Eligibility criteria to register for GST
Under the new GST system, all entities involved in buying or selling goods, providing services, or both must register for GST. If an entity does not register, it cannot collect GST from customers, claim input tax credit on GST paid, and may face penalties. Check your business loan eligibility as you assess your registration criteria—ensuring your finances are in order can ease your compliance journey.
The following points will help you determine if you need to register for GST:
Your company's turnover exceeds INR 40 lakh (Rs 20 lakh for special category states) in a financial year for goods and INR 20 lakh (Rs. 10 lakh for special category states)
Already registered under any of the existing indirect tax systems (VAT, Excise, Service Tax), regardless of the turnover limit
Existing taxpayers have been provided with a Provisional ID and password to complete GST migration and generate GSTIN within 6 months
You operate a business in multiple states
You have several business verticals in a single state
You have inter-state supply of taxable goods
Non-resident taxable persons
Casual taxable persons (e.g., a temporary business set up for Diwali)
Required to pay tax under the reverse charge mechanism
Required to deduct tax at source
Agents of a supplier
Input service distributors
Operating an e-commerce business (e.g., Flipkart, Amazon, Ola)
Supplying goods or services through an e-commerce platform
Supplying online information and database services from outside India to a person in India
Supplying non-taxable products or involved in export business
Applicable to the export of previously untaxed software
Documents Required for Online GST Registration
GST registration documentation depends on the type of business. Here is a consolidated checklist:
Business Type
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Key Documents Required
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Sole Proprietor / Individual
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PAN, Aadhaar, photograph, proof of address (electricity bill, rent agreement), bank account details (cancelled cheque or passbook)
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Partnership Firm / LLP
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PAN of firm/LLP, Partnership Deed/LLP Agreement, PAN & Aadhaar of all partners, proof of principal place of business, authorisation for signatory
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Private/Public Limited Company
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Certificate of Incorporation, PAN, MOA & AOA, PAN & Aadhaar of all directors, board resolution for authorised signatory, proof of business address
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HUF (Hindu Undivided Family)
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PAN of HUF, photograph & Aadhaar of Karta, proof of business address
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Note: All documents must be scanned and uploaded in PDF or JPEG format during the online application.
Step-by-Step GST Registration Process Online
You can register for GST online through a government portal or register at a GST Seva Kendra.
Look at how to register for GST online in a few easy steps to know how to login GST portal visit our page:
1. GST registration - PART A
Select ‘taxpayer’ from the drop-down menu.
Now, fill form GST REG-01 for your new registration and enter details such as the legal name of your business, state, email address, mobile number, and PAN card.
Verify that your information by entering the one-time password sent to your mobile number and email ID, and click on ‘Proceed’.
After verification, you will receive a Temporary Reference Number (TRN) when you complete the process and move to Part B. Note down this number.
2. GST registration – PART B
Step 1: Visit the GST portal again and click on 'Register' under the 'Services' menu.
Step 2: Select 'Temporary Reference Number (TRN)', then enter the TRN number and the captcha code. Click the 'Proceed' button.
Step 3: An OTP will be sent to your registered email and mobile number. Enter the OTP and click 'Proceed'.
Step 4: The application status will appear on the next page. On the right side, click the "Edit" icon.
Step 5: You will need to complete 10 sections and upload the required documents.
The documents to be submitted include:
Photographs
Proof of business address
Bank details, including account number, bank name, branch, and IFSC code
Authorization form
Constitution of the taxpayer
Once the documents are uploaded, click 'Submit' and proceed to the next step.
Step 6: On the 'Verification' page, review the declaration, then submit the application using one of the following methods:
Electronic Verification Code (EVC): The code will be sent to your registered mobile number.
Digital Signature Certificate (DSC): Required for companies registering.
e-Sign Method: An OTP will be sent to the mobile number linked to the Aadhaar card.
Additional Read: How to calculate GST
GST registration via authentication of Aadhaar
GST registration via authentication of Aadhaar allows individuals to register for GST using their Aadhaar number. This process simplifies registration by pre-filling certain details from the Aadhaar database, reducing the need for manual data entry. It streamlines the registration process, making it quicker and more efficient, especially for individuals who may not have all the necessary documents readily available.
How to check GST registration status online?
To check the GST registration status online, follow these steps:
Visit the official GST portal at https://www.gst.gov.in/ and click on the 'Services' tab.
From the drop-down menu, click on 'Registration' and then choose 'Track Application Status.'
Enter your Application Reference Number (ARN) in the required field and provide your captcha code.
Click on the 'Search' button, and the status of your GST registration application will be displayed.
If you have not applied for GST registration yet, you can apply online by visiting the same official GST portal and selecting the 'New Registration' option under the 'Services' tab. Follow the instructions provided and fill in all the required details as per your business registration documents. Once submitted, you will receive an ARN, which can be used to track the status of your GST registration application online following the aforementioned steps.
GST registration fees
GST registration in India is generally free, but some applicants may need to pay a security deposit. Here’s a breakdown:
Type of Applicant
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Registration Fee on Government Portal
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Additional Requirement
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Most Regular Businesses
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Rs. 0 (No fee)
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None
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Casual Taxable Persons
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Rs .0 (Registration) + Rs. 500– Rs. 10,000 (Security Deposit)
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Deposit depends on business type and state rules
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Non-Resident Taxable Persons
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Rs. 0 (Registration) + Rs. 500– Rs. 10,000 (Security Deposit)
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Deposit is mandatory for temporary or foreign business setups
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Features of GST registration
Some key features of GST registration include:
GST registration is based on the PAN (Permanent Account Number) and is specific to each state.
An individual registered in one state is considered an "unregistered person" in another state.
Suppliers must register for GST in every state or Union Territory from which they supply goods or services.
If a person owns a unit in a Special Economic Zone (SEZ) or is a SEZ developer, and also operates a unit in a domestic tariff area (outside the SEZ) within the same state, they must register the SEZ unit separately.
All registered entities must display their GST registration certificate and GSTIN (GST Identification Number) at their primary place of business as well as at any additional business locations.
A PAN-based legal entity will have one GSTIN per state. Therefore, a business with branches in multiple states must register separately in each state. However, businesses with multiple locations in a single state or Union Territory may receive separate registrations for each location.
GST registration is comprehensive and covers all taxes (IGST, CGST, SGST/UTGST) and any cesses) under one single registration, rather than being tax-specific.
Benefits of GST registration online
GST registration online offers several benefits for businesses, including:
Legitimacy: GST registration is a legal requirement for businesses with an annual turnover beyond a certain limit. Registering online not only ensures compliance but also assures legitimacy to the business.
Tax credit: Online GST registration enables businesses to claim tax credit on any purchases made for business purposes. This can provide significant cost savings for the business.
Inter-state business: With GST registration online, businesses can carry out inter-state business operations without any additional taxes or levies.
E-commerce: Online sellers can benefit from GST registration by being able to sell on e-commerce portals without worrying about compliance issues.
Competitive edge: Online GST registered businesses enjoy a competitive edge over their unregistered counterparts, thus enhancing their business opportunities.
Improved Tax Planning: GST registration, along with a good GST calculator, helps businesses estimate tax liabilities, set the right prices, and manage cash flow more efficiently.
Overall, GST registration online streamlines the tax process, empowers businesses, and translates into cost savings, leading to growth opportunities and increased profitability.
GSTN is a unique number quoted on all invoices supplied to the input tax credit mechanism. It helps you avail of the input tax credit, register your business, and improve your credibility in the industry. You need to become GST compliant and file GST returns on time. Once you register, you can also download the registration certificate from the GST portal.
GST registration exemption
Under GST exemption, certain businesses are exempted from GST registration, including:
Small businesses with a turnover below the threshold limit.
Individuals engaged in exempt supplies only.
Agriculturists selling produce out of cultivation.
Persons supplying goods/services that are not liable to tax or are wholly exempt.
Specific categories of persons as notified by the government. Exemption from GST registration simplifies compliance for these businesses.
How to download the GST registration certificate?
To use the GST certification download feature, follow these steps:
Log in to the GST portal using your credentials.
Go to the "Services" tab and select "User Services."
Click on "View/Download Certificates."
Choose the "GST Registration Certificate" option.
Enter the required details, such as GSTIN or ARN.
Click on the "Download" button.
The certificate will be downloaded in PDF format.
Save or print the certificate for your records.
Scenario requiring GST deregistration (cancellation)
Entities already registered under GST may need to cancel or surrender their registration at a later stage due to various reasons.
Here are the key circumstances that can lead to the cancellation or surrender of GST registration:
Turnover below the minimum threshold: If a business's turnover falls below the minimum limit after GST registration, it may apply for deregistration. For instance, if a business in Maharashtra had a turnover of Rs.50 lakh at the time of registration, but later it reduces to Rs.20 lakh (below Maharashtra’s Rs.40 lakh threshold), the business can cancel its GST registration. However, businesses supplying goods to other states must remain registered, regardless of turnover.
Business discontinuation: When a business stops operations, it must apply for the cancellation of its GST registration.
Change in business ownership: If there is a change in the ownership structure, the business can apply to cancel its GST registration.
Change in business constitution: When a business undergoes a change in its legal constitution, it must cancel its previous GST registration and apply for new registration under the updated constitution. For example, if a partnership firm becomes a private limited company, it must deregister as a partnership and re-register under the new structure.
Penalty for not obtaining GST registration
Failing to obtain GST registration (when required) may result in penalties under the GST Act. The penalty is usually 10% of the tax due or Rs. 10,000, whichever is higher.
For deliberate tax evasion, the penalty is 100% of the tax due. Non-registration can also lead to interest charges on the outstanding tax amount.
Businesses must adhere to GST registration requirements to avoid these penalties.
If you fail to register when required, you may face a penalty of 10% of the tax due or Rs.10,000, whichever is higher.
Important facts about GST registration
While there are multiple factors to consider when applying for GST registration, some essential aspects are worth highlighting. The compulsion to register for GST arises when a business's turnover exceeds Rs. 20 lakh. Furthermore, it is legally binding for a supplier distributing goods across multiple states to register for GST in each of the states. Although GST registration is free, non-compliance can lead to a penalty of either 10% of the due amount or Rs. 10,000.
Common mistakes to avoid during GST registration
- Incomplete or Wrong Documents
A common mistake during GST registration is submitting documents that are incomplete or incorrect. Keeping records like invoices, bills of supply, and purchase details well-organized helps ensure smooth registration and future compliance.
- Invoice Errors
Mistakes in invoices—such as wrong GSTIN, incorrect invoice numbers, or faulty tax calculations—can cause discrepancies, compliance problems, and even penalties.
- Mismatch Between GSTR-2A and GSTR-3B
Not reconciling purchase data in GSTR-2A with what is reported in GSTR-3B can create inconsistencies and problems with claiming input tax credit.
- Unverified Supplier GSTINs
Failing to check your suppliers’ GSTINs on the official GST portal is risky. Transactions with invalid or fake GSTINs can lead to denial of input tax credit.
- Missing Return Filing Deadlines
Delaying GST return filings attracts penalties and interest. Always stay aware of due dates and submit returns on time.
- Misunderstanding the GST Composition Scheme
Not knowing the rules, limits, or eligibility of the GST Composition Scheme can lead to wrong filings and penalties.
- Ignoring GST Notices or Compliance Rules
Ignoring GST notices or failing to respond promptly can result in legal issues and heavy fines. Always address notices quickly and maintain compliance proactively.
Conclusion
GST registration is the first step for running a compliant business in India. It simplifies tax processes, allows businesses to claim input tax credit (ITC), and makes interstate trade easier. Knowing who is eligible, preparing the right documents, and completing the online registration correctly are key to avoiding penalties and keeping operations smooth. At the same time, checking your business loan eligibility ensures you have access to funds for compliance-related expenses.
Is your business ready for compliant growth? Efficiently managing taxes and working capital is essential. A Bajaj Finserv Business Loan can help maintain cash flow during compliance or support expansion for your registered business. Using a business loan EMI calculator lets you plan repayments realistically, avoiding cash flow problems later.
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