A Practical Guide to GST Registration in India

May 23, 2024
Updated on

Goods and Service Tax – GST

A tax on products and services used in India is known as the Goods and Service Tax (GST). In India, the service tax, VAT, and excise duty have all been replaced with the GST, an indirect tax. Based on the Goods and Service Tax Act, which was approved by the Indian Parliament on March 29, 2017, GST became effective on July 1st, 2017.

The Goods and Services Tax (GST) has three tax components: the Central Component (CGST), which is the Goods and Service Tax, and the State Component (SGST), which is the State Goods and Service Tax. Both the Center and the State will levy GST on all entities when a transaction takes place within a state. When a transaction occurs from one state to another across state lines, the Integrated Goods and Service Tax (IGST), which will be imposed by the centre, will apply.

Who Qualifies for GST Registration?

In accordance with GST regulations, businesses that sell goods and generate revenues of INR 10 lakhs or more in Manipur, Mizoram, Tripura, and Nagaland; INR 20 lakhs or more in Arunachal Pradesh, Meghalaya, Sikkim, Telangana, Uttarakhand, and UT Puducherry; and INR 40 lakhs or more in the remaining 21 states and 5 Union Territories (aside from UT Puducherry) are required to register as regular taxable persons.

The revenue cap is INR 20 lakhs for enterprises operating in Arunachal Pradesh, Meghalaya, Sikkim, Telangana, Uttarakhand, Puducherry, and the other 21 states and 5 UT. The revenue cap is INR 10 lakhs for companies operating in Mizoram, Tripura, Manipur, and Nagaland.

Types of GST Registrations

Different methods of GST registration are permitted by the GST Act. Before choosing the right GST registration, you must be aware of the various types available. The various GST registration types include

Normal Tax Payer

The majority of companies in India fall under this category. To become a regular taxpayer, you are not required to make any kind of deposit. Additionally, there is no limitation for taxpayers who fit under this category.

Casual Taxable Person

A casual taxable person is one who occasionally provides goods and services in a State or Union Territory where the entity does not have a fixed place of business, according to the GST Act. As a result, individuals operating transient businesses at fairs and exhibitions or seasonal enterprises would be considered casual taxable persons under the GST.

Non-Resident Taxable Person

This sort of GST registration should be chosen by people who reside outside of India although supply commodities to people who reside in India. Similar to the Casual Taxable Person category, an individual is required to make a deposit during the time that the GST registration is active which is equal to the anticipated GST liability. Normally, this kind of GST registration lasts for three months, however at the time of expiration, it can be renewed or extended.

E-Commerce Operators

An electronic commerce operator is a person who owns, manages, or maintains a digital or electronic facility or platform for electronic customers. Therefore, regardless of business revenue, anyone selling online can be considered an E-commerce Operator and must register for GST.

GST Registration Exemptions

The following people and organizations are exempt from registering for GST

  • Agriculturists
  • Businesses who fall under the Threshold Exempt Limit
  • Businesses making Nil-Rated/ Exempt supplies of goods and services
  • Businesses making Non-taxable/ Non-GST supplies of goods and services
  • Businesses manufacturing supplies which come under reverse charge

Features of GST Registration

  1. GST registration is state-specific and PAN-based.
  2. Someone who is registered in one state is considered as an “unregistered person” in another.
  3. If a person owns a unit in a Special Economic Zone (SEZ) or is an SEZ developer and also owns a unit in a domestic tariff area (outside the SEZ) within the same state, they are required to register the SEZ separately.
  4. In each state or union territory where they provide services, suppliers are required to register.
  5. At both their primary place of business and each additional business location, all registered individuals are required to show their registration certificates and GSTIN.
  6. A PAN-based legal entity will only have one GSTIN per state, which means that a company with branches in numerous states will need to register separately in each state. An individual who owns businesses in a state or Union Territory, however, will be issued a separate registration for each location.
  7. Since there is only one registration for all taxes, including IGST, CGST, SGST/UGST, and cesses, the GST registration is not tax-specific.

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Benefits of GST Registration

Following are some benefits of GST registration.

1. Reduces Number of Compliances:

Each tax had its separate returns and compliances in the past. Since the implementation of the GST, compliance has dropped. Only a single unified return needs to be submitted.

2. Composition Schemes for Small Firms:

The burden of taxes and compliance is now lighter for many small firms. Composition plans may also be advantageous for small businesses, which are classified as those with annual turnover between INR 20 lakhs and INR 75 lakhs.

3. Transparent in Nature:

For registered retailers, the GST provides an open and transparent tax system with no additional charges or taxes. As a result, business expenses are reduced.

4. Input Tax Credit:

When a customer makes a supply, an entity that has registered for GST is allowed to charge them GST, which they can then use to offset any taxes they owe on products and services they have already purchased. Therefore, GST registration lowers taxes and increases profit margins.

5. Supplier Onboarding:

Online sales require GST registration, which is also frequently required for the supplier onboarding procedure. As a result, registering for GST can help you expand your business.

6. Favorable effect on creditworthiness:

Implementation of GST, will automatically move small businesses into the organized sector with correct and regular income declaration. Hence, it will boost the creditworthiness of the business.

How to Conduct Online GST Registration?

GST registration can easily be completed via the online GST Registration Portal. In order to register their business, the owners can fill out an application on the GST portal by providing the required paperwork. 

The Goods and Service Tax Identification Number (GSTIN) is given following the completion of the registration process. The Central Government provides the 15-digit GSTIN, which aids in determining if a business is required to pay GST.

GST Registration Procedure

Note: The process for registering for GST for businesses should be completed by qualifying businesses. Carrying out operations without registering for GST is against the law, and there are severe consequences for non-registration.

How to download the GST Registration Certificate?

The process is explained below to download the GST registration certificate.

  1. Visit the GST portal: https://www.gst.gov.in/
  2. On the right-hand side, click on “Login”.
  3. On the next screen, enter your username and password.
  4. Click on “Services”.
  5. Select “User Services”
  6. Click on “View/Download Certificates”
  7. On the next screen, click on “Download”.

This will download the GST certificate which contains all the transaction details.

GST Filing

An official document known as a GST return contains information on all purchases, sales, taxes paid on purchases, and taxes collected on sales. After filing the GST returns, the tax payer is next needed to settle their tax debt.

How to File GST Returns

The information on each GSTR form will automatically populate when GST returns are filed online using the software or apps offered by the GSTN. The steps for submitting a GST return online are listed below.

  1. Visit the GST portal.
  2. Based on your PAN and state code, a 15-digit identification number will be assigned to you.
  3. On the GST portal or on the software, upload the invoices. For each invoice, a reference number will be issued.
  4. Outgoing returns, incoming returns, and cumulative monthly returns must all be filed online after invoices have been uploaded. You have the option of fixing any errors and resubmitting the returns.
  5. File the GSTR-1 outward supply returns through the GST Common Portal’s information section.
  6. In GSTR-2A, the recipient will receive information on the outward supply that the supplier provided.
  7. In addition to filing information about credit or debit notes, the recipient is required to check, confirm, and modify the details of outward supplies.
  8. In the GSTR-2 form, the recipient must include details about the inward supply of taxable goods and services.
  9. The revisions to the inward supplies details provided by the recipient in GSTR-1A may be accepted or rejected by the receiver.

Types of GST Returns

Sr. No.Return FormDescriptionFrequencyDue Date
1GSTR -1Information on taxable items and/or services affected by outward suppliesMonthly
11th of the next month
Quarterly (If chosen under the QRMP scheme)
13th of the following month after the quarter
QRMP – Quarterly Returns with Monthly Payments
2IFF (Optional by taxpayers under the QRMP scheme)Information on affected B2B supplies of taxable products and/or services.Monthly (For the first two months of the quarter)13th of the upcoming month.
3GSTR – 3BWith the payment of tax by the taxpayer, a summary return of outgoing supplies and claimed input tax credits are submitted.Monthly20th of the upcoming month.
Quarterly (For taxpayers under the QRMP scheme)22nd or 24th of the upcoming month.
4CMP – 08According to Section 10 of the CGST Act, a taxpayer registered under the composition scheme must submit a statement-cum-challan in order to pay taxes.Quarterlythe 18th of the following month after the quarter.
5GSTR – 4Return for a taxpayer who registered under Section 10 of the CGST Act’s composition system.Annually30th of the month succeeding the financial year.
6GSTR – 5Return to be submitted by a non-resident taxpayer.Monthly20th of the upcoming month.
7GSTR – 5AReturn to be filed by non-resident OIDAR service providers.
*OIDAR- Online Information Database  Access and Retrieval
Monthly20th of the upcoming month.
8GSTR – 6Return for an input service distributor to give its branches the eligible input tax credit.Monthly13th of the upcoming month.
9GSTR – 7Return to be filed by persons registered and deducting tax at source (TDS).
*TDS – Tax Deducted at Source
Monthly10th of the upcoming month.
10GSTR – 8Return that e-commerce operators must provide with details about the relevant supplies and the amount of tax they have collected at source.Monthly10th of the upcoming month.
11GSTR – 9Regular taxpayer’s annual returnAnnually 31st December of the next financial year.
12GSTR  – 9CSelf-certified declaration of reconciliation.Annually31st December of the next financial year.
13GSTR – 10The taxpayer whose GST registration is cancelled must submit their final return.Once, upon cancellation or surrender of the GST registration.three months after the cancellation date or the date of the cancellation order, whichever comes later.
14GSTR – 11A person with a UIN who is requesting a refund must provide information regarding inside supplies.
*UIN – Unique Identification Number
Monthly28th of the month following the month for which the statement is filed.
15ITC – 04A principal or job worker must make a statement on the specifics of any products sent to or received by a job worker.Annually (For AATO up to INR 5 crores)25th April
Half-yearly (For AATO > INR 5 crores)25th October and 25th April
AATO – Annual Aggregate Turnover


Owners of Micro Small and Medium Enterprises (MSMEs) who used to individually pay VAT and service tax are now simply required to pay GST. This simplifies invoicing and removes the need to keep track of taxation variations between various commodities and services since everything can be grouped into a few general categories. For MSMEs, the GST rate has represented a significant reduction in transportation expenses, this is due to the fewer border inspections, which also makes transportation more efficiently possible.

You may quickly determine your GST liability with the use of a GST calculator! To calculate the amount of GST you owe, just input the specifics of your business and its annual revenue in the GST Calculator available on Kinara Capital’s website.

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  1. Is GST Registration mandatory?

Yes, each and every qualifying firm must register for GST. The GoI introduced the necessity for business registration in India. Even companies that used the previous indirect taxation system must register for GST.

  1. What is the threshold limit for GST Registration?

Businesses that sell goods and generate more than INR 10 lakhs in revenue in Manipur, Mizoram, Tripura and Nagaland; INR 20 lakhs in Arunachal Pradesh, Meghalaya, Sikkim, Telangana, Uttarakhand, and UT Puducherry; and revenue of INR 40 lakhs in the remaining 21 states and 5 Union Territories (except UT Puducherry) are required to register as regular taxable persons.

  1. What is the validity of GST registration?

GST registration never expires. It will therefore remain in effect until it is revoked, returned, or suspended. The only GST that has a validity period is for non-resident taxable people and casual taxpayers, and it is set by the authorities when the GST registration certificate is issued.

  1. Is it possible to obtain multiple GST registrations within one state?

Yes, it is possible to obtain several GST certifications within the state. For a company with various business sectors and products, this would be feasible.

  1. What is the meaning of GSTN?

The acronym GSTN stands for Goods and Service Tax Network. It is a type of section 8 corporation that was created with a non-profit purpose.

For the GSTN’s indirect tax requirements, these organizations offer innovative solutions.

  1. What is a reverse charge?

Reverse charge is a technique where the person who receives the products is responsible for paying GST. When the receiver is not a registered user under the GST system, this is generally the case.

  1. What happens when the GST registration is completed?

After the GST registration process is finished, you will be given a certificate of GST registration as well as a valid GSTIN. You are now qualified to submit GST returns and make an input tax credit claim.

  1. What is GSTIN?

A Goods and Service Tax Identification Number (GSTIN) is an identification number given after GST registration. For purposes of verification, such a number is regarded as an exclusive identifying number. The applicant is given access to this number so they can use it in the portal.

  1. Can someone collect GST if they are not registered with the GST?

No, only those who have registered for GST are permitted to collect GST. A person cannot receive an input tax credit for GST paid if they are not registered for GST.

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