Advantages of GST Registration
- Take input tax credit
- Make interstate sales without restrictions
- Register on e-commerce websites
- Limited compliance
- Less tax liability
Eligibility for GST Registration
- Turnover exceeding ₹40 lakhs for goods suppliers
- Turnover exceeding ₹20 lakhs for service providers
- Voluntary registration option available
- Businesses involved in interstate sales
- Non-resident taxable persons
How to Get GST Registration?
GST (Goods and Services Tax) is a taxation system applicable to both goods and services, ensuring a transparent tax framework. It was introduced on 1st July 2017, bringing a multi-stage, destination-based tax that applies to every value addition. GST follows the "One Nation, One Tax" principle, with tax slabs ranging from 0% to 28%.
Businesses engaged in the supply of goods or services must register under GST. Without registration, they cannot legally collect GST or claim an input tax credit.
GST Turnover Limits
Certain entities must register for GST regardless of turnover, such as:
- Casual taxable persons (businesses operating temporarily in a state)
- Businesses selling via e-commerce platforms
- Non-resident taxable persons
For regular businesses, the turnover limits are:
- Goods Suppliers:
- Registration mandatory if turnover exceeds ₹40 lakhs (for normal states)
- Registration mandatory if turnover exceeds ₹20 lakhs (for special category states)
- Service Providers:
- Registration mandatory if turnover exceeds ₹20 lakhs (for normal states)
- Registration mandatory if turnover exceeds ₹10 lakhs (for special category states)
Special Category States under GST:
- Arunachal Pradesh
- Assam
- Jammu & Kashmir
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Sikkim
- Tripura
- Himachal Pradesh
- Uttarakhand
Aggregate Turnover Calculation:
Aggregate Turnover under GST = (Taxable Supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Reverse Charge Supplies + Non-Taxable Supplies)
Since turnover is PAN-based, all businesses under the same PAN must be considered.
Voluntary GST Registration
Businesses below the turnover threshold can opt for voluntary GST registration for:
- Better business credibility
- Meeting B2B customer requirements
- Claiming input tax credit benefits
Documents Required for GST Registration
To register for GST, businesses must submit the following documents:
1. PAN Card
- PAN is mandatory for GST registration as it links the business to taxation.
2. Identity & Address Proof
Accepted identity proof documents:
- Passport
- Voter ID
- PAN Card
- Aadhaar Card
- Driving License
Accepted address proof documents:
- Aadhaar Card
- Passport
- Driving License
- Voter ID
- Ration Card
Persons required to submit identity & address proof:
- Proprietorship: Proprietor
- Partnership Firm / LLP: All partners (photos required for up to 10 partners)
- Company: Managing Director, Directors, and Authorized Signatory
- Trust: Managing Trustee and Authorized Person
- Local Authority / Statutory Body: CEO or equivalent
- Association of Persons / Body of Individuals: Members of the Managing Committee
3. Business Registration Document
- Required for companies, LLPs, trusts, and partnerships.
- Not required for sole proprietorships, as the owner and business are the same entity.
4. Proof of Business Address
Depending on the business premises, the following documents are required:
- Owned Premises: Property Tax Receipt / Municipal Khata / Electricity Bill
- Rented/Leased Premises: Rental agreement and property owner's proof (e.g., electricity bill)
- SEZ Premises: Government-issued documents confirming SEZ registration
- Other Cases: Consent letter from the premises owner along with ownership proof
5. Bank Account Proof
- Scanned copy of either:
- First page of passbook
- Bank statement
- Cancelled cheque with account details
Once all necessary documents are submitted and verified, GST registration is processed, and the business receives a GSTIN (GST Identification Number).