Goods and Services Tax (GST) was introduced in India on 1st July 2017 through the 101st Amendment Act of the Constitution. Before GST, multiple indirect taxes were levied at both the central and state levels, such as VAT (Value Added Tax), Service Tax, and Excise Duty. GST replaced these taxes, creating a unified tax structure for the entire country.
GST is divided into three categories based on the level of taxation:
• CGST (Central Goods and Services Tax) – Collected by the Central Government on intra-state supplies.
• SGST/UTGST (State/Union Territory Goods and Services Tax) – Collected by the respective State or Union Territory on intra-state supplies.
• IGST (Integrated Goods and Services Tax) – Collected by the Central Government on inter-state supplies of goods and services.
GST registration is required for businesses depending on the nature of business activity and threshold turnover limits. It is a state-wise registration, meaning businesses operating in multiple states must register separately in each state.
Threshold Limits for GST Registration
For Sale of Goods
• Normal Category States: INR 40 Lakhs
• Special Category States: INR 20 Lakhs
For Sale of Services
• Normal Category States: INR 20 Lakhs
• Special Category States: INR 10 Lakhs
Normal Category States: Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, J&K, Assam, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Kerala, Telangana.
Special Category States: Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand.
Businesses with lower turnover can opt for the Composition Scheme, which offers a simplified tax filing process with lower tax rates but without the benefit of Input Tax Credit (ITC).
• Threshold Limit for Goods: INR 1.5 Crore
• Threshold Limit for Services & Mixed Suppliers: INR 50 Lakhs
• Tax Rate for Service Providers: 6% (3% CGST + 3% SGST)
Some businesses must register for GST regardless of their turnover:
• Inter-State Suppliers – Businesses selling goods/services across multiple states.
• Casual Taxable Persons – Temporary businesses (e.g., trade fairs, exhibitions).
• Reverse Charge Taxpayers – Those who need to pay GST under reverse charge mechanism.
• Non-Resident Taxable Persons – Foreign businesses supplying goods/services in India.
• TDS/TCS Deductors – Entities required to deduct tax at source under GST.
• Input Service Distributors (ISD) – Distributing input tax credit (ITC) among branches.
• Agents & Principals – Businesses selling goods/services on behalf of others.
• E-Commerce Operators – Platforms like Amazon, Flipkart, Zomato, Swiggy.
• Online Service Providers (OIDAR Services) – Foreign companies providing online services to Indian consumers (e.g., Netflix, Google).
GST registration is a completely online process conducted via the GST Portal (www.gst.gov.in).
Steps for GST Registration
a. Visit the GST Portal – Log in to www.gst.gov.in.
b. Click on ‘New Registration’ – Enter PAN, mobile number, and email ID.
c. Receive OTP Verification – Verify the details via OTP.
d. Fill in Business Details – Enter business name, address, and bank details.
e. Upload Required Documents – Provide PAN, Aadhaar, bank statement, business proof.
f. Submit Application (Form GST REG-01) – Application is processed by authorities.
g. Receive GST Certificate (Form GST REG-06) – Issued within 7 working days.
• PAN Card of Business/Proprietor/Partners/Directors
• Aadhaar Card of Proprietor/Partners/Directors
• Business Address Proof (Electricity Bill, Rent Agreement, etc.)
• Bank Statement or Cancelled Cheque
• Digital Signature Certificate (DSC) (for Companies and LLPs)
• Authorization Letter (for partnerships and companies)
Failing to register for GST can lead to penalties and legal consequences:
• For Non-Registration (Non-Fraud Cases): 10% of tax due (Minimum INR 10,000)
• For Fraudulent Evasion: 100% of tax due (Minimum INR 10,000)
• Legal Recognition for business.
• Input Tax Credit (ITC) benefit.
• Ease of doing business with other registered entities.
• Seamless interstate sales without additional taxes.
• Compliance with government norms.
GST registration is a crucial compliance requirement for businesses operating in India. Understanding the threshold limits, types of GST, registration procedures, and penalties ensures smooth business operations and avoids legal complications. It is advisable to stay updated with the latest GST rules to ensure full compliance.
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GST registration is the process of enrolling a business with the tax authorities under the Goods and Services Tax (GST) regime. It’s mandatory for businesses exceeding a certain turnover threshold and for certain specified categories of businesses. Registration provides a GSTIN (Goods and Services Tax Identification Number), which is essential for filing returns, claiming input tax credits, and conducting business legally.
GST registration is required for: Compliance with the GST law. Claiming input tax credit on purchases. Collecting GST from customers. Issuing valid tax invoices. Conducting interstate business. Avoiding penalties for non-registration.
Generally, businesses are required to register for GST if their aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) in a financial year. However, certain businesses are required to register irrespective of their turnover, such as: Businesses involved in interstate supply of goods. Casual taxable persons. Persons supplying services through an e-commerce operator. Businesses required to deduct TDS. Input Service Distributors.
Even if a business’s turnover is below the threshold, registering for GST can be beneficial as it allows them to: Claim input tax credit on purchases, reducing their tax burden. Enhance their business credibility. Conduct interstate business without restrictions.
GST registration is done online through the GST portal (www.gst.gov.in).
The process generally involves: Visiting the GST portal. Creating a user ID and password. Filling out the online GST registration form (Form GST REG-01). Uploading the required documents. Verifying the application using Aadhaar or DSC (Digital Signature Certificate). Submitting the application. If everything is in order, the GSTIN is issued.
Documents typically include: PAN card of the business. Aadhaar card of the proprietor/partners/directors. Proof of business registration (e.g., Shop Act License, registration certificate). Proof of address of the business premises. Bank account details. Photographs of the proprietor/partners/directors.
GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric number assigned to every registered taxpayer. It’s essential for all GST-related activities.
The registration process usually takes a few working days, subject to verification by the GST authorities.
There are different types of GST registration, including:
Regular Taxpayer: For businesses with turnover above the threshold.
Composition Taxpayer: For small businesses with turnover up to ₹1.5 crore (₹75 lakh for special category states) who opt for a simplified tax scheme.
Casual Taxable Person: For persons who occasionally supply goods or services in a state where they are not registered.
Non-Resident Taxable Person: For persons who supply goods or services in India but do not have a fixed place of business there.
The Composition Scheme is a simplified tax scheme for small businesses. Businesses opting for this scheme pay a lower percentage of tax on their turnover instead of claiming input tax credits.
There are no statutory fees for GST registration.
Yes, you can register for GST voluntarily even if your turnover is below the threshold.
Non-registration can lead to penalties and legal consequences.
You can find your GSTIN on the GST portal.
The due dates vary depending on the type of return and the taxpayer’s category. Check the GST portal for the latest due dates.
GST returns are filed online through the GST portal.
ITC is the credit you can claim for the GST paid on your purchases.
HSN (Harmonized System of Nomenclature) code is a unique code used to classify goods under GST.
SAC (Services Accounting Code) code is a unique code used to classify services under GST.
You can update your details by logging in to the GST portal.
You can apply for cancellation of GST registration online through the GST portal.
Common errors include incorrect information, incomplete documents, and technical issues with the portal.
The GST portal is the official source for notifications and circulars.
