GST Registration Requirements

 GST Registration Requirements

The Goods and Services Tax (GST) is a landmark reform in India's tax landscape, unifying multiple taxes under one comprehensive system. Whether you're a small business owner, an e-commerce seller, or an individual freelancer, understanding GST registration is essential for legally operating and accessing benefits like input tax credits. This guide covers everything you need to know, including the requirements, process, document needs, and more.

Why is GST Registration Important?

GST registration provides numerous advantages, including:

•  “Legal Compliance”: Comply with Indian tax laws and avoid penalties.
•  “Input Tax Credit”: Claim credits on the tax paid for goods or services purchased, reducing your tax liability.
•  “Business Credibility”: Enhances the credibility of your business and helps build trust with clients and customers.
•  “Expanding Market Reach”: Easily conduct business across state borders without extra tax complications.

    Government Charges

The government has provided service for free in the areas of GST registration without incurring any charges. Not a single charge is available for the free service while obtaining it from the official GST website.

Professional Charges    

If you engage a professional service provider, either consultant, CA, or legal advisor to prepare registration or assist you in filing the GST registration, his charges may range from ₹ 500 to ₹ 2500 depending upon the job nature and provider.

Self-registration Charges

3.     If your business is below the threshold limit but you still register, you pay professional fees but no government fee.    

Annual Maintenance and Filing Fees

3.     An annually registered GST business will have to file return forms. This may be chargeable in case you employ professionals to do this for you.

Let me know if you need more details, how to register or file returns under GST on “taxlawpages@gmail.com”

Types of GST Registration

Depending on your business type and activities, here are the main types of GST registrations:

•   Regular Taxpayer: This is the standard registration type for businesses with turnover above the specified threshold.
•  Composition Scheme: Available to small taxpayers with turnover up to ₹1.5 crore, offering a simplified tax return and lower tax rates.
•  Casual Taxable Person: Suitable for businesses operating temporarily or seasonally.
•  Non-Resident Taxable Person: Applicable for non-resident businesses making taxable supplies within India.
•  E-commerce Operators: Required for businesses that operate through online platforms.

Who Can Avail GST Registration? 

GST registration is mandatory for certain businesses, while others can opt for it voluntarily. Here are some criteria:

 1. Turnover Thresholds: Businesses that cross a specified turnover                must register. The limit varies by state and type:

• For Services: ₹20 lakhs for most states, ₹10 lakhs for special category states.
• For Goods: ₹40 lakhs for most states, ₹20 lakhs for special category states.

 2. Interstate Supply of Goods or Services: Businesses supplying goods/services across state borders must register, regardless of turnover.

3. E-commerce Businesses”: All e-commerce operators must register under GST.

4. Other Cases: Agents, input service distributors, and individuals required to pay tax under the reverse charge mechanism also need registration.

Documents Required for GST Registration

To register under GST, you'll need the following documents:

• Proof of Business: Partnership deed, certificate of incorporation, or business registration certificate.
• PAN Card: The business or applicant's PAN is essential.
• Identity Proof: Aadhaar card, voter ID, or passport of the owners or partners.
• Business Address Proof: Rental agreement, electricity bill, or property tax document.
• Bank Details: A copy of a cancelled cheque, bank statement, or passbook.
• Digital Signature Certificate (DSC): Required for companies and LLPs.
• Photographs: Passport-sized photos of the owners, partners, or directors.

Statutory Liability After GST Registration

Once you’re registered under GST, several statutory liabilities apply:

• File GST Returns: Regular return filings (monthly, quarterly, or annually) are mandatory.
• Maintain Books of Accounts: Proper records of purchases, sales, and tax invoices must be kept for at least six years.
• Remit GST: Collected GST must be remitted to the government by the stipulated deadlines.
• Issue GST-Compliant Invoices: Invoices must contain specific details like GSTIN, description, quantity, and amount.

Steps to Register for GST

Now, let’s go through the step-by-step process for GST registration:

Step 1: Visit the GST Portal

   - Click to [https://www.gst.gov.in](https://www.gst.gov.in), and click on “Services” > “Registration” > “New Registration.”

Step 2: Fill in Part A of the Form

- Enter your business type, PAN, email, and mobile number. An OTP verification is required.

Step 3: Receive the Temporary Reference Number (TRN)

- After submitting Part A, you’ll get a TRN which you’ll use to access the registration form.

Step 4: Fill in Part B of the Registration Form

- Use your TRN to log in, and fill out Part B, where you upload documents, enter business details, and select the type of registration.

Step 5: Upload Documents

- Upload proof of business address, bank details, and identity proof for owners and authorized signatories.

Step 6: Complete the Verification

- Submit the application with your Digital Signature Certificate (DSC), Electronic Verification Code (EVC), or Aadhaar OTP, depending on the registration category.

Step 7: Application Reference Number (ARN) Generation

   - After submission, an Application Reference Number (ARN) is generated to track your application status.

Step 8: GSTIN Issuance

- Once approved, a unique GST Identification Number (GSTIN) is issued. You’re now legally registered to collect and remit GST.

Turnover Threshold Limits for GST Registration (State-Wise)

Here’s a summary of turnover limits across states:

 1. Normal Category States (e.g., Maharashtra, Delhi):

   - Goods: ₹40 lakhs

   - Services: ₹20 lakhs

 2. Special Category States (e.g., Manipur, Mizoram, Nagaland):

   - Goods: ₹20 lakhs

   - Services: ₹10 lakhs

 Note: The government periodically reviews and may adjust these limits, so it’s important to check for the latest updates.

Final Thoughts

Understanding GST registration is crucial for operating a compliant and successful business in India. By registering, you not only stay legally compliant but also unlock the benefits of input tax credits and market expansion. The step-by-step registration process outlined above and clarity on document requirements, turnover thresholds, and compliance responsibilities make it easier for businesses to navigate the GST landscape confidently.

For more help on GST registration, be sure to stay tuned for our upcoming articles on GST compliance, filing tips, and more!