What is GST Registration?
GST registration is the process of enrolling your business with the Goods and Services Tax system to receive a 15-digit GSTIN. Once registered, you can collect GST from customers, claim input tax credit on purchases and file returns. Registration is mandatory once turnover crosses the prescribed threshold.
Who needs it
- Suppliers of goods whose aggregate turnover exceeds ₹40 lakh in a year (lower limits apply in some states).
- Suppliers of services whose aggregate turnover exceeds ₹20 lakh in a year (lower limits apply in special category states).
- Anyone making inter-state supplies of goods, subject to the rules in force.
- E-commerce sellers selling through marketplaces, in most cases irrespective of turnover.
- Businesses that need to pay tax under reverse charge, or that are casual taxable persons or non-resident taxable persons.
- Businesses that want to claim input tax credit or sell to registered businesses, even below the threshold, by registering voluntarily.
Benefits
- Legal ability to collect GST and issue tax invoices.
- Input tax credit on GST paid for business purchases.
- Easier dealings with larger buyers and marketplaces that require a GSTIN.
- Eligibility to participate in tenders and to export.
- Business credibility with banks and lenders.
Composition scheme or regular registration?
Small businesses below a turnover limit can opt for the composition scheme, which charges tax at a low flat rate and needs less paperwork. In exchange, composition taxpayers cannot collect GST from customers, cannot claim input tax credit and cannot make most inter-state supplies. A business whose buyers are mostly registered businesses usually does better under the regular scheme because buyers want to claim credit.
- Choose composition if you sell directly to consumers, have few purchases that carry GST and want minimum compliance.
- Choose regular registration if you sell to businesses, sell across states or online, or have large purchases with GST.
Example: an online seller
A seller of handmade products plans to sell through an online marketplace from a home address. Because marketplace sales generally need a GST registration, the seller applies with PAN, Aadhaar, a photograph, an electricity bill of the home and a cancelled cheque. The seller chooses the correct HSN code for the products, gets the GSTIN, and starts to issue invoices. Each month, the seller files returns and matches marketplace tax collected at source with the portal data.
After you receive the GSTIN
The GSTIN is the start of a monthly obligation rather than the end of a task, and four things follow immediately.
- Add the GSTIN to invoices, the website and the bank account details.
- Set up a monthly routine for returns.
- Display the registration certificate at the place of business.
- Keep a record of changes and update the registration when needed.
Documents required
- 01PAN of the business or proprietor
- 02Aadhaar of proprietor, partners or directors
- 03Passport-size photographs of proprietor, partners or authorised signatory
- 04Proof of business address: electricity bill, property tax receipt or rent agreement with the owner's NOC
- 05Bank account proof: cancelled cheque or first page of the passbook
- 06For companies and LLPs: certificate of incorporation, MOA/AOA or LLP agreement
- 07Board resolution or authorisation letter for the authorised signatory
- 08Digital signature (for companies and LLPs)
Due dates and penalties
| Item | Due date | If missed |
|---|---|---|
| Apply after crossing the turnover threshold | Within 30 days of becoming liable | Penalty and tax on supplies made before registration |
| Respond to a clarification notice (Form REG-03) | Within 7 working days | Application may be rejected |
| Quarterly return (CMP-08) if under composition | 18th of the month after the quarter | Late fee as per the CGST Act |
Thresholds and rules differ by state and type of supply. We confirm the position for your business before filing.
Mistakes to avoid
- Registering in the wrong state, or missing an additional place of business.
- Choosing the wrong HSN or SAC code, which later creates rate and return issues.
- Submitting address proof that does not match the business address entered.
- Not registering in time and issuing invoices without GST.
- Choosing the composition scheme without realising it blocks input tax credit and inter-state sales.
- Ignoring a clarification notice. Missing the 7-day window can lead to rejection.
Why PHMG
- Partner-led: a chartered accountant reviews your work, not only a junior team.
- Clear fee and scope in writing before we start.
- Deadlines tracked for you, with reminders well before the due date.
- Your documents and data are handled confidentially.
- Online service across India, with a single point of contact.
Fees depend on your case. Request a quote for a clear scope and fee.