GST Registration Online: Documents Required, Limit, Fees, Process, Penalty

Since its introduction on 1 July 2017, the Goods and Services Tax registration (GST) has become mandatory for all service providers, traders, manufacturers, and even freelancers in India. GST was designed to replace Central and state-level taxes such as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT, thereby streamlining the tax process and creating a more unified tax system across the country.

GST registration is essential for businesses whose turnover exceeds specific threshold limits—Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh, depending on the nature and location of the business. For certain companies, GST registration is not just necessary but mandatory. Operating without proper GST registration constitutes an offence under GST law and can lead to significant penalties.

The GST framework also provides an option for a composition scheme for taxpayers whose annual turnover is less than Rs. 1.5 crore. This scheme simplifies GST procedures, allowing eligible businesses to pay taxes at a predetermined rate based on their turnover.

The GST system is designed to operate across various stages of the supply chain, from acquiring raw materials to production, wholesale, retail, and the final sale to consumers. GST is levied at each of these stages. For instance, if a product is manufactured in West Bengal and sold in Uttar Pradesh, the GST revenue is allocated entirely to Uttar Pradesh, underscoring the consumption-based nature of GST.

GST registration typically takes 2-6 working days, depending on the business’s specifics and the completeness of the documentation provided. The charges for GST registration vary according to the business’s type and turnover, ensuring that businesses of all sizes can comply with the tax regulations efficiently.

Key Components of GST

The architecture of GST is built around three primary components, making it a robust yet complex tax system. These are the Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST). Each component caters to a specific aspect of the taxation process, ensuring that both the state and central governments have their share of revenue.

Central Goods and Services Tax (CGST): As the name suggests, CGST is the component of GST that is collected by the central government on transactions occurring within a single state (intra-state sales). The revenue collected under CGST is for the central government.

State Goods and Services Tax (SGST): Opposite to CGST, SGST is collected by the state government for all intra-state transactions. This means that every time a sale occurs within a state, the state government collects its share of taxes under SGST.

Integrated Goods and Services Tax (IGST): IGST is a more dynamic component, levied on all inter-state transactions of goods and services. This also includes imports and exports. The revenue collected under IGST is shared between the state and the central government as per the rates decided by the authorities. This mechanism ensures a seamless flow of tax credits from one state to another and maintains the integrity of being a destination-based tax.

Through these components, GST encapsulates a comprehensive approach to taxation that seeks to bring about economic unity and reduce the cascading effect of taxes, fostering a more conducive environment for business growth and compliance. The transition to GST aimed to mitigate the economic distortions caused by the previous indirect tax regime and push forward a more inclusive economic policy framework.

1. Business Entities

Any business with an aggregate annual turnover exceeding Rs. 40 lakhs must register for GST. For businesses located in special category states, the threshold limit is reduced to Rs. 20 lakhs.

2. Service Providers

Service providers with an annual turnover exceeding Rs. 20 lakhs are required to register for GST. In special category states, this threshold is lowered to Rs. 10 lakhs.

3. Exemptions

Entities that deal exclusively in GST-exempted goods or services are not required to register, regardless of their turnover.

4. Previously Registered Entities

Businesses that were previously registered under older tax systems like Excise, VAT, or Service Tax must migrate to and register under the GST framework.

5. Inter-State Suppliers

Any individual or entity involved in the supply of goods across state lines is required to register for GST.

6. Casual Taxable Entities

Those who occasionally undertake taxable supplies must also register under GST.

7. Entities under Reverse Charge Mechanism

Businesses that are obligated to pay tax under the reverse charge mechanism are required to register.

8. Input Service Distributors & Agents

Distributors of input services and their agents must register for GST to comply with the tax regulations.

9. E-Commerce Platforms

Operators and aggregators of e-commerce platforms are mandated to register under GST.

10. Non-Resident Taxable Entities

Non-resident individuals or entities engaging in taxable supplies within India must obtain GST registration.

11. Supplier’s Agents

Representatives who supply goods or services on behalf of a principal supplier are required to register under GST.

12. E-Commerce Suppliers

Entities or individuals offering goods or services through an e-commerce aggregator must register under the GST framework.

13. Online Service Providers

Entities providing online information, database access, or retrieval services from outside India to individuals in India must register, except those already registered under GST.

1. Visit GST Portal: Start by navigating to the GST official portal.
2. Fill out the Form: Complete Part-A of Form GST REG-01 of GST registration, providing your PAN, mobile number, and email address.
3. OTP Verification: Validate the OTPs sent to the provided mobile number and email to authenticate.
4. Form Submission: Fill out Part B of the form and upload the necessary documents depending on the business type.
5. ARN Generation: Upon successful submission, an Application Reference Number (ARN) is generated, which can be used to track the application status.
6. GSTIN Issuance: If the details are satisfactory, the certificate of registration with GSTIN is issued.

However, the GST registration services at MSMEStory help you to get your business GST registered and obtain your GSTIN.

MSMEStory GST experts will guide you on the applicability and compliances under GST for your business and get your business registered under GST.

Here is the comprehensive list of documents required for goods and services tax registration

• PAN of the Applicant
• Aadhaar card
• Proof of business registration or Incorporation certificate
• Identity and Address proof of Promoters/Director with Photographs
• Address proof of the place of business
• Bank Account statement/Cancelled cheque
• Digital Signature
• Letter of Authorization/Board Resolution for Authorized Signatory

New GST registration online is a complex 11-step process that involves submitting detailed business information and scanned documents. Although there are no fees required by GST law for registering on the GST portal by yourself, the process can be time-consuming and challenging.

To save time and effort, consider opting for the GST registration with MSMEStory. Our expert team will handle the entire process for you, ensuring a smooth and hassle-free registration experience from start to finish.

GST number registration can be obtained voluntarily by any person or entity, regardless of turnover. However, it becomes mandatory when the sale of goods or services exceeds a certain threshold. The online GST application process allows businesses to register quickly and conveniently.
Service Providers

Any individual or entity providing services with an aggregate annual turnover exceeding Rs. 20 lakhs must obtain GST registration. For service providers in special category states, the GST turnover limit is set at Rs. 10 lakhs.

Goods Suppliers

As per Notification No. 10/2019, any person engaged in the exclusive supply of goods must register for GST if their annual turnover exceeds Rs. 40 lakhs. To qualify for this Rs. 40 lakh threshold, the supplier must meet specific conditions:

Must not be providing any services.
Must not be engaged in intra-state supplies within states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand.
Must not be involved in the supply of ice cream, pan masala, or tobacco.

If these conditions are not met, the supplier is required to obtain GST registration once their turnover exceeds Rs. 20 lakhs, or Rs. 10 lakhs in special category states.

Special Category States

Under GST, the following are classified as special category states: Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.

Aggregate Turnover

Aggregate turnover is calculated as the sum of taxable supplies, exempt supplies, exports, and inter-state supplies, excluding taxes. It includes the value of inward supplies, supplies taxable under reverse charge, and non-taxable supplies.

This turnover is calculated based on the PAN, meaning that all business locations under a single PAN must be combined to determine the aggregate turnover.

• Goods and Services Exemptions: Certain goods and services are exempt from GST, such as basic food items (like fresh vegetables and fruits), healthcare services, and education services.
• Small Businesses: Businesses with annual turnover below the prescribed threshold limit are exempt from GST registration and compliance. For example, in most states, businesses with turnover below Rs. 40 lakhs (or Rs. 20 lakhs in special category states) are not required to register.
• Export of Goods and Services: Exports are generally zero-rated under GST, meaning they are subject to a 0% tax rate. Businesses can claim refunds on input taxes related to export activities.
• Non-Profit Organizations: Certain non-profit organizations and charitable entities may be exempt from GST on specific services they provide, such as charitable healthcare and educational services.
• Special Category States: Some states in India, categorized as special category states, have different GST thresholds and exemptions. These states include Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.
• Government Services: Certain services provided by the government, such as social welfare and public utility services, may be exempt from GST.
• Agricultural Activities: Services related to agriculture, including supply of agricultural produce by farmers, are often exempt from GST.
• Financial Services: Some specific financial services, such as the provision of insurance and interest on loans, are either exempt or subject to special rules under GST.
• Certain Real Estate Transactions: Sales of under-construction properties may be subject to GST, but sales of completed properties are generally exempt.
• Educational Institutions: Services provided by educational institutions for conducting examinations and education are often exempt from GST.
• Religious and Spiritual Services: Services provided by religious institutions and activities related to worship and spiritual practices are generally exempt from GST.

Failing to obtain GST number registration when required can result in significant penalties in India. According to the GST Act, the penalties are strict and designed to enforce compliance.

If a taxpayer is required to register under GST but fails to do so, the penalty is 100% of the tax due or a minimum of ₹10,000. The severity of the penalty depends on whether the failure to register was intentional or accidental.

In addition to this, a late fee can also be imposed for not registering or filing GST returns on time. This fee is ₹100 per day per Act (₹100 under CGST and ₹100 under SGST), totaling ₹200 per day, with a maximum cap of ₹5,000.

In severe cases where tax evasion exceeds ₹5 crore, the law also allows for prosecution, which can result in imprisonment ranging from six months to five years, along with fines.

To avoid these stringent penalties, it’s crucial for businesses to register for GST promptly and comply with all regulations.

• Visit the GST Portal: Go to the official GST website at www.gst.gov.in.

• Access the ‘Search Taxpayer’ Option: On the homepage, navigate to the ‘Search Taxpayer’ tab. You can choose between options such as ‘Search by GSTIN/UIN’ or ‘Search by PAN’.

• Enter Details:

• If you select ‘Search by GSTIN/UIN’, enter the GSTIN/UIN number of the business and fill in the captcha for verification.

• If you select ‘Search by PAN’, enter the PAN number and the captcha to proceed.

• View Results: After entering the details and the captcha, click on ‘Search’. The system will display the GST registration status of the taxpayer, along with additional details such as legal name, date of registration, constitution of business, and status of the GST registration (Active, Inactive, Suspended, etc.).

This online check is a straightforward way to verify the GST registration status of any business or taxpayer registered under GST in India.

• Log in to the GST Portal:

• Visit the GST portal at www.gst.gov.in.

• Enter your username and password to log in to the dashboard.

• Navigate to the ‘Services’ Tab:

• Once you’re logged in, click on the ‘Services’ tab on the top menu.

• Under the ‘Services’ menu, choose ‘User Services’ and then select ‘View/Download Certificates’.

• Download the Certificate:

• On the ‘View/Download Certificates’ page, you will see a list of available certificates.

• The GST Registration Certificate, referred to as ‘Form GST REG-06’, will be available there if your registration has been approved.

• Click on the ‘Download’ icon next to the registration certificate to download it to your computer.

The GST registration certificate is available in PDF format and contains all the necessary details like GSTIN, legal name, trade name (if any), address of the principal place of business, additional place(s) of business, and the date of liability. Make sure to check that all the information is correct and up to date.