GST is the product of the biggest tax reform in India which has tremendously improved ease of doing business and increasing the taxpayer base in India by including millions of small businesses. Tax complexities would be reduced due to the abolishing and subsuming of multiple taxes into a single, simple system.

The new GST regime mandates that all entities involved in buying or selling goods or providing services or both are required to register and obtain GSTIN. Registration is mandatory once the entity crosses a minimum threshold turnover or when an individual starts a new business that is expected to cross the prescribed turnover.

Businesses are required to register for GST if they fall into one of the following criteria.

GST is the product of the biggest tax reform in India which has tremendously improved ease of doing business and increasing the taxpayer base in India by including millions of small businesses. Tax complexities would be reduced due to the abolishing and subsuming of multiple taxes into a single, simple system.

The new GST regime mandates that all entities involved in buying or selling goods or providing services or both are required to register and obtain GSTIN. Registration is mandatory once the entity crosses a minimum threshold turnover or when an individual starts a new business that is expected to cross the prescribed turnover.

Businesses are required to register for GST if they fall into one of the following criteria.

Aggregate turnover

Any service provider who provides a service value of more than Rs. 20 Lakhs aggregate in a year is required to obtain GST registration. In the special category states, this limit is Rs. 10 lakhs. Any entity engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs is required to obtain GST registration.

Inter-state business

An entity shall register for GST if they supply goods inter state, i.e., from one state to another irrespective of their aggregate turnover. Inter state service providers need to obtain GST registration only if their annual turnover exceeds Rs. 20 lakhs. (In special category states, this limit is Rs. 10 lakhs).

E-commerce platform

Any individual supplying goods or services through an e-commerce platform shall apply for GST registration. The individual shall register irrespective of the turnover. Hence, sellers on Flipkart, Amazon and other e-commerce platforms must obtain registration to commence activity.

Voluntary registration

Any entity can obtain GST registration voluntarily. Earlier, any entity who obtained GST voluntarily could not surrender the registration for up to a year. However, after revisions, voluntary GST registration can be surrendered by the applicant at any time.

The types of GST registration varies depending on the kind of business undertaken and the supply location of goods or services.

PAN card of the business

GST registration is linked to the PAN of the business. Hence, PAN must be obtained for the legal entity before applying for GST Registration.

Created by potrace 1.15, written by Peter Selinger 2001-2017

Identity proof along with photographs

PAN, passport, driving license, aadhar card or voter’s identity card can be submitted as identity proof. Photographs of the promoters/ proprietors also need to be submitted.

Created by potrace 1.15, written by Peter Selinger 2001-2017

Address proof of promoter

Documents like passport, driving license, aadhaar card, voters identity card and ration card can be submitted as address proo

Created by potrace 1.15, written by Peter Selinger 2001-2017

Business registration document

Proof of business registration must be submitted for all types of entities. There is no requirement of submitting this document for a proprietorship as the proprietor and the entity are essentially considered the same. In case of a partnership firm, the partnership deed must be submitted. In case of LLP or Company, the incorporation certificate from MCA must be submitted. The other types of entities like society, trust, club, government department or body of individuals must provide the registration certificate.

Created by potrace 1.15, written by Peter Selinger 2001-2017

Business location proof

Address proof must be provided for all places of businesses mentioned in the GST registration application. The following documents are acceptable as address proof for GST registration.

  • Own property- Any document in support of the ownership of the premises like the latest property tax receipt or the municipal khata copy or copy of the electricity bill.
  • Rented or leased property- A copy of a valid rental agreement with any document in support of the ownership of the premises of the lessor like the latest property tax receipt or the municipal khata copy or copy of the electricity bill. If the rental agreement or lease deed is not available, then an affidavit to that effect along with any document in support of the possession of the premises like copy of electricity bill is acceptable.
  • SEZ premises- If the principal place of business is located in an SEZ or the applicant is an SEZ developer, necessary documents/certificates issued by the government of India are required to be uploaded.
  • All other cases- A copy of the consent letter of the owner of the premises with any document in support of the ownership of the premises of the consenter like the municipal khata copy or the electricity bill copy. The same documents can be uploaded for shared property as well.

Created by potrace 1.15, written by Peter Selinger 2001-2017

Bank account proof

Scanned copy of the first page of bank passbook or the relevant page of bank statement or scanned copy of a cancelled cheque containing name of the proprietor or business entity, bank account no., MICR, IFSC and branch details including code needs to be uploaded.

General Questions (5)

What is the deadline for getting registered under GST?

An entity liable to be registered under GST should apply for registration within 30 days of meeting the criteria. Casual taxable persons and non-resident taxable persons are required to be registered under GST prior to commencing business.

Who is the primary authorized signatory?

Primary authorized signatory is the person who is primarily responsible to undertake tasks on the GST portal on behalf of the taxpayer. It could be the promoted of the business or any other trustworthy person nominated by the promoters of the business.

Is PAN mandatory for obtaining GST registration?

Yes. PAN is mandatory for obtaining GST registration. In the case of proprietorship, the PAN of the proprietor can be used. In case of LLP or Company or Trust or other types of legal entity, PAN must first be obtained for the entity. However, PAN is not mandatory for GST registration of foreigners and foreign companies. For non-resident taxable persons, GSTIN with a fixed expiry date will be provided based on the other documents provided to prove existence.
What Is The Validity Of GST Registration?
Can A Person With No GST Registration Collect GST?

What is the validity of GST registration?

GST registration does not have an expiry date. Hence, it will be valid until it’s cancelled, surrendered or suspended.Only GST registration for non-resident taxable persons and casual taxable persons have a validity period that is fixed by the authorities while issuing the GST registration certificate.

Can a person with no GST registration collect GST?

No, only persons registered under GST are allowed to collect GST from the customers. A person not registered under GST cannot even claim input tax credit on the GST paid.

E Way Bill (5)

What is an E Way bill?

An E-way bill is an electronic document which serves as an evidence to the movement of goods having a value of more than Rs. 50,000. It available to a supplier or an individual transporting goods. It has two components; Part A, with details such a GSTIN of the supplier and recipient, place of delivery, value of goods, HSN code, reason for transportation and part B, with details of the vehicle and transport documents.

What are the benefits of E Way bill?

It is a wholly digital interface which eliminates the need for state boundary checks. It will facilitate faster movement of goods and improve the turnaround time of trucks thus reducing costs for the supplier.

When should an E Way bill be generated?

As per rule 138 of the CGST Rules, 2017, an e-way bill has to be generated prior to the commencement of transport of goods.

Is it mandatory to generate an E Way bill?

It is mandatory to generate E Way bill in all cases wherein the value of consignment is more than Rs. 50,000. However, it is not necessary to generate one wherein the goods are being transported by a non- motorised conveyance or if they are being transported from the port, airport, air cargo complex and land customs station for clearance by customs.

What is the penalty for not generating an E Way bill?

Any taxable person who transports any goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to pay a penalty of Rs. 10,000 or the amount of tax sought to be evaded (whichever is higher).