Introduction

The GST was first introduced in India on July 1, 2017, as part of the One Nation, One Tax initiative, aimed at simplifying the country’s tax structure. It replaced multiple indirect taxes such as excise duty, VAT, service tax, and other state-level taxes, streamlining the taxation system into a single, unified tax.

What is GST Registration?

GST registration is mandatory for businesses that meet certain turnover thresholds, ensuring they are legally recognized under the GST regime and are eligible to collect tax from customers. To comply with GST, entities required to obtain a unique GST Identification Number which helps in levy and remit GST to the governing bodies.

Who is Eligible for GST Registration?

Mandatory GST Registration (Turnover-Based & Other Criteria)

A business must register for GST if:

Turnover Criteria:

1. Regarding Goods: Yearly revenue surpasses ₹4 million (₹2 million for designated special states).
2. For Supply of Services: Threshold Limit exceeds ₹20 lakh (₹10 lakh for special category states) any time during the financial year.
3. For Both Goods & Services: Threshold is ₹20 lakh (₹10 lakh for special category states).
4. Interstate Business: When you provide supply of goods or services to a different state (cross-state commerce).
5. E-Commerce Sellers & Aggregators: Entities trading via online marketplaces such as Amazon, Flipkart, Zomato, Swiggy, etc.
6. Casual Taxable Persons & Non-Resident Taxpayers: Businesses that operate temporarily in India (e.g., event-based businesses).
7. Reverse Charge Mechanism (RCM): Should a firm be responsible for tax payment under the reverse charge mechanism.
8. E-Invoicing & Input Tax Credit (ITC) Claimants: Enterprises seeking to utilize their purchase tax credits are required to enroll.
9. Compulsory Registration for Certain Businesses: Businesses dealing in taxable supplies, agents, Input Service Distributors (ISD), and those deducting tax at source (TDS under GST).
10. Special Category States: such as Manipur, Mizoram, Tripura, Nagaland, Puducherry, Uttarakhand, Meghalaya and Arunachal Pradesh.

GST Registration Process (Step-by-Step Guide)

Step 1: Visit the GST Portal

1. Go to the official GST Portal.
2. Click on "Services" → "Registration" → "New Registration".

Step 2: Complete Section A of the Enrollment Application (GST REG-01).

1. Select "Taxpayer" under "I am a".
2. Then fill your PAN, mobile number, email address, and proof of business location.
3. Verify the OTP received on your registered mobile and email to authenticate your details.
4. Receive a Temporary Reference Number (TRN) for further process which required for tracking of applications.

Step 3: Complete Section B of the Registration Application.

1. Upload supporting documents such as proof of business address (e.g., utility bills, lease agreement), bank statement or cancelled cheque, and any relevant registration certificates.
2. Select the registration category (Regular, Composition Scheme, etc.).
3. Submit the application using Digital Signature Certificate (DSC) or Aadhaar-based OTP authentication.

Step 4: Application Processing & Verification

1. Following submission, the enrollment request undergoes scrutiny by the GST authority.
2. If required, additional documents may be requested.

Step 5: GSTIN Issuance

1. Once approved, a 15-character GST Identification Number is granted.
2. The Registered person under GST can be downloaded Registration Certificate (GST REG-06) from the online platform.

Documents Required for GST Registration

For Proprietorship Firms:

1. Upload a copy of the PAN card and Aadhaar card of the proprietor to verify identity and ownership of the business.
2. Passport-size photo.
3. Provide business address proof, such as a recent electricity bill, rental agreement, or No Objection Certificate (NOC) from the property owner.
4. Required to Submit bank account details, either through a cancelled cheque or a recent bank statement within 45 Days from the date of Granting Registration Certificate.

For Partnership Firms & LLPs:

1. PAN card of the partnership firm.
2. Partnership deed.
3. Upload the Aadhaar and PAN cards with self-attested of all partners involved in the business to verify their identity and association with the entity.
4. Passport-size photos of partners.
5. Business address proof.
6. Bank account details.

For Private Limited Company & OPC:

1. PAN card of the company.
2. Certificate of incorporation.
3. Furnish a version of the Company Charter (MoA) and Internal Regulations (AoA) for incorporated entities, detailing the enterprise's aims, guidelines, and operational framework.
4. Aadhaar & PAN cards of directors.
5. Passport-size photos of directors.
6. Board resolution for GST authorization.
7. Business address proof.
8. Bank account details.

Additional Documents (if applicable):

1. Letter of Authorization (for authorized signatory).
2. Submit a valid Digital Signature Certificate (DSC) for the authorized signatory who verify the all official compliances , required for companies and LLPs.

Types of GST Registration

1. Regular GST Registration: Regular GST Registration is required for businesses whose annual turnover exceeds the prescribed limits set by the government..
2. Composition Scheme: Composition Scheme is tailored for smaller enterprises possessing a yearly revenue not exceeding ₹15 million.
3. Casual Taxable Person: Who required to obtain Temporary business registration for events.
4. Non-Resident Taxpayer: Non-Resident Taxpayer registration is required for foreign entities supplying goods or services in India, either directly or through intermediaries.
5. Digital Commerce GST Enrollment: GST Enrollment for Digital Commerce is necessary for firms engaged in selling products or services via electronic platforms or digital marketplaces.

Penalty for Not Registering Under GST

If Business owners Failure to take GST Registration: A fine of 10% of the tax due (at least ₹10,000).

Intentional Tax Avoidance: A penalty equal to 100% of the evaded tax.

Under GST Law, Penalty for late fee of Rs. 50 per day ( Rs. 25 each under CGST and SGST).

Conclusion

GST registration is a vital procedure for enterprises to adhere to tax regulations and conduct lawful operations of their business within India. By comprehending the qualifying conditions, enrollment steps, and necessary paperwork, businesses can secure seamless GST adherence.

If you require assistance with Goods & service Tax Compliance, Manthan Experts can be your trusted advisor. Contact them at info@manthanexperts.com.to discuss your specific needs and explore how their expertise can benefit your business.