GST Registration: Process, Requirements, & Eligibility

GST registration is essential part of businesses in India. If your business revenue surpasses notified threshold limit or belongs to specific categories of goods or services that require mandatory GST registration, it’s imperative to register under GST. DisyTax can assist you in obtaining your GST registration seamlessly.

Contact DisyTax today to streamline your GST registration process!

Overview of GST Registration online

Since its introduction on 01 July 2017, the Goods & Services Tax (GST) has been mandatory for all service providers, traders, manufacturers, and even freelancers in India. The GST system was implemented to replace Central and state-level taxes such as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT, making the tax process more streamlined

For those taxpayers whose annual turnover is less than 1.5 crore, the GST framework provides an option for a composition scheme. This scheme allows them to undergo simplified GST procedures and pay taxes at a predetermined rate according to their class of Goods or Services.

The GST mechanism operates throughout various stages of the supply chain. This includes acquiring raw materials, production, wholesale, retail, and the eventual sale to the end consumer. Notably, GST is imposed at every one of these steps. For example, when a product is produced in Bihar and then used in Uttar Pradesh, the GST revenue generated is allocated entirely to Uttar Pradesh, emphasizing the consumption-based tax.

Key Components of GST Registration

The Goods and Services Tax (GST) in India is structured around three primary components:

• Central Goods and Services Tax (CGST):

  This tax is levied by the Central Government on the supply of goods and services within a particular state. CGST applies to transactions carried out entirely intrastate.

• State Goods and Services Tax (SGST):

  SGST is charged by the State Government on the supply of goods and services within its jurisdiction. Similar to CGST, SGST is also limited to transactions happening within intrastate.

• Integrated Goods and Services Tax (IGST):

  This tax is imposed by the Central Government on the supply of goods and services that occur Inter State and a Union Territory. IGST is relevant for transactions where goods or services cross state or Union Territory boundaries.
  
  
  

Who is Required to Take Mandatory GST Registration

GST registration is Mandatory for the following persons:

• Business Entities:

  Any business enterprise with an aggregate annual turnover exceeding Rs. 40 lakhs. For special category states or kind of supply under GST, the threshold is Rs. 20 lakhs.

• Service Providers:

  Those with an aggregate annual turnover surpassing Rs. 20 lakhs. For special category states, this limit is Rs. 10 lakhs.

• Exemptions:

  It’s important to note that entities dealing exclusively in GST-exempted goods or services are not bound by these thresholds.

• Previously Registered Entities:

  Entities that were registered under older tax frameworks (like Excise, VAT, Service Tax, etc.) need to migrate and register under the GST regime.

• Inter-State Suppliers:

  Any entity involved in the supply of goods or services across state boundaries.

• Casual Taxable Entities:

  Those who undertake taxable supply occasionally.

• Entities under Reverse Charge Mechanism:

  Businesses obligated to pay tax under the reverse charge mechanism.

• Input Service Distributors & Agents:

  Distributors of input services, including their representatives.

• E-Commerce Platforms:

  Operators or aggregators of e-commerce platforms like Amazon or Flipkart.

• Non-Resident Taxable Entities:

  Individuals or entities that are non-resident but engage in taxable supply within India.

• Supplier’s Agents:

  Representatives who supply on behalf of a principal supplier.

• E-Commerce Suppliers:

  Individuals or entities that offer goods or services through an e-commerce aggregator.

• Online Service Providers:

  Entities delivering online information, database access, or retrieval services from outside India to an individual in India, excluding those already registered under GST.

• Persons required to deduct tax under section 51
• Persons required to collect tax under section 52
  
  
  

GST Registration Turnover Limit

GST registration can be obtained voluntarily by any business entity, irrespective of their turnover. GST registration becomes mandatory if a business entity sells goods or services beyond a certain threshold limit. For businesses that need to register, GST registration can be applied online for quick and convenient process.

Service Providers:

Any business entity who provides service of more than Rs.20 lakhs in aggregate turnover in a financial year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.

Goods Suppliers:

As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a financial year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:

• Should not be providing any services.
• The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.
• Should not be involved in the supply of ice cream, pan masala or tobacco.

If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.

Special Category States:

Under GST, the following are listed as special category states – Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Turnover Calculation for GST purpose

For the purpose of registration, where turnover limit applies, one has to calculate the aggregate turnover during the year. The Aggregate Turnover of the year shall be sum of following:

1. Value of all taxable supplies
2. Value of all exempt supplies
3. Value of export supplies
4. Value of inter-state supplies
5. Turnover of all entities of a person under same PAN(aggregated on an All India Basis).

Aggregate Turnover shall not include value of any inward supply on which tax is liable to be paid by a person on reverse charge basis. Turnover shall also not include GST paid on any supply.

Advantages of GST Registration for Businesses

Registering for GST offers a range of benefits to businesses:

• Legal Compliance:

  Ensures that businesses remain compliant with GST regulations, thus avoiding any potential penalties.

• Input Tax Credit:

  Businesses can claim credits for the GST they’ve paid on purchases of goods or services, which can be set off against the GST charged on sale of goods or services, leads to a reduction in tax liability.

• Ease of Inter-State Trade:

  Encourages businesses to transact across state boundaries without facing tax-related challenges.

• Elimination of Cascading Effect:

  By removing the effect of tax being levied on an already taxed amount, the overall cost of products or services is reduced.

• Access to Larger Markets:

  Major corporations often prefer collaborating with GST-registered vendors.

• Optimized Cash Flow:

  Efficient management and lower tax liability can enhance the cash flow within a business enterprises.

• Enhanced Credit Rating:

  Maintaining a consistent and positive GST compliance record can boost a business’s credit profile.

• Legal Safeguard:

  A GST registration protects businesses and ensures their rights are upheld.

• Simplified Compliance:

  The GST process is streamlined, enabling businesses to file returns and make payments online easily.

• Transparent Operations:

  Ensures businesses maintain accurate records, promoting a sense of trustworthiness and professionalism.
  
  

Documents Required for GST Registration

Below, we have given the GST registration documents to use it as a checklist.

Types of GST Registration

1. Composition Scheme:

   This scheme is for small taxpayers whose turnover is less than 1.5 crore in case of supplier of goods (75 lakhs in case of North Eastern States) and 50 lakhs in case of supplier of services.

   The following persons shall not be eligible to take composition scheme:

   a) Manufacturer of ice cream, pan masala, or tobacco
   b) Person making inter-state supplies
   c) Casual taxable person or non-resident taxable person
   d) Supplier supplying goods through an e-commerce operator

2. Regular Scheme:

   If a person who is not eligible or not willing to opt for composition scheme has to opt for regular scheme.
   
   
   

GST Certificate

A Goods and Services Tax (GST) certificate is a legal proof of registration under the GST Act in India. Any business in India whose turnover exceeds the threshold limit for GST registration is required to get registered under GST. The certificate is issued by the Indian Government and lists the primary and additional places of business and the GST Identification Number (GSTIN). The certificate is available for download on the GST Portal. The certificate is essential if you cater to B2B customers

Possessing an authentic GST Certificate is pivotal for enterprises because:

• Tax Collection Authority:

  It empowers businesses to impose and gather GST from their clientele.

• Tax Credit Claims:

  With this certificate, businesses can rightfully claim credits on the GST they’ve disbursed on their procurements and operational costs.
  Furthermore, beyond its tax-related functions, the GST Certificate holds significance in several other domains

• Loan Applications:

  When seeking financial aid or loans, businesses might be asked to present their GST certificates to validate their authenticity.

• Government Tenders:

  To be eligible and participate in official government tenders, the GST Certificate must often be produced as evidence of tax compliance.

• Market Reputation:

  The certificate enhances a business’s stature in the market, reflecting its commitment to national tax regulations.
  
  
  

Voluntary GST Registration for Businesses

Businesses generating a turnover of less than Rs.20 lakhs can opt for voluntary GST registration online voluntarily.

Benefit of voluntary GST Registration:

• Provide input tax credit to customers
• Take input credit
• Make inter-state sales without many restrictions
• Be compliant and have good rating
• Better standing
  
  

Penalty for Not Obtaining GST Registration

• Penalty 100% of the tax due or Rs. 10,000 – whichever is higher
  
  
  

Exemption from GST Registration

The following persons are not required to take GST Registration:

• A person supplying only exempt goods or services, would not be required to obtain registration even if his aggregate turnover during the year exceeds Rs. 10/20 lakhs.
• An agriculturist is not required to obtain registration to the extent of supply of produce out of cultivation land
  
  
  

Goods and Services Tax Identification Number (GSTIN)

GSTIN, which stands for Goods and Services Tax Identification Number, is a distinctive 15-digit alphanumeric code allocated to every taxpayer who is registered under the GST framework in India. This number acts as the primary identifier for both businesses and individuals in the context of GST-related transactions and compliance. You will receive GSTIN after successfully submitting the application through the GST Apply online portal.

Format of GST Number:

• The first two digits show the state code
• The next ten digits will be the taxpayer’s PAN number

• The 13th digit is assigned based on the number of registrations within a state.

• The 14th digit is ‘Z’ by default

• The last digit is for the check code. It can be both an alphabet or a number.
  
  
  

Get GST Registration Online quickly with DisyTax

You can obtain your GST registration online through DisyTax. Enter your name, phone number and email id required to start the process.

When we receive your request for GST registration or other GST related compliances will reach out to you  for further clarification or for additional required documents to finalise your compliances.

GST Return Filing

GST return filing is a formal process in which a taxpayer provides information regarding their sales, purchases, and taxes collected and paid through respective return form. In India, every GST-registered taxpayer must submit these returns periodically, even if there are no sales or purchases during a particular period.

If you need assistance, DisyTax is at your service to guide you through the GST return filing process.

Frequently Asked Questions (FAQs)

Q1-How many registrations can a person obtain on a single PAN in each State or a Union territory?

A person can obtain a single registration in each State or a Union territory on a single Permanent Account Number.

Question 2: Whether a person can obtain multiple registrations on a single PAN in a single State or Union territory?

VideCGST Amendment Act, 2018, effective from 1st February 2019; a person having multiple places of business in a State or Union Territory could be granted separate registration on a single PAN for each place of business. Previously a person had to satisfy condition of two businesses being business verticals before being granted separate registration but now no such condition would be required to be fulfilled by the applicant and he may be granted two separate registrations in respect of multiple places of business on a single PAN. Definition of business vertical as contained under clause (18) of section 2 of CGST Act, 2017 has been omitted by CGST Amendment Act, 2018 effective 1st February 2019.

Question 3: Whether separate registrations of person having same PAN in same State/Union territory or different States/Union territories would be treated as distinct persons under GST?

Answer:Yes, A person who has obtained or is required to obtain more than one registration in one State or Union territory or more than one State or Union territories under the same PAN would be treated as distinct/separate persons under GST.

Question 4: What would be the treatment of supply of goods or services or both between person having separate registrations under common PAN in the same State/Union territory or different States/Union territories?

Answer:All these businesses registered separately whether in same State or Union territory or different States or Union territories would be treated as distinct/separate persons under GST and would have to charge tax on the supply of goods or services or both amongst themselves, in the same manner as tax is charged by them on supply of goods or services or both to a third person.

Question 5: Whether a person can get himself registered under the Act without having a Permanent  Account Number?

Answer:A person should mandatorily have Permanent Account Number issued under the Income Tax Act in order to be eligible for grant of registration.

Question 6: Is there any exception for a person being registered under the Act without having a Permanent Account Number?

Answer:Following persons would not be required to have a Permanent Account Number for being registered under the Act:

(a)Non-resident taxable person,

(b)A persons required to deduct tax under section 51 of the CGST Act.

They would have to submit such other document as may be prescribed under the Act.

Question 7: What is a Unique Identity Number in GST?

Answer:Unique Identity Number in GST would be granted to agencies like specialized agencies of United Nation Organization, Consulate or Embassy of foreign countries, etc., or any other person or class of persons, as may be notified by the Commissioner.

Question 8: What would be the time limit for submission of application for registration?

Answer:An application for registration has to be submitted within thirty days from the date on which the person becomes liable to registration.

Question 9: Is there any different time limit for submission of application for registration for Casual Taxable Person and Non-resident Taxable Person?

Answer:Yes, a person who is a non-resident taxable person or casual taxable person shall apply for registration at least five days prior to the date of commencement of business.

Question 10: What would be the consequences of submission of application of registration beyond the period of thirty days from the date on which the person becomes liable for registration or otherwise?

Answer:He will not be allowed benefit of Input Tax Credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock as on the date when he became liable for registration.

The Act only provides for the allowability of Input Tax Credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock, for person applying for registration within thirty days from the date on which he becomes liable for registration or person applying for voluntary registration.

Question 11: Whether any approval/rejection of registration under one Act say CGST Act shall be deemed to be approval/rejection of registration under other Acts say SGST Act?

Answer:Yes, any approval/rejection of registration under one Act  say CGST Act shall be deemed to be approval/rejection under other Acts say SGST Act and vice versa.

Question 12: What would be the format of Goods and Services Identification Number to be assigned to a registered person?

Answer:Goods and Services Tax Identification Number would be of 15 Characters and such characters would be assigned in following format:

(a)Two characters for the State Code;

(b)Ten characters for the PAN or the Tax Deduction and Collection Account Number;

(c)Two characters for the entity Code; and

(d)One checksum character.

Question 13: What would be the effective date of registration for a person applying for new registration?

Answer:The answer to the above question can be divided into two separate categories:

(a) Application for registration has been submitted within thirty days from the date on which the person becomes liable for registration:

The registration shall be effective from the date on which the person becomes liable for registration.

(b) Application for registration has been submitted after thirty days from the date on which the person becomes liable for registration:

Where an application for registration has been submitted by the applicant after thirty days from the date of being liable to registration, the effective date of registration shall be the date of grant of registration.

Question 14: What is the time limit after expiry of which a person who has applied for registration shall be deemed to have been granted registration?

Answer:As per the provisions of Rule 9(1) of CGST Rules, 2017 it has been provided that application for registration made by the taxable person shall be examined and if the same is found to be in order, registration has to be granted to the applicant within a period of seven working days from the date of submission of the application.

However proviso to sub-rule (1) of Rule 9 of CGST Rules provide that registration is required to be granted within a period of thirty days after physical verification of the place of business in the presence of the said person, in the manner provided under rule 25 and verification of such documents as the proper officer may deem fit wherein—

(a) a person, other than a person notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does not opt for authentication of Aadhaar number; or

(b) the proper officer, with the approval of an officer authorised by the Commissioner not below the rank of Assistant Commissioner, deems it fit to carry out physical verification of places of business.

The application for grant of registration shall be deemed to have been approved if the proper officer fails to take any action—

(a)within a period of seven working days from the date of submission of the application in cases where the person is not covered under proviso to sub-rule (1); or

(b)within a period of thirty days from the date of submission of the application in cases where a person is covered under proviso to sub-rule (1); or

(c)within a period of seven working days from the date of the receipt of the clarification, information or documents furnished by the applicant under sub-rule (2).

Question 15: What would be the relevant document to be submitted by a person liable to be registered under the Act on being a person liable to deduct tax under section 51 of the CGST Act?

Answer:A person, who is required to obtain registration under CGST Act and is required to deduct tax under section 51 of the CGST Act, may provide Tax Deduction and Collection Account Number in lieu of Permanent Account Numberissued under Income-tax Act, 1961, in order to be eligible for grant of registration.

Question 16: What would be the relevant document to be submitted by a person liable to be registered under the Act being a Non-Resident Taxable Person?

Answer:A person, who is required to obtain registration under CGST Act, as a Non-Resident taxable person would be required to submit a copy of valid passport along with the application for registration and the application for registration made by a non-resident taxable person shall be signed by his authorized signatory who shall be a person resident in India having a valid PAN.

Question 17: What is the time period for validity of registration granted to Non-Resident taxable person or casual taxable person?

Answer:Casual Taxable Person and Non-Resident Taxable person will have registration valid for a period specified in the application for registration or for a maximum period of ninety days effective from the date of registration whichever is earlier.

This period can be further extended for a period not exceeding ninety days on the application of the taxable person. In no case period of registration should exceed 180 days.

Question 18: As per the provisions of Section 27 of CGST Act, 2017: Maximum time period for which registration granted to a casual taxable person is valid for 180 days. Supposedly, a casual taxable person takes a registration in a state for participating in an exhibition and exhibition extends beyond a period of 180 days. Whether he can extend the validity of registration beyond 180 days.

Answer:CBEC Circular No. 71/45/2018, dated 26th October 2018 has clarified in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable person.

Question 19: If a person participating in an exhibition applies for normal registration, what would be the proof of address he would be required to upload with registration application.

Answer:CBEC Circular No. 71/45/2018, dated 26th October 2018 has clarified that while applying for normal registration, said person should upload a copy of the allotment letter granting him permission to use the premises for the exhibition and allotment letter/consent letter shall be treated as the proper document as a proof for his place of business.

Question 20: If a person has multiple business places in a State. Whether he can register them separately?

Answer:Vide�CGST Amendment Act, 2018, effective from 1st February 2019; a person having multiple places of business in a State or Union Territory could be granted separate registration for each such place of business. Previously a person had to satisfy the condition of two businesses being business verticals before being granted separate registration but now no such condition would be required to be fulfilled by the applicant and he may be granted two separate registrations in respect of multiple places of business. Definition of business vertical as contained under clause (18) of section 2 of CGST Act, 2017 has been omitted by CGST Amendment Act, 2018 effective from 1st February 2019.

Question 21: Whether furnishing details Bank Account is Mandatory for a registered person?

Answer:Yes, vide insertion of Rule 10A of CGST Rules, 2017 it has been made mandatory that after certificate of registration in FORM GST REG-06 has been made available and GSTIN has been assigned to the taxpayer, he has to furnish information with respect to details of bank account, or any other information, as may be required on the common portal in order to comply with any other provision.

This information is not required to be submitted by those registered persons who have been granted registration under rule 12 or, as the case may be rule 16 of CGST Rules, 2017.

Registered person shall submit the details as soon as may be, but not later than forty-five days from the date of grant of registration or the date on which the return required under section 39 is due to be furnished, whichever is earlier.

Further, Rule 21 has also been amended to provide that in case above information are not submitted by the registered persons as required above, registration granted to the registered person shall be liable to be cancelled.

7.2 Amendment to Particulars of Registration Certificate

Question 22: What is time limit within which every registered person is required to inform about any changes in the information furnished at the time of registration or subsequently?

Answer:�Every registered person is required to inform about any changes in the information furnished at the time of registration or subsequently, within fifteen days of such change.

Question 23: Which change to the information furnished at the time of registration or subsequently would have to be approved by the proper officer?

Answer:�Following changes in the information furnished at the time of registration or subsequently would have to be approved by the proper officer:

(i)�Legal name of business;

(ii) Address of the principal place of business or any additional place of business; or

(iii) Addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent, responsible for day-to-day affairs of the business.

Question 24: Whether changes other than the ones mentioned above would be approved suo motu�without the approval of the proper officer?

Answer:�Yes, if the change relates to any particulars other than those specified above, then, certificate of registration shall stand amended upon submission of the application.

However, if there is any change in the mobile number or e-mail address of the authorised signatory submitted, as amended from time to time, it shall be carried out only after online verification through the Common Portal.

Question 25: A person has multiple registrations in same State/Union Territory or in Multiple States/Union Territory on same Permanent Account Number. Which amendments carried out in one registration certificate would be applicable for all registration certificates?

Answer :�The change relating to

(i) legal name of business;

(ii) addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent, responsible for the day to day affairs of the business,

in any State or Union territory shall be applicable for all registrations of the registered person obtained under the provisions of this Chapter on the same Permanent Account Number.

Question 26: Whether a person would require a new registration wherein due to change in constitution of business, Permanent Account Number of registered person is changed?

Answer: Where a change in the constitution of any business results in the change of the Permanent Account Number of a registered person, the said person shall apply for fresh registration.

Question 27: What is the time period, after the expiry of which amendment requested by the taxable person are deemed to be approved suo motu.

Answer: If the proper officer fails to take action,—

(a) within a period of fifteen working days from the date of submission of the application, or

(b) within a period of seven working days from the date of the receipt of the reply to the notice to show cause,

the certificate of registration shall stand amended to the extent applied for and the amended certificate shall be made available to the registered person on the common portal.

7.3 Cancellation of Registration

Question 28: What is the time period within which an application for cancellation for registration has to be submitted?

Answer :�As per provision of Rule 20 of CGST Rules, 2017 a person has to apply for cancellation of registration within thirty days of the occurrence of event warranting cancellation and within thirty days from the submission of application for cancellation of registration, appropriate action has to be taken by the proper officer.

Vide CGST Amendment Act, 2018 effective from 1st February 2019; once an application for cancellation of registration has been submitted, during pendency of proceedings relating to cancellation of registration filed by registered person, registration may be suspended for such period and in such manner as may be prescribed. Further such registration may be suspended by the proper officer during pendency of proceedings relating to cancellation of registration, for such period and in such manner as may be prescribed. This amendment would provide relief to the persons who have filed application for cancellation but the application is yet to be approved by the officer.

Question 29: What would be the consequences, if an application for cancellation of registration is filed after the expiry of 30 days deadline?

Answer :�CBEC has vide Circular No. 69/43/2018-GST dated 26th October 2018 clarified that Rule 20 of CGST Rules provides that tax-payer applying for cancellation of registration shall submit the application in FORM GST REG-16 on the common portal within a period of 30 days of the occurrence of the event warranting the cancellation. It might be difficult in some cases to exactly identify or pinpoint the day on which such an event occurs. For instance, a business may be transferred/disposed over a period of time in a piece meal fashion. In such cases, the 30-day deadline may be liberally interpreted and the taxpayers‟ application for cancellation of registration may not be rejected because of the possible violation of the deadline.

Therefore, it has been advised that the 30 days deadline may be liberally interpreted.

Question 30: What are the particulars and conditions to be satisfied by a registered person while filing an application for cancellation of registration under the Act?

Answer:�The registered person has to submit an application electronically for cancellation of registration containing following details:

(a) Inputs held in stock or inputs contained in semi-finished or finished goods held in stock and capital goods on the date from which cancellation of registration is sought.

(b) Tax due to be paid on Inputs held in stock or inputs contained in semi-finished or finished goods held in stock and on capital goods.

(c) Details of the payment, if any, made against such liability.

(d) Relevant documents in support of the application for cancellation of registration.

Question 31: In case of death of the registered person, who can file application for cancellation of registration?

Answer:�Legal heir of the registered person can file an application for cancellation of registration.

Question 32: What are the situations wherein proper officer can cancel the registration on an application filed by registered person?

Answer:�Registration may be cancelled by proper officer on an application filed by the registered person in following scenarios:

(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or

(b) there is any change in the constitution of the business