GST Registration – An Overview
The Goods and Services Tax, popularly known as GST, was introduced on July 1, 2017, as a replacement for various central and state-level taxes, including Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT. GST introduction has since ensured the streamlining of the tax process in India. GST registration is mandatory for traders, service providers, manufacturers, and freelancers.
Taxpayers with a yearly turnover of not more than INR 1.5 Crore have the option to avail themselves of the benefits of a composition scheme. This scheme paves the way for a simplified GST process, facilitating the payment of taxes at a prearranged rate in line with their turnovers.
GST has united various indirect taxes, including VAT, service tax, and excise duty, into a unified single tax system. The consolidation of multiple taxes restructured as GST has streamlined compliance, lowered tax evasions, eliminated the domino effect of taxes, promoted the ease of doing business, and boosted the efficacy of the country’s economy.
Eligibility Criteria for New GST Registration
GST registration is essential for certain businesses and service providers. The eligibility criteria for applying for mandatory new GST registration include the following:
1. Business Enterprises – Any business that has an aggregate annual turnover of more than INR 40 Lakhs is mandated to apply for GST registration. However, for any special category state, the threshold amount is INR 20 Lakhs.
2. Service Providers – All service providers with an aggregate annual turnover of over INR 20 Lakhs must get GST registration. However, the limit for any special category states has been set at INR 10 Lakhs.
3. Exemptions – Any business or service provider dealing with goods and services exempted from the purview of the GST is not required to fulfil these thresholds.
4. Previously Registered Businesses —Businesses that were previously registered under older tax structures, such as Excise, Service Tax, VAT, etc., are required to shift to the newer GST structure.
5. Inter-State Suppliers —Any individual or business dealing with goods supplied across state boundaries must obtain GST registration.
6. Guidelines for Casual Taxable Entities –Anyone who undertakes taxable supply sometimes is also required to adhere to GST guidelines.
7. Businesses under the Reverse Charge Mechanism - Businesses that are bound by the framework to pay tax under the reverse charge must also obtain a GST registration certificate.
8. Input Service Distributors & Agents – Input service distributors and their agents or representatives are mandated to obtain registration under GST.
9. E-Commerce Platforms – All operators and aggregators delivering goods and services through e-commerce platforms must get a GST registration certificate.
10. Non-Resident Taxable Entities – Even if certain individuals and business entities are non-resident and do not reside in India but are involved in taxable dealing within India, they are required to obtain GST registration.
11. Agents of Suppliers – Anyone who is identified as a representative and supplies goods and services on behalf of the main falls under this category.
12. E-Commerce Suppliers – Any individuals or businesses, which deliver goods and services through e-commerce aggregators are also mandated to register themselves for GST.
13. Online Service Providers – All entities involved in the business of offering information online, database access, or retrieval services from outside India to any individuals in India, except for the ones who have an existing GST, are also required to obtain a GST registration certificate.
Documents Required for GST Registration
In order to ensure successful GST registration, several documents are required. The documents required for GST registration in India are showcased below:
Applicant’s PAN Card
Applicant’s Aadhaar Card
Proof of business registration/Certificate of Incorporation
Identity proof of Promoters/Director
Address proof of Promoters/Director
Photographs of Promoters/Director
Address proof of the place of business
Bank Account statement/Cancelled cheque
Digital Signature
Letter of Authorization/Board Resolution for Authorized Signatory
GST Registration Timeline
GST registration is mandatory for certain businesses to maintain legal, regulatory, and operational transparency in India. The timeline for getting GST registration approval is 7 to 10 working days. Completing the entire registration process takes around 30 days.
Frequently Asked Questions
- What is GST?
- Is Registration is Mendatory in India?
- Is GST Registration Certificate is Mendatory?