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GST Registration Online
GST Application filing in 2 business days Starting at ₹749 ₹499 T&C* - Simple process for new GST registration, application status tracking, and filing for clarifications
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- Assistance for GST e-invoicing, ledger, and invoice maintenance
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- Certificate of Incorporation
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- Articles of Association, AOA
- View all documents
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Private Limited Company
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- Articles of Association, AOA
- View all documents
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What is GST Registration?
GST registration is the process by which a business obtains a unique identification number, known as a GSTIN (Goods and Services Tax Identification Number), making it liable to pay Goods and Services Tax (GST) in India. According to the Central Goods and Services Tax Act of 2017, businesses with an annual turnover exceeding ₹40 lakh (or ₹20 lakh in specific special category states) are required to register as taxable entities. The GSTIN, a 15-digit number, uniquely identifies each taxpayer under the GST framework and allows authorities to monitor transactions and related data effectively.
GST, or Goods and Services Tax, is a destination-based, multi-stage, indirect tax that replaces various other taxes, including VAT and excise duties. Under the GST Act of 2017, businesses that previously paid service tax, excise duty, or VAT must now register for GST. Additionally, GST registration is mandatory for eCommerce sellers regardless of turnover.
Citizens can complete GST registration online through the official GST portal, eliminating the need for in-person visits to government offices. After submitting an application, the portal generates an ARN (Application Reference Number) status immediately, allowing applicants to track their registration progress.
Note: This threshold can change from state-to-state, for the latest and accurate information to get in touch with our experts today.
GST ACT
The Central Goods and Services Tax Act of 2017, implemented to streamline taxation and curb tax evasion, establishes the framework for the Goods and Services Tax (GST) levied on intra-state and inter-state supplies of goods and services in India.
Benefits of Registering for GST
Registration under GST is an important step towards a unified tax system in India. It offers many advantages to registered businesses. A taxpayer who registers under the GST Act of 2017 will receive the following benefits:
Legal Recognition
A firm can obtain legal recognition as a supplier of goods or services by registering for GST. This validates the company's legal status as an official entity.
Input Tax Credit (ITC)
Businesses that are registered can deduct the GST they pay on purchases from the GST they collect on sales by claiming the Input Tax Credit. Consequently, the entire tax liability is decreased.
Simplified Process
The GST system has reduced the complexity and time needed for compliance by streamlining the process for submitting taxes and making payments. With the help of a single online platform, businesses can more effectively manage their tax obligations.
Composition Scheme
Composition Scheme Under GST for Small Businesses allows them to pay tax at a lower, fixed rate. This reduces their tax burden and compliance requirements, making it easier to manage their finances.
Higher Threshold for GST Registration
With a higher registration threshold, only businesses with an annual turnover above ₹40 lakh are required to register for GST. This excludes many small businesses from mandatory registration, easing their operational processes.
Eliminates the Cascading Effect of Taxes
GST eliminates the cascading effect of taxes by allowing input tax credit across the supply chain. This means that businesses can claim credit for the taxes paid on purchases, reducing the overall tax burden on end consumers.
GST Compliance Rating
The GST compliance rating is a score given by the government to a business based on parameters such as timely filing of monthly and annual returns, furnishing details of input credits used, and taxes paid. This compliance rating shows customers and other firms how compliant they are with the tax department. Businesses with high compliance ratings are bound to receive Input Tax Credit (ITC) and refunds in a timely manner. The GST authorities prioritise processing ITC claims and refund requests from high-rated businesses, ensuring swift disbursement of credits and funds.
Documents Required for GST Registration
The following documents are required for the new registration process.
- Applicant's PAN
- Aadhaar card
- Evidence of business registration or Incorporation certificate
- Promoters/Director's Identity and Address proof with Photographs
- Business location Address proof
- Electricity bill and utility bill of the office address
- Bank account details, statement or canceled cheque
- Digital Signature Certificate
- Letter of Authorisation or Board Resolution for Authorised Signatory
GST Registration Eligibility and Threshold Limits
Eligibility to Register for GST Registration must be verified before registration. Individuals registered under the Pre-GST law should also opt for GST registration. It is mandatory for businesses that have a turnover of ₹40 lakhs for the sale of goods in normal category states and ₹20 lakhs for the sale of goods in special category states. A company must register as a regular taxable entity under GST law if its annual threshold limit exceeds ₹40 lakhs. The GST council recommends GST rates, tax exemptions, and other tax-related policies. Here is a complete outline for the same
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
Earlier Limits for Sale of Goods/Providing Services | ||
| Exceeds ₹20 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹10 lakh | Yes – For Special Category States | Upto 31 March 2019 |
New Limits for Sale of Goods | ||
| Exceeds ₹40 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | From 1 April 2019 |
New Limits for Providing Services | ||
| Exceeds ₹40 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | Upto 31 March 2019 |
For Service Providers | ||
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
Earlier Limits for Sale of Goods/Providing Services
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹20 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹10 lakh | Yes – For Special Category States | Upto 31 March 2019 |
New Limits for Sale of Goods
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹40 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | From 1 April 2019 |
New Limits for Providing Services
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹40 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | Upto 31 March 2019 |
For Service Providers
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
Turnover Limits for GST Registration
Businesses exceeding an annual turnover of ₹40 lakhs (for goods) and ₹20 lakhs (for services) should register for GST and fulfil tax obligations on their taxable goods and services. Although it is not mandatory, businesses with annual revenue under ₹40 lakhs in the respective financial year are free to register for GST. Doing so entitles them to benefits from input tax credit. It is noteworthy that states falling under the special category have a separate minimum threshold, which is ₹10 lakhs for services and ₹20 lakhs for goods. Here is a complete outline of the same:
| Normal Category States/UT Opting for ₹40 lakh Limit | Normal Category States Opting for Status Quo | Special Category States/UT Opting for ₹40 lakh Limit | Special Category States/UT Opting for ₹20 lakh Limit |
|---|---|---|---|
| Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands and Chandigarh | Telangana | Jammu and Kashmir, Ladakh and Assam | Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand |
Normal Category States/UT Opting for ₹40 lakh Limit
Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands and Chandigarh
Normal Category States Opting for Status Quo
Telangana
Special Category States/UT Opting for ₹40 lakh Limit
Jammu and Kashmir, Ladakh and Assam
Special Category States/UT Opting for ₹20 lakh Limitss
Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand
Did you know? As of 30 November 2023, there were a total of 1,24,59,084 active taxpayers registered for GST across various states and registration types in India. Now you can also register your firm for GST easily through Vakilsearch.
Mandatory GST Registration for Specific Businesses
Irrespective of the threshold limit GST registration is mandatory for the following:
- Individuals engaging in interstate taxable supply (with a threshold of ₹20 lakhs/₹10 lakhs applicable for interstate supply of taxable services, specified handicraft goods, and handmade goods)
- Casual taxable persons involved in taxable supply
- Individuals obligated to pay tax under reverse charge for received inward supplies
- Non-resident taxable persons engaged in taxable supply
- E-commerce entities (inclusive of every e-commerce operator and individuals supplying goods and/or services)
- Individuals required to deduct tax under Section 51
- Input service distributor
- Individuals making taxable supply of goods or services on behalf of other taxable persons, whether as an agent or otherwise
- Individuals required to pay tax under Section 9(5)
- Any other individuals or categories notified by the government.
Step-by-Step Guide For GST Registration Process
Here are 4 steps to complete your GST registration process
Step 1
Get in touch with our experts
Step 2
Provide Business Information
Step 3
Filing for GST Registration
Step 4
Get your GSTIN
1. Get in touch with our experts
Book a slot with our GST experts and resolve all your queries.
2.Provide Business Information
Provide the required documents and fill in essential business details such as business name, SEZ unit, Principal place of business, additional places, mobile number, email address, state, PAN card details for initiating the registration process.
3.Filing for GST Registration
Our team will file your GST registration application on the online portal. Once filed, you'll receive an OTP for verification. .
4.Get your GSTIN
Our team will provide you with the Application Reference Number (ARN) (also called as temporary reference number) after successful verification. You can track application status using the number. GST registration certificate will be available on the official GST website after the process is completed.
All the documents should be submitted within a time frame and accurate as per the government guidelines to avoid delay. The GST certificate will be delivered directly by the Central government. Vakilsearch will initiate and guide you through the process.
All the documents should be submitted within a time frame and accurate as per the government guidelines to avoid delay. The GST certificate will be delivered directly by the Indian government. Vakilsearch will initiate and guide you through the process.
Types of GST Registration
Here are few types of GST registered in India:
- Central Goods and Services Tax (CGST) applies to the supply of goods and services within a single state
- State Goods and Services Tax (SGST) is applicable to the sale of goods or services within the confines of a state
- Integrated Goods and Services Tax (IGST) is imposed on transactions involving goods and services across state boundaries
- Union Territory Goods and Services Tax (UTGST) is levied on the supply of goods and services in Union Territories such as Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is charged in conjunction with CGST.
Regular, Casual, and Non-Resident Taxable Persons
Here is clear outline of regular, casual and non resident taxable persons:
Regular Taxpayers
Regular taxpayers under GST are obligated to remit GST once their business turnover surpasses a specified threshold in a fiscal year. Suppliers must register with the state or union when providing goods and services.
Casual Taxable Person
A person who periodically engages in business transactions involving the delivery of goods or services, or both, in a state or union territory where they do not have a fixed place of business, whether as a principal, agent, or in any other capacity, is referred to as a casual taxable person.
Non Residential Taxable Person
A non-resident taxable person is someone who, while not having a fixed place of business or residence in India, occasionally engages in transactions involving the supply of goods or services, or both, in the course or furtherance of their business, whether as a principal, an agent, or in any other capacity.
eCommerce Operators and GST
As per the Goods and Service Tax Act of 2017 all e-Commerce operators should collect the tax at the source of 1% on the cross sales amount of an e-Commerce seller. e-Commerce operators who manage digital or electronic facilities selling goods should register under the Act mandatorily and they are also required to register for TCS.
GSTIN and It’s Significance
A GSTIN number is a 15-digit code that identifies a registered taxpayer (mainly dealers, suppliers, or any business entity across India) registered under the GST regime. GSTIN is an abbreviation for Goods and Services Tax Identification Number. This provides greater transparency in the GST system, helps in collecting all the GST-related data from the vendors, and prevents tax evasion. Having a GST number provides many advantages for small enterprises. It gives businesses access to different government assistance and relief programs, allows them to claim input tax credit on their purchases, and increases their credibility with suppliers and consumers.
The GSTIN plays a crucial role in activities such as availing loans, claiming refunds, simplifying verification processes, making corrections, and understanding one's GST identification number.
Understanding Your GST Identification Number
A GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric code assigned to businesses registered under the GST system in India. Here is an example of a GSTIN:
- Let's break down the structure of a GSTIN:
- First two digits (State Code): 22 - Represents the state code where the business is registered
- Next ten digits (PAN): ABCDE1234F - PAN (Permanent Account Number) of the business
- Next one digit (Entity Code): 1 - Represents the entity code for the PAN holder
- Next one digit (Blank): Z - Currently kept blank for future use
- Last one digit (Check Code): 5 - A check code for verification purposes
GST Registration Fees
Although there are no GST registration fees prescribed under the law for obtaining GST registration on the GST portal on your own, you can save some money. However having an expert by your side can really simplify the process, reduce the chance of rejection and help you with quick and hassle free registration.
What is Form GST Reg 01?
Form GST REG-01 is an application form for obtaining Goods and Services Tax (GST) registration. Anyone who wants to get a GST registration should file it. The form is submitted by taxpayers who have just registered under GST5 in order to obtain the input tax credit (ITC). This form must be submitted in order to receive ITC on such stock.
[See rule 8(1)] Application for Registration. (Other than a non-resident taxable person, a person is required to deduct tax at source under Section 51, a person is required to collect tax at source under Section 52, and a person is required to supply online.
Penalties for Non-Compliance
Here are the penalties for Non-compliances of GST:
- Filing GST returns beyond the deadline incurs a late filing penalty
- Interest is assessed on the outstanding tax amount when GST liabilities are not paid on time
- Failure to comply with GST regulations may result in the suspension or cancellation of your GST registration
- The maximum penalty for breaking the GST is 10% of the total tax amount due. However, there may be a penalty for each non-compliance. Apart from this, the taxpayer is also be responsible for paying interest on any overdue taxes
Consequences of Not Registering for GST
Here are some consequences for not registering for GST. The Goods and Service Tax Act of 2017 states that failure to obtain GST registration in India carries a direct penalty that applies even in cases where the registration is submitted after the deadline:
- Any taxable person who neglects to obtain GST registration despite being required to do so by the act faces a penalty of ₹10,000 or the amount of tax evaded or any short tax due, whichever is greater as per Section 122 of the CGST Act
- The penalty for not registering for GST is ₹2 lakh or ₹10,000, whichever is higher
- ₹2 lakh is assessed if an individual does not register for GST.
Advantages for Businesses with GST Registration
GST registration offers businesses numerous advantages, establishing legitimacy and ensuring compliance with tax regulations:
- Registered businesses can claim Input Tax Credit (ITC), reducing overall tax liability, and benefit from simplified interstate transactions under the unified tax system
- The online filing and payment processes save time and reduce paperwork, while the increased threshold for tax liability exempts small businesses until their turnover surpasses specified limits
- GST registration enhances credibility, provides access to a wider market, and fosters a competitive edge
- It streamlines the supply chain, promotes legal protection, and facilitates easier refund processes, contributing to a more transparent and business-friendly environment in India.
Common Mistakes to Avoid During GST Registration
Wrong Documentation
A fundamental error involves neglecting proper record-keeping, whether it pertains to invoices, bills of supply, or purchase records. Maintaining well-organised documentation is crucial for precise GST filing.
Invoice Detail Inaccuracies
Mistakes in invoices, such as incorrect Goods and Services Tax Identification Number (GSTIN), wrong invoice numbers, or inaccurate tax calculations, may result in compliance issues and penalties.
GSTR-2A and GSTR-3B Discrepancies
Failure to reconcile purchase data (GSTR-2A) with field data (GSTR-3B) can lead to inconsistencies and compliance issues.
Missing GST Return Deadlines
Late GST return filing incurs penalties. Staying informed about due dates and filing returns punctually is crucial.
Unverified GSTIN of Suppliers
Validating suppliers' GSTIN through the GST portal is essential. Incorrect or fake GSTINs can result in denial of input tax credit.
Inadequate Understanding of GST Composition Scheme
Lack of comprehension about the intricacies of the GST Composition Scheme can lead to inaccurate filings.
Neglecting GST Notices and Compliance
Ignoring GST notices or compliance requirements can result in legal issues and substantial penalties. Addressing them promptly is essential.
Different Categories Which Requires GST Registration
Below listed categories are required to register GST
- Education and Learning
- Health and Wellness
- Electricity, Water and Local services
- Money and Taxes
- Jobs
- Justice, Law and Grievances
- Travel and Tourism
- Business and Self-employed
- Births, Deaths, Marriages and Child care
- Pension and Benefits
- Transport and Infrastructure
- Citizenship, Visas & Passports
- Agriculture, Rural and Environment
- Science, IT and Communications
- Youth, Sports and Culture
- Essential Government Services during Pandemic
- Art & Culture
- Communication
- Defence
- Home Affairs & Enforcement
How to Obtain Expert Assistance for GST Registration in Vakilsearch?
Vakilsearch stands out as a reliable choice for GST registration with its efficient and streamlined process. Our platform offers a user-friendly interface, simplifying the often intricate GST registration procedure. Vakilsearch's expert team ensures accurate documentation and compliance with regulatory requirements, providing a hassle-free experience for businesses. With a commitment to delivering prompt and reliable services, Vakilsearch emerges as a trusted partner for businesses seeking seamless GST registration assistance
GST Registration FAQs
Can I register for GST voluntarily if my turnover is below the threshold?
Yes, you can voluntarily register for GST even if your turnover is below the threshold. It might be beneficial for availing input tax credits and participating in interstate transactions, improving your business credibility
What are the penalties for not registering for GST on time?
Penalties for not registering for GST on time include late fees and interest charges. It's crucial to adhere to registration deadlines to avoid financial implications and ensure compliance with tax regulations.
What is the difference between the effective date of GST registration and the date of GST registration?
The effective date of GST registration is when you become liable to pay GST, while the date of registration is when you are officially registered. Understanding this difference is important for determining when your GST obligations commence.
Is issuing a tax invoice and tax collection mandatory for voluntary GST registration?
Yes, issuing a tax invoice and tax collection is mandatory for voluntary GST registration. Even if your turnover is below the threshold, compliance with invoicing and collection requirements is necessary to meet legal obligations and maintain transparency in your transactions.
Can I avail input tax credit against a 5% GST liability for goods sold by my LLP?
No, input tax credit cannot be availed against a 5% GST liability for goods sold by your LLP. Input tax credit is typically applicable for higher tax rates, and the limited 5% tax rate may not provide eligibility for claiming input tax credit in this scenario.
What should a business do about GST when not registered and dealing with GST-charging entities?
If not registered for GST and dealing with GST-charging entities, consider registering to avail input tax credits. Without registration, businesses might bear the entire tax burden, impacting profitability.
How to resolve error code SB001 in GST export through ICEGATE?
Resolve GST export error code SB001 on ICEGATE by verifying data accuracy, ensuring proper document submission, and seeking assistance from ICEGATE or GST support for technical guidance.
How to deal with negative amount errors in GSTR3B due to credit notes?
To address negative amount errors in GSTR3B due to credit notes, rectify the values, report corrections in subsequent returns, and maintain accurate documentation to reconcile discrepancies.
How to handle GST compliance if my GSTIN was cancelled and I didn’t file the final return?
If your GSTIN was cancelled without filing the final return, rectify by filing the pending return immediately. Failure to do so can lead to penalties and compliance issues.
What is the GST Annual Return?
The GST Annual Return is a summary of a taxpayer's financial activities for a fiscal year, including details of sales, purchases, and taxes paid. It provides a comprehensive overview of the taxpayer's GST transactions.
What is the HSN Code?
The HSN Code, or Harmonised System of Nomenclature, is a standardised coding system for classifying goods internationally. It simplifies the identification of products for tax and regulatory purposes, aiding in smooth trade.
What is the full form of SAC Code?
The full form of SAC Code is ‘Service Accounting Code.’ It is a system of classification for services under GST, helping in uniform taxation and simplifying compliance for service providers.
Can a salaried person apply for GST?
Yes, a salaried person can apply for GST registration if involved in business activities beyond their employment. Registering is mandatory if the aggregate turnover exceeds the prescribed threshold.
What is an E-way Bill?
An E-way Bill is a document required for the movement of goods worth over a specified value between different states. It ensures tax compliance and facilitates the smooth transportation of goods by providing details about the consignment.
Other Important Pages to Related to Registration Pages
Authors
Written by Akash, Reviewed by Deepa Balakrishnan. Last updated on Nov 06 2024, 10:23 AM
Deepa Balakrishnan BBA.LLB. (Hons.), specializes in various legal disciplines including GST advice, tax-saving strategies, ITR filing, and LLP annual compliance. With her expertise, she provides valuable guidance to clients across diverse industries.
Akash G Varadaraj, a legal content writer at Vakilsearch, brings over 3 years of experience in the legal niche. His mission is to simplify complex legal matters into understandable terms even for a layman. Collaborating closely with senior lawyers and SMEs, he ensures the delivery of top-notch content.
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