GST registration is the process of obtaining a unique identification number for a business liable to pay Goods and Services Tax (GST). As per GST law, The firms with an annual turnover of more than Rs. 40 lakh (or Rs. 20 lakh for some special category states) must register as normal taxable entities.
For certain businesses, registration under GST is mandatory. If the organisation carries on business without registering under GST, it is an offence under GST and heavy penalties will apply. GST registration is usually completed within 6 working days.
GST registration is a process by which a taxpayer gets himself registered under GST. Once a business is successfully registered, a unique registration number is assigned to it known as the Goods and Services Tax Identification Number (GSTIN). You can also Verify GST number of any taxpayer to know the complete details.
Please note: If you are operating from more than one state, then you will have to take separate registration for each state you are operating from.
The turnover limits for GST registration differ for normal and special category states. The following table summarises the turnover limits for different types of supplies and states:
Below is the Procedure For Registration Under GST
One can apply for GST registration in Form REG-01 on the GST portal. The GST registration process involves seventeen steps. These steps include submitting various business details, scanned documents, and filling out form REG-01 on the GST portal.
Once you have completed the GST registration process, a GST officer will review your application and, upon approval, issues a GST registration certificate containing your GSTIN.
As per GST law, no fees is required for obtaining GST registration through GST portal independently. That means you can register your business under GST for free without paying any charges to the government.
However, If any GST professional helps you with registration that will incur fees. If you’re comfortable using the GST portal and understand the required documents, you can register yourself (DIY).
Failing to register under GST can attract severe penalties and consequences.
Some penalties are:
After Applying for GST Registration you will receive an Application Reference Number (ARN). A GST registration application is processed after 15 days of submission. However, you can check the GST registration status online on the GST portal.
Under Goods And Services Tax (GST), businesses whose turnover exceeds the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh based on the criteria, must register as a normal taxable person. It is called GST registration.
Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies.
Registration under GST is mandatory for all businesses whose annual turnover exceeds Rs 40 lakhs in a financial year. This threshold is Rs 20 lakhs for special category states such as Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
The complete GST registration procedure, including receiving the GST number, takes 7 to 10 working days.
Yes, obtaining GST registration is mandatory once your turnover exceeds the specified threshold limits. If you are a supplier of goods with an annual turnover exceeding Rs 40 lakh. In the services sector, businesses with turnover of more than Rs. 20 Lakhs should mandatorily register for GST.
If a business operates in more than one state, the taxpayer should obtain a separate GST registration for each state. For instance, If an services company sells in Gujarat and Maharashtra, he has to apply for separate GST registration in Gujarat and Maharashtra.
Any business can apply for any number of GST registrations within a state. The procedure of allocating multiple GST registrations only for different business verticals within a state has been removed.
Each taxpayer is allotted a PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN) in every state that they operate in. It is obtained as a part of the GST registration process. Once the GST registration application is verified and passed by the GST officer, a unique GSTIN is obtained.
Any person must get a GST registration within 30 days from the date when they become liable to obtain GST registration and pay GST.
After obtaining the GST registration successfully, the taxpayer will get a GST registration certificate in Form GST REG-06 and a valid GST Identification Number. One will be eligible to avail input tax credit, raise GST-compliant invoices and can file GST returns monthly or quarterly.
“No fee” is required for registering your business under GST.
GST registration usually takes between 2-6 working days.
The registration, which is granted under GST, can be cancelled only for a few specified reasons. The cancellation can either be initiated by the department on their own or the registered person can apply for cancellation of their registration. In case of the death of a registered individual, the legal heirs can apply for cancellation.
The frequency of GST filing depends on the type of taxpayer and the type of return. For example, regular taxpayers with an annual turnover of more than Rs.5 crore must file two monthly returns (GSTR-1 and GSTR-3B) and one annual return (GSTR-9).
The GST registration for regular taxpayers has no expiry and is valid until it is surrendered or cancelled.
Yes, a bank account is mandatory for GST registration. As per rule 10A of the CGST Rules, 2017, the newly registered taxpayer has to furnish the banking details within 45 days from the date of registration approval or the due date of filing the first return, whichever is earlier.
Yes, you can modify your GST registration details through the GST portal by submitting an amendment application.
Voluntary registration is when a business opts to register under GST, while mandatory registration is required by law based on turnover and business activity.
If your GST registration application is rejected, you will be notified with the reasons for rejection, and you can reapply after addressing the issues.
Khushali is a content marketer at Razorpay. A logophile, traveler and inbound marketing enthusiast, she loves questioning the 'why' and 'how' of almost everything.
