GST Registration:Process, Benefits & Documents Required
GST Registration is the process of registering a business under the Goods and Services Tax (GST) regime in India. GST is based on Value added tax.
Who Needs to Register for GST?
- Mandatory Registration
- Businesses with a turnover exceeding ₹20 lakh (₹10 lakh for special category states) for services.
- Businesses with a turnover exceeding ₹40 lakh (₹20 lakh for special category states) for goods.
- Interstate supply of goods or services.
- E-commerce operators
- Casual taxable persons
- Non-resident taxable persons.
- Agents of suppliers or input service distributors.
Voluntary Registration Businesses with turnover below the threshold limit can also register voluntarily
Benefits of GST Registration
Creation of Unified National Market (One Nation, One Tax)
- unified national market in India primarily stems from the need to eliminate barriers to trade across states and regions, promoting seamless movement of goods & services.
Input Tax Credit (ITC)
- Claim ITC on purchases to reduce your tax liability.
Simplified Taxation
- Unified tax structure that replaces multiple indirect taxes.
Avoid Double Taxation
- GST Replaces multiple indirect taxes (VAT, excise, service tax, etc.) with a single tax.
Business Credibility
- Builds trust and credibility among customers and vendors.
Step-by-Step Process for GST Registration
- Visit the GST Portal
Go to https://www.gst.gov.in/.
2. Click on “Services” > “Registration” > “New Registration.”
3. Enter details like PAN, mobile number, and email for verification.
4. A Temporary Reference Number (TRN) is generated after OTP verification.
5. Complete Part-B > Log in with TRN and complete the application form by providing business details, promoter information, and bank account details.
5. Verification> Submit the application using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
6. Approval > Approval and GSTIN
Documents Required for GST Registration
Basic Documents
- PAN card of the business or proprietor.
- Aadhaar card of the proprietor or authorized signatory.
- Passport-size photograph of the applicant.
Proof of Business
- Business address proof (rent agreement, electricity bill, or property tax receipt).
- Bank account details (statement, passbook, or canceled cheque).
For Different Business Types
- Proprietorship: PAN, Aadhaar, business address proof.
- Partnership Firm/LLP: Partnership deed, PAN of partners, business address proof.
- Company: Incorporation certificate, MOA/AOA, PAN and Aadhaar of directors.
Penalties for Non-Registration
Failure to register for GST when required can result in:
- A penalty of 10% of the tax due (minimum ₹10,000).
- For deliberate evasion, the penalty can go up to 100% of the tax due.
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