New GST Registration

The Goods and Services Tax (GST) is a single unified tax system developed to unify Indian taxation. The introduction of GST replaced three types of taxes including VAT, Service Tax, and Central Excise which now simplifies tax responsibilities for businesses. For legal business operation under GST. Companies must complete their GST registration process. The registration process gives businesses a GSTIN which they can use to collect taxes and file returns.

Registering for GST is mandatory for some businesses depending on their turnover or operational characteristics. Businesses must understand the GST Registration procedure to avoid penalties and ensure seamless operations.

The Goods and Services Tax (GST)  functions as a single, destination-based tax that applies to product and service supplies at each stage. The Goods and Services Tax system combines several indirect taxes into one unified structure to stop tax accumulations at different points in the supply chain. GST operates throughout the supply chain starting at production and ending with the consumer's payment of the tax.

GST is divided into the following categories:

• The Central Government applies CGST for tax collection on transactions happening within a single state territory.
• The State Governments enforce SGST (State GST) against transactions taking place within their jurisdiction.
• Integrated GST is applicable to interstate transactions and imported goods.

By implementing GST, India has created a uniform tax structure, which has improved compliance and boosted revenue collection.

GST Registration is the process through which businesses register themselves under the country’s Goods and Services Tax (GST) law. Upon successful registration, a business is allotted a unique GSTIN (Goods and Services Tax Identification Number). This number is used to track GST-related transactions, including tax collection and filing of GST returns.

GST Registration is mandatory for businesses that meet specific criteria. This includes turnover limits, interstate supplies, or involvement in e-commerce. Without GST Registration, businesses cannot collect GST from their customers or claim Input Tax Credit (ITC). Failing to register when required may lead to penalties and legal consequences.

Types of GST registrations include regular registration, composition scheme registration, and casual taxable person registration, among others. The process is done online on the GST portal and involves submitting the required documents and information.

The GSTIN (Goods and Services Tax Identification Number) is a 15-digit unique identification number. It is assigned to businesses registered under GST. This number helps identify taxpayers and track their GST-related activities, such as filing returns and paying taxes. Below is the structure of GSTIN:

The 15-digit GSTIN is structured as follows:

Digits	Details
First 2 Digits	State code of the registered business (based on the state in which the business is located)
Next 10 Digits	PAN number of the registered business
13th Digit	Entity number of the same PAN holder in the same state (for example, 1, 2, etc.)
14th Digit	Default letter “Z”
15th Digit	A check code to detect errors

This GSTIN must be mentioned on invoices, GST returns, and other GST-related documentation. Businesses can also check the authenticity of GSTINs on the GST Registration portal to verify registered taxpayers.

GST Registration offers several advantages for businesses. By becoming GST-registered, businesses can legally collect GST from customers, claim input tax credits, and enhance their market credibility. Below are the key benefits:

1. Legally Collect GST: Registered businesses can collect GST from customers. They can pass on the tax credit by issuing GST-compliant invoices.
2. Claim Input Tax Credit (ITC): GST-registered businesses can claim an Income Tax rebate on the GST paid on purchases. Thus reducing their overall tax liability.
3. Expansion of Business Scope: With GST Registration, businesses can engage in interstate supply of goods and services. They can easily expand their operations without restrictions.
4. Increased Credibility: Displaying a GST Registration Certificate improves business credibility with customers, suppliers, and government agencies.
5. Access to Government Tenders: Many government tenders require bidders to have a valid GST Registration. Registering under GST enhances business opportunities.
6. E-commerce and Exports Eligibility: GST Registration is mandatory for businesses that operate on e-commerce platforms and for exporters. It provides exporters with access to tax refunds and exemptions.

Certain businesses must obtain GST Registration to comply with GST laws. Below is a list of entities and situations where GST Registration is mandatory:

Category	GST Registration Requirement
Businesses with turnover above the GST threshold limit	Businesses with annual turnover exceeding the GST limit have to mandatorily register for GST.
Interstate Suppliers	Businesses supplying goods or services across state borders have to register for GST.
E-commerce Operators	Businesses operating on e-commerce platforms
Casual Taxable Persons	Individuals or businesses with occasional taxable supplies in a state must register.
Input Service Distributors (ISD)	Businesses distributing input tax credits to their branches must register.
Non-Resident Taxable Persons	Non-residents making taxable supplies in India must register.
Agents of Suppliers	Agents making taxable supplies on behalf of suppliers must register.
Businesses Required to Deduct TDS under GST	Entities that have to deduct TDS under GST must register.

Businesses can choose from different types of GST registrations based on their nature and requirements:

Regular GST Registration:

• It is applicable for businesses that have a turnover above the GST threshold limit.
• Suitable for traders, manufacturers, and service providers.

Composition Scheme Registration:

• It is designed for small taxpayers who have an annual turnover of up to ₹1.5 crore.
• This allows businesses to pay tax at a fixed rate and file returns every quarter
• Businesses under this scheme are unable to claim input tax credit.

Casual Taxable Person Registration:

• Applicable for businesses making occasional taxable supplies in a state where they don’t have a fixed place of business.
• Registration is valid for 90 days and can be extended.

Non-Resident Taxable Person Registration:

• It is required for non-residents who offer taxable goods or services in India.
• Similar to casual taxable person registration but applicable to non-residents.

To complete GST Registration online. Businesses must submit specific documents. Below is a list of commonly required GST registration documents based on business type:

Document Type	Details
PAN Card	PAN of the business or individual (it is mandatory for all applicants).
Proof of Business Registration	Submit certificate of incorporation, partnership deed, or any other proof, as needed.
Identity and Address Proof	You can submit Aadhaar card, Voter ID, Passport, or Driving License.
Address Proof of Business Location	Electricity bill, rent agreement, or property tax receipt are accepted.
Bank Account Details	Cancelled cheque, bank statement, or passbook showing account details.
Digital Signature Certificate (DSC)	Required for companies and LLPs for signing applications online.

The GST registration process is completely online and can be completed in a few steps. Follow the detailed procedure below to register your business under GST:

Step 1: Visit the GST Portal - Visit the official GST portal at gst.gov.in and choose the ‘Register Now.’ option.

Step 2: Fill in Application’s Part A

1. Enter your PAN, mobile number, and email ID.
2. Verify the OTP you get on your mobile and email.
3. You will get a (TRN) Temporary Reference Number.

Step 3: Fill in Application’s Part B

1. Log in using your TRN.
2. Fill in the details. This include business name, PAN, location, and bank details.
3. Upload the documents required for GST registration.

Step 4: Submit the Application

1. Verify the information and submit the application. Use your Digital Signature Certificate (DSC) for authentication. 
2. You will receive an Application Reference Number (ARN). You can use this to track the application status.

Step 5: Get Your GST Number and GST Registration Certificate

Once the application is approved. You will get your unique GST registration number. Your GST registration certificate can be easily downloaded.
 

No government fees is applied for new GST Registration. The GST registration on the portal is free of charge. However, businesses may choose to seek professional assistance to ensure error-free registration and compliance.

The turnover limit for GST registration depends on business and location’s type. Below is a table explaining the GST registration threshold limits:

Business Type	GST Registration Limit (Annual Turnover)
Businesses in Normal Category States	₹40 lakh for goods along with ₹20 lakh for services.
Businesses in Special Category States	₹10 lakh for both goods and services.
Composition Scheme (all states)	₹1.5 crore for goods.

Whether a business should register under GST or not depend on its threshold limit. Business operations in India with an annual revenue exceeding Rs. 40 lakhs (or Rs. 20 lakhs in specific states) need to obtain GST registration to prevent penalty fees.

A business must follow multiple GST regulations once it completes GST Registration. These include:

• Companies must create GST-Compliant Invoices by including GSTIN, HSN codes, and all taxation information
• Regular taxpayers must prepare both monthly, quarterly and annual GST returns.
• Every business must keep proper documents about their GST transactions
• The timely payment of GST is crucial because non-payment results in charges and fines.

Businesses may apply for cancellation of GST registration under specific circumstances, such as business closure or turnover falling below the GST limit. Below are the steps to cancel GST registration

1. Log in to the GST portal.
2. Follow these steps, ‘Services’ > ‘Registration’ > ‘Application for Cancellation.’
3. Fill in the reason for cancellation and submit the application.

After approval, the GSTIN will be deactivated, and the business must stop collecting GST.

Through our service at Agile Regulatory businesses can easily manage their GST registration procedures. Our team delivers continuous support starting from creating documents to managing post-registration requirements. Our team at Agile Regulatory helps you handle all types of GST documents for proprietorship registration, GST return submission, and GST cancellation services.