Obtaining Goods and Services Tax (GST) registration is a mandatory compliance requirement for businesses and professionals across India. While specific criteria determine eligibility for this registration, enterprises also have the option to apply for GST registration or a GST Identification Number (GSTIN) voluntarily. This article aims to provide a thorough understanding of various aspects related to GST registration in India, including its definition, eligibility rules, advantages, application steps, associated fees, necessary documents, the GSTIN, the registration certificate, and penalties for non-compliance.

Latest Updates on GST Registration

April 17, 2025: The Central Board of Indirect Taxes and Customs (CBIC) issued Central Tax Instruction No. 03/2025-GST to its GST officers. These instructions provide guidelines for processing GST registration applications, emphasizing adherence to document lists, avoiding unnecessary inquiries, and ensuring timely approvals. They also include directives for verifying business premises and conducting physical verifications.

February 12, 2025: The Goods and Services Tax Network (GSTN) published an advisory regarding new Aadhaar and biometric authentication requirements for GST registration. Applicants are categorized into three groups:

• Those not opting for Aadhaar authentication.
• Those opting for Aadhaar authentication where biometric verification is necessary.
• Cases where the Application Reference Number (ARN) is not generated.

Applicants must follow the instructions provided in the advisory. Additional information is available here.

What is GST Registration?

Under the Goods and Services Tax (GST) framework, businesses that exceed a specific annual turnover threshold—Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh, depending on the nature of business and location—are legally required to register as a normal taxable entity. For certain small businesses and professionals operating under the composition scheme, as defined by CGST Section 10, these turnover limits are Rs. 1.5 crore or Rs. 50 lakh, respectively. Additionally, some businesses must register under GST law regardless of their turnover. The process of securing this registration and obtaining a GSTIN (GST Identification Number) is known as GST registration. Operating a business without the mandatory GST registration constitutes an offense under GST law and can lead to significant penalties. Typically, GST registration is completed within 2 to 6 working days.

Who Must Obtain GST Registration?

The following individuals and entities are required to obtain GST registration:

• Those previously registered under pre-GST tax laws (e.g., Excise, VAT, Service Tax).
• Businesses whose aggregate turnover surpasses the prescribed limits of Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh, as applicable.
• Persons engaged in making inter-state supplies of goods or services.
• Casual Taxable Persons and Non-Resident Taxable Persons.
• Agents of a supplier and Input Service Distributors (ISD).
• Entities liable to pay tax under the Reverse Charge Mechanism (RCM).
• Individuals supplying goods or services through an e-commerce aggregator, excluding specific supplies under CGST Section 9(5).
• All e-commerce aggregators as per CGST Section 52.
• Persons obligated to pay tax under CGST Section 9(5).
• Government departments or offices required to deduct TDS under CGST Section 51.
• Individuals providing online information and database access or retrieval (OIDAR) services from outside India to an unregistered person in India.
• Every person supplying online money gaming services from outside India to a person in India.

Advantages of GST Registration

For Standard Registered Businesses

Registered businesses can benefit from:

• Input Tax Credit (ITC): The ability to claim credit for taxes paid on inputs.
• Inter-state Business: Freedom to conduct business across state borders without restrictions.

For a comprehensive list of GST benefits, refer to the provided link.

For Composition Scheme Dealers

Taxpayers opting for the composition scheme enjoy:

• Reduced Compliance: Fewer procedural requirements.
• Lower Tax Liability: A smaller tax burden.
• Minimal Working Capital Impact: Less influence on operational funds.

Further details on the composition scheme are available.

For Voluntary Registrations (Below Rs. 40 Lakhs)

Businesses voluntarily registering for GST, even if their turnover is below Rs. 40 lakhs, can:

• Utilize Input Tax Credit: Avail credits for taxes paid on purchases.
• Expand Inter-state Operations: Engage in business activities across state lines without limitations.
• Facilitate E-commerce Registration: Easily list and sell products or services on online and e-commerce platforms.
• Gain Competitive Edge: Enhance market position against unregistered competitors.

Additional information on voluntary registrations is accessible.

The GST Registration Process

GST registration can be completed through the official GST portal. Applicants must submit Form REG-01 on the portal, following the steps outlined in our guide "How to apply for GST registration?". It is crucial to have all necessary documents prepared before initiating the application.

GST Registration Fees

While no official fees are mandated by GST law for obtaining registration directly via the GST portal, the application process involves 11 detailed steps requiring various business specifics and scanned documents.

Essential Documents for GST Registration

Applicants need to prepare the following documents for GST registration:

• Permanent Account Number (PAN) of the applicant.
• Aadhaar Card.
• Proof of business registration or the Incorporation Certificate.
• Identity and address proof of promoters or directors, along with their photographs.
• Address proof of the primary place of business.
• Bank account statement or a cancelled cheque.
• Digital Signature Certificate (DSC).
• Letter of Authorisation or Board Resolution for the authorized signatory.

Understanding GSTIN

GSTIN stands for Goods and Services Tax Identification Number. This unique, 15-digit number is assigned to every registered business operating within a specific state or Union Territory. Upon successful GST registration, a taxpayer receives a GSTIN, which must be quoted in all tax invoices and GST returns. The GSTIN serves as a vital identifier, enabling the verification of vendors' authenticity and the validity of the GST number used in invoices.

The GST Registration Certificate

Upon successful GST registration, taxpayers are issued a GST registration certificate. This document contains essential details such as the taxpayer's trade name, legal name, GSTIN, primary business location, any additional business locations, authorized personnel, and central and state jurisdiction information. It is mandatory to prominently display the GST certificate at the principal place of business.

Penalties for Non-Compliance with GST Registration

Failure to register under GST when legally required can lead to penalties. An offender who either fails to pay tax or makes short payments due to genuine errors faces a penalty of 10% of the tax amount owed, with a minimum penalty of Rs. 10,000. If the tax evasion is deliberate, the penalty escalates to 100% of the tax amount due. For more information on GST offenses and penalties, refer to the detailed guidelines.

Frequently Asked Questions

Is GST registration compulsory?

Yes, obtaining GST registration becomes mandatory once your business turnover exceeds the specified threshold limits. Further details on the latest GST registration limits are available.

Can I submit applications for multiple GST registrations?

If a business operates in moreSCPC-1 state, a separate GST registration is required for each state. For example, an automobile company selling in both Karnataka and Tamil Nadu must obtain distinct GST registrations for each state.

Is it possible to get multiple GST registrations within the same state?

Yes, a business can apply for multiple GST registrations within a single state. The previous requirement to obtain separate registrations only for different business verticals within a state has been removed to simplify business operations.

Who is eligible for the composition scheme under GST?

Small taxpayers seeking reduced compliance burdens and lower tax rates under GST can opt for the Composition scheme. Traders with an aggregate turnover below Rs. 1.5 crore are eligible for this scheme, with a limit of Rs. 75 lakh for North-Eastern states and Himachal Pradesh. Comprehensive information about the Composition scheme is available.

The government also extended the Composition scheme to service providers with an aggregate turnover up to Rs. 50 lakhs; details can be found here.

What turnover should be considered for the GST registration threshold limit?

Aggregate turnover is used to calculate the threshold limit for GST registration. This includes the total value of all taxable supplies (excluding inward supplies subject to reverse charge), exempt supplies, exports of goods or services, and inter-state supplies from entities sharing the same PAN, computed on an all-India basis. It is important to exclude CGST, SGST, UTGST, IGST, and cess when calculating aggregate turnover.

What is a GST identification number or GSTIN?

Every taxpayer is assigned a PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN) for each state they operate in. This number is obtained during the GST registration process. Once the GST officer verifies and approves the application, a unique GSTIN is provided to the business.

How long can I wait to register under GST?

Any person liable for GST registration must complete the registration process within 30 days from the date they become eligible.

What happens if the GST registration application is rejected?

If a GST registration application is rejected, the applicant will have an opportunity to respond to the rejection letter. However, if a new application is desired, the applicant must wait for a final rejection notification, which typically takes about 10 days.

Is a PAN card necessary for GST registration?

Yes, a PAN card is mandatory for obtaining GST registration. Applicants without a PAN card must acquire one before applying for GST registration, except for TDS registration under GST, which permits a TAN.

What happens after I obtain GST registration?

Upon successful GST registration, the taxpayer receives a GST registration certificate in Form GST REG-06 and a valid GST Identification Number. This enables them to claim input tax credit, issue GST-compliant invoices, and begin filing GST returns either monthly or quarterly, as applicable.

Who is eligible for GST registration?

GST registration can be pursued voluntarily. Additionally, certain businesses are mandated to register under CGST Section 24, or if their annual turnover surpasses the threshold defined by GST law.

Is GST registration free?

There are no fees charged on the official GST portal for applicants seeking GST registration. However, failure to obtain mandatory GST registration can result in penalties.

What is the turnover limit for GST registration?

Businesses must obtain GST registration if their turnover exceeds the threshold limits of Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh, depending on specific criteria.

What are the different types of GST registration?

The GST law defines several types of GST registration, including:

• Non-resident Taxable Person
• Casual Taxable Person
• Composition Scheme Registration
• Input Service Distributor (ISD)
• Regular/Normal GST registration
• Users of Reverse Charge Mechanism
• Voluntary Registration
• E-commerce Operators
• E-commerce Platform
• TDS/TCS Deductor
• Special Economic Zone (SEZ) Developer

What happens if I don't register for GST?

The penalty for not obtaining GST registration when required is 10% of the tax due or Rs. 10,000, whichever amount is higher.

Can individuals register for GST?

Individuals engaged in supplying goods or services can obtain GST registration. This can be done voluntarily if their turnover does not exceed the specified threshold, or it is mandated if their annual turnover surpasses the threshold or if required by CGST Section 24.