The Goods and Services Tax (GST) is a unified indirect tax system introduced in India on July 1, 2017, replacing multiple indirect taxes like VAT, service tax, and excise duty. GST registration is mandatory for businesses that meet certain turnover thresholds or engage in specific activities. This guide provides a detailed overview of GST registration, its benefits, process, and compliance requirements for businesses in India.
GST registration is the process of obtaining a unique Goods and Services Tax Identification Number (GSTIN) from the tax authorities. It is required for businesses to collect GST from customers, claim input tax credit (ITC), and comply with GST laws.
GST registration is mandatory for:
₹40 lakh for goods (₹20 lakh for special category states).
₹20 lakh for services (₹10 lakh for special category states).
Businesses supplying goods or services across state lines.
Platforms like Amazon, Flipkart, and sellers on these platforms.
Individuals or businesses supplying goods/services occasionally.
Businesses distributing input tax credit.
Foreign businesses supplying goods/services in India.
: Liable to pay tax on behalf of suppliers.
Enhances credibility and trust among customers and suppliers.
Allows businesses to claim credit for GST paid on purchases.
Enables seamless supply of goods and services across states.
Avoids penalties and legal issues for non-registration.
Required for selling on e-commerce platforms.
1. PAN Card: Permanent Account Number of the business or proprietor.
2. Aadhaar Card: For identity verification.
3. Proof of Business Registration: Incorporation certificate, partnership deed, or proprietorship proof.
4. Address Proof: Rent agreement, electricity bill, or property papers for the business premises.
5. Bank Account Details: Cancelled cheque or bank statement.
6. Digital Signature: Required for companies and LLPs.
7. Photograph: Passport-sized photo of the proprietor/partners/directors.
1. Normal Taxpayer: For businesses with turnover above the threshold.
2. Composition Scheme: For small businesses with turnover up to ₹1.5 crore (₹75 lakh for special category states).
3. Casual Taxable Person: For temporary businesses or seasonal suppliers.
4. Non-Resident Taxable Person: For foreign businesses supplying goods/services in India.
After registration, businesses must comply with the following:
• GSTR-1: Outward supplies (monthly/quarterly).
• GSTR-3B: Summary of sales and purchases (monthly).
• GSTR-9: Annual return.
• Record all sales, purchases, and GST payments.
• Issue GST-compliant invoices for all sales.
• Ensure proper documentation to claim ITC on purchases.
• Pay GST liability on time to avoid penalties.
• Late Fees: ₹50 per day (₹20 for nil returns).
• Interest: 18% per annum on unpaid tax.
• Cancellation of GSTIN: For prolonged non-compliance.