Understanding GST Registration: Who Needs to Register?

GST registration is a crucial step for businesses and individuals engaged in the supply of goods or services in India. It enables you to collect GST from your customers, claim Input Tax Credit (ITC), and remain compliant with the law.

Mandatory GST Registration Threshold Limits (2025)

The requirement for GST registration primarily depends on your aggregate annual turnover. Here’s a breakdown of the current limits:

• For Supply of Goods: If your aggregate turnover exceeds ₹40 Lakhs in a financial year.
• For Supply of Services: If your aggregate turnover exceeds ₹20 Lakhs in a financial year.
• Special Category States: For certain states (e.g., North-Eastern states, Uttarakhand, Himachal Pradesh), the turnover limit for goods is ₹20 Lakhs and for services is ₹10 Lakhs. Always verify the specific limit for your state for GST registration.

When is GST Registration Mandatory, Irrespective of Turnover?

Even if your turnover doesn’t cross the above thresholds, GST registration is mandatory in the following cases:

• Businesses making inter-state taxable supplies of goods or services.
• Casual Taxable Persons and Non-Resident Taxable Persons.
• Persons required to pay tax under the Reverse Charge Mechanism (RCM).
• E-commerce operators and suppliers selling through e-commerce platforms.
• Input Service Distributors (ISD).
• Persons required to deduct TDS or collect TCS under GST.
• Agents of a supplier.

Pro Tip: Even if not mandatory, voluntary GST registration can be beneficial for claiming ITC and building trust with B2B clients.

Essential Documents Required for GST Registration (2025)

Having all the necessary documents ready beforehand can significantly expedite your GST registration process. Here’s a detailed list based on your business constitution:

1. Common Documents for All Business Types:

• PAN Card: Of the business entity or the proprietor/partners/directors.
• Aadhaar Card: For Aadhaar authentication, which can lead to quicker approval.
• Proof of Business Address (Principal Place of Business):
  • Owned Premises: Latest Property Tax receipt, Municipal Khata copy, Electricity Bill, Water Bill, or Sale Deed. (Only one ownership document is usually required).
  • Rented/Leased Premises: Valid Rent/Lease Agreement (registered or unregistered), along with an Electricity Bill or property tax receipt of the lessor, and Consent Letter/NOC from the owner (if electricity/water bill is not in the applicant’s name). Identity proof of the lessor is usually required for unregistered agreements.
  • Shared Premises (including family-owned): Consent letter from the owner along with their identity proof and one document establishing their ownership (e.g., electricity bill, property tax receipt).
• Bank Account Details: Copy of cancelled cheque or extract of bank passbook/statement showing the name of the account holder, account number, MICR, IFSC code, and branch details.
• Photograph: Recent passport-sized photograph of the proprietor/partners/directors/authorized signatory (usually in JPEG format, max 100 KB).

2. Specific Documents Based on Business Constitution:

• Proprietorship: PAN and Aadhaar of the proprietor.
• Partnership Firm / LLP:
  • PAN card of all partners (including managing partner and authorized signatory).
  • Copy of Partnership Deed.
  • For LLP: Certificate of Incorporation (COI) and LLP Agreement.
  • Proof of appointment of authorized signatory.
• Company (Private/Public/OPC/Foreign):
  • Company’s PAN Card.
  • Certificate of Incorporation (COI) issued by MCA.
  • Memorandum of Association (MOA) and Articles of Association (AOA).
  • PAN card and address proof of all directors.
  • Board Resolution or other proof of appointment of authorized signatory.
• HUF (Hindu Undivided Family): PAN card of HUF, PAN card and Aadhaar card of Karta.
• Society/Trust/Club/Government Department/AOP/BOI: Registration Certificate/Proof of Constitution.

Step-by-Step Stages of Online GST Registration

The GST registration process is largely online and involves a few key stages. Here’s a simplified breakdown:

1. Visit the Official GST Portal: Go to www.gst.gov.in and click on “Services” > “Registration” > “New Registration”.
2. Part A – Basic Information:
   • Select “New Registration” and choose “Taxpayer” type.
   • Fill in your State, District, Legal Name of Business (as per PAN), PAN, Email Address, and Mobile Number.
   • Verify your Email and Mobile Number using OTPs.
   • Upon successful verification, a Temporary Reference Number (TRN) will be generated. Note this down for future steps.
3. Part B – Business Details and Document Upload:
   • Log in to the GST Portal again using your TRN.
   • You’ll see your application in “Draft” status. Click the “Edit” icon.
   • Complete various sections including Business Details, Promoters/Partners, Authorized Signatory, Principal Place of Business, Goods & Services (HSN/SAC codes), Bank Accounts, and State Specific Information.
   • Upload Required Documents: Ensure all documents are clear, legible, and in the prescribed format (usually JPEG/PDF, max size 100 KB).
   • Aadhaar Authentication: Opt for Aadhaar authentication for faster processing of your GST registration. This involves OTP verification on your Aadhaar-linked mobile number.
4. Verification and Submission:
   • Verify all the entered details thoroughly.
   • Submit the application using Electronic Verification Code (EVC – via OTP to registered mobile/email) or Digital Signature Certificate (DSC – mandatory for companies/LLPs).
5. Application Reference Number (ARN) Generation:
   • Upon successful submission, an Application Reference Number (ARN) will be generated and sent to your registered email and mobile number.
   • You can use this ARN to track the status of your application on the GST Portal.
6. Verification by GST Officer:
   • A GST officer will review your application. They may request additional information or clarification within a few working days.
   • Respond promptly to any queries by filing Form GST REG-04.
   • In some cases, physical verification of the business premises might be initiated, though this is less common now with Aadhaar authentication.
7. GSTIN Issuance and Certificate:
   • Once the application is approved, your unique 15-digit Goods and Services Tax Identification Number (GSTIN) will be generated.
   • You can download your GST Registration Certificate (Form GST REG-06) from the GST Portal.

How Much Time Does GST Registration Take?

The time required for GST registration can vary depending on several factors, primarily the accuracy of your application and whether you opt for Aadhaar authentication:

• With Aadhaar Authentication: Typically, approval can be received within 3-7 working days, provided all information is accurate and no discrepancies are found.
• Without Aadhaar Authentication (or if clarification is sought): The process may take longer, potentially ranging from 7 to 30 working days or more, if a physical verification or further clarifications are required by the GST officer.

Key factors influencing GST registration approval time:

• Accuracy and completeness of submitted information.
• Clarity and validity of uploaded documents.
• Timely response to any queries raised by the GST authorities.

It’s always advisable to apply for GST registration well in advance of when you expect to cross the turnover threshold.

GST for Export of Services: Special Considerations

If you are involved in the export of services from India, understanding the GST implications is crucial. Export of services is considered a “zero-rated supply” under GST, meaning no GST is levied on such supplies, and exporters can claim a refund of Input Tax Credit (ITC).

Conditions for “Export of Service”:

For a service to qualify as an “export of service” under GST, it must meet all the following conditions:

• The supplier of service is located in India.
• The recipient of service is located outside India.
• The place of supply of service is outside India (as per Section 13 of IGST Act).
• The payment for such service is received by the supplier in convertible foreign exchange (or in Indian rupees where permitted by RBI).
• The supplier and recipient of the service are not merely establishments of a distinct person.

GST Registration for Exporters of Services:

Even if your aggregate turnover is below the threshold limits, if you are making “export of services” or any inter-state supply, GST registration is mandatory.

Claiming Refunds for Export of Services:

Exporters of services have two options to claim refunds of ITC:

1. Export under LUT (Letter of Undertaking) without paying IGST: You can export services without paying IGST, and then claim a refund of the unutilized ITC on inputs/input services used for such exports. This requires filing a Letter of Undertaking (LUT) in Form GST RFD-11.
2. Export with IGST payment: You can pay IGST on the export of services and then claim a refund of the IGST paid.

Ensure proper invoicing (mentioning “export under LUT” or “export with IGST paid”) and maintain all supporting documents like FIRC (Foreign Inward Remittance Certificate) or BRC (Bank Realization Certificate).

Penalties for Non-Compliance with GST Registration

Non-compliance with GST regulations, especially regarding GST registration, can lead to significant penalties. It’s vital to be aware of these to ensure your business remains on the right side of the law.

• Failure to Register: If a taxable person fails to register under GST despite being liable to do so, a penalty of 10% of the tax due or ₹10,000, whichever is higher, can be levied. In cases of deliberate fraud, the penalty can go up to 100% of the tax due.
• Late Registration: While there isn’t a specific “late registration” fee, if you register late, you will be liable to pay all the tax due from the date your liability to register arose, along with interest and applicable penalties related to GST registration non-compliance.
• Incorrect/False Information: Providing wrong information during GST registration can also attract penalties.
• Failure to File Returns (after registration): Even if registered, failing to file NIL returns or regular returns on time incurs daily late fees (e.g., ₹50 per day for GSTR-1 and GSTR-3B, with limits). This can accumulate quickly.

The government is continually tightening GST compliance, with measures like Multi-Factor Authentication (MFA) and stricter E-Way Bill rules. Staying updated and compliant with your GST registration is paramount to avoid financial and legal liabilities.

Why Choose Tax2Save.in for Your GST Registration?

At Tax2Save.in, we understand the complexities of GST registration and GST regulations, and strive to make the process seamless and stress-free for you. Our team of experienced professionals provides:

• Expert guidance on GST registration requirements and eligibility.
• Assistance with document compilation and verification.
• Efficient online application filing and follow-up.
• Proactive communication regarding application status and queries.
• Comprehensive support for GST compliance, including return filing and advisory.

Let us handle the intricacies of GST registration so you can focus on growing your business. Get your GSTIN hassle-free with Tax2Save.in!