GST Registration – Eligibility, Process and Expert Help
GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover
GST Turnover Limit
There are various types of GST registration and some types of entities like casual taxable persons, non-resident taxable persons or persons supplying through eCommerce operators are required to mandatorily obtain GST registration irrespective of turnover limit. The GST turnover limit for regular GST registration for service providers and goods supplier is provided below.
Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.
Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:
- Should not be providing any services.
- The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.
- Should not be involved in the supply of ice cream, pan masala or tobacco.
If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.
Special Category States: Under GST, the following are listed as special category states – Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).
Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.
Voluntary GST Registration
Any person or entity irrespective of business turnover can obtain GST registration at any-time. Hence, GST registration is obtained by many businesses in spite of not reaching the aggregate turnover limit. Some of the main reasons for obtaining voluntary GST registration are:
- To improve the business credibility
- To satisfy the requirements of B2B customers
- To claim input tax credit benefits
GST Registration Responsibilities
Entities registered under GST have various responsibilities and compliance requirements from time to time. Failure to comply with the GST regulations or compliance requirements can lead to penalties and revocation of GST registration by the authorities. Some of the main responsibilities of a person registered under GST include:
- Collecting and remitting GST amount from customers
- Issuing proper GST invoice as per the GST rules and regulations
- Filing GST returns whenever due based on turnover – even if there is no turnover or business activity
- FIling annual GST return
- Maintaining all records pertaining to GST for a period of 8 years
Tardy Portal is the leading business services platform in India, offering a variety of services like income tax filing, GST return filing, private limited company registration, trademark filing and more. Tardy Portal can help you obtain GST registration in India and maintain GST compliance through a proprietary GST accounting software. The average time taken to obtain GST Certificate is about 5 – 10 working days, subject to government processing time and client document submission. Get a free consultation on GST and GST return filing by scheduling an appointment with an Tardy Portal Advisor.
GST Registration – Documents Required
The following documents must be submitted by regular taxpayers applying for GST registration.
PAN Card of the Business or Applicant
GST registration is linked to the PAN of the business. Hence, PAN must be obtained for the legal entity before applying for GST Registration.
Identity and Address Proof along with Photographs
The following persons are required to submit their identity proof and address proof along with photographs. For identity proof, documents like PAN, passport, driving license, aadhaar card or voters identity card can be submitted. For address proof, documents like passport, driving license, aadhaar card, voters identity card and ration card can be submitted.
- Proprietary Concern – Proprietor
- Partnership Firm / LLP – Managing/Authorized/Designated Partners (personal details of all partners are to be submitted but photos of only ten partners including that of Managing Partner are to be submitted)
- Hindu Undivided Family – Karta
- Company – Managing Director, Directors and the Authorised Person
- Trust – Managing Trustee, Trustees and Authorised Person
- Association of Persons or Body of Individuals –Members of Managing Committee (personal details of all members are to be submitted but photos of only ten members including that of Chairman are to be submitted)
- Local Authority – CEO or his equivalent
- Statutory Body – CEO or his equivalent
- Others – Person(s) in Charge
Business Registration Document
Proof of business registration must be submitted for all types of entities. For proprietorships there is no requirement for submitting this document, as the proprietor and proprietorship are considered the same legal entity.
In case of partnership firm the partnership deed must be submitted. In case of LLP or Company, the incorporation certificate from MCA must be submitted. For other types of entities like society, trust, club, government department or body of individuals, registration certificate can be provided.
Address Proof for Place of Business
For all places of business mentioned in the GST registration application, address proof must be submitted. The following documents are acceptable as address proof for GST registration.
For Own premises
Any document in support of the ownership of the premises like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
For Rented or Leased Premises
A copy of the valid rental agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill. If rental agreement or lease deed is not available, then an affidavit to that effect along with any document in support of the possession of the premises like copy of electricity bill is acceptable.
If the principal place of business is located in an SEZ or the applicant is an SEZ developer, necessary documents/certificates issued by Government of India are required to be uploaded.
All Other Cases
For all other cases, a copy of the consent letter of the owner of the premises with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents can be uploaded.
Bank Account Proof
Scanned copy of the first page of bank passbook or the relevant page of bank statement or scanned copy of a cancelled cheque containing name of the Proprietor or Business entity, Bank Account No., MICR, IFSC and Branch details including code.
Choose your plan
File your GST registration application online through Tardy Portal. Get help with GST registration procedure, eligibility and documents required. Entities with an annual revenue of more than Rs.20 lakhs must obtain GST registration. Complete your GST registration online in less than 04 to 10 working days.
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Frequently asked questions
Businesses or entities supplying goods or services must register for GST from every State from where taxable supply of goods or services or both is made.
Primary authorized signatory is the person who is primarily responsible to perform action on the GST System Portal on behalf of the taxpayer. It can be the promoter of the business or any person nominated by the promoters of the business.
You are required to apply and obtain GST registration within 30 days of being required by law to obtain GST registration. You can check the criteria for GST Registration here.
Yes. PAN is mandatory for obtaining GST registration. In case of Proprietorship, the PAN of the Proprietor can be used. In case of LLP or Company or Trust or other types of legal entity, PAN must first be obtained for the entity making the GST registration application.
GST registration does not have an expiry date. Hence, a GST registration will be valid until its cancelled, surrendered or suspended.
No, only persons registered under GST is allowed to collect GST from the customers. A person not registered under GST cannot collect GST nor claim input tax credit on GST paid.
According to Section 2 (6) of the GST Act, aggregate turnover comprises the total value of all taxable supplies, not legally responsible for the supplies, export of goods and/ or services as well as inter-State supplies of a person with matching PAN, to be calculated on all India basis and rules out taxes, if any charged under CGST or SGST and IGST Act as the case possibly will be.
Aggregate turnover does not comprise the value of inward supplies on which tax is to be paid on reverse charge basis along with the value of inward supplies
After the GST registration is approved, the applicants can download a copy of the GST Registration Certificate from the GST common portal.
GST registration must be obtained for each of the branch or office or place of business out of which the business operates. Hence, the taxable person must obtain GST registration in each State from which he intends to supply goods or services.
Primary authorized signatory is the person who is primarily responsible to perform action on the GST System Portal. All communication from the GST Department relating to the taxpayer will be sent to the primary authorised signatory. Hence, it is best for the promoter of the business to be the primary authorised signatory.
An entity liable to be registered under GST should apply for registration under GST within 30 days from the date on which the entity becomes liable to register for GST. Casual taxable persons and non-resident taxable persons are required to be registered under GST, prior to commencing business.
No. An entity operating in multiple states will have to get registered separately for each of the States from where taxable supply of goods or services is made.
Procedure has been provided in the GST portal for migration of existing service tax or VAT or central excise to GST. Entities registered under old tax laws must complete GST migration mandatorily to obtain GST.
Yes. Any entity wishing to claim input tax credit can registered voluntarily, even if not liable to be registered. After registration, voluntarily registered entities will also have to comply with regulations as applicable to a normal taxable person.
Yes. PAN is mandatory for normal taxpayers and casual taxable persons to be registered under GST. However, PAN is not mandatory for a non-resident taxable person for obtaining registration.
Once GST certificate is granted, the registration is valid until its surrendered or cancelled or suspended. Only GST certificate issued to non-resident taxable person and casual taxable person have a validity period.
No, an unregistered person without GSTIN cannot collect GST from customers or claim input tax credit of GST paid.
After submission of GST application with all the required documents, GSTIN is alloted within 7 working days.
Aggregate turnover is the aggregate value of all taxable supplies, exempt supplies, export of goods or services or both and inter-State supplies of a person having same PAN. Aggregate turnover does not include CGST, SGST, IGST and GST cess.
GST certificate is provided by the Government only in soft-copy format. Once GSTIN is allotted, GST certificate can be downloaded from the GST Portal at anytime by the taxpayer.