Overview
The Goods and Services Tax (GST) is an extensive indirect tax that came into effect on 1st July 2017, replacing multiple taxes like VAT, Service Tax and Excise Duty. It brought the concept of “One Nation, One Tax”, simplifying the taxation structure across India.
GST is imposed on the supply of goods and services, and registered businesses are issued a unique 15-digit GST Identification Number (GSTIN) for compliance. It not only ensures legal recognition but also permit businesses to claim Input Tax Credit (ITC), making the tax system more transparent and efficient.
Why
GST registration ensures legal recognition for your business and allows you to operate without facing penalties or compliance issues.
- Legal Compliance: Mandatory for businesses crossing turnover limits (₹40 lakh for goods, ₹20 lakh for services; lower thresholds in special category states).
- Input Tax Credit (ITC): A registered business can claim credit of taxes paid on purchases, reducing overall tax liability.
- Interstate Business: Mandatory for businesses involved in inter-state supply of goods/services.
- E-commerce & Online Selling: Compulsory for sellers on platforms like Amazon, Flipkart, etc.
- Business Credibility: Enhances trust with clients, vendors and government agencies.
- Avoid Penalties: Unregistered businesses liable to penalties under GST law.
Process
The GST registration process is entirely online and user-friendly, reducing paperwork and speeding up approvals.
- Visit GST Portal – Go to www.gst.gov.in.
- Generate TRN – Apply for Temporary Reference Number using PAN, mobile, and email.
- Fill Application (Part A & B) – Enter business details, promoter details, and place of business.
- Upload Documents – As per business type.
- Verification via DSC/EVC – Authenticate the application.
- ARN Generation – On submission, an Application Reference Number is generated.
- Officer Verification – The application is scrutinized by a GST officer.
- GSTIN Allotment – Upon approval, a 15-digit GSTIN is issued along with a registration certificate.
Documents
The list of documents may varies depending on the business type but generally includes ID proofs, address proofs, and bank details.
For Proprietorship:
- PAN of proprietor
- Aadhaar of proprietor
- Photograph
- Address proof of business place (rent agreement/ownership proof + utility bill)
- Bank account proof (cancelled cheque/passbook)
For Partnership / LLP:
- PAN of firm
- Partnership deed / LLP agreement
- PAN & Aadhaar of partners
- Photographs of partners
- Business address proof
- Bank details
For Company (Pvt. Ltd. / Public Ltd.):
- PAN of company
- Certificate of Incorporation (CIN)
- MOA & AOA
- PAN & Aadhaar of directors
- Photographs of directors
- Business address proof
- Bank details
- Board resolution / authorization letter
Benefits
Getting GST registered provides both legal protection and financial advantages for your business.
- Legally authorized to collect tax.
- Avail Input Tax Credit and reduce costs.
- Expansion opportunity with interstate trade.
- Eligibility for government tenders.
- Easier compliance with online filing.
- Increases customer and vendor trust.
- Businesses crossing prescribed turnover limits must also comply with e-invoicing, currently mandatory for entities with aggregate turnover above ₹5 crore.
Fee
- No government fee for GST registration.
- Only professional/consultancy charges may apply if you hire a service provider.
Timeline
The timeline for GST registration is short, provided all documents are accurate and complete.
- Filing application: Immediate upon gathering documents.
- Processing by GST officer: 3–7 working days.
- GSTIN allotment: Usually within 7–10 working days, if no clarification is sought.
FAQs
Businesses whose aggregate turnover exceeds ₹40 lakh (for goods) or ₹20 lakh (for services) in a financial year must register under GST. For special category states, the threshold is ₹20 lakh (goods) and ₹10 lakh (services). Inter-state suppliers, e-commerce sellers, input service distributors, and those liable under reverse charge must also register.
GSTIN, viz., (Goods and Services Tax Identification Number) is a 15-digit unique code issued after registration. It is based on the applicant’s PAN, state code, entity details and is used for all GST-related compliances.
Yes. GST registration is completely free of government fees. However, if you use the services of a CA, consultant or legal professional, you may incur service charges.
Yes. Voluntary registration is allowed and often beneficial since it enables claiming of Input Tax Credit (ITC), interstate trade, selling on e-commerce platforms, and gaining business credibility.
On average, it takes 3–7 working days for approval if documents are accurate. If the GST officer raises queries, it may take up to 15 days.
Non-registration attracts penalties under the GST Act, which may include fines, interest on unpaid tax, and in cases of deliberate evasion, a penalty up to 100% of the tax due.
Yes. GST allows registration using a residential address as the place of business, provided valid proof is submitted. Many freelancers and startups use their home address initially.
Yes. Once obtained, GST registration remains valid until it is cancelled voluntarily by the taxpayer, surrendered due to business closure or cancelled by the authorities for non-compliance.
Regular taxpayers collect GST from customers and claim ITC. Composition scheme taxpayers (eligible up to ₹1.5 crore turnover for goods or ₹50 lakh for services) pay tax at a fixed rate on turnover but cannot collect GST from customers or claim ITC.
Yes. Any person selling on e-commerce platforms must have GST registration, regardless of turnover, unless they are dealing in exempted goods. In addition, GST authorities are increasingly using digital transaction data (like UPI and e-commerce records) to identify unregistered businesses and enforce compliance.
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