What is the GST registration process?

GST Registration Process in India

GST registration is mandatory for businesses meeting certain turnover thresholds or those engaged in specific activities under the Goods and Services Tax (GST) regime. Below is the step-by-step process for GST registration in India:

Step 1: Check Eligibility

Businesses need to register under GST if they meet any of the following criteria:

1. Turnover Threshold:
   • ₹40 lakhs for goods (₹20 lakhs for special category states).
   • ₹20 lakhs for services (₹10 lakhs for special category states).
2. Mandatory Registration:
   • Inter-state supply of goods/services.
   • E-commerce operators.
   • Casual taxable persons.
   • Input Service Distributors (ISD).
   • Persons liable to pay tax under reverse charge.

Step 2: Gather Required Documents

For Individuals/Proprietors:

• PAN Card.
• Aadhaar Card.
• Passport-size photograph.
• Proof of business address (electricity bill, rent agreement, etc.).

For Businesses:

• PAN of the business.
• Registration documents (e.g., partnership deed, incorporation certificate).
• Authorized signatory’s details and photographs.
• Bank account proof (cancelled cheque, bank statement).

For Partnerships/LLPs/Companies:

• PAN of the entity.
• MOA/AOA or partnership deed.
• Directors’ or partners’ details.

Step 3: Online Registration on GST Portal

1. Visit the GST Portal:
   • Go to the official GST portal: https://www.gst.gov.in.
2. Click on “Services”:
   • Under “Services,” choose Registration → New Registration.
3. Fill Part A of GST REG-01:
   • Provide:
     • PAN details.
     • Mobile number and email (to receive OTPs).
     • State and district of your business.
4. Verification:
   • Enter the OTP received on your mobile and email.
   • A Temporary Reference Number (TRN) will be generated.
5. Log in with TRN:
   • Use the TRN to log in and fill Part B of the form.

Step 4: Submit Form GST REG-01

1. Fill Part B:
   • Enter detailed business information, including:
     • Business name and constitution.
     • Principal and additional places of business.
     • Details of goods/services supplied.
     • Bank account details.
2. Upload Documents:
   • Attach the required documents in prescribed formats.
3. E-Sign the Application:
   • Use DSC (Digital Signature Certificate) or EVC (Electronic Verification Code) for submission.

Step 5: Application Processing

1. Acknowledgment Receipt (ARN):
   • After successful submission, an Application Reference Number (ARN) will be issued for tracking.
2. Verification by Tax Officer:
   • The application is verified within 3 working days.
   • If additional details are required, Form GST REG-03 is issued.
3. Approval/Rejection:
   • If approved, GSTIN (GST Identification Number) and Certificate of Registration are issued.
   • If rejected, reasons are provided in Form GST REG-05.

Step 6: Post-Registration Steps

1. Display GSTIN:
   • Display the GST registration certificate prominently at your business premises.
2. File GST Returns:
   • Begin filing GST returns as applicable (e.g., GSTR-1, GSTR-3B).
3. Maintain Records:
   • Keep invoices and other records in compliance with GST laws.

Timeframe for Registration

• Normal Applications: Approval or rejection within 7 working days.
• Applications with Additional Documents: Processing may take longer based on compliance.

Penalties for Non-Registration

1. Businesses liable to register but fail to do so:
   • Penalty: 100% of the tax due or a minimum of ₹10,000.
2. For deliberate suppression of facts:
   • Additional penalties may apply under the GST Act.

Provisions Governing GST Registration

• Section 22 to 30 of the CGST Act, 2017: Outlines who should register, exemptions, amendments, and cancellations.
• Rule 8 to Rule 26 of CGST Rules, 2017: Details the procedural aspects of registration.

This streamlined process ensures ease of compliance and integration into the GST system.