- GST Application filing in 2 business days
- Assistance for GST e-invoicing, ledger, and invoice maintenance
Right plan for your business
Ledger Crafter experts register over 1500 companies every month.
What is GST Registration?
GST or Goods and Service Tax is a destination-based, multi-stage, indirect tax system. It substitutes
for VAT and other collective taxes. GST registration refers to the process of registering a firm under
the GST Act of 2017. Post-registration, a 15-digit GSTIN is provided. This helps to share all the
operations and data related to the transactions with the authorities. If annual income exceeds ₹40
Lakhs (for goods) and ₹20 lakhs (for services), GST registration is mandatory. Registered businesses
can also benefit from input tax credit (ITC) on purchases.
Benefits of Registering for GST
Registration under GST is an important step towards a unified tax system in India. It offers many advantages to registered businesses. A taxpayer who registers under the GST Act of 2017 will receive the following benefits:
Legal Recognition
A firm can obtain legal recognition as a supplier of goods or services by registering for GST. This validates the company’s legal status as an official entity.
Input Tax Credit (ITC)
Businesses that are registered can deduct the GST they pay on purchases from the GST they collect on sales by claiming the Input Tax Credit. Consequently, the entire tax liability is decreased.
Simplified Process
The GST system has reduced the complexity and time needed for compliance by streamlining the process for submitting taxes and making payments. With the help of a single online platform, businesses can more effectively manage their tax obligations.
Composition Scheme
Composition Scheme Under GST for Small Businesses allows them to pay tax at a lower, fixed rate. This reduces their tax burden and compliance requirements, making it easier to manage their finances.
Higher Threshold for GST Registration
With a higher registration threshold, only businesses with an annual turnover above ₹40 lakh are required to register for GST. This excludes many small businesses from mandatory registration, easing their operational processes.
Eliminates the Cascading Effect of Taxes
GST eliminates the cascading effect of taxes by allowing input tax credit across the supply chain. This means that businesses can claim credit for the taxes paid on purchases, reducing the overall tax burden on end consumers.
Documents Required for GST Registration
The following documents are required for the new registration process.
- Applicant’s PAN
- Aadhaar card
- Evidence of business registration or Incorporation certificate
- Promoters/Director’s Identity and Address proof with Photographs
- Business location Address proof
- Electricity bill and utility bill of the office address
- Bank account details, statement or canceled cheque
- Digital Signature Certificate
- Letter of Authorisation or Board Resolution for Authorised Signatory
GST Registration Eligibility and Threshold Limits
Eligibility to Register for GST Registration must be verified before registration. Individuals registered under the Pre-GST law should also opt for GST registration. It is mandatory for businesses that have a turnover of ₹40 lakhs for the sale of goods in normal category states and ₹20 lakhs for the sale of goods in special category states. A company must register as a regular taxable entity under GST law if its annual threshold limit exceeds ₹40 lakhs. The GST council recommends GST rates, tax exemptions, and other tax-related policies. Here is a complete outline for the same| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
Earlier Limits for Sale of Goods/Providing Services | ||
| Exceeds ₹20 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹10 lakh | Yes – For Special Category States | Upto 31 March 2019 |
New Limits for Sale of Goods | ||
| Exceeds ₹40 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | From 1 April 2019 |
New Limits for Providing Services | ||
| Exceeds ₹40 lakh | Yes – For Normal Category States | Upto 31 March 2019 |
| Exceeds ₹20 lakh | Yes – For Special Category States | Upto 31 March 2019 |
For Service Providers | ||
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
| Exceeds ₹20 lakh | Yes – For Normal Category States | From 1 April 2019 |
Turnover Limits for GST Registration
Businesses exceeding an annual turnover of ₹40 lakhs (for goods) and ₹20 lakhs (for services) should register for GST and fulfil tax obligations on their taxable goods and services. Although it is not mandatory, businesses with annual revenue under ₹40 lakhs in the respective financial year are free to register for GST. Doing so entitles them to benefits from input tax credit. It is noteworthy that states falling under the special category have a separate minimum threshold, which is ₹10 lakhs for services and ₹20 lakhs for goods. Here is a complete outline of the same:
| Normal Category States/UT Opting for ₹40 lakh Limit | Normal Category States Opting for Status Quo | Special Category States/UT Opting for ₹40 lakh Limit | Special Category States/UT Opting for ₹20 lakh Limit |
|---|---|---|---|
| Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands and Chandigarh | Telangana | Jammu and Kashmir, Ladakh and Assam | Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand |
Step-By-Step Guide For GST Registration Process
Here are 4 steps to complete your GST registration process
1. Get in touch with our experts
Book a slot with our GST experts and resolve all your queries.
2.Provide Business Information
Provide the required documents and fill in essential business details such as business name, SEZ unit, Principal place of business, additional places, mobile number, email address, state, PAN card details for initiating the registration process.
3.Filing for GST Registration
Our team will file your GST registration application on the online portal. Once filed, you’ll receive an OTP for verification. .
4.Get your GSTIN
Our team will provide you with the Application Reference Number (ARN) (also called as temporary reference number) after successful verification. You can track application status using the number. GST registration certificate will be available on the official GST website after the process is completed.
All the documents should be submitted within a time frame and accurate as per the government guidelines to avoid delay. The GST certificate will be delivered directly by the Central government. Ledger Crafter will initiate and guide you through the process.
Regular, Casual, and Non-Resident Taxable Persons
Regular Taxpayers
Regular taxpayers under GST are obligated to remit GST once their business turnover surpasses a specified threshold in a fiscal year. Suppliers must register with the state or union when providing goods and services.
Casual Taxable Person
A person who periodically engages in business transactions involving the delivery of goods or services, or both, in a state or union territory where they do not have a fixed place of business, whether as a principal, agent, or in any other capacity, is referred to as a casual taxable person.
Non Residential Taxable Person
A non-resident taxable person is someone who, while not having a fixed place of business or residence in India, occasionally engages in transactions involving the supply of goods or services, or both, in the course or furtherance of their business, whether as a principal, an agent, or in any other capacity.
eCommerce Operators and GST
As per the Goods and Service Tax Act of 2017 all e-Commerce operators should collect the tax at the source of 1% on the cross sales amount of an e-Commerce seller. e-Commerce operators who manage digital or electronic facilities selling goods should register under the Act mandatorily and they are also required to register for TCS.
GST Registration FAQs?
Yes, you can voluntarily register for GST even if your turnover is below the threshold. It might be beneficial for availing input tax credits and participating in interstate transactions, improving your business credibility
Penalties for not registering for GST on time include late fees and interest charges. It’s crucial to adhere to registration deadlines to avoid financial implications and ensure compliance with tax regulations.
The effective date of GST registration is when you become liable to pay GST, while the date of registration is when you are officially registered. Understanding this difference is important for determining when your GST obligations commence.
Yes, issuing a tax invoice and tax collection is mandatory for voluntary GST registration. Even if your turnover is below the threshold, compliance with invoicing and collection requirements is necessary to meet legal obligations and maintain transparency in your transactions.
No, input tax credit cannot be availed against a 5% GST liability for goods sold by your LLP. Input tax credit is typically applicable for higher tax rates, and the limited 5% tax rate may not provide eligibility for claiming input tax credit in this scenario.
If not registered for GST and dealing with GST-charging entities, consider registering to avail input tax credits. Without registration, businesses might bear the entire tax burden, impacting profitability.
Resolve GST export error code SB001 on ICEGATE by verifying data accuracy, ensuring proper document submission, and seeking assistance from ICEGATE or GST support for technical guidance.
To address negative amount errors in GSTR3B due to credit notes, rectify the values, report corrections in subsequent returns, and maintain accurate documentation to reconcile discrepancies.
If your GSTIN was cancelled without filing the final return, rectify by filing the pending return immediately. Failure to do so can lead to penalties and compliance issues.
The GST Annual Return is a summary of a taxpayer’s financial activities for a fiscal year, including details of sales, purchases, and taxes paid. It provides a comprehensive overview of the taxpayer’s GST transactions.
