GST Registration Online: Documents required, process, fees, limit, and penalty

Under the present GST regime, every individual or company that supplies goods and services must register under Goods and Services Tax (GST). So, if you run a business with an annual turnover that exceeds Rs. 20 lakh (in all Indian states, other than north-eastern states), you will have to register with GSTN (Goods and Services Tax network).

Once you have registered under this regime, you will receive a unique GSTIN (Goods and Services Tax Identification Number). The Central government issues a state-wise, 15-digit number to you once you complete registration. There are many advantages of GST registration, one of which is getting a legal identity as a supplier. You can also avail of the input tax credit and collect GST from recipients of goods and services.

What is GST registration?

Goods and Services Tax (GST) registration is the process by which a business obtains a unique registration number that allows it to collect GST on behalf of the government and claim input tax credits for the GST paid on its purchases. GST registration is mandatory for businesses with an annual turnover above a certain threshold and is essential for complying with GST laws.

Here are the types of GST registration:

1. Regular GST registration: Mandatory for businesses with turnover exceeding the threshold limit.
2. Composition scheme: For small businesses with turnover up to INR 1.5 crores.
3. Casual taxable person: Non-residents or occasional interstate traders.
4. Non-resident taxable person: Non-residents supplying taxable goods/services.
5. Input Service Distributor (ISD): Distributes input tax credit within the organization.
6. TDS/TCS deductors: Required to deduct or collect tax at source.
7. UN bodies/embassies: Mandatory for certain entities like UN bodies or embassies.
8. E-commerce operators: Mandatory for e-commerce operators.
9. Agents of a supplier: Agents supplying goods/services on behalf of other registered suppliers.

Who should register for GST?

In India, any business whose annual turnover exceeds Rs. 40 lakh (or Rs. 20 lakh for businesses operating in north eastern states) is required to register under Goods and Services Tax (GST). Additionally, businesses involved in e-commerce, regardless of their annual turnover, are also required to register for GST. Service providers and suppliers who supply goods or services from one state to another are also required to register for GST, regardless of their turnover. However, some businesses such as agricultural producers or small-scale cottage industries are exempt from GST registration.

Types of GST registration

GST registration is classified into several types, and understanding these categories is crucial for navigating the registration process effectively. Below is a summary of the various forms of registration:

Who is Eligible?	Type of Registration
Regular Taxpayer	No advance deposit is required from businesses or individuals registering under this category. The majority of companies in India fall under this classification.
Casual Taxable Person	Individuals starting seasonal or temporary businesses must register under this category. They are required to make a deposit equal to their estimated GST liability. The registration is valid for 3 months but can be renewed or extended if necessary.
Non-Resident Taxable Person	Individuals living outside India who supply goods or services to Indian residents on an occasional basis must register under this category. They must pay a deposit equal to their expected GST liability. The registration is typically valid for 3 months, with an option for extension or renewal.
Composition Scheme	The composition registration simplifies the GST process. Businesses under this scheme pay a fixed annual amount, regardless of actual earnings. Only companies with an annual turnover of up to ₹1 crore are eligible.

 

Key components of GST registration

Here are the key components of GST registration:

• PAN number: A Permanent Account Number is required for GST registration, as it serves as the primary identification for businesses.
• Business details: Provide information about the business, including its legal name, address, and type of business.
• Documents: Submit relevant documents such as proof of identity, address proof, and business registration certificates.
• State-specific information: Include details specific to the state in which the business operates, which affects the applicability of SGST.
• Tax types: Depending on the nature of transactions, registration will cover CGST, SGST, or IGST. 

Documents required for GST registration

Look at the GST registration  documents that you will need to upload while registering under GST.

Section	Documents Required
Sole Proprietors and Individuals	PAN card of the individual or owner
	Owner’s photograph
	Address proof
	Bank account details
	Aadhaar card of the individual or owner
Hindu Undivided Families (HUF)	Bank account details
	Owner’s photograph
	Business address proof
	HUF’s PAN card
	Family patriarch’s PAN card
LLPs and Partnerships	Partners’ address proof
	Bank account details
	Partners’ PAN cards
	Partnership deed
	Partners’ photographs
	Proof of LLP registration
	Principal business address proof
	Proof of appointment of authorised signatory
	Aadhaar card of the authorised signatory
Companies	Company’s PAN card
	PAN cards of all directors
	Company’s primary address proof
	Company’s bank account details
	Proof of signatory’s appointment
	PAN card of the signatory
	Articles of Association and Memorandums
	Aadhaar card of the signatory
	Incorporation certificate from the Ministry of Corporate Affairs
	Address proof of all directors

 

Online GST registration process

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:

• Go to the GST portal.
• Click on ‘registration’ under the ‘services’ tab and click on ‘New 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.

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 fees

Though the Goods and Services Tax (GST) registration process on the GST portal doesn't require any fees, it is an 11-step process that can be quite intricate. You will need the help of an expert to support you with the registration process. In case such experts are unavailable in-house, you may need to pay the necessary charges to get the support of an expert.

What is the GST registration turnover limit?

GST registration, defined by a unique identification number, is essential for anyone providing goods or services within India. Although voluntary, it becomes compulsory once a business's turnover crosses certain limits, influenced by the state's category and supply nature. These GST registration limits refer to the business’s aggregate turnover in a financial year, including all taxable supplies, exempt supplies, exports, and inter-state supplies linked to the same PAN, excluding GST taxes. For service providers, this sum also includes inward supplies under the reverse charge mechanism. States and union territories are categorised into normal category and special category states under GST, based on specific constitutional articles and geographical considerations.

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.

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.

How to get a GST number?

To obtain a GST number, follow these simple steps:

Step 1: Go to the official GST portal.

Step 2: Under the "Services" tab, select "Registration" and click on it.

Step 3: Click on "New Registration" and fill in the required details, such as a valid email address, mobile number, and the PAN of the business.

Step 4: After submitting the details, click "Proceed" to complete the registration process and receive your GST Registration Number.

How to check GST registration status online?

To check the GST registration status online, follow these steps:

1. Visit the official GST portal at https://www.gst.gov.in/ and click on the 'Services' tab.
2. From the drop-down menu, click on 'Registration' and then choose 'Track Application Status.'
3. Enter your Application Reference Number (ARN) in the required field and provide your captcha code.
4. 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.

How to download the GST registration certificate?

To use the GST certification download feature, follow these steps:

1. Log in to the GST portal using your credentials.
2. Go to the "Services" tab and select "User Services."
3. Click on "View/Download Certificates."
4. Choose the "GST Registration Certificate" option.
5. Enter the required details, such as GSTIN or ARN.
6. Click on the "Download" button.
7. The certificate will be downloaded in PDF format.
8. Save or print the certificate for your records.

GST registration exemption

Under GST exemption, certain businesses are exempted from GST registration, including:

1. Small businesses with a turnover below the threshold limit.
2. Individuals engaged in exempt supplies only.
3. Agriculturists selling produce out of cultivation.
4. Persons supplying goods/services that are not liable to tax or are wholly exempt.
5. Specific categories of persons as notified by the government. Exemption from GST registration simplifies compliance for these businesses.

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:

1. 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.
2. 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.
3. Inter-state business: With GST registration online, businesses can carry out inter-state business operations without any additional taxes or levies.
4. E-commerce: Online sellers can benefit from GST registration by being able to sell on e-commerce portals without worrying about compliance issues.
5. Competitive edge: Online GST registered businesses enjoy a competitive edge over their unregistered counterparts, thus enhancing their business opportunities.

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.

What are the scenarios for gst deregistration?

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:

1. 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 ₹50 lakh at the time of registration, but later it reduces to ₹20 lakh (below Maharashtra’s ₹40 lakh threshold), the business can cancel its GST registration. However, businesses supplying goods to other states must remain registered, regardless of turnover.
2. Business discontinuation: When a business stops operations, it must apply for the cancellation of its GST registration.
3. Change in business ownership: If there is a change in the ownership structure, the business can apply to cancel its GST registration.
4. 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.

Additional read: Impact of GST

Additional read: Benefits of GST

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