Detailed overview of GST Registration in India
1. Eligibility: Who Must Register?
The requirement to register depends primarily on annual turnover and the nature of the business:
- Service Providers: Registration is mandatory if annual aggregate turnover exceeds ₹20 Lakhs (₹10 Lakhs for special category states).
- Goods Suppliers: Registration is mandatory if annual aggregate turnover exceeds ₹40 Lakhs (₹20 Lakhs for special category states).
- Compulsory Registration (Regardless of Turnover):
- Making any Inter-state taxable supply (selling from one state to another).
- Selling goods through an E-commerce platform (like Amazon or Flipkart).
- Casual Taxable Persons or Non-Resident Taxable Persons.
- Businesses are liable to pay tax under the Reverse Charge Mechanism (RCM).
2. Choosing the Right Scheme
When registering, a business must choose between two primary schemes:
- Regular Scheme:
- Can collect GST from customers and issue tax invoices.
- Eligible to claim Input Tax Credit (ITC) on all business-related purchases.
- Requires filing monthly or quarterly returns (GSTR-1 and GSTR-3B).
- Composition Scheme:
- Designed for small businesses with turnover up to ₹1.5 Crores (₹75 Lakhs for special states).
- Lower tax rates (1% for traders/manufacturers, 6% for service providers).
- Cannot collect GST from customers and cannot claim Input Tax Credit.
- Simplified compliance with quarterly payment and annual returns.
3. The Registration Process
The entire process is managed online through the GST Common Portal (www.gst.gov.in).
- TRN Generation: Fill out Part-A of the registration form using a PAN, mobile number, and email to receive a Temporary Reference Number (TRN).
- Application Submission: Use the TRN to log in and complete Part-B, providing business details, partner/director information, and proof of address.
- Verification: The application is digitally signed (using DSC or Aadhaar-based OTP).
- ARN Generation: An Application Reference Number (ARN) is generated for tracking.
- Approval: A GST officer reviews the application. If everything is in order, the GST Certificate and GSTIN are issued within 3 to 7 working days.
4. Post-Registration Compliance
Once the GSTIN is active, the business must:
- Display the GST registration certificate at the principal place of business.
- Mention GSTIN on all bills and signage.
- File timely returns even if there is “Nil” business activity during a period.