Goods and Services Tax Registration or GST Registration is an essential step for businesses in India. Implemented on July 1, 2017, GST is a comprehensive indirect tax on the manufacture, sale, and consumption of goods and services across India. It has simplified the taxation structure by merging several central and state taxes, such as VAT, service tax, and excise duty, into a single tax regime. In this article, we will explore the GST registration process in India, its associated fees, the time it takes to get registered, and the importance of obtaining a GST registration number.
Table of Contents
What is GST Registration?
GST registration is the process of enrolling your business under the GST system. Every business that supplies goods or services and exceeds the threshold turnover limit must register for GST. Once registered, a unique GST registration number is assigned, known as the GSTIN (Goods and Services Tax Identification Number). This 15-digit number is required for filing GST returns and complying with GST regulations. GST is divided into three categories:
- CGST: Central Goods and Services Tax, levied by the Central Government.
- SGST: State Goods and Services Tax, levied by the State Governments.
- IGST: Integrated Goods and Services Tax, levied by the Central Government on inter-state supplies.
Who Needs to Register for GST in India?
GST registration is mandatory for individuals or businesses whose annual turnover exceeds a certain threshold. The following entities are required to complete GST registration in India:
- Businesses with an annual turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs in northeastern states).
- Individuals engaged in the inter-state supply of goods or services.
- E-commerce operators.
- Non-resident taxable persons.
- Agents of suppliers and input service distributors.
- Those who are required to pay tax under the reverse charge mechanism.
Types of GST Registration
- Regular Taxpayer: The most common type of GST registration for businesses whose turnover exceeds the specified threshold.
- Composition Scheme: For small taxpayers with a turnover of up to Rs. 1.5 crore. They can pay a fixed percentage of turnover as tax.
- Casual Taxable Person: For those who occasionally supply goods or services in an area where they do not have a fixed place of business.
- Non-Resident Taxable Person: For individuals or businesses that do not reside in India but supply goods or services within the country.
Benefits of GST Registration
- Legal Recognition: Once registered, the business is legally recognized as a supplier of goods or services.
- Input Tax Credit: Registered businesses can claim input tax credit, which reduces the tax liability.
- Competitive Advantage: With a GST registration number, businesses appear more credible to their customers and suppliers.
- Inter-State Business: It allows businesses to operate and supply goods/services across different states in India.
Documents Required for GST Registration
Here is a list of documents that are generally required for GST registration in India:
- PAN Card of the business or applicant.
- Aadhaar Card of the applicant.
- Proof of business registration or incorporation certificate.
- Address proof of business (electricity bill, rent agreement, etc.).
- Bank account details (bank statement or a canceled cheque).
- Digital Signature of the applicant (DSC).
- Photograph of the owner/partners.
- Letter of authorization for the authorized signatory.
GST Registration Fees
The GST registration fees in India is free of cost when you apply through the government GST portal. However, if you opt for third-party assistance such as professional service providers (CA, consultants, etc.), they might charge a service fee ranging between Rs. 500 to Rs. 2,000, depending on the complexity of your business and the services offered.
How much time will take for getting GST Registration in India
The time taken for GST registration online varies. Typically, the entire process takes around 2 to 7 working days. However, it can take longer if there are any discrepancies in the documents provided or if additional verification is required by the tax authorities.
Post GST Registration Compliance
Once you receive your GST registration number, there are a few post-registration compliances that every registered taxpayer must follow:
- Filing of GST Returns: Every registered taxpayer must file GST returns, which could be monthly, quarterly, or annually based on the taxpayer’s turnover and the type of registration.
- Maintenance of Accounts: Proper accounts of the business transactions need to be maintained.
- Issuance of Tax Invoices: Registered businesses must issue tax invoices for every sale or service, containing the GSTIN and other necessary details.
GST Returns Filing Schedule
| Return Form | Details | Due Date |
| GSTR-1 | Outward supplies of goods/services | 10th of the next month |
| GSTR-3B | Summary return of sales and input tax credit | 20th of the next month |
| GSTR-9 | Annual return | 31st December |
Failure to comply with these requirements can lead to penalties and cancellation of GST registration.
GST Registration for E-commerce Sellers
For e-commerce sellers operating on platforms such as Amazon, Flipkart, or their own websites, GST registration is mandatory, irrespective of their turnover. The GST laws require e-commerce operators to collect tax at the source (TCS) on the net value of taxable supplies made through their platform.
Cancelling or Surrendering GST Registration
There might be instances where businesses need to cancel or surrender their GST registration. This can happen in cases such as business closure, transfer of business ownership, or if the annual turnover falls below the specified threshold. The cancellation process is also done online, and the business must file a final GST return.
Conclusion
GST registration is essential for businesses in India to comply with the tax regulations and to benefit from various advantages such as input tax credit, legal recognition, and access to a wider market. The GST registration process is relatively simple and can be done online with ease. Furthermore, it is crucial to adhere to the post-registration compliances such as timely filing of GST returns, maintaining accurate accounts, and issuing tax invoices.
By understanding the GST registration fees, time involved, and the necessary documents, businesses can ensure a smooth registration process. Whether you are a new business owner, an e-commerce seller, or an established business, ensuring proper compliance with GST regulations is key to avoiding penalties and ensuring the smooth operation of your business.