Goods and Services Tax, commonly referred to as GST, was implemented in India on July 1, 2017. You may have frequently come across the term GST recently, sparking curiosity about its purpose and significance. This guide aims to provide clarity on GST and the process of GST registration.
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What is GST Registration?
GST registration is a straightforward online process mandated by GST law, requiring businesses to secure a unique identification number from the relevant tax authority. This number enables them to collect taxes and claim Input Tax Credit (ITC).
GST registration is both PAN-based and state-specific. Upon successful registration, the supplier is assigned a unique 15-digit GST Identification Number (GSTIN), and the registration certificate is provided to the applicant via the online portal.
The GST portal also allows businesses to opt for voluntary registration.
Who needs to register for GST in India?
Under the GST system, registered taxable individuals are required to pay tax on the supply of goods and services. Below, we outline the categories of persons who must mandatorily register under GST.
The obligation to pay GST arises when a taxable person's turnover exceeds ₹20 lakhs (₹10 lakhs for North-Eastern and Special Category States). However, in certain specified cases, GST liability applies even if the turnover threshold is not crossed.
Suppliers Engaged in Inter-State Transactions
Businesses with Branches Across Multiple States
Casual Taxable Person
A person liable to pay tax under the Reverse Charge Mechanism (RCM) is required to do so when the supplier is unregistered under GST.
A person eligible to claim Input Tax Credit (ITC) must meet the necessary conditions under GST for offsetting the tax paid on purchases against their tax liability on sales.
E-commerce operators engaged in the supply of goods or services are required to comply with GST regulations and may have specific registration and tax collection obligations.
Non-Resident Taxable Person
*A Casual Taxable Person refers to an individual or business whose place of business is not fixed and who occasionally engages in the supply of goods, services, or both.
*A Non-Resident Taxable Person is someone who does not have a fixed place of business in India or is not a resident of India, and occasionally conducts transactions involving the supply of goods, services, or both.
Documents Required for Private Limited Company (Pvt. Ltd), Public Company (Limited Company), or One Person Company (OPC):
Company Documents
Company’s PAN Card
Company Registration Certificate
Memorandum of Association (MOA) / Articles of Association (AOA)
Bank Statement Copy
Declaration of Compliance with Provisions
Board Resolution Copy
Director Related Documents
PAN and Identity Proof of Directors
Registered Office Documents
Copy of Utility Bills (Electricity, Landline, or Water Bill)
No Objection Certificate (NOC) from Property Owner
Rent Agreement (if the premises are leased)
Documents Required for LLP Registration
LLP’s PAN Card
LLP Registration Certificate
LLP Partnership Agreement
LLP Bank Statement Copy
Declaration of Compliance with Provisions
Board Resolution Copy
Designated Partner Related Documents
PAN and ID proof of designated partners
Registered Office Documents
Utility Bill Copies (Electricity, Landline, or Water Bill)
No Objection Certificate (NOC) from the Property Owner
Rent Agreement (if the premises are leased)
Documents Required For Normal Partnerships
Partnership Documents
Partnership’s PAN Card
Partnership Deed
Bank Statement Copy
Declaration of Compliance with Provisions
Partner Related Documents
PAN and ID proof of designated partners
Registered Office Documents
Copy of electricity bill/landline bill, water Bill
No objection certificate of the owner
Rent agreement (in case premises are rented)
Documents Required For Sole Proprietorship/Individual
Individual Documents
PAN card and ID proof of the individual
Copy of Cancelled cheque or bank statement
Declaration to comply with the provisions.
Registered Office Documents
Copy of electricity bill/landline bill, water Bill
No objection certificate of the owner
Rent agreement (in case premises are rented)
Compliance after Registration
Visit the official GST Portal at www.gst.gov.in.
Navigate to the Services tab in the menu.
You will see four options: Registration, Payments, User Services, and Refunds.
Click on Registration, then select New Registration
You will be directed to Part – A of the form to fill in all the basic details like is the person a taxpayer, GST Practitioner, Tax Detector, etc., the State, District, Legal Name of Tax detector (According to PAN), PAN.
Enter your Email ID and Mobile Number for OTP verification.
An OTP will be sent to verify your details.
Based on your business type, you will need to upload required documents.
After submitting the documents, an Application Reference Number (ARN) will be generated and sent to you via email and SMS
The GST Officer will verify your application and either approve it or request additional documents/information until all necessary details are provided for approval.
Types of Audits under GST
An audit under GST involves examining the records, returns, and other documents maintained by a taxable person. The objective is to verify the accuracy of the declared turnover, taxes paid, refunds claimed, and input tax credit availed, as well as to ensure compliance with GST regulations.
How to Register for GST?
GST involves extensive compliance requirements, and failure to adhere to these regulations can result in significant penalties..
List of three basic compliance’s is listed as below:
Invoice Details: Every invoice must be included in the GST returns.
Monthly Returns: Three monthly returns must be filed for invoices: GSTR-1, GSTR-2, and GSTR-3.
Annual Return: An annual return, GSTR-9, must also be filed.
Penalties for not registering under GST
Failure to register under GST is considered an offense under Section 122. The Act outlines 21 offenses in this section, in addition to the penalties specified under Section 10 for a taxable person who is ineligible for compounding but attempts to avail it.
[Read: Penalties under GST Act]
FAQ Series on GST Company Registration
- When will I receive GSTIN certificate and how?
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After the registration request is made, the GSTIN certificate will be received within 8 -10 working days, and it will be received online.
And the certificate will be made available on GST Portal.
- Is PAN mandatory for registering under GST?
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Yes, PAN is mandatory for the resident of India.
- What is the validity of GST certificate?
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The validity of GST certificate is forever. It is just a one-time certificate.
- Who is a primary authorized signatory?
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The primary authorized signatory is the person who is primarily responsible for performing an action on the GST System Portal on behalf of the taxpayer. >
- Is amendment in GST Registration possible?
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In case of the amendment in both the core & non-core fields, the application is required to be made within 15 days of the change. However, in case of the amendment in non-core fields, the registration certificate gets automatically updated on the GST portal. Whereas, in case of core fields, the Proper officer will investigate the details and may require additional details & documents if he feels necessary before updating the details on the portal. >
- What is the Aggregate Turnover Limit for GST Registration?
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A person whose aggregate turnover* from business in a financial year exceeds Rs 20 lakhs are bound to register under GST. For the North-Eastern and hilly states (Assam, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh, and many more) it is set at Rs 10 lakhs because they are considered as special category states.
Also, a person whose aggregate turnover for business in preceding financial year is less than 1.5 crores can avail composition scheme where the returns are to be filed quarterly for the year. For the North-Eastern and hilly states (Assam, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh, and many more) it is set at Rs 75 lakhs because they are considered as special category states.
Aggregate turnover shall include all supplies made by the taxable person, whether on his account or made on behalf of all his principals. Aggregate turnover does not include the value of inward supplies on which tax is levied on a reverse charge basis. The value of goods after completion of job work is not included in the turnover of the job-worker. It will be treated as a supply of goods by the principal and will accordingly be included in the turnover of the Principal.
*Aggregate turnover includes all the kind of combinations of taxable and non- taxable supplies, exempt supplies, and exports of goods or services.
- How “DP Accounting & Taxation Services” will Help you for GST Company Registration?
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If you want to register under GST and are facing difficulty, get in touch with our tax experts at DP Accounting and taxation services, who will help you with GST Registration and GST Compliance from Ahmedabad, Gujarat in India.
Our Tax Expert Team will contact you regular basis for GST Compliance. Our fees will be starting from Rs.999/- onwards.
