By Ariadane Fischer
GST is a single indirect tax that was formed to replace several state and central taxes in India. It refers to the tax levied on supply, be it goods or services, mainly devised to reduce the intricacies of taxation and ensure better compliance. The basics of the said law require that any person or business entity that satisfies the criteria should get registered under this regime and obtain a unique identification number called GSTIN.
A Goods and Services Tax Identification Number is a 15-digit number that identifies you as a registered taxpayer. GSTIN numbers are assigned to individuals who register to pay taxes, using the state code where the business will operate, as well as the PAN number the applicant used, the entity's number, and verification numbers. Having a GSTIN is the only way to generate tax invoices, apply for GST, submit returns, and claim input tax credit. While taxpayers can voluntarily register to obtain a GSTIN, every registered taxpayer must have a GSTIN to operate legally and obtain reimbursement for any goods or services purchased.
Registration of GST in India requires that taxpayers register in certain predefined categories, based on the type of business operation. General taxpayers do not need to register for GST before the end of the year and file general GST returns. A composition scheme is intended for smaller taxpayers; this scheme allows simpler, lower-rate compliance with tax filing, but limited benefits. Casual and non-resident taxpayers are required to register for GST for short-term and cross-border operations.
GST Registration Requirement: In India, when a business's total turnover exceeds the prescribed limits, GST registration will be necessary based on their total shipment and geographic region. If an entity sells goods and has an annual gross revenue of over 40 lakhs across all Indian states except for those defined as special categories, GST registration will be required for that business. In addition, if an entity provides services and it has an overall gross revenue of over 20 lakhs across all Indian states except for those defined as special categories, GST registration will be required for that business.
Certain businesses are required to GST registration regardless of the amount of their revenue or turnover. The GST laws also create obligations for businesses that conduct interstate trade in goods. GST laws create obligations for businesses that are conducted across geographical jurisdictions. The law states that people (e-commerce suppliers and e-commerce operators) who provide products or services via online marketplaces must also register for GST even if they are below the revenue threshold. Casual Taxable Persons who conduct sporadic business activities within a state, and the people who live and work in other countries (i.e., non-residents), have to register for GST until the completion of their business activities. Anyone who falls under the Reverse Charge Mechanism must register for and pay GST.
Furthermore, GST Laws provide specific terms and conditions for receiving 'exempt registration'. For example, Farmers who are involved only in the supply of Agricultural produce are specifically not required to register for GST. Similarly, businesses that supply only exempt services or exempt goods are not required to register for GST, because these transactions do not incur the GST.
Prior to applying to obtain a GST registration number, an applicant should ensure that they have all of the required documentation in place in order to facilitate the registration process and assist in the completion of all of the required verification processes related to the application.
Certain documents are mandatory for all applicants, irrespective of the type of business. The Permanent Account Number (PAN) of the applicant or business is essential, as GST registration is PAN-based. Aadhaar of the primary authorised signatory is required for e-KYC verification to complete the online registration process.
The application will also require the submission of valid documents for the business address, whether owned, leased, or shared. This will take the form of documents for utilities like water or electricity bills, lease documents, or ownership documents and permission from the owner if the documents have not been submitted. Bank account documents will require a cancelled cheque or a copy of a bank statement for mandatory verification. Finally, a photo needs to be submitted of the businessmen or directors.
Depending on the formation of the business, it is possible that some different set of documentation might be required. In case of a proprietorship, PAN, Aadhar, and a photograph of the proprietor may suffice. In case of a partnership concern and LLP, it is necessary to provide a copy of the partnership deed/LLP agreement, PAN of the firm, and a list of partners.
In addition to the Certificate of Incorporation, Memorandum of Association, Articles of Association, and resolution/letter of authorization for an authorized signatory to sign, Private and Public Limited Companies also require additional documentation to establish a business identity. Providing accurate documentation at the time of application may help achieve an early approval and thus prevent any delays in relation to GST.
To obtain GST registration, an applicant must complete the online GST registration procedure by completing Form GST REG-01 on the GST platform. The GST registration form will consist of separate steps that allow proper data collection and validation.
For first-time registration via the GST government site, applicants must first visit the GST government website and select the link labelled "new registration." Applicants will need to provide information about their legal business name, PAN, and contact information (mobile and email address) before receiving an OTP to verify their identity via the mobile and email address provided. Upon successful verification, a Temporary Reference Number will be generated and issued, which must be used for future correspondence regarding the application.
As soon as they have their TRN, they'll log in and complete GST REG-01 Form Part B. During this step, they will provide detailed information regarding their business. This includes the business name, its structure, and the reason for registering for GST. Additionally, they must provide information about each Promoter/Partner/Director, including PANs and Aadhaar/Directors' Identification Numbers if applicable. They must also indicate their Principal place of Business and upload proof of address.
The final step of submitting their application is through electronic verification (preferably via Aadhaar e-KYC). After completing this step of verification, they will submit their application either using their Digital Signature Certificate or Electronic Verification Code, depending on the entity type. After successfully submitting their application, an Application Reference Number (ARN) will be assigned to them, and they can use it to track the status of their GST Registration application.
After the application is submitted, the GST registration enters the verification stage, where it is examined by the tax authorities before final approval.
At this stage, the GST officer reviews the application and supporting documents submitted under Form GST REG-01. If any clarification or additional information is required, the officer issues a notice in Form GST REG-03. The applicant must respond within the stipulated time by filing Form GST REG-04 and providing the requested details or corrections. Timely and accurate responses are essential to prevent rejection or delays in the registration process.
Once the GST officer is satisfied with the application, the registration is approved, and the GST Registration Certificate is issued in Form GST REG-06. This certificate officially confirms the successful completion of the GST registration. It includes the GSTIN, which is a 15-digit alphanumeric number structured to reflect the state code, PAN of the business, entity number, and a verification digit. The GSTIN becomes the business’s official tax identity for all GST-related transactions and compliance.
Once a business is required to register for GST, failing to do so can lead to serious legal and financial consequences. Non-registration may attract penalties, interest on unpaid tax, and scrutiny from tax authorities, which can disrupt regular business operations and affect credibility.
After completing GST registration, ongoing compliance becomes a critical responsibility. Businesses must ensure the following obligations are met consistently:
Display the GST Registration Certificate prominently at the principal place of business and mention the GSTIN on invoices and official documents.
File mandatory GST returns within due dates, including monthly or quarterly returns such as GSTR-1 and GSTR-3B, along with the annual return GSTR-9, where applicable.
Issue GST-compliant invoices that clearly mention tax rates, taxable value, GSTIN, and other prescribed details to remain legally valid.
Adhering to these compliance requirements helps maintain legal standing, avoid penalties, and ensure smooth day-to-day operations under the GST framework.
GST registration is a critical step for businesses operating in India, offering legal recognition, tax transparency, and access to Input Tax Credit. Whether registration is mandatory or voluntary, completing the process correctly helps businesses operate within the law and build long-term credibility.
With expert support from Vakilsearch, by understanding eligibility, preparing the required documents, and following the online GST registration process, businesses can avoid penalties and ensure smooth compliance. Registering early and maintaining proper filings allows businesses to focus on growth while staying aligned with India’s unified tax framework.
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