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GST registration

All about GST Registration

GST Registration is the process of registering & acknowledging a business under GST.

Any business that has an annual aggregated turnover of Rs. 40 Lakhs & more must register itself as a normal taxable person by registering under GST, obtaining a unique GSTIN, filing their GST returns regularly & paying all the tax liabilities timely.

Businesses need to apply for registration by presenting a defined set of documents, these vary depending on the type of business that you are trying to register.

The registration process contains 11 steps & is quite lengthy.

We have described in detail what all documents are required to register different types of businesses, below.

The government has mandated GST registration & you may face severe consequences of not registering under GST under the suit of fraud & tax evasion.

GST Registration के लिए कौनसे Documents जरूरी है ?

Who is eligible for GST registration?

The following persons are required to register under GST-

Sr. No.

Person Category

1

Individuals you were practicing business in the previous tax system (VAT, Excise, Service Tax, etc.)

2

E-Commerce Aggregator

3

A person who supplies via e-commerce aggregator

4

All businesses having an annual turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh, and Uttarakhand)

5

Casual & Non-registered Taxable Persons

6

Agents of suppliers & ISDs

7

RCM Tax Payers

8

A person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

How to Get a GST Registration?

GST registration is a long process & involves multiple steps, however, we have broken it down for you into 4 simple parts-

  • GST Application Form Generation
  • Filling the GST Application Form
  • Registering the Digital Signature Certificate
  • Verifying & Submitting the GST Application Form Along with Documents
This is only a brief breakdown of the process, the actual process of filling the form & registering the DSC is much more complicated & you are advised to take help from a legal advisor or CA.

Documents Required for GST Registration

GST Registration

You need to submit certain Documents to get a GST Registration, these documents vary depending upon the type of Business.

We have segregated the documents as per the business type below for your ease of understanding

GST Registration- Basic documents

1. Business owner Documents:

  • Pan card
  • Aadhar Number
  • Photos etc

 2. Business Documents:

  • Business address proof (Ownership or Rent agreement)
  • Bank Statement or Passbook
  • Registration Certificates, MOA, AOA

Documents for Sole Proprietorship

Personal Documents

  • Pan card
  • Other identity proof
  • Aadhar Card Number
  • Photos etc

Business Documents:

  • Ownership proof (Electricity bill, water bill, phone bill)
  • Rent agreement
  • Bank statement or passbook

Documents for Normal Partnership Business

Personal Documents

  • Pan card of the partnership
  • Partnership Deed
  • Copy of Bank statement
  • Letter for Appointment of Authorized signatory
  • Declaration to comply with the provisions
  • Pan card & Identity proof of Partners

Business Documents:

  • Ownership proof (Electricity bill, water bill, phone bill)
  • Rent agreement
  • Bank statement or passbook

Documents for Pvt Ltd, Ltd company, OPC company

Company Documents:

  • Registration certificate of the company
  • Pan card of the company
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Copy of Bank statement
  • Copy of Board resolution
  • Letter for Appointment of Authorized signatory
  • Declaration to comply with the provisions

Director related Documents:

  • Pan card & Aadhar card of directors
  • Other ID Proof & Photos

Office Documents:

  • Ownership proof (Electricity bill, water bill, phone bill)
  • NOC of the owner
  • Rent agreement (if needed)

Documents for Limited Liability Partnership (LLP)

Company Documents:

  • Registration certificate of the LLP
  • Pan card of the LLP
  • LLP partnership agreement
  • Copy of Bank statement of the LLP
  • Copy of Board resolution
  • Letter for Appointment of Authorized signatory
  • Declaration to comply with the provisions

Partnership related Documents:

  • Pan card & Aadhar card of directors
  • Other ID Proof & Photos

Office Documents:

  • Ownership proof (Electricity bill, water bill, phone bill)
  • NOC of the owner
  • Rent agreement (if needed)

Consequences of not registering under GST

Not applying for GST registration even if you are eligible for the same is considered as the crime of tax evasion & fraudulence.

The consequences can be high penalties, Rs. 10,000 minimum/ 10% of the tax due (in case of genuine errors)/ the amount of tax that was stolen, & even jail time in extreme cases.

Businesses must keep the severity of GST Registration in mind & must get themselves registered under GST before carrying out businesses.

    GST Registration has its own benefits-

  • Ease of claim of Input Tax Credit
  • Ease of carrying out Interstate businesses without friction
  • Ease of expanding their venture
  • Dodging the legal issues of non-registering

GST Registration Threshold Limit 

GST registration
PM Modi in one of his speeches had called GST a 'Good and Simple Tax'.

There have been multiple attempts to ease the experience of the common taxpayers with the GST portal and the tax filing process as a whole.

One such attempt was defining the limits of the threshold to be eligible to register under GST.

Since the inception of GST on 1st Jul 2017, there have been multiple amendments in the Goods and Service Tax Act and hence there’s confusion among the taxpayers about the threshold limit for registration under GST.

We will explain more thoroughly the updated scenario on the threshold limit for the GST Registration.

Watch Video on GST Registration Process

GST Registration Limits for the Different States

GST Registration threshold is decided based on the category in which the concerned state of the taxpayer falls. For convenient understanding, we are providing a tabular representation of the data as shown below.

For Sale of Goods:

State Type

Aggregate Turnover

GST Registration

Normal Category State

40 Lakhs and above

Required

Special Category State

20 Lakhs and above

Required

For providing Services

State Type

Aggregate Turnover

GST Registration

Normal Category State

20 Lakhs and above

Required

Special Category State

10 Lakhs and above

Required

Following is the list of the Special Category States under GST:

  • Arunachal Pradesh
  • Assam
  • Manipur
  • Meghalaya
  • Mizoram
  • Jammu & Kashmir (Now a Union Territory)
  • Nagaland
  • Sikkim
  • Tripura
  • Himachal Pradesh
  • Uttarakhand
  • NOTE:

    Vide Jammu and Kashmir Reorganization Act, 2019; the government of India had reorganized J&K into two Union Territories viz. Jammu and Kashmir and Ladakh.

    J&K will be a UT with Legislature and hence, Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) will be applicable in the UT of J&K.

    Ladakh is going to be the UT without a Legislature and hence, Union Territory Goods and Services Tax (UTGST) and CGST will be applicable.

    Date of Effect

    The new thresholds are applicable from 1st April 2019. (For Sale of Goods) 

    The threshold for ‘Services Providing Taxpayers’ has remained unchanged.

    States/UT Opting-in for GST Registration New Limits

    Maharashtra

    Jharkhand

    Delhi

    Chhattisgarh

    Bihar

    Kerala

    Andhra Pradesh

    Gujarat

    Punjab

    Himachal Pradesh

    Haryana

    Goa

    Madhya Pradesh

    Odisha

    Tamil Nadu

    Karnataka

    Rajasthan

    West Bengal

    Uttar Pradesh

    Andaman and Nicobar Islands

    Lakshadweep

    Dadra and Nagar Haveli

    Chandigarh

    Daman and Diu

    The Special Category States/UT opting for 40 Lakh limit

    Jammu and Kashmir

    Ladakh

    Assam

    The Special Category States/UT opting for 20 Lakh limi

    Uttarakhand

    Arunachal Pradesh

    Puducherry

    Meghalaya

    Mizoram

    Tripura

    Manipur

    Sikkim

    Nagaland

    Understanding GSTIN Format

    After the introduction of the GST in India, there have been many positive changes in the taxation domain. One such change was the introduction of a single Unique Identification Number of every registered person under GST.

    Goods and Service Tax Identification Number (GSTIN) has proved to help minimize the trouble in maintaining different identification numbers as it used to be in the pre-GST era.

    In this section, we will try to understand the format of the GSTIN in a simpler way

    What is GSTIN?

    What is GSTN

    GSTIN stands for Goods and Service Tax Identification Number.

    As the name itself suggests, it is the identification number for a registered person under GST.


    It’s a 15-digit number based on your PAN card credentials, is allotted to every person registered under GST.

    Explain to me the GSTIN number bit by bit

    GST Number

    Let us understand the above image in brief:

    • The first two numbers are the ‘State Code of Registered Person’.
    • The next ten characters denote the PAN number of the registered person or business entity.
    • The thirteenth number denotes the number of registrations done by that firm under the same PAN within that state.
    • The fourteenth character is added as alphabet Z by default.
    • The last character is the check code to detect errors.

    GST Registration Verification Process

    GST Verification

    Unlike the previous indirect tax regime, you do not have to maintain different Identification numbers for different taxes you used to pay.

    All thanks to GST for easing the trouble and providing every registered entity with a unique GST Number i.e. (GSTIN).

    But a participating party in a transaction needs to authenticate the GSTIN number they are dealing with.

    GST Portal of the Government of India provides a very simple solution to the problem of verifying the GSTIN numbers.

    Follow the below-given steps to learn the simple 1-minute long process.

    How Do I verify any GST Number?

    After a taxpayer successfully registers under GST, the GST registration should be verified from the GST portal.

    This GST registration can be verified in 3 different ways:

    1. Search by GSTIN (GST Identification Number) or UIN (Unique Identification Number)

    GST Verification

    Enter the GST Identification Number (GSTIN) in the box indicated in red in the above image.

    On hitting the Search button, the details corresponding to the entered GST number will be displayed.

    GST Registration

    These details will be shown once you search using your GSTIN or UIN.

    • Search using your PAN Card details

    You can also enter PAN card details on the GST portal to get your GST registration details.

    GST Verification Process

    You’ll get all the details of the registered taxpayer under GST corresponding to the PAN Number entered.

    What are the Benefits of Verifying
    GST Registration?

    • Verify the authenticity of any GST Identification Number. Be it for a business or an individual taxpayer.
    • Stay safe from Fake GST Number frauds.
    • Minimize errors for business transactions.
    • Authentic information as it comes from the Government portal directly.
    Turnover under GST

    How to Calculate Aggregate Turnover for

    GST Registration

    As discussed in the 'Threshold Limit for GST Registration' section we learned the threshold limit of turnover to be eligible to register under GST.

    The word ‘turnover’ is the deciding and crucial factor here. We will understand it in the following segments.

    A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Service Tax. The same limit is brought down to Rs 10 Lakhs for special category states and UTs.  (For providing Services)                

    What is Aggregate Turnover in GST?

    Technically speaking,

    'About the Section 2(6) of the Central Goods and Services Tax Act, 2017, ‘aggregate turnover’ is defined as the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax, and cess.’


    To simplify the jargon stated above, let me explain it with an example:

    There’s a firm in Maharashtra (Normal Category State) named ‘Krishi Kalyan’. This firm processes milk and supplies it to different parts of the country. This activity creates a turnover of about 1 Crore annually. This amount is exempted from GST.


    Now along with milk processing, the firm also produces plastic containers for milk storage and supplies them too. The annual turnover gained from this activity is 8 Lakhs. As the sale of plastics comes under GST, this amount will be taxable under GST.


    In simple words, the taxable amount of this firm will be only Rs 8 Lakhs.

    But the aggregate turnover will be 1 Crore + 8 Lakhs = 1.08 Crore and this firm will be eligible for registration under GST as it has crossed the threshold of 40 Lakhs. (For Normal Category State)

    Factors Included in Aggregate Turnover

    • Taxable Supply including supply to a distinct person having same PAN (Table 3.1(a) of GSTR-3B)
    • Non-GST Supply (Table 3.1(e) of GSTR-3B)
    • Zero Rated Supply (Table 3.1(b) of GSTR-3B)
    • Nil Rated Supply and exempted supply (Table 3.1(c) of GSTR-3B)
    • Taxes other than GST
    • Value of outward supplies of goods and services on which the recipient is required to pay tax under reverse charge mechanism
    • Goods received/Supplied from/to job worker on principal to principal basis

    Factors Excluded from Aggregate Turnover

    • Value of inward supplies of goods and services on which the recipient is required to pay tax under reverse charge mechanism (Table 3.1(d) of GSTR-3B)
    • Amount of central tax, state tax, union territory tax, and integrated tax and compensation cess
    • Goods supplied for job work or received back after job work under section 143 of CGST Act, 2017
    • Transactions which are neither supply of goods nor services i.e. Schedule III of CGST Act, 2017 as amended by CGST (Amendment) Act, 2018
    GST Registration

    How to Download GST Registration Certificate?

    GST Registration Certificate is a valid legal document to prove that you are registered under the GST.

    It is advisable for all the businesses registered under GST to get a copy of their GST registration certificate downloaded as valid proof.

    Simple Steps to Download GST Registration Certificate

    GST Registration Certificate is available for download for the registered taxpayers on the GST portal www.gst.gov.in.

    NOTE:

    It is important to note that, a valid GST Certificate is available for download only on the government portal and not on any third party websites. The government does not provide any physical copy (hard copy) of the certificate.

    step 1

    Log in to www.gst.gov.in.

    step 2

    Click on ’Services’ > ‘User Services’ > ‘View/ Download Certificate

    GST Certificate
    step 3

    Click on the ‘Download’ icon on the next page.

    GST Certificate

    The downloaded Certificate will be similar as follows:

    GST Certificate

    Content in the GST Certificate

    • GST Identification Number of the registered entity
    • Trade Name and Legal Name
    • Type of Business Constitution (Eg: Partnership, Company, Proprietorship, Trust)
    • Address of the Principal Place of Business
    • Date of Liability
    • Period of Validity
    • Type of registration
    • Particulars of the Approving authority- Name, designation, Jurisdictional office, and Signature (usually digitally signed).

    Significance of having a GST Registration Certificate

    • Every registered business under GST is required to display the physical copy of the GST Registration Certificate at his primary place of business.
    • According to Rule 18 of the CGST Rules 2017, failure to do so may attract a penalty of up to Rs. 25,000.
    • The validity of the GST Certificate issued to a regular taxpayer remains valid until it is canceled or surrendered by the registered taxpayer himself.
    • It is highly advisable to always keep a copy of your GST Registration Certificate with you and display it at your sites of businesses.
    GST Cancellation Process

    Cancellation of Registration under GST

    There can be 'n' number of reasons for cancelling your GST registration. Either you ran out of business, or you are out of the GST eligibility, and so on.

    We will guide you through the process of cancelling your GST registration.

    Meaning of Registration Cancellation

    When you cancel your GST registration you will not be able to pay or collect GST. You’ll simply not be a member under GST

    Implications of GST Registration Cancellation

  • You will be ineligible to pay GST
  • Even after cancelling the registration, you continue to run your business then it will be considered as an offence, and the prescribed penalty will be charged.
  • You will NOT be allowed to collect the GST either.
  • Who are eligible to cancel the GST Registration?

    GST Registration
    Different categories of users can request GST Registration Cancellation.

    Below-given tree diagram will explain you the different categories of users eligible for GST cancellation.

    The request of Cancellation by a Registered Taxpayer

    As discussed above, there can be any reason for raising a request for GST registration cancellation by the taxpayer.

    Let's now see the detailed procedure to do so.

    Step 1: Log in to the GST Portal using your Username and Password.

    Step 2: Click on the Cancellation of Provisional Registration’ tab.

    GST cancellation

    Step 3:  You’ll be shown a page stating the reason for cancellation. You’ll also be asked, “If you have raised any tax invoice in the period of GST.

    Select ‘No’.

    GST cancellation

    Step 4: In the next step, you have to provide the details of the authorized signatories.

    GST Cancellation process

    The taxpayer will have to go through verification and have to submit all the form related details along with the Digital Signature or Electronic Verification Code.

    You'll be required to sign the document with:

    • Electronic Verification Code (EVC) – If your business is registered as a ‘Partnership’ or ‘Proprietorship’.
    • Digital Signature Certificate (DSC) - LLPs and Companies must sign with Digital Signature Certificate.

    NOTE:  The steps mentioned above apply to only those taxpayers who have NOT issued a tax invoice. If the concerned taxpayer has issued any tax invoice then he is required to file FORM GST REG-16.

    Request of Cancellation of GST Registration by a Tax Officer

    GST registration cancellation requests can also be issued by an authorized tax officer. Any legal violations by the taxpayer can result in such action.

    Possible Reasons for such request:

  • If the taxpayer violates the anti-profiteering provisions (for example, not passing on the benefit of Input Tax Credit to customers)
  • Conduct of business from some other place than the one which is declared as primary.
  • Violation of Rule 86-B
  • If the taxpayer is availing input tax credit in violation of the provisions of section 16 of the CGST Rules, 2017 and CGST Act, 2017.
  • Procedure for Tax Officer to Invoke GST Registration Cancellation

  • Issue a show-cause notice to the concerned person in FORM GST REG-17
  • The concerned person is expected to respond within 7 days through FORM REG–18 stating the reasons that why his registration should not be cancelled
  • If the Tax Officer finds the response to be valid and satisfactory, he will cancel the termination request and respond as an order through FORM REG-20.
  • If the registration is liable to be cancelled, the tax authority will issue an order in FORM GST REG-19. The order will be sent within 30 days from the date of reply to the show cause.
  • Important Forms for GST Registration Cancellation

    GST Form

    Details

    GST REG 16

    This form is applicable only when the taxpayer himself applies for the cancellation of registration.

    GST REG 17

    An authorized GST officer can provide the notice of show cause or cancellation to the registered taxpayer and its business entity by using this form.


    The authorized tax officer can also ask for the reason to not cancel the concerned person’s registration.

    GST REG 18

    The show-cause notice can be replied by the means of furnished GST REG 18 form under the specified period stated in the sub-rule (1).


    The taxpayer or the concerned party must reply to the notice within 7 days of issuance of the notice explaining safeguarding the cancellation of registration.

    GST REG 19

    This form is used by the GST officer for passing an order for the cancellation of GST registration.


    The order for sending the notice must be under 30 days from the date of application or the response date in the GST REG 18 form.

    GST REG 20

    The show-cause notice when satisfied by the GST officer can direct for the revoke of any proceedings towards the cancellation of the registration and he should pass the order in the Form GST REG 20.

    Revocation of Cancellation under GST

    In case of cancellation imposed by an authorized officer, you can apply for revocation of cancellation within 30 days from the date of the cancellation order.

    You shall follow the following process to do so:

    You can apply for the revocation of cancellation through FORM GST REG-21 on the GST portal.

    If the authorized officer is satisfied with the reason you provide, the registered office is required to follow the procedure stated below:

    1. Record the reasons for the revocation of cancellation of registration in writing.

    2. Reverse the cancellation of registration.

    3. Pass an order of revocation in FORM GST REG-22.

    However, if the reason is found unsatisfactory to the authorized officer, he can reject the application for revocation. The officer is required to pass an order in FORM GST REG-05 and communicate the same.

    Before rejecting, the proper officer must issue a show-cause notice in FORM GST REG–23 for you to show why the application should not be rejected. You must reply in FORM GST REG-24 within 7 working days from the date of the service of the notice.

    The proper officer is required to decide within 30 days from the date of receipt of clarification in FORM GST REG-24.

    Who Cannot File the Cancellation Request for

    GST Registration?

    • Taxpayers registered as Tax Collectors/deductors
    • Taxpayers who are assigned Unique Identification Number (UIN)

    What to do if your GST Registration Gets Rejected?

    GST Registration

    Sometimes your GST registration may get rejected due to some reasons.

    These reasons may be different for different cases. Though rejection of a GST application is a rare case.

    Possible Reasons for Rejection

    • Data is filled inaccurately
    • Inadequate proof of Identity
    • Inadequate proof of address
    • Mismatch of PAN Card Number.
    • Fail to reply or delay in reply to a notice issued by an authorized tax officer

    How to know the Exact Reason for my Registration rejection?

    To know the reason for the rejection of your application you need to follow a simple procedure.

    After you have submitted your GST Registration Application along with all the supporting documents, you’ll receive an ‘Acknowledgement’.

    You can use this ARN (Acknowledgement Reference Number) to track the status of your application.

    You can see all the details regarding the processing of your application using this ARN.

    It normally takes about 7 working days for the provisional GSTIN to be provided and an additional 2 days for providing the final GSTIN with the GST registration certificate.

    In case if your application gets rejected, you’ll be notified about the same within the prescribed time. It will also state the reasons for your application rejection.

    What Should I do after my GST Application gets rejected?

    Well, the answer to this question is pretty simple.

    You re-register under GST’.

    We will explain to you this simple procedure to do so.

    To avoid application of fresh registration of businesses, who have had their registration cancelled by an officer, on the grounds of non-compliance of the statutory provisions, CBIC (Central Board of Indirect Taxes and Customs)(released Vide circular no. 95/14/2019-GST dated March 28th, 2019, wherein the officials have clarified the consequence the taxpayer has to face in case of non-revocation of cancelled registration.

    In case a registered taxpayer applies for another registration within the same state, the authorized officer is required to analyze whether existing registration continues or is being cancelled.

    In case of cancelled registration, further scrutiny shall begin for whether the registration is cancelled based on the violation of provisions of section 29 (2) (b) [composition dealer has not furnished returns for 3 consecutive tax period] or section 29 (2) (c) [registered taxpayer has not furnished returns for a continuous period of 6 months].

    After the due scrutiny by the tax officers, you will be eligible for the re-registration under GST.

    GST Registration Fees:

    e-Invoicing
    The government of India does not cost you any fees for the GST Registration process.

    Individual taxpayers registering for GST through the online registration process are required to pay a fee for the services availed from professionals.

    Professional Service Providers (GST Service Providers) (GSPs) like GSTHero will provide you the GST Registration services at a minimum cost and hassle-free process.

    GSTHero also provides multiple options for various GST services like e-Invoicinge-Way BillsDigital Signature Certificates and all types of GST Returns Filings.


    About the author

    Gaurav is an Engineer by training with a deep interest in Economics & Finance. He has been associated with the Fin-Tech industry for quite some time now. He writes for GSTHero for topics including GST Compliance, GST Structure, etc & aims to break down complicated technical jargon into simple terms for the taxpayers. His expertise includes GST Laws, Corporate Finance & Macro-Economics.

    Follow me:

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