1) What is a GST Registration?
GST Registration of a business with the tax authorities implies obtaining a unique, 15-digit Goods and Service Tax Identification Number (GSTIN) from the GST authorities so that all the operations of and the data relating to the business can be collected and correlated.
2) Why should one obtain a registration number?
- Legally recognized as supplier of goods or services.
- Proper accounting of taxes paid on the input goods or services which can be utilised for payment of GST due on supply of goods and/or services by the business.
- Pass on the credit of the taxes paid on the goods and/or services supplied to purchasers or recipients.
- Authorization to a taxpayer to collect tax on behalf of the Government.
3) Who should register under the GST Act?
Registration under the GST Act is mandatory if your aggregate annual PAN-based turnover exceeds a particular limit. These limits have been summarized in the below table as follows:
|Type of Supplies||Type of Taxpayers||Exemption Limit |
(Up To March 31, 2019)
(w.e.f April 1, 2019)
|Supply of goods only||Normal taxpayers||Aggregate annual turnover of up to 20 lakhs||Aggregate annual turnover increased to up to Rs. 40 lakhs|
|Special category states*||Aggregate annual turnover of up to Rs. 10 lakhs||Aggregate annual turnover increased up to Rs. 20 lakhs
|Supply of services only||Normal taxpayers||Aggregate annual turnover of up to Rs. 20 lakhs||No Change in the limits (remains the same as before)
|Special category states*||Aggregate annual turnover of up to Rs. 10 lakhs||No Change in the limits as (remains the same as before)
Special category states include the following states: Assam, Jammu and Kashmir, Himachal Pradesh, Uttrakhand, Meghalaya, Mizoram, Nagaland, Sikkim, Arunachal Pradesh, Tripura, Manipur. However, Assam and J&k.
Also, please note that once the aggregate turnover exceeds the above threshold limits one becomes liable to get a GST registration.
Normal Category States who opted for a new limit of Rs.40 lakh
|Normal Category States who choose status quo||
Special Category States who opted for new limit of Rs.20 lakh
|Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, J&K*, Assam*, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal||Kerala and Telangana||Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand|
* Two hilly states J&K and Assam have also opted to raise the limit to Rs.40 lakh. However, the above limits are not applicable and regardless of the turnover, registration is mandatory if –
- You make Inter-State Supplies
- You supply goods through an E-commerce portal
- You are a/an:
- Service Provider
- Agent for Registered Principal
- Liable to Pay Reverse Charge
- Non-resident Taxable Person
- Casual Taxable Person
- Input Service Distributor
- TDS/TCS Deductor
- E-commerce Operator
- An online data access and retrieval service provider
GST registration also gives an option for registering under composition scheme which makes the entire process of GST taxation and document requirement easy. However, this option is available only for Manufacturers of goods, Dealers, and Restaurants (not serving alcohol). However, only Businesses with annual turnover up to Rs 1.5 crore (increase in threshold limit from Rs.1 cr to Rs. 1.5cr from 1st Apr’19) can opt for composition scheme.
The composition scheme is also available to suppliers of services or mixed suppliers where the annual turnover for these service providers must be upto Rs.50 lakhs.
4) When do I need to register under the GST Act?
Within 30 days from the date when your liability arose. In case of a Casual Taxpayer or Non-resident taxable person, 5 days prior to the commencement of the business.
5) Documents Required for Registration.
- PAN card/details of your business
- Valid and accessible e-mail ID and Mobile Number
- Documentary proof of constitution of your business
- Documentary proof of promoters/partners
- Documentary proof of principal place of business
- Details of additional places of business, if applicable
- Details of Authorized Signatories including photographs and proof of appointment
- Details of Primary Authorized Signatory
- Business bank account details along with bank statement or first page of bank passbook
- Valid Class II or Class III DSC of authorized signatory in case of companies and LLPs; valid Class II or Class III DSC or Aadhaar (for E-Sign option) in case of other entities.
Note: Your mobile number should be updated with the Aadhaar authorities otherwise you cannot use the E-Sign option because OTP will be sent to the number in the Aadhaar database.
5) Compliance and Filing
Once registered, your business becomes liable to comply with GST regulations. This includes filing regular GST returns, maintaining proper records of invoices, and collecting and remitting GST to the tax authorities within the specified timeframes.
6) Ongoing Compliance
Stay updated on changes in GST regulations, filing deadlines, and compliance requirements. Keep track of your turnover to ensure you comply with any thresholds that may trigger changes in your GST registration status.
7) Seek Professional Assistance
If you are unsure about any aspect of the GST registration process or require guidance on GST compliance, consider consulting a tax professional or an accountant experienced in GST regulations. MyEfilings can help navigate the complexities and ensure proper adherence to the GST requirements.