Eligibility criteria to register for GST
Under the new GST system, all businesses involved in buying or selling goods, providing services, or both must obtain GST registration. Businesses without GST registration cannot collect GST from customers or claim input tax credit on the GST they have paid. They may also 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 list will help you understand whether you need to register for GST:
- Your business turnover exceeds Rs.20 lakh in a financial year (Rs.10 lakh for special category states).
- You are already registered under earlier indirect tax laws, such as VAT, Excise, or Service Tax, regardless of turnover.
- You are an existing taxpayer given a Provisional ID and Password to complete GST migration within six months and obtain a GSTIN.
- You operate a business in more than one state.
- You have more than one business division within the same state.
- You supply taxable goods or services between states.
- You are a non-resident taxable person.
- You are a casual taxable person (someone who occasionally supplies goods or services without a fixed place of business, such as a fireworks shop set up during Diwali).
- You are required to pay tax under the reverse charge system.
- You are required to deduct tax at source.
- You act as an agent for a supplier.
- You are registered as an Input Service Distributor.
- You operate an e-commerce business.
- You supply goods or services through an e-commerce platform.
- You provide online information and database access or retrieval services.
- You supply such online services from outside India to a person in India.
- You supply non-taxable goods or are involved in exports.
- You export software that was previously not taxed.
Registering under GST ensures compliance and allows eligible businesses to claim input tax credit and manage their tax responsibilities properly.
Types of GST registration
GST registration types in India vary based on the nature of the business, turnover, and how often returns are filed. The main types are explained below:
1. Regular GST registration
A regular taxpayer is a business that registers under GST after crossing the turnover limit. This is the most common type of GST registration.
Regular taxpayers can claim input tax credit and must file GSTR-1 and GSTR-3B returns, either monthly or quarterly.
The annual turnover limit is:
- More than Rs.40 lakh for supply of goods only
- More than Rs.20 lakh for supply of services only
- Rs.10–20 lakh for businesses in special category states
2. Composition scheme
The composition scheme is meant for small businesses and professionals. Under this scheme, taxpayers:
- Cannot claim input tax credit
- Cannot sell goods outside their state or Union Territory
- Cannot collect tax from customers
They file one annual return and pay tax quarterly using CMP-08.
The turnover limits are:
- Up to Rs.1.5 crore (Rs.75 lakh for special category states) for goods
- Up to Rs.50 lakh for services
3. Casual taxable persons
A casual taxable person is someone who occasionally supplies goods or services in a state where they do not have a fixed place of business. For example, a trader setting up a temporary stall at a fair in another state.
This registration is valid for 90 days. The estimated GST liability must be paid in advance at the time of registration.
4. Non-resident taxable persons (NRTP)
This type applies to persons based outside India who occasionally supply goods or services in India without a fixed place of business here.
The registration is valid for 90 days. Tax liability must be estimated and paid in advance. They must file GSTR-5 every month.
5. Input Service Distributor (ISD)
An Input Service Distributor is a business with several branches across India. The head office registers as an ISD to receive invoices with eligible input tax credit and distribute it to its branches.
ISDs must file GSTR-6 every month.
6. Unique Identity Number (UIN) registration
UIN registration is for foreign embassies, consulates, and United Nations organisations operating in India.
7. E-commerce operators
E-commerce platforms must register under GST. They are required to collect tax at source (TCS) from sellers and deposit it with the government. They must file GSTR-8 every month.
8. TDS deductors
Government departments and local authorities must deduct tax at source when making payments to contractors and deposit it with the government. They must file GSTR-7 every month.
9. OIDAR services
Foreign providers of online information and database access or retrieval services (OIDAR) to customers in India must register under GST. They must file GSTR-5A every month.
Documents Required for Online GST Registration
GST registration documentation depends on the type of business. Here is a consolidated checklist:
To apply for GST registration online, certain documents must be submitted. The required documents depend on the type of business.
Sole Proprietorship
- PAN card of the proprietor
- Aadhaar card of the proprietor
- Recent photograph of the proprietor
- Proof of business address (such as an electricity bill, rent agreement, or property tax receipt)
- Bank account details (cancelled cheque or recent bank statement)
Partnership Firm
- PAN card of the partnership firm
- Partnership deed
- PAN and Aadhaar cards of all partners
- Photographs of partners
- Proof of business address
- Bank account details
Company (Private Limited or Public Limited)
- PAN card of the company
- Certificate of Incorporation
- Memorandum and Articles of Association
- PAN and Aadhaar cards of directors
- Photographs of directors
- Board resolution appointing an authorised signatory
- Proof of business address
- Bank account details
Limited Liability Partnership (LLP)
- PAN card of the LLP
- LLP agreement
- Certificate of Incorporation
- PAN and Aadhaar cards of partners
- Photographs of partners
- Proof of business address
- Bank account details
Additional Documents (if applicable)
- Digital Signature Certificate (mandatory for companies and LLPs)
- Letter of authorisation or board resolution for the authorised signatory
All documents must be uploaded online through the official GST portal at the time of application.
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 apply for GST registration online through the official GST portal or by visiting a GST Seva Kendra.
Step 1: Visit the GST portal
Go to https://www.gst.gov.in/ and select ‘Services’, then ‘Registration’, and click on ‘New Registration’.
Step 2: Part A – Submit basic details
- Select ‘Taxpayer’ from the drop-down list.
- Complete Form GST REG-01 by entering:
- Legal name of the business
- State
- Email address
- Mobile number
- PAN details
- Verify the details using the OTP sent to your mobile number and email address.
- After verification, you will receive a Temporary Reference Number (TRN). Keep this number safe for Part B.
Step 3: Part B – Complete the detailed application
- Return to the GST portal and click ‘Register’ under the ‘Services’ menu.
- Select ‘Temporary Reference Number (TRN)’, enter your TRN and the captcha code.
- Enter the OTP sent to your registered mobile number or email and click ‘Proceed’.
- The application status page will appear. Click the ‘Edit’ icon on the right-hand side.
- Complete all 10 sections and upload the required documents, including:
- Photographs
- Proof of business address
- Bank details (account number, bank name, branch, IFSC code)
- Authorisation form
- Details of business constitution
- After uploading all documents, click ‘Submit’.
Step 4: Verification
On the ‘Verification’ page, confirm the declaration and submit the application using one of the following methods:
- Electronic Verification Code (EVC): A code sent to your registered mobile number.
- Digital Signature Certificate (DSC): Mandatory for companies and LLPs.
- E-sign method: OTP sent to the mobile number linked with your Aadhaar card.
Step 5: ARN generation
After successful submission, you will receive an Application Reference Number (ARN) by SMS and email. You can use this number to check the status of your application.
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
|
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
|
Casual Taxable Persons
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Rs .0 (Registration) + Rs. 500– Rs. 10,000 (Security Deposit)
|
Deposit depends on business type and state rules
|
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
|
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
If you do not register for GST when required, you may face penalties under the GST Act.
Violation
|
Penalty
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Non-registration
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10% of the tax due or Rs.10,000, whichever is higher
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Deliberate tax evasion
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100% of the tax due
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Interest
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Interest charged on the outstanding tax amount
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If you fail to register when required, you may be fined 10% of the tax due or Rs.10,000, whichever amount 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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