How to Register Under GST in India: A Step by Step Guide

GST registration allows your business to function legitimately and positions your brand as trust worthy and authentic. Registering GST is very simple and may be completed using the GST Portal. It usually takes 3-4 days for filing the application and you can get your GST number within a weeks span.

But, how do you know if you are eligible to register?

Applicability & Eligibility for GST

Under the GST bill, tax is payable when a taxable person crosses the threshold limit of ₹10 lakh. CGST and SGST is to be paid by the individual on all supply of goods and services within the state. IGST is payable on all interstate transactions.

Individuals who have registered under the Pre GST law, that is, VAT, service tax and excise are eligible for GST. The agents of the suppliers of goods and input distributors can register for GST. Furthermore, people who supply goods online on e-commerce platforms are required to be registered under GST.

If in any financial year annual turnover exceeds Rs. 40 lakhs then you will have to register for GST. There is no requirement for re-registration or renewal under GST, as it has no expiry. If the business is GST registered then you can avail the benefit of Input Tax Credit where in you will have to pay only the difference between GST paid and payable by the business.

Step by Step Procedure To Register Under GST

There are 9 steps in the GST registration form. The applicant must validate the information using their Digital Signature Certificate (DSC) or E-signature (EVC), i.e., verification using Aadhaar, before submitting the last part and a few other sections of the form. It is required for Partnership firms, LLPs, and companies to use DSC for verification. Aadhaar can be used to verify ownership in cases of concern. Your registered cellphone number must be linked to your Aadhaar card because the system will issue an OTP to it during Aadhaar verification.

Step 1

Open https://reg.gst.gov.in/registration/ website for starting the GST registration process.

Step 2

First, we will have to fill Part A.

a. Select “New Registration” option and fill in the following details: Select your identity as “Taxpayer”.

b.  Select state and district

c.  Write name of your business (As mentioned on the PAN card) (In case of Proprietorship concern if separate PAN for the business is not obtained, then mention the name of the proprietor as per PAN card)

d. PAN card number of your business/proprietors PAN number.

e. Email address and mobile number (For the purpose of OTP). Select “Proceed for OTP verification.

Step 3 ‍

- OTP will be sent on your mobile number and email address.

- On the OTP verification page, fill in the OTPs received on your mobile number and email address and click “Continue”.

Step 4

- On successful verification of OTP, you will receive a “Temporary Reference Number (TRN)” on your mobile number and email address.

- The screen will display a message which says that you will have to file the Part B of the application before the specified date as mentioned in the same message.

Step 5

- Once again go to the same website to complete the Part B of the GST registration process.

Step 6

- Select “Temporary Reference Number (TRN)” option.

- Enter the TRN and the displayed captcha image.

- Select “Proceed”

- Once again you will receive a new OTP on your mobile number and email address.

- Fill the OTP and select “Proceed” for OTP verification.

Step 7

- Your application's status will be shown on the website as "Draft" and an edit icon will be visible. Select the icon.

- The form will now have ten sections for different types of information.

 - Enter the necessary information and upload the needed file.

‍Step 8

- In the last section of the form you need to verify the details of the form and submit the form for further processing. The verification can be done either by using a  DSC or EVC.

- For business types other than Proprietorship concern i.e. Company, LLP, Partnership Firm, using Digital Signature Certificate (DSC) for verification is mandatory.

- For Proprietorship concern, the proprietor can use EVC for verification i.e. the form can be verified using proprietors Aadhaar number.

Step 9

- After following all the above steps your application will be submitted with the department and you will receive an “Application Reference Number (ARN)”.

- You can check the status of your application by entering the ARN on the GST Portal.

Section wise Summary of Information in GST Registration

Section 1 - Business Details - In this section, you must provide information about your company, such as its name, its kind of entity, the district and state in which it is located, the date the company was founded, etc. It is mandatory to fill this section. 

Section 2 - Promoter/Partner details - Owners, Partners, or Directors should fill out this section with their personal information, such as name, address, and birthdate. It is mandatory to fill this section.

Section 3 - Authorized Signatory -Here, you must include information about the person who will sign the business's registration form and its GST returns (through DSC or EVC).It is mandatory to fill this section. 

Section 4 - Authorized Representative– This section applicable only if you are appointing a GST Practitioner or any other person as Authorized Representative of the business.

Section 5 - Principal place of business: The principal place of business is where the business is physically located. If the business's financial accounts are stored there or its top management is located there, an office can be considered the company's principal place of business. Here, you must include information such as the address and the kind of ownership of the property.

Section 6 - Additional place of business – If the business has more than one office, then here you need to provide its details.

Section 7 - Goods and Services – Here you need to mention the goods that you supply and its HSN code or the services that you offer and its service classification code.

Section 8 - Bank account – Here you need to provide bank account details such as account number, type of account and the IFSC code.

Section 9 - State specific information – Here you need to provide Profession Tax Employee Code number, Profession Tax Registration Certificate Number, State Excise License number and the name of the person in whose name excise license is. This information should be provided only if it is applicable to your business.

Section 10 - Verification This is where you verify and submit the form.

List of Documents Required for GST Registration

1. Photograph of the applicant

2. ID Proof (Any two)

  a. PAN CARD (Compulsory)

  b. Aadhar Card

  c. Election Card

 d. Passport

3. Constitution document:

  a. Proprietor: Shop Act Registration/Intimation.

  b. Partnership Firm: Partnership Deed, Certificate of Incorporation in case of LLP

  c. Company (Private Ltd/OPC, Public Company): Certificate of Incorporation

4. Proof of Principal Place of Business

  a. Owned: Property Tax paid receipt, Light Bill, Sale deed, Index II (Any one)

  b. Rented: Registered rent Agreement, Light bill

5. Bank Account of Business (Any one)

  a. Cancelled Cheque

  b. Copy of Bank Statement

  c. First page of Pass Book

6. Address Proof of Residence (Any one)

  a. Light Bill

  b. Telephone Bill

  c. Property Tax paid receipt

7. Digital Signature, if available

Various Types of GST Registration?

In India, there are three types of GST registration:

1. Normal GST Registration

Normal GST registration is applicable to businesses whose annual turnover exceeds a certain threshold (INR 40 lakh for most states and INR 20 lakh for special category states). Normal GST registration is mandatory for businesses that are engaged in the supply of goods and/or services.

2. Composition Scheme GST Registration

Composition scheme GST registration is applicable to small businesses whose annual turnover is below a certain threshold (INR 50 lakh for most states and INR 75 lakh for special category states). Under the composition scheme, businesses are required to pay a flat GST rate on their turnover, rather than the regular GST rate.

3. GST Registration for Non-Resident Taxable Person

‍ GST registration for non-resident taxable person is applicable to foreign businesses that are not registered in India but are engaged in the supply of goods and/or services in India. Non-resident taxable persons are required to obtain GST registration and pay GST on their supplies in India.

It is important to note that businesses must obtain the relevant GST registration based on their nature of business and annual turnover. Businesses must ensure that they comply with the GST registration requirements and renew their GST registration on time to avoid any penalties.

What are Benefits of GST Registration ?

GST registration confers several benefits to businesses in India, some of which are as follows:

1. Legal Recognition: GST registration gives legal recognition to a business and allows it to operate legally in India.
2. Input Tax Credit: GST registration allows businesses to claim input tax credit (ITC) on the GST paid on their inputs (raw materials, capital goods, etc.), which can reduce their overall tax liability.
3. Increased Credibility: GST registration increases the credibility of a business and helps it to build trust with its customers and suppliers.
4. Easier Compliance: GST registration simplifies the compliance process for businesses, as they are required to file a single GST return instead of multiple returns under different tax laws.
5. Better Credit Rating: GST registration can improve the credit rating of a business, as it demonstrates that the business is compliant with the tax laws.
6. Enhanced Market Access: GST registration can give businesses access to a larger market and allow them to expand their operations.
7. Increased Profitability: GST registration can increase the profitability of a business, as it can reduce the cost of compliance and increase the competitiveness of the business.

How to Download the GST Registration Certificate

To download the GST registration certificate, you can follow the below steps:

1. Go to the GST Portal (https://www.gst.gov.in/) and login using your GSTIN (GST Identification Number) and password.
2. After logging in, click on the "Services" tab and select "User Services" from the drop-down menu.
3. Under the "User Services" tab, click on the "View/Download Certificate" option.
4. On the next page, you will see a list of all the GST registration certificates that have been issued to you.
5. Select the GST registration certificate that you want to download and click on the "Download" button.
6. The GST registration certificate will be downloaded in PDF format. You can save the certificate on your computer or print it out.

It is important to note that you can download the GST registration certificate only if it has been issued to you. If the GST registration certificate has not been issued to you, you will not be able to download it. In such cases, you can contact the GST authorities for further assistance.

FAQ on GST Registration

Here are some frequently asked questions (FAQs) on the GST registration process in India:

Q: Who is required to obtain GST registration?

Businesses whose annual turnover exceeds a certain threshold (INR 40 lakh for most states and INR 20 lakh for special category states) are required to obtain GST registration. GST registration is mandatory for businesses that are engaged in the supply of goods and/or services.

Q: How can I apply for GST registration?

You can apply for GST registration online through the GST Portal (https://www.gst.gov.in/). To apply for GST registration, you will need to provide your personal and business details, along with supporting documents such as PAN, bank account details, and proof of business existence.

Q: How long does the GST registration process take?

The GST registration process usually takes 3-7 working days, provided all the required documents are in order. In case of any discrepancies or incomplete information, the process may take longer.

Q: Can I cancel my GST registration?

Yes, you can cancel your GST registration if you no longer want to continue your business or if your business is no longer required to be registered under GST. To cancel your GST registration, you can submit an application for cancellation through the GST Portal.

Q: What are the documents required for GST registration?

The documents required for GST registration include PAN, bank account details, proof of business existence (such as rental agreement, ownership proof, etc.), and a self-declaration stating that the business is not engaged in any fraudulent activities.

Q: Is GST registration mandatory for all businesses?

GST registration is mandatory for businesses whose annual turnover exceeds a certain threshold (INR 40 lakh for most states and INR 20 lakh for special category states). GST registration is not mandatory for businesses whose annual turnover is below the threshold. However, such businesses can opt for GST registration voluntarily.

Q: Can I obtain GST registration if I do not have a business premises?

Yes, you can obtain GST registration even if you do not have a business premises. In such cases, you can use your residence or any other suitable place as your business place.

Q: Can I obtain GST registration if I am a foreign company?

Yes, you can obtain GST registration if you are a foreign company. In such cases, you will be required to register as a non-resident taxable person.