs 15000 as G S T on purchases and collects Rs. 20000 as GST on sales, it can claim Rs. 15000 as input tax credit. As a result, the business will only need to pay the remaining Rs. 5000 to the Union government.

• When a business is registered under the GST system, their credibility is enhanced. Registering under Good and Service Tax showcases that the business complies with national tax laws. This can build trust and confidence in customers, suppliers and stakeholders. Small businesses wanting to establish a good reputation in the market can greatly benefit from this.

• Good and Service Tax registration makes transactions simpler with other business entities. Many B2B customers choose to deal with vendors who are GST-registered to avail themselves of ITC.

• It is crucial for businesses involved in interstate trade to ensure compliance with interstate GST regulations. Hence, businesses with Goods and Services Tax registration can easily expand operations beyond state borders without facing legal challenges or complications.

• Many e-commerce platforms make it mandatory for sellers to be GST-registered. Thus, businesses can opt for voluntary registration under GST systems so they can list their products on famous e-commerce websites and reach a wider audience to increase their revenue.

Eligibility for GST Registration 

For registering under the Goods & Services Tax, the following individuals and entities are eligible:

• Businesses whose annual turnover is Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services.

• The person making inter-state supplies

• Casual taxable person

• A taxable person who is a non-resident

• The agent of the supplier

• Taxpayers paying tax under the Reverse charge mechanism

• E-commerce aggregator or operator

• Person supplying online information from a place outside of India to a person inside India. 

Documents Required for GST Online Registration  

The documents required for registration under Good & Service Tax regime depends on the corporate structure of the business entity:

Sole Proprietorship

The following documents are required by sole proprietorship to get registration under GST regime:

• Details of Bank account

• PAN card of the proprietor

• Proprietor’s address proof

• Photographs of Proprietor

• Proprietor’s Aadhaar card

• Proofs for the Place of Business and additional place of business

Limited Liability Partnership

The following documents are required by LLPs to get GST-registered:

• PAN Card of LLP

• LLP Agreement

• Certificate of Incorporation

• Address Proof of LLP’s registered office

• Partners’ names and address proof

• Bank account details

• Letter of Authorization authorizing the signatory.

Private/Public Limited Company

For a private/public limited company, the following documents are required to get registered under G.S.T system:

• Certificate of Incorporation

• PAN Card of Company

• Memorandum of Association (MoA)

• Articles of Association (AoAs)

• Resolution signed by board members

• Identity and address proof of directors

• Signatory’s PAN card

• Signatory's appointment proof

• Signatory’s Aadhaar card

• Bank details

• Letter of Authorization authorizing the signatory.

Process of obtaining GST Registration in India

The registration process for Goods and Services Tax takes place in the following manner:

Preparing Documents

Before filing an application for the Good and Service Tax regime, you must ensure you have all the required documents. The documents differ for different entities. Private companies require certain documents, such as articles of association, memorandum of association, certificate of incorporation, etc. 

In case of an LLP, you will need LLP agreement, address proof of LLP, partners’ names and address proof, etc.. For sole proprietorship, you will need the proprietor's PAN card, bank details, photographs, aadhar card, etc.

Filing Online Application

The process to get GST-registered can be completed online. You must file an application on the official GST portal with all the necessary details. Make sure all the details are filled in correctly. Along with the online application, you will also need to attach all the necessary documents. 

Tracking Application Status

Once you’ve filed the application, Application Reference Number (ARN) will be sent to the registered email and mobile. By entering the ARN number, you can check the status of your application on the GST portal. 

GSTIN Issuance 

Upon application processing and verification by GST authorities, your business will become GST-registered. Upon obtaining registration under GST, your business will be issued a new GST registration number known as GSTIN. After securing GSTIN, you can operate your business smoothly with enhanced credibility and ensure compliance with GST regulations. 

Connect with our GST Registration Consultants!  

At Registrationwala, our GST Consultants can assist you through the GST registration process by providing you with the following services:

• Document drafting

• Application filing

• Tracking the application status

• Completing the registration process by securing GSTIN

Therefore, get in touch with us as soon as possible if you want to get your business GST-registered in minimum time. We’ll ensure a smooth and hassle-free experience for you!

FAQs about GST Registration

Q1. Who must mandatorily register under the GST system?

A. A business whose annual turnover limit exceeds Rs. 40 Lakh for goods or Rs. 20 Lakh for services must mandatorily apply for GST registration.

Q2. Can a business voluntarily opt for registration under the GST system?

A. Yes, a business can voluntarily opt for registering under the Goods & Services Tax system. Doing so will help it to enhance credibility among customers. Many e-commerce platforms require sellers to have a GST number before allowing them to sell their products online.

Q3. Do sole proprietorships require Goods and Services Tax registration?

A. Yes, sole proprietorships require this registration if it crosses specific turnover thresholds or engages in interstate trade.

Q4. What is GSTIN?

A. GSTIN is a 15-digit Goods and Services Tax identification number that is unique to every GST-registered business operating in India.

Q5. Who is exempt from GST registration?

A. Businesses and individuals whose annual turnover is less than Rs. 40 lakhs for goods and Rs. 20 lakhs for services are exempt from Goods and Services Tax registration.

Q6. What is the penalty for not registering under GST?

A. If a business must mandatorily register under the GST system but fails to do so, it will have to pay a penalty. The penalty is 100% of the tax due or Rs. 10,000, whichever is higher. 

Q7. What is the validity of GST registration certificate?

A. The GST registration certificate remains valid for an indefinite period as long as the business continues to conduct business operations and files GST returns regularly. 

Q8. How to calculate GST online?

A. To calculate GST online, you can use Registrationwala’s GST calculator.

Q9. What is GST registration fees?

A. The GST registration cost or fees depends on various factors such as business entity type, annual turnover, consultation and application filing fees. 

Q10. Which form do I need to file GST return?

A. To file GST return, you need GSTR 9 form.