GST Registration Last Updated : 21 Sep 2019

According to GST rules, it is mandatory for a business that has a turnover of above Rs.40 lakh to register as a normal taxable entity. This is referred to as the GST registration process. The turnover is Rs.10 lakh for businesses that are present in hill states and North-Eastern states. The registration process can be completed within 6 working days. 

Understand GST Calculation, GST Return, GST Bill and GST Benefits in detail from our other pages.

About GST Registration

GST registration can be done easily at the online GST portal. Business owners can fill a form on the GST portal and submit the necessary documents for registration. It is mandatory for certain businesses to complete the GST registration process. It is a criminal offense if these businesses carry out operations without registering for GST and heavy penalties are levied for non-registration. 

What is the step-by-step procedure to complete GST Registration? 

The step-by-step procedure that individuals must follow to complete GST Registration is mentioned below: 

  • First, individuals must visit the GST portal (https://www.gst.gov.in/). 
  • Next, the individual must click on the ‘Register Now’ link which can be found under the ‘Taxpayers’ tab. 
  • Next, the individual must select ‘New Registration’. 
  • On the same page, the individual must fill the below-mentioned details: 
    • Under the ‘I am a’ drop-down menu, select ‘Taxpayer’. 
    • Select the respective state and district from the drop-down menu. 
    • Enter the name of the business. 
    • Enter the PAN of the business. 
    • Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them. 
    • Enter the image that is shown on the screen in the respective box and click on ‘Proceed’. 
  • On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes. 
  • Once the details have been entered, click on ‘Proceed’. 
  • Individuals will be shown the Temporary Reference Number (TRN) on the screen. It is vital that they make a note of the TRN. 
  • Next, individuals must visit the GST portal again and click on ‘Register’ which is present under the ‘Taxpayers’ menu. 
  • Next, select ‘Temporary Reference Number (TRN)’. 
  • Next, individuals must enter the TRN and the captcha details. 
  • Once the details have been entered, click on ‘Proceed’. 
  • Individuals will receive an OTP on their email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’. 
  • The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it. 
  • There will be 10 sections on the next page. All the relevant details must be filled, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below: 
    • Photographs 
    • Address proof where the business is located. 
    • Bank details such as account number, bank name, bank branch, and IFSC code. 
    • Authorisation form 
    • The constitution of the taxpayer. 
  • Once all the above-mentioned details have been entered, individuals must visit the ‘Verification’ page. Once individuals check the declaration, they must submit the application by using one of the below mentioned methods: 
    • By using an Electronic Verification Code (EVC). The code will be sent to the registered mobile number of the applicant. 
    • By using the e-Sign method. An OTP will be sent to the mobile number that has been linked with the Aadhaar card. 
    • In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC). 
  • Once the above step is completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID. 
  • Individuals can check the status of the ARN on the GST portal. 

Types of GST Registration 

Under the GST Act, GST Registration can be of various types. It is vital that the taxpayer is aware of the different types of GST Registration and selects the appropriate one. The different types of GST Registration are mentioned below: 

  • Normal Taxpayer: Most of the businesses in India fall under this category. The applicant need not provide any deposit in order to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this category. 
  • Casual Taxable Person: Individuals who wish to set up a seasonal shop or stall can opt for this category. An advance amount that is equal to the expected GST liability during the time the stall or seasonal shop is present must be deposited by the taxpayer. The duration of the GST Registration under this category is 3 months and it can be extended or renewed. 
  • Composition Taxpayer: Taxpayers who wish to obtain the GST Composition Scheme can opt for this type of GST Registration. A flat GST rates must be deposited by taxpayers who opt for GST Registration under this category. Input tax credit cannot be obtained by taxpayers who come under this category. 
  • Non-Resident Taxable Person: In case individuals live outside India, but supply goods to individuals who stay in India, must opt for this type of GST Registration. Similar to the Casual Taxable Person type of GST Registration, taxpayers must pay a deposit that is equal to the expected GST liability during the time the GST registration is active. The duration for this type of GST registration is usually 3 months, but it can be extended or renewed at the type of expiry. 
  • Non-Resident Online Service Provider 
  • Special Economic Zone Developer 
  • GST TDS Deductor – Government Entities 
  • UN Embassy/ Body/ other notified individuals 
  • Special Economic Zone Unit 
  • GST TDS Collector – E-commerce Companies 

Who should complete the GST Registration?

 GST Registration must be completed by the below-mentioned individuals and businesses: 

  • Individuals who have registered under the tax services before the GST law came into effect. 
  • Non-Resident Taxable Person and Casual Taxable Person 
  • Individuals who pay tax under the reverse charge mechanism 
  • All e-commerce aggregators are required to register for GST 
  • Businesses who have a turnover that exceeds Rs.40 lakh. In the case of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and North-Eastern states, the turnover of the business should exceed Rs.10 lakh. 
  • Input service distributors and agents of a supplier 
  • Individuals who supply goods through an e-commerce aggregator. 
  • Individuals who are providing database access and online information from outside India to people who live in India other than those who are registered taxable personS must complete GST Registration. 

What are the documents that are required to complete the GST Registration? 

The below-mentioned documents are required to complete the GST Registration: 

  • Permanent Account Number (PAN) of the applicant 
  • Aadhaar card of the applicant 
  • The bank account statement of the applicant, as well as a cancelled cheque, must be submitted 
  • The address proof where the business is located must be given 
  • The Incorporation Certificate or the business registration proof must be submitted 
  • The Digital Signature must be given 
  • The Director’s or Promoter’s address proof and identity proof must be submitted along with their photographs. 
  • The Authorised Signatory must receive the Letter of Authorisation or Board Resolution. 

What is the penalty in case individuals or businesses do not complete GST Registration? 

In case the offender does not pay tax or makes a payment that is lesser than the amount that must be paid (due to genuine errors), the penalty that is levied is 10% of the tax amount that is due. However, the minimum penalty that must be paid is Rs.10,000. 

In case the offender does not complete the GST Registration on purpose and tries to evade tax, the penalty that is levied is 100% of the tax amount that is due. 

News About GST Registration

  • Overseas E-Commerce Companies Could be Forced to Start GST Registration in Every State

    Overseas e-commerce companies such as Apple, Google, and Amazon that operate in the e-commerce space in India may soon have to commence registering under GST with each state in the country. The Economic Times recently reported that the deadline for these companies to register is October 1. There was hope in the industry that the government will allow a special one-time registration rather than registrations in multiple states, but the government is offering no respite. As a result, compliance costs for these companies are bound to shoot up. From the 1st of October, these e-commerce players will have to collect tax from sellers on their online platforms or websites. Central and State GST of 1% each shall be levied on intrastate supplies exceeding Rs.2.5 lakh. So far as interstate supplies more than Rs.2.5 lakh are concerned, TDS of 2% will integrated into GST.

    26 September 2018

  • GST, GAAR Reporting in Tax Audit Report Pushed Till March Next Year

    The proposed General Anti Avoidance Reporting (GAAR) and Goods and Services Tax (GST) reporting has been pushed till the 31st of March, 2019, by the Central Board of Direct Taxes. The board recently issued a circular stating the same. According to the board, tax auditors no longer have a requirement to submit details requested for under Clause 44 and Clause 30C of tax audit report relating to the Goods and Services Tax and General Anti Avoidance Reporting. According to the circular sent by the Central Board of Direct Taxes, there was examination of the matter and the board came to the conclusion that reporting under the proposed Clause 44 and proposed Clause 30C of the Tax Audit Report will be deferred until the 31st of March, 2019.

    11 September 2018

  • Problems Faced by American Companies Regarding GST and Railway Clearances To Be Resolved

    Piyush Goyal, the Railway Minister, has said that the problems raised by some American companies about the Goods and Services Tax, third-party certification, and fast-tracking at the research and development wing of the railways will soon be resolved by the Railway Board. Goyal stated the aforementioned words over the course of his August 13 round-table talks with a prominent delegation of major American companies that operate in the area of Information Technology, and railway construction and maintenance. Ashwani Lohani, the Chairman of the Railway Board, was among the other senior officials present at the round-table.

    There were 13 US companies that made presentations which covered a wide variety of goods and services, like anti-corrosion coating, the use of cloud computing or high-speed internet for railway passenger reservation and passenger experience, energy efficiency, fire protection, modern ways to construct bridges, composite sleepers for bridges, etc.

    31 August 2018

  • Price Rises and Declines Over The Past Year After Implementation of GST

    The implementation of the Goods and Services Tax took place on the 1st of July 2017, and it subsumed more than a dozen indirect taxes. Since the implementation of the new regime, tax rates of more than 190 items within the 28% GST slab were reduced, and there are only 35 items left in that category now. A comparison of commodities’ prices carried out by Care Ratings showed that the changes in prices were not fully influenced by GST changes, attributing them to other factors too, like global prices, taxes, demand conditions and trade.

    20 August 2018

  • Center May Allow Employees to Travel Overseas Through the LTC

    While the centre seems unlikely to agree to the demands of its employees seeking an increase in the minimum pay beyond the 7th pay commission report, there are rumors that the government might permit employees to go on international junkets.

    Employees may be permitted to travel to a few Central Asian countries as part of their Leave Travel Concession (LTC). The idea behind this decision is to increase the country’s footprint in countries of importance in that region. The proposal has been finalised by the Personnel Ministry and consultations with Tourism, Civil Aviation, and Home departments have already been completed.

    20 August 2018

  • 145% return in one year for V-Mart Retail

    Presently, a number of small cap businesses are staggering in terms of their growth and performance. However, V-Mart Retail has stood out in this case with a massive growth of 108% since January till the first week of July this year. Quite a number of industries are appealing a rapid change and fixing of the loopholes in the Goods and Services Tax (GST) regime.

    Anand Agarwal, the CFO of V-Mart Retail said that the company generates 85% of its revenues from products that are priced below the range of Rs.1,000. These products come under the 5% tax slab of the Goods and Services Tax (GST). Agarwal said, “We have always been a value for money retailer and with a low tax rate of 5 per cent, the customers at the middle and bottom of the pyramid have continued to see value in the products being sold by us.” He also added that the implementation of the new indirect tax regime has proven to be very useful for the industry and has been very helpful for the retailers.

    Addressing the press, the CFO said that the company has witnessed a lot of benefits from the Goods and Services Tax (GST). These benefits have come in terms of both simplicity of implementation as well as logistics. He further said that this move has helped push the consumers towards the organised retail.

    16 August 2018

  • Rationalisation of GST rate possible, says the Finance Minister

    The Minister of Finance Piyush Goyal recently said that the Goods and Services Tax (GST) Council are looking for possibilities to rationalise the rates of tax on a number of items. However, he added that it will be effective only after ensuring the balance with revenue mop-up. Goyal also said that the council will be discussing the ease of filing returns along with the ease of assessment in their next meeting. He said that the GST Council has already reduced the rates on 328 items which might lead to the further possibility of a reduction in rates on certain items. However, they have to be in balance with the revenue considerations.

    On being asked if the GST Council will consider lowering the rates in the next council meeting, the Minister of Finance said that the council had been very responsive to the demands of the industry from the inception of the Goods and Services Tax (GST). Wherever there were cases of inverted duty or any other issue that required attention, the council had reduced the rates accordingly to ensure the ease of doing business. At present, there are 4 slabs under the Goods and Services Tax (GST) regime: 5%, 12%, 18%, and 28%.

    Since the rollout of GST on 1 July last year, the new indirect tax system has subsumed over a dozen local levies and helped to transform the nation into a single market with the seamless flow of goods.

    8 August 2018

  • Single GST rate slab is a ridiculous suggestion: Finance Minister

    The Union Finance Minister Piyush Goyal recently said that the proposal put forward by some of the political parties for a single GST rate slab was a “ridiculous suggestion”. Some of the political parties have been constantly placing the proposal for the four-slab Goods and Services Tax (GST) rate structure to be abolished. They have proposed the introduction of a single slab tax structure instead and Congress has also promised that the rates will be reduced to just one slab if they are voted to power in the 2019 general elections. In this context, the Union Finance Minister said that implementing one rate of tax slab will not be a prudent move. He indicated that the main burden, in this case, will fall over the people belonging to the middle class as well as the poor as items of daily use such as salt, sugar, and clothes will be coming under the 18% GST slab.

    Goyal said that the past Congress-led UPA government has proposed an 18% single GST slab looking at the tax collections and concessions given to the poor. He added that the rate proposed earlier would not have been accepted and the GST structure would not have worked. After the rollout of the Goods and Services Tax (GST) last year, the rates have been reduced for 328 items out of the 1,200 items that have been included under the ambit of the newly implemented indirect tax.

    26 July 2018

  • GST Council to discuss annual return form on 21 July

    The Goods and Services Tax (GST) Council is likely to approve the format for annual returns and audit in its meeting which is to be held on 21 July 2018. As the government plans to check tax evasion, the industry is expecting some reconciliation with annual income tax returns. 2017-18 is the first year when businesses will be required to file their annual returns (GSTR-9) under the GST regime. This has to be done by the end of the year, i.e. 31 December 2018. Businesses with a turnover of more than Rs.2 crore will be required to file audit reports in addition to the annual returns.

    A draft has been prepared by the revenue officers for the Goods and Services Tax (GST) annual return form. This form will be taken up for discussion at the GST Council meeting on 21 July 2018. Once the form is taken up, the IT backbone of the Goods and Services Tax (GST), GST Network (GSTN) will finalise the software which will enable the firms to file their annual returns. Tax experts are expecting that the GST annual return form will be in line with the prior indirect tax regime, Value Added Tax (VAT) regime. They are expecting the presence of certain columns on the form for reconciliation with ITR and audit report. The expected date of the availability of the forms according to the experts is by the end of October this year, so that the annual returns are filed by the end of the year, i.e. 31 December 2018.

    20 July 2018

  • Top IT companies have over $2 billion in tax disputes

    Leading IT companies like Tata Consultancy Services (TCS), Infosys, Cognizant, and Wipro have more than $2 billion in tax disputes pending in India. The main reason behind the disputes is the differences in the calculation of incentives for export-oriented units and distribution of dividend taxes to investors. Reportedly, Infosys and Wipro are fighting cases related to tax incentives that they have claimed under the Software Technology Parks of India (STPI) and Special Economic Zone (SEZ) schemes. On the other hand, Cognizant is in a dispute over how the dividend distribution tax over profits repatriated to its parent company is calculated.

    Tata Consultancy Services (TCS) has over Rs.5,600 crore in disputes pending with the tax authorities. In the financial year 2017, TCS reported Rs.2,690 crore in contingent liability related to tax disputes. The company disclosed in their latest annual report that the liability has almost doubled since the previous financial year. The senior vice president of IT industry body Nasscom, Sangeeta Gupta said, “Many of these disputes are because of issues with interpretation by different tax officials.” She added that a number of these cases eventually land up in courts and are dragged on for years.

    11 July 2018

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