GST Registration – A Complete Guide

In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory. If the organisation carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply. GST registration usually takes between 2-6 working days. 

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification came into effect from 1st April 2019.

Who Should Register for GST – Compulsory Registration: 

  • Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  • Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
  • Casual taxable person / Non-Resident taxable person
  • Agents of a supplier & Input service distributor
  • Those paying tax under the reverse charge mechanism
  • Person who supplies via e-commerce aggregator
  • Every e-commerce aggregator
  • Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person 
  • Persons making any inter-State taxable supply
  • Persons required to deduct TDS under GST
  • Persons required to deduct TCS under GST
  • Non-resident taxable persons making taxable supply

Exemption from compulsory GST registration even making interstate supply :-

(a) A person making inter-state supply of services is not required to register under GST if his aggregate turnover is less than Rs 20/10 lakhs. Notification No. 10/2017-IT dated 13-10-17)

(b) Persons engaged in supply of handicraft goods making inter-state supply are exempt from GST registration, if the aggregate value of all their supplies on all India bases is less than Rs 20 lakhs/10 lakhs per annum.

(c) job worker with turnover less than 20/10 lakhs is exempt from registration, even if he makes inter-State supplies to registered person. This exemption is not available to Jewellery, goldsmiths’ and silversmiths’ wares and other articles manufactured on job work basis – (Notification No. 7/2017-IT dated 14-9-2017 as amended on 29-1-2019) .

Overview of earlier limits, new limits and the date of applicability:

Aggregate TurnoverRegistration RequiredApplicability
Earlier Limits – For the sale of Goods/Providing Services
Exceeds Rs.20 lakhYes – For Normal Category StatesUp to 31st March 2019
Exceeds Rs.10 lakhYes – For Special Category StatesUp to 31st March 2019
New Limits – For Sale of Goods
Exceeds Rs.40 lakhYes – For Normal Category StatesFrom 1st April 2019
Exceeds Rs.20 lakhYes – For Special Category StatesFrom 1st April 2019
New Limits – For Providing Services
There has been no change in the threshold limits for service providers. Persons providing services need to register if their aggregate turnover exceeds Rs.20 lakh (for normal category states) and Rs.10 lakh (for special category states).

Documents Required for GST Registration

  • PAN of the Applicant
  • Aadhaar card
  • Proof of business registration or Incorporation certificate
  • Identity and Address proof of Promoters/Director with Photographs
  • Address proof of the place of business
  • Bank Account statement/Cancelled cheque
  • Digital Signature
  • Letter of Authorisation/Board Resolution for Authorised Signatory

Changes in the threshold limits to opt into the Composition Scheme

  • Changes in the composition scheme: The threshold of annual turnover for composition scheme was  increased to Rs.1.5 crore from 1st April 2019. The taxpayers registered under the scheme have to pay tax quarterly and file returns annually from 1st April 2019. The limit remains unchanged at Rs.75 lakh for North Eastern states & Uttarakhand.  The limit also applies to restaurants (not serving alcoholic beverages).
  • Composition scheme was made available to service providers: New scheme introduces a fixed tax rate of 6% with 3% CGST and 3% SGST. Independent service providers, as well as mixed suppliers of goods and services with an annual turnover of up to Rs.50 lakh in the preceding financial year can opt for this scheme.

Penalty for not registering under GST

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000. The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.

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