Introduction
GST (Goods and Services Tax) is an indirect tax imposed on the sale of goods and/or services within India. GST will replace many of the indirect taxes currently being administered through the central and state government. GST provides an easier method for taxpayers to pay taxes as there will only ever be one tax associated with each transaction (or at the time of purchase).
GST registration also gives you legal protection and allows you to operate your business more effectively. Additionally, from a general standpoint, merchants who are GST Registered are allowed to create tax invoices, collect GST from their customers, and file for Input Tax Credit (ITC) on all purchases. This provides more credibility to merchants, suppliers, and banks, allowing businesses to operate more effectively, expand within India’s economy, and enter into new markets. There are also additional advantages to voluntarily registering as a GST Registrant, including easier access to B2B transactions and easier access to traditional lending avenues.
The eligibility to get registered under GST would depend on specific threshold limits of an aggregate turnover for different categories of persons. A supplier shall be liable to be registered under the CGST/SGST Act if his aggregate turnover in a financial year exceeds the following limits: ₹40 Lakhs (or ₹20 Lakhs in the case of ‘Special States’) for supplier of goods; and ₹20 Lakhs (or ₹10 Lakhs in the case of ‘Special States’) for supplier of services.
Eligibility and Prerequisites
Before you register for GST, it is important to understand who must register and under what conditions. GST registration requirements are based on turnover, type of business, and special circumstances. Key points to consider include:
- Turnover Limits for Mandatory Registration: The registration of suppliers of goods would be compulsory if their turnover is above ₹40 lakh and for the suppliers of services if their turnover is above ₹20 lakh. In the case of special category states, this limit is cut down to half.
- Special Category vs. Normal States: These states, which are special categories, have values that define the limit for registration requirements lower compared to the normal states, and hence registration compulsorily falls on a smaller scale for both products as well as services.
- Mandatory Registration Regardless of Turnover: All interstate businesses, e-commerce sites, casual tax payers, and individuals affected by the reverse charge mechanisms must be registered, regardless of the level of turnover.
- Voluntary Registration: Small businesses with lower levels of turnover may voluntarily choose to register so that they can claim input tax credits and develop their credibility in the marketplace. By having the ability to register before any expansion to either provincial or state borders, these small businesses can be prepared for future growth.
Documents Required for GST Registration
Before applying for GST registration, it is essential that the business has all the necessary documentation prepared. The required documentation will vary based on the type of business entity.
- Proprietorship/Individual:
- PAN Card and Aadhaar Card of the individual.
- Recent photo of the owner.
- Bank account information (cancelled cheque or bank statement)
- Proof of business address (utility bill, lease agreement, etc.).
- Partnership Firm / LLP:
- PAN Card of the firm or LLP.
- Partnership Deed or Incorporation Certificate.
- PAN and Aadhaar of all partners/partnerships or designated partners.
- Proof of the principal place of business.
- Company (Pvt Ltd / Public Ltd):
- PAN Card of the company.
- Certificate of Incorporation (COI).
- Memorandum of Association (MOA), Articles of Association (AOA).
- PAN and Aadhaar of all the directors.
- Board Resolution or proof of appointment of the authorized signatory.
- General Document Requirements for All Entities:
- Proof of business constitution.
- Details of the authorized signatory, including PAN, Aadhaar, mobile number, and email ID.
Having these documents ready prior to submitting an application will expedite the GST registration process.
Step-by-Step GST Registration Process (Online)
The GST registration process in India is completely online and designed in a manner that helps the concerned businesses from temporary registration to final approval.
Step 1: Temporary Registration (TRN) – Filing GST REG-01 Part A
In order to register for a Goods and Service Tax, you have to proceed and register for a Goods and Service Tax by clicking the “Register” link located on the home page of the Goods and Service Tax Portal. You have to provide some basic information concerning your PAN Number, your mobile number, and your email ID, and so forth, and you will obtain a one-time password following which you have to provide your email ID and your mobile number, and you will obtain a Temporary Reference Number that would serve as the final step for the submission of your registration application form.
Step 2: Final Application – Filing GST REG-01 Part B
After your TRN is obtained, you will log in to finalize Part B of Form GST REG-01. You are also required to fill out Part B regarding information on your business. This includes information regarding your business name/trading name, type of business entity, as well as information relating to your principal or other persons involved in your business, including your director(s) and partner(s). You will be required to upload a Copy of your Bank Account Statement, as well as any other documentation that may be required by the GST Office, including a Copy of the Certificate of Incorporation, Copy of the statement of account, or a Certificate of GST Registration issued in the Tax Department, among other documentation.
Step 3: Application Submission
Finally, once you have completed the application form, you must verify it using your digital signature certificate or e-Aadhaar method, depending on which method you prefer. After the successful verification of your application, you will receive an application reference number, which can be used to track the progress of your application online.
Step 4: Verification and Approval
A GST officer reviews the submitted application along with any other documentation that has been submitted as part of the application process. If there are questions regarding the application a notice of GST REG-03 will be issued to the applicant and the applicant must reply by submitting GST REG-04 within the specified time frame. Once the application has been reviewed by the officer based on the information submitted by the taxpayer, the officer will either approve or reject the application.
Step 5: Receipt of GSTIN
Once the application has been approved, the applicant will receive a GST Registration Certificate in the form of GST REG-06 and a unique 15-digit GTIN assigned to their business. This GTIN will serve as a tax identification number allowing businesses to create tax compliant invoices, to charge taxes, and to claim input tax credits.
Post-Registration Formalities
Once the GST registration process has been completed, individuals are required to continue to follow specific processes to ensure compliance with the Act. The GSTIN must be displayed at the main business location as well as at all other locations of the business and must appear on various state documents including invoices, bill of supply, delivery challan, and letterhead.
In addition, registered taxpayers must adhere to mandatory GST compliance requirements. This includes timely filing of applicable GST returns such as GSTR-1 and GSTR-3B, along with annual returns where applicable. Businesses are also required to issue GST-compliant invoices that clearly mention tax rates, taxable value, and GSTIN details. Regular compliance ensures uninterrupted Input Tax Credit claims and helps avoid penalties or notices from tax authorities.
Conclusion
Registering under GST is a structured and straightforward process when approached step by step. From checking eligibility and gathering the required documents to completing the online application and receiving the GSTIN, each stage is designed to bring businesses into a unified tax system. Understanding the GST registration process in advance helps reduce errors, delays, and unnecessary follow-ups.
Ensuring timely compliance after registration is equally important. Regular return filing, correct invoicing, and proper display of GST details help maintain legal standing and financial discipline. While setting up GST with Vakilsearch, adherence to compliance requirements also played a major part in boosting the business’s credibility, avoiding penalties, and establishing a strong basis for long-term growth being established.
