GST Registration Process

Table of Content

Introduction to GST

Goods and Services Tax (GST) is an established one unified indirect tax structure in India to simplify indirect taxes. Introduced in 2017, GST replaced VAT, service tax, and excise duty and is used to simplify or clarify the tax system. Running a business in India involves legality and efficiency, thus GST registration is essential. This blog includes all you need to know about the GST registration process, including eligibility, paperwork requirements, charges, dates, and answers to frequently asked questions.

What is GST and Why Do You Need It

What is GST

Goods and Services Tax, or GST, stands for Applied to Indian sales of goods and services, it is a single, indirect tax. Among other earlier taxes, GST replaced VAT, excise duty, and service tax. It is meant to establish consistency and openness in the national tax system.

Why Do You Need GST Registration?

Legal Requirement: Legal requirements for GST registration follow from your company's turnover surpassing the designated level.
Input Tax Credit (ITC): Purchase of products or services for your company results in GST payment. Should you be registered, you can claim this amount as a credit, therefore lowering your total tax load.
Nationwide Business: If you wish to sell your goods or services across various states you’ll need to acquire a GST number.
Credibility: Customers and suppliers trust businesses with GST numbers.

Who is Eligible for GST Registration

Mandatory Registration

You are required to register for GST if:

Business Turnover:
- Goods: Turnover exceeds ₹40 lakh annually (₹20 lakh for special category states).
- Services: Turnover exceeds ₹20 lakh annually (₹10 lakh for special category states).
Interstate Business: If you supply goods or services across state borders.
Special Cases:
- Casual taxable persons (e.g., seasonal businesses).
- Non-resident taxable persons.
- E-commerce operators like Amazon or Flipkart sellers.
- Agents of suppliers or input service distributors.
- Businesses under reverse charge mechanism.

Voluntary Registration

If you choose to opt in to GST unnecessary, you may still be able to receive input tax credit and improve the reputation of your business even if your turnover falls below the level.

GST Registration Process: Step by Step Guide

Step 1: Generate a Temporary Reference Number (TRN)

Visit the GST Portal: Visit gst.gov.in > Services > Registration > New Registration.
Enter Details:
- Select ‘Taxpayer’.
- Choose your State and District.
- Enter your Legal Name as per PAN.
- Provide your PAN, Mobile Number, and Email.
- Fill in the CAPTCHA and click ‘Proceed’.
OTP Verification:
- You will receive OTPs on your registered mobile and email.
- Enter the OTPs and click ‘Continue’.
TRN Generation:
- You will be given a 15-digit Temporary Reference Number (TRN), that will be verified after.
- Save the TRN for future use.

Step 2: Complete the GST Application

Log in with TRN:
- Return to the GST portal and select ‘Temporary Reference Number (TRN)’.
- Enter your TRN and the CAPTCHA code.
- Verify using the OTP sent to your registered mobile/email.
Fill Business Details:
- Enter your Trade Name and select the Constitution of Business (e.g., Proprietorship, Partnership).
- Specify if you want to opt for the Composition Scheme (for small taxpayers).
Promoter/Partner Details:
- Provide details of Promoters/Partners (Name, PAN, Address).
- Upload their Photographs and ID Proofs (Aadhaar, PAN).
Authorized Signatory: Appoint an Authorized Signatory and provide their details.
Principal Place of Business: Enter the Business Address and upload address proof (e.g., rent agreement or electricity bill).
Additional Places of Business (if applicable): Add details of other business locations.
Goods and Services: List up to 5 goods/services you deal in, along with their HSN/SAC codes.
Bank Account Details:
- Enter your Bank Account Number and IFSC Code.
- Upload a Canceled Cheque or Bank Statement.
Verification:
- Select the verification method:
  - Electronic Verification Code (EVC)
  - Digital Signature Certificate (DSC)
  - e-Sign
Submit Application: Agree to the declaration and submit your application.
Receive ARN: You will get an Application Reference Number (ARN) by SMS and email once uploaded.

Documents Required for GST Registration

The documents you need depend on your type of business. Here’s a handy list:

For Proprietorship

PAN Card and Aadhaar Card of the proprietor.
Photograph of the proprietor.
Address Proof (e.g., electricity bill, rent agreement).
Bank Account Proof (canceled cheque or statement).

For Partnership Firm

Partnership Deed.
Photographs and ID Proofs of partners.
Address Proof of the firm.
Bank Account Proof.

For Company

PAN Card of the Company.
Certificate of Incorporation.
Board Resolution for Authorized Signatory.
Photographs and ID Proofs of Directors.
Address Proof and Bank Account Proof.
MOA and AOA (Memorandum and Articles of Association).

How Long Does GST Registration Take?

Processing Time: Usually, GST registration calls for three to seven working days.
Instant Registration: If documents are in order, likely it may be approved in some cases within a day.
Delays: Approval might take longer if the documents aren’t consistent.

Frequently Asked Questions

1. How much time does GST registration take?

Usually, GST registration calls for three to seven working days. Sometimes it can be accepted in a day if all the records are accurate and no differences exist.

2. What is the process of registration in GST?

The GST registration process involves:

Visiting the GST portal gst.gov.in.
Completing the 'New Registration' form and getting a Temporary Reference Number (TRN).
Logging in with the TRN and completing the application with business details and documents.
Submitting the application and verifying it via EVC, DSC, or e-Sign.
Receiving an Application Reference Number (ARN) to track your application.

3. Who are eligible for GST?

GST registration is mandatory for:

Companies having yearly products turnover exceeding ₹40 lakh and services turnover ₹20 lakh (₹10 lakh for special category states).
Those involved in interstate supply of goods/services.
E-commerce sellers, casual taxable persons, and non-resident taxable persons.
Businesses paying taxes under the reverse charge mechanism.

4. How much does GST registration cost?

Using the official GST portal guarantees free GST registration. Depending on the intricacy, prices usually run between ₹1,000 and ₹5,000 if you engage a consultant or Chartered Accountant (CA).

5. Can I apply for GST without a shop?

Indeed, you may register for GST even without running a real store. Additionally qualified for GST registration are home-based companies, independent contractors, and internet vendors.

6. What is the registration of GST PDF?

Once your application is accepted, the GST Registration Certificate (Form GST REG-06) is accessible as a PDF file. Using your login details, you may download it from the GST portal.