GST registration for businesses and professionals

Law

Sections 22 to 30, CGST Act 2017

Application form

GST REG-01 on the GST portal

Government fee

Nil

Validity

Until cancelled (90 days for casual taxable persons)

Who must register for GST

There are two routes into GST: crossing the turnover threshold, and falling into one of the categories that must register from the first rupee of supply.

Aggregate turnover is counted on an all-India basis for the same PAN. It includes taxable, exempt and export supplies and inter-state supplies between your own branches, but excludes GST itself and inward supplies taxed under reverse charge. A business that runs a shop in one state and a branch in another adds both.

Section 24 makes registration compulsory regardless of turnover for:

• Persons making inter-state taxable supplies of goods. Inter-state supply of services is exempt from compulsory registration up to the normal threshold.
• Casual taxable persons who supply occasionally in a state where they have no fixed place, such as exhibitors at trade fairs.
• Persons who pay tax under reverse charge as recipients.
• E-commerce operators who must collect tax at source, and most sellers supplying goods through them. Small sellers of services, and since 2023 small sellers of goods within the state, have relaxations subject to conditions.
• Non-resident taxable persons, input service distributors, persons required to deduct TDS under GST, and agents supplying on behalf of others.

Voluntary registration and the composition scheme

Many businesses register before they cross the threshold because their customers are GST-registered companies who want to claim input tax credit, or because marketplaces and government tenders require a GSTIN. Voluntary registration carries the same compliance as compulsory registration: you must file returns every period even if there are no sales.

Small businesses can opt for the composition scheme under Section 10 when applying or later in Form CMP-02. It suits traders and manufacturers with aggregate turnover up to ₹1.5 crore (₹75 lakh in special category states), and restaurants within the same limit. A separate composition option allows service providers with turnover up to ₹50 lakh.

• Tax is paid at a low flat rate on turnover: about 1% for traders and manufacturers, 5% for restaurants and 6% for eligible service providers.
• A composition dealer cannot collect GST from customers, cannot claim input tax credit, and cannot make inter-state outward supplies of goods or sell goods through e-commerce operators.
• Returns are simpler: a quarterly statement in CMP-08 and an annual return in GSTR-4.

Composition helps businesses that sell mainly to consumers. If your buyers are registered businesses, the regular scheme is usually better because they can claim credit for the tax you charge.

How the GST application works

1. Part A of REG-01: PAN, mobile number and email are entered and verified by OTP. The portal issues a Temporary Reference Number (TRN).
2. Part B: business details, promoters or partners, authorised signatory, principal and additional places of business, the goods (HSN) and services (SAC) you deal in, and bank details. Documents are uploaded here.
3. Aadhaar authentication: the promoters and authorised signatory authenticate through an Aadhaar OTP link. In several states, applicants identified by the system as higher risk are asked to visit a GST Suvidha Kendra for biometric Aadhaar authentication and photo capture.
4. Verification by the officer: where authentication is completed and documents are in order, registration is normally granted within seven working days. Where authentication is not done or the application is flagged, the officer may order physical verification of the premises, and the time can extend to 30 days.
5. Queries: any clarification is sought in Form REG-03 and must be answered in REG-04 within seven working days, failing which the application can be rejected in REG-05.
6. Certificate: the GSTIN and the registration certificate in REG-06 are issued and downloadable from the portal.

The application must be made within 30 days of becoming liable to register. A casual taxable person must apply at least five days before starting business and deposit advance tax for the estimated liability.

The place of business: where most applications fail

Officers reject or query more applications over the principal place of business than any other point. The address proof must match the address typed in the application exactly, and the person named on the electricity bill or property tax receipt must have consented to its use.

• Owned premises: a recent electricity bill, property tax receipt or municipal khata in the owner's name.
• Rented premises: a rent agreement (registered or notarised, as the state requires) plus the owner's utility bill. Get a proper rent agreement before applying, not after a query.
• Premises of a relative or shared space: a consent letter or no-objection certificate from the owner with their ID and the utility bill.
• Home address: allowed for service businesses and online sellers, with the same proofs.

Officers carrying out physical verification check for a signboard, business activity and the person named in the application. A virtual office address without an actual arrangement often fails this test.

What changes once you have a GSTIN

From the effective date of registration you must charge GST on taxable supplies, issue tax invoices that show your GSTIN, and file returns: GSTR-1 and GSTR-3B monthly or quarterly, and an annual return where applicable. The GSTIN must be displayed on the name board at every place of business.

Changes to the business name, address, partners or directors are made by an amendment in REG-14 within 15 days of the change. Some core fields need the officer's approval. If the business closes, or turnover falls and you no longer wish to remain registered, cancellation is sought in REG-16. The officer can also cancel registration on his own, for example after continuous non-filing of returns; a GST lawyer can then seek revocation or contest the order.

Penalty for not registering, and what registration costs

A business that should have registered but did not is liable to pay all the tax it ought to have collected from the date it became liable, with interest at 18% a year. Under Section 122 a penalty of ₹10,000 or the amount of tax evaded, whichever is higher, can also be imposed, and the business cannot recover that tax from past customers. Registering on time is far cheaper.

The government charges no fee for GST registration. Our professional fee is fixed and depends on the type of entity (proprietor, firm, LLP or company), the number of places of business, and whether you also want the composition option or help with your first returns. We quote it in writing before we begin.

Documents you need

Documents vary slightly by type of entity. Clear scans of the following are enough to start:

• PAN of the business, and PAN and Aadhaar of each proprietor, partner or director
• Passport-size photographs of promoters and the authorised signatory
• Partnership deed, LLP agreement or certificate of incorporation, as applicable
• Proof of principal place of business: electricity bill or property tax receipt
• Rent agreement or consent letter if the premises are not owned
• Cancelled cheque or bank statement showing account holder name and IFSC
• Board resolution or authorisation letter for the authorised signatory
• Digital signature (DSC) for companies and LLPs

How we handle it for you

1. Check liability

   We confirm whether registration is compulsory, voluntary or best avoided for now, and whether composition suits you.

2. Review documents

   We match every address and name across PAN, Aadhaar and premises proofs before filing.

3. File REG-01

   Part A and Part B are filed with the right HSN and SAC codes and Aadhaar authentication completed.

4. Handle verification

   We answer REG-03 queries and prepare you for biometric or physical verification where ordered.

5. Hand over

   You receive the GSTIN, REG-06 certificate, an invoice format and your return calendar.

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