Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that has subsumed various central and state indirect taxes. It was enforced on 1 July 2017 by the Government of India. Towards this end, GST introduces a single, transparent tax system across the country, under which taxpayers will have to deal with the government only in terms of compliance.

If you are an entrepreneur or businessman, it is important for you to know about GST registration. Everything is explained in easy and clear language.

What is GST Registration?

GST registration is a process that a person has to get their business registered under the GST Act. Upon registration, the person gets a unique identification number called the GSTIN( Goods and Services Tax Identification Number). This number is filed for returns, used to cover tax from clients, and for input tax credit.

The GST registration enables you to charge GST to your customers, collect the tax from them and then remit it to the government.

Who Needs to Register for GST?

Registering for GST is not a must for all businesses. Registration is necessary if:

• Your turnover in a year exceeds the specified limit (which is usually ₹40 lakhs for goods and ₹20 lakhs for services, but the numbers may change based on the state).

• You do business in goods or services in interstate trade or commerce.

• You have an online store.

• You sell online on marketplaces like Amazon and Flipkart.

• You are obliged to pay tax in accordance with the reverse charge system.

• You are an input service distributor or tax deductor.

If your turnover is under the limit, you can still apply for GST registration voluntarily. A lot of small businesses also register to gain credibility and to avail input tax credit.

Benefits of GST Registration

GST registration offers several advantages:

Legal Recognition

After your registration, your business will be legally recognised as the provider of goods or services.

Input Tax Credit (ITC)

You are entitled to get credit for the GST paid on the purchase of inputs used in the business. This is effectively a reduction in the amount of taxes you have to pay.

Easy Expansion

GST administers seamless inter-state trade without barriers of double taxation.

More Business Opportunities

Many big firms prefer to deal with GST-registered vendors only.

Better Compliance

Transparency. The Internet-based GST system facilitates transparency and curtails tax evasion.

Documents Required for GST Registration

The paperwork you need to file depends on the type of business you have. In general, you will need:

• PAN card of the firm or the owner

• Aadhaar card copy

• Evidence of business registration (like a partnership deed or memorandum of association)

• Proof of address of business premises

• Bank details (cancelled cheque, bank statement)

• Photo of the owner or authorised signatory.

Make sure all documents are clear and updated to avoid delays in approval.

Types of GST Registration

There are different types of GST registration based on business structure and activity:

Normal Taxpayer 

Most businesses are in this category. This registration does not have an expiration date.

Composition Scheme 

Small businesses and small turnover may apply the Composition Scheme. They are charged tax at a lower flat rate and are not entitled to use the input tax credit.

Casual Taxable Person 

Those who do business for a limited time in another state (think exhibition stalls) require this registration.

Non-Resident Taxable Person 

Non-Resident Taxable Persons or entities outside India providing goods or services in India need to register here.

GST Registration Process

The process for GST registration is completely online on the official government website of the GST portal of the Government of India.

Here are the basic steps:

1. Visit the portal of the GST.

2. Click on “New Registration”.

3. Enter basic information like name, PAN, email, and mobile number.

4. Validate your details by OTP.

5. Provide business details and attach necessary documents.

6. Upon verification, you will get your GSTIN & registration certificate.

If everything is in order, registration is normally granted within 7 working days.

GST Registration Fees

No fees are charged by the government for GST registration. But professionals may charge their professional fees if you engage a tax consultant or a chartered accountant in this process.

Beware of dishonest agents who offer fast registration at exorbitant fees. The procedure is straightforward and open.

Penalty for Not Registering

Where a person liable to be registered fails to get registered under the GST, provisions relating to penalty can be attracted. The prescribed punishment is a penalty of 10% of the tax amount due, with a minimum of Rs 10,000. The penalty is higher in cases of wilful tax evasion.

Timely registration prevents you from being troubled by the law or being subject to financial penalties.

Cancellation of GST Registration

If there is a closure of your establishment or your place of business doesn't fulfil the eligibility criteria of registration under GST, then you may apply for cancellation through the portal. The application for cancellation shall be examined by the officer for acceptance or otherwise.

In the same way, the government can also revoke your registration if you do not file returns on time or if you contravene any of the provisions of the GST laws.