Home / GST Registration

Updated on 26 Sep 2020  9.00 AM IST | 4 min read

What Is GST Registration?

As per the new GST act, every individual or a company involved in the business of supplying goods & services and having an annual turnover of more than Rs.40 Lakhs needs to obtain GST registration.

You can easily go for GST registration online with the help of FinacBooks. The online procedure started by the government allows the individuals & entities to focus on the key areas of their business without causing any delay. You need to fill a simple registration form for GST and you are done. There is no need to visit our office as the entire GST registration process is online. After applying for GST registration, a unique GSTIN is generated and allocated to the applicant for further future communication.

GST Limit For Sale Of Goods

The registration limit for almost all the states is Rs.40 Lakhs whereas for hilly areas & northern states, it is Rs.20 Lakhs.

Category Turnover Applicability
For Normal Category States Exceeds Rs.40 lakh From 1st April 2019
For Special Category States Exceeds Rs.20 lakh From 1st April 2019

GST Limit For Sale Of Services

The GST registration limit for individuals & entities for almost all states is Rs.20 Lakhs whereas for hilly areas & north-eastern states, it is Rs.10 Lakhs.

Category Turnover Applicability
For Normal Category States Exceeds Rs.20 lakh  
For Special Category States Exceeds Rs.10 lakh  

After applying for GST registration, you can easily check your GST registration status online with the help of FinacBooks by entering ARN number in the required field.

States Who Opted For The New GST Limit

Normal Category States who opted for a new limit of Rs.40 lakh Andhra Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, J&K, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal
Normal Category States who choose status quo Kerala and Telangana
Special Category States who opted for new limit of Rs.20 lakh Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Nagaland, Puducherry, Sikkim, Tripura, Uttarakhand

Types of GST in India

CGST

CGST stands for central goods & services tax. It is levied on intra-state sales of goods & services (transactions take place within state) and the revenue is collected by the central government whereas the input tax is later utilized by the state government against the CGST payment.

SGST

SGST stands for state goods & sales tax. It is levied on intra-state sale of goods & services (transactions takes place within the state) and the revenue is collected by the state government.

UTGST

UTGST stands for union territory goods & services tax. It is levied on intra-state sales of goods & services (transactions take place within union territory) and the revenue is collected by Union Territory Government.

IGST

IGST stands for integrated goods & services tax. It is levied on inter-state sales of goods & services (transactions taking place in another state) and the revenue is collected by both central & state government.

Who should register for GST?

You need to meet certain eligibility criteria in order to obtain GST registration in India. A unique GST registration number is allocated to the individuals & businesses after GST new registration.

Individuals & businesses who must register for GST are as follows

  • Individuals already registered under the existing laws such as VAT, Service tax, Excise tax etc.
  • Individuals & businesses who are involved in supplying of goods whose turnover exceeds the threshold limit of Rs.20 lakhs (for hilly areas & north-eastern states) and Rs.40 Lakhs (Fort rest of the states) are entitled to obtain GST registration.
  • Individuals & businesses who are involved in supplying of services whose turnover exceeds the threshold limit of Rs.10 lakhs (for hilly areas & north-eastern states) and Rs.20 Lakhs (For rest of the states) are entitled to obtain GST registration.
  • Casual taxable persons/Non-resident taxable persons.
  • Individuals paying tax under the reverse charge mechanism scheme.
  • Individuals supplying through E-commerce aggregator.
  • Agents of supplier & input service distributor.
  • Every E-commerce aggregator.
Features Central GST – CGST State GST – SGST/UTGST Integrated GST – IGST
Tax Levied By Central Government on Intra-State supplies of Goods and/or Services State Government on Intra-State supplies Central Government on Inter-State supplies
Applicability Supplies take place within the state Supplies take place within the state Transactions take place outside the state
Input Tax Credit Against CGST and IGST Against SGST/UTGST and IGST Against CGST, SGST, and IGST
Tax Revenue Sharing Central Government State/Union territory Government Shared between State and Central governments
Free Supplies Applicable Applicable Applicable

Documents Required For GST Registration

Documents for GST registration vary as per the structure of your business. GST registration documents are the documents needed for new GST registration or online GST registration. You just need to upload the documents online and you can easily apply for GST registration.

There are different types of documents which you need to submit under new GST registration process –

Individual/Sole proprietorship

  • Photograph of the owner
  • Aadhar card of the owner
  • PAN card of the owner
  • Owners’ address proof
  • Owner’s bank account details

Partnership Firm

  • Photograph of all partners & authorized signatories (JPEG format)
  • Aadhaar card of authorized signatory
  • PAN card of all partners (including both authorized signatory & managing partner)
  • Address proof of all partners (You may submit voter’s identity card, Aadhaar card, driving license, passport etc.)
  • Registration certificate /Board resolution of LLP (In case of LLP)
  • Partnership deed copy
  • Appointment proof of authorized signatory
  • Address proof of principal place of business
  • Bank account details

Hindu Undivided Family (HUF)

  • Photograph of the owner (Karta)
  • PAN card of karta
  • Aadhaar card of karta
  • PAN card of HUF
  • Address proof of principal place of business
  • Bank account details

Public & Private Limited Company

  • Company’s memorandum of association/Articles of association
  • PAN card of the company
  • Incorporation certificate issued by the ministry of corporate affairs.
  • PAN card & Aadhaar card of the authorized signatory (must be an Indian citizen)
  • PAN card & address proof of all company directors
  • Address proof of principal place of business
  • Photograph of all company’s directors and the authorized signatory (JPEG format)
  • Board resolution copy appointing authorized signatory/Any other appointment proof of authorized signatory (JPEG format)
  • Bank account details

Society or Club

  • Photograph of the partners or promoters
  • Copy of the club or society’s registration certificate
  • PAN card of the club or society including promoters or associated partners.
  • Letter of authorization signed by authorized signatory/signatories.
  • Registered office address proof (Water bill/Utility bill/rent agreement (in case of rental premises), Municipal khata copy (If owned by the society or club and NOC from the owner of the premises)
  • Bank account statement, copy of passbook’s first page or a crossed cheque copy
GST Registration

Step By Step GST Registration Process in India

Step 01 - Go to official GST portal and click on registration given under “Services tab”

Step 02 - Click on “New registration” given under heading “Registration quick links”

Step 03 - Select “I am a taxpayer” from the drop down list

Step 04 - Select your state/UT and district from the list

Step 05 - Enter the legal name of your business correctly as mentioned in your PAN number

Step 06 - In the next field, enter your e-mail address and mobile number in the required fields and click on proceed

Step 07 - You will receive two OTP’s. One on your e-mail address and one on your mobile number (In case you didn’t received any OTP, click on resend OTP)

Step 08 - Enter the OTP you received on your e-mail ID & mobile number and click on continue

Step 09 - After clicking on “Continue, you will receive a temporary reference number. Note down the temporary reference number for further future communication. TRN is also sent to your Email-ID & Mobile number.

Step 10 - Go again to the home page of the GST portal and click on register now.

Step 11 - Select field “Temporary reference number” and input your TRN number along with captcha code and click on proceed.

Step 12 - One OTP again will be sent to your registered mobile number and E-mail ID. Enter the both OTP’s to verify it and click on proceed.

Step 13 - A new window will appear on the screen. You can also check your application status as “Draft” by clicking on edit icon given under “my saved application”.

Step 14 - There are 10 sections in part-B. Make sure you fill all the details and upload all the documents online in order to complete GST registration process.

You need to enter the following details –

  • Business details
  • Partner/promoters
  • Authorized representative
  • Authorized signatory
  • Business place proof
  • Additional business place
  • Goods & services
  • Bank account details
  • State specific information
  • Verification

Step 15 - After entering all the details, go to verification page & put a tick on “Verification declaration” and you can submit your application in the following ways –

  • Through DSC
  • Using E-signature (OTP will be sent to your registered E-mail ID)
  • Using EVC (OTP will be sent to your Aadhaar registered Mobile number)

Step 16 - A success message will be displayed after submission. An application reference number is generated and sent to your registered e-mail ID & mobile number.

Voluntary GST Registration

When individuals self-register themselves (Whether requested by law or not) for GST registration as per new GST act. It is known as Voluntary registration. Voluntary registration can be cancelled any time after one year. In case after registration you will not start your business operations within 6 months, your registration will be cancelled by a concerned officer.

Why need Voluntary GST Registration?

It is not mandatory to apply for GST registration in case your annual turnover is less than Rs.40 Lakhs (in case of goods) & Rs.20 Lakhs (in case of services) but it is suggested that GST voluntary registration can provide you many benefits under the GST act.

Benefits of registering voluntarily under GST

There are various advantages of Voluntary registration under GST act –

  1. Businesses can issue taxable invoices after doing GST registration. Due to this, buyers can easily avail input tax credit for the purchases they done from other businesses which in turn expand customer base too.
  2. Businesses registered under GST can freely do inter-state sales without many restrictions. It also widens the market for SME’s. SME’s can also avail the option of selling their goods online through E—commerce websites.
  3. GST registration ensures that your business is compliant and ensures authenticity. It will also help in attracting new customers.
  4. After doing GST registration, it becomes easy for businesses to rent premises, avail loans from banks as well as from other financial corporations.

In Which Circumstances GST Registration Is Mandatory?

  • Turnover Criteria - All individual & businesses whose turnover exceeds Rs.40 lakh has to mandatorily apply for GST registration.
  • Causal Taxpayer - In case you are supplying goods or services in events/exhibitions and not have a permanent place of doing business, you should go for online GST registration before starting a business. In such cases, dealer needs to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.
  • NRI Taxpayer - Any NRI individual, who does not have a place of doing business in India and wishes to start a new business, he must apply for GST Registration before starting business operations in India. The validity of Casual GST registration is 90 days.
  • Agents of Supplier & Input Service Distributor - All supplier agents and Input service distributors who want benefit of input tax credit must go for GST registration.
  • Reverse Charge - Businesses who needs to pay taxes under the reverse charge mechanism also need to go for GST registration.
  • E-Commerce Portal - Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendor’s selling their products should be GST registered.

Why I Need GST Registration?

GST registration not only helps you in getting your business recognized as legally registered but also opens number of opportunities for your business. Some of the benefits of GST registration are as follows -

  • Become More Competitive - You will be more competitive in comparison to other unregistered competitors as you are carrying a unique registration number.
  • Expand Your Business Online - You cannot sell products or services on e-commerce platforms without a valid GST registration number. If case you are planning to sell your products on e-commerce platforms like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a valid GSTIN.
  • Claiminput Tax Credit - Only Registered GST holders can claim input tax credit of GST paid on purchase of goods & services and save the cost.
  • Sell Goods & Services All Over India Without Any Restriction - Without GSTIN, you cannot trade from one state to another state. It is only possible when you will register your business under GST.
  • Apply Government Tenders - You need a valid GSTIN in order to apply for government tenders. In case you don’t have a valid GSTIN, you may miss a good business opportunity.
  • Open Current Bank Account - Specifically in case of sole proprietorship, Banks & Financial Institutions does not open a current bank account in the name of business unless you are having a valid government proof in the name of your business. GST registration certificate can help you in opening a new current bank account.
  • Dealing with MNCs - Generally, MNC’s does not feel comfortable in dealing with small business entities until they carry valid tax registration proof.

Benefits of GST Registration

GST registration not only helps you in getting your business recognized as legally registered but also opens number of opportunities for your business. Some of the benefits of GST registration are as follows -

  1. GST removes cascading effect of tax – GST stands for goods & sales tax. It is a comprehensive tax which has taken all indirect taxes under one roof. Cascading effect means “Tax on tax” and it helps in removing it. According to the previous system, businesses were paying service tax as well as VAT but as per the new GST system, all indirect taxes are combined and now businesses need to pay only GST.

    For ex – A tax consultant offers his services worth Rs.10000 & charged a service tax of 15% 70000 * 15/100 = Rs.10500

    He buys some office stationery worth Rs.30000 & paid 5% VAT = Rs.30000*5% = Rs.1500

    As per old tax rules, he needs to pay Rs.10500 as service tax without getting any VAT deduction of Rs.1500 (already paid by you on stationery). You need to pay total tax of Rs.12000.

    If you will take the above situation as per the new GST act, you need to pay GST at 18% i.e. 70000*18/100 = Rs.12600

    Not only this, you will also get 30000*5/100 = Rs.1500

    You need to pay only Rs.11100 (Rs.12600 – Rs.1500) as per new GST law.

  2. Higher threshold – Previous threshold limit for VAT was Rs.500000 which varies state-wise whereas service tax is exempted for those service providers who are having a turnover of less than Rs.10 Lakh. As per new GST act, the threshold limit has been increased to Rs.40 Lakhs (Rs.20 Lakhs for hilly areas & northern eastern states) due to which many small traders & service providers are exempted from paying tax.
  3. Composition scheme for small businesses – The other benefit of GST registration is that you can lower down your taxes by availing new composition scheme introduced by GST department. Hence, it lowers down the burden of many small businesses.
  4. Simple & easy online procedure – GST registration process is now very simple as the entire process is online. Previously, businesses need to do different registrations such as VAT, service tax & excise tax but now businesses need to do only one registration i.e. GST registration. It is mainly benefitting the individuals who have just started their businesses and looking for GST registration.
  5. Reduction in number of returns - Earlier, you need to file VAT return, service tax return, excise tax return differently but after the introduction of GST, you need to file one unified return i.e. GST return. It lowers down the quantity of returns which you need to file to the income tax department every year. Earlier, businesses were filing every return individually to the concerned authorities but now you need to file 4 basic returns which apply to all the taxable persons under GST act. It also lowers down the compliances you need to follow under the new GST act.
  6. Improvement in efficiency of logistics – Earlier, we used to see that there were many restrictions on inter-state movement of goods & also increase in the operating cost because warehouses were forced to operate below their capacity. After the introduction of GST, restriction on inter-state movement of goods are decreased as well as warehouse operators & commerce aggregators are coming forward for setting up of new warehouses. For ex – Warehouse at strategic location like Nagpur. This reduced the unnecessary logistics cost which in turn increase the business profits.
  7. Industries are regulated & organized - Earlier, industries like construction & textile were unorganized & unregulated largely but after the introduction of GST, both these industries are now regulated & organized due to formation of provisions for online compliances and availing of input tax credit only after the amount is accepted by the supplier.

Penalty for not Doing GST Registration

There are different penalties imposed by the GST department and it varies as per the type of offense done by an individual with the GST department.

  1. If you are having an annual turnover above Rs.40 lakhs (In case of goods) & above Rs.20 Lakhs (In case of services), it is mandatory for you to go for GST registration.
  2. If you will not go for GST registration, you are liable for penalty from GST department. Penalty for not doing GST registration is 100% tax due or Rs.10000 (whichever is higher).

GSTIN Number Format

GSTIN is a 15 digit unique identification number assigned to every individual or business who is registered under GST. Every number has its significance and are stated below -

  • The first two digits represent the “State code”.
  • The next ten digits will denote the “PAN of the person or entity involved in the business”.
  • The thirteenth digit represents “entity number of the PAN holder” in a state.
  • The fourteenth digit represents “Z” by default.
  • The last digit represents “Check code”. In some cases, the last digit can be an alphabet as well.

File your GST return monthly, quarterly or annually with FinacBooks online easily.

Examine your records & other documents by GST audit and remain compliant with FinacBooks.

Easily cancel your GST registration with FinacBooks.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

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GST Registration FAQ’S

  1. Login to the official GST portal https://www.gst.gov.in/
  2. Go to “user services” given under services tab and click on view/download certificate
  3. Download the certificate
Composition scheme under GST is a scheme offered by the GST department for taxpayers to lower down their GST formalities, tax burden by paying fixed rate of turnover.
  1. Login to the official GST portal https://www.gst.gov.in/
  2. Choose registration under services tab and click on “Track application status”
  3. Enter your ARN number along with Captcha code and click on search. The status will be displayed over the screen.
  1. Go to the official GST portal https://www.gst.gov.in/
  2. Login with your credentials
  3. Choose registration under services tab and click on “Amendment of registration core fields” to amend your GST registration.
  1. Login to the official GST portal https://www.gst.gov.in/
  2. Choose registration under services tab and click on “Amendment of registration non-core fields” to amend your GST registration
  3. Choose authorized signatory tab and click on “Add new”
  4. Add a dummy person as Authorized signatory and enter your mobile number and click on save to update it on GST portal
GSTIN is a unique good and services tax identification number which is assigned to all businesses under GST.
As per sub section (3) of section 25, a person can voluntarily registered under GST.

Cancellation of GST Registration certificate is possible and it can be cancelled in two situations –

  • When the taxable person voluntarily cancels his or her GST registration
  • When the officer uses his power and cancels the registration certificate of the taxable person due to the following reasons –
    • If the taxable person is not doing business from his or her notified registered place
    • If the taxable person issues tax invoice without making the supply of goods or services.

The taxable person has to apply on the official GST portal within 30 days. He has to declare some important information in the application such as stock held on a particular date, amount of dues, credit reversal and information about payment made towards discharge of liabilities. If the concerned officer is satisfied with the application, the officer will cancel the same within 30 days.

A taxable person can make amendments in particular information such as e-mail id, phone number etc. on his own on the official portal. In case of changes in the legal name of the business or change in the state name or addition of a new business place, he has to apply to the concerned GST department for changes within 15 days.

It is the total value of taxable supplies and inter-state supplies (It does not include inward supplies on which tax is payable on basis of reverse charge) and exempt supplies.

No, there is no concept of single central GST registration. Every PAN holder should have one GST per state. Therefore, any person who is having branches of a business in different states needs to apply for a separate GST registration number for each branch even if he or she is holding a single PAN.
A non-resident person is a person living abroad but doing business in any state of India. He must have a GST registration number to do business in a particular state.
Before making any supply, they have to apply for registration at least 5 days in advance. The registration certificate is issued and valid for a period of 90 days which can be extended. Further, registration is granted or extended only when the person will deposit the estimated tax liability.
ISD means input service distributor. ISD is like a head office that received the tax invoices of input service and distributes the credit of tax paid by them to the units proportionately. The ISD registration is different from the normal registration.

How FinacBooks Can Help in GST Registration?

FinacBooks is one the leading accounting & financial company in India. Our team helps you in easily submitting your GST registration online without any delay. We always take care of the tax deadline and submit the correct client information to the tax authorities as soon as possible. FinacBooks team is having more than 10 years of experience in GST registration and provides the best services to everyone including our valuable clients. kindly call us at 8800221252 or you can also e-mail us at info@finacbooks.com

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