GST Registration: Documents, Eligibility and Process

GST registration gives your business a GSTIN, the ability to charge GST and the right to claim input tax credit. Here is how to know whether you need it and how to apply.

Who must register

• Suppliers of goods with aggregate turnover above ₹40 lakh (lower in some states)
• Suppliers of services with aggregate turnover above ₹20 lakh (₹10 lakh in special category states)
• Those making taxable inter-state supplies, subject to the rules in force
• E-commerce operators and sellers selling through them, in most cases
• Persons liable to pay tax under reverse charge, and non-resident taxable persons

You can also register voluntarily, for example to claim input credit or to deal with registered buyers.

Documents required

• PAN of the business or proprietor
• Aadhaar and photograph of the proprietor, partners or directors
• Proof of business address, such as an electricity bill or rent agreement
• Bank account proof
• Constitution documents for companies and LLPs
• Authorisation letter for the signatory

Process

• Fill Part A of the application on the GST portal with PAN, mobile and email, and verify with OTP
• Receive a temporary reference number
• Fill Part B with business details, address, goods or services and bank details
• Upload documents and sign with Aadhaar e-sign or a digital signature
• Receive the ARN and track status
• Respond to any query within 7 working days

After registration

Start issuing tax invoices, file returns monthly or quarterly as applicable, and display the GSTIN at your place of business. Not filing returns can lead to late fees and cancellation.

Choosing the right address and activity

The place of business you declare decides the state of registration. If you have more than one place from which you make supplies in a state, you can list them as additional places. If you operate in several states, you need a registration in each state. Choose the goods or services you will supply, and the HSN or SAC codes, because they are used to determine the GST rate on your invoices.

What happens after you apply

• The officer reviews the application and documents.
• If there are doubts, a notice for clarification is issued, and you have seven working days to reply.
• If everything is in order, the registration is approved and the GSTIN and certificate are issued.
• In some cases, a physical verification of the place of business may be done.

Common reasons for rejection

• Address proof that does not match the address entered
• Rental premises without the owner's consent letter
• Mismatch between PAN details and the name entered
• Wrong or unclear description of the business activity
• Documents that are unclear, cropped or in the wrong format

Mistakes to avoid after you get the GSTIN

• Issuing invoices without the correct GSTIN, state code and HSN or SAC.
• Not displaying the registration certificate and name board at the place of business.
• Forgetting to file nil returns when there is no activity.
• Not updating the registration when the address, partners or business activity changes.
• Mixing personal and business expenses when claiming input credit.

Records to keep

The law requires you to keep records of sales and purchases, stock, input credit and tax paid for several years, normally until the later of a set period after the due date of the annual return. Keep invoices, e-way bills, debit and credit notes, bank records and returns in an organised way, because the department may ask for them during scrutiny or audit.

When should you hire help?

A simple trader with domestic sales can often handle registration. Seek help if you sell online or across states, supply both goods and services, are an exporter, have partners or directors abroad, or face a query on your application. A mistake in classification or the place of business can be hard to correct later.

A short pre-application checklist

• PAN, Aadhaar and a working mobile number and email
• Address proof and, if rented, the owner's consent letter
• List of goods or services with HSN or SAC codes
• Bank account details
• Photographs and authorisation letters where needed

Official sources and next steps

The GST portal explains the registration procedure and the documents for each type of applicant. The CGST Act and its rules set out who must register and the time limits. Before you apply, list your places of business, your goods or services and your expected turnover for the year. If you are unsure whether you need to register, speak to a CA, because registering late can mean paying tax from your own pocket on supplies already made.