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What is GST Registration?

Every business carrying out a taxable supply of goods or services under GST regime and whose turnover exceeds the threshold limit of Rs. 20 lakh/ 10 Lakh as applicable will be required to register as a normal taxable person. This process is of registration is referred as GST registration.

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Why is GST Registration Important?

GST registration is critical because it will enable you to avail various benefits that are available under the GST regime. One such benefit is to avail seamless input tax credit. Multiple taxes are being clubbed under GST and thus the cascading of taxes that is prevailing currently will no longer be the case.

Also, timely registration will help you avoid any kind of interface with tax authorities.

GSTIN

It is expected that 8 million taxpayers will be migrated from various platforms into GST. All of these businesses will be assigned a unique Goods and Services Tax Identification Number.

GST registration

Casual Registration

A person who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have a fixed place of business. Such a person will be treated as a casual taxable person as per GST.

Example: A person who has a place of business in Bangalore supplies taxable consulting services in Pune where he has no place of business would be treated as a casual taxable person in Pune.

Composition Dealer

This is an option available to small businesses and taxpayers having a turnover less than Rs. 50 lakhs. They can opt for Composition scheme where they will tax at a nominal rate of 1% or 2.50% (for manufacturers) CGST and SGST each (rates will be notified later).

They will be required to maintain much less detailed records and file only 1 quarterly return instead of three monthly returns. However, they cannot issue taxable invoices, i.e., collect tax from customers, but are required to pay the tax out of their own pocket. They cannot also claim any input tax credit.

Composition levy is available to only small businesses. It is not available to interstate sellers, e-commerce traders, and operators.

Applicability

GST will apply when turnover of the business exceeds Rs 20 lakhs (Limit is Rs 10 lakhs for the North Eastern States). [Earlier the limit was Rs 10lakhs and Rs 5lakhs for NE states.]

Migration to GST

All existing Central Excise and Service Tax assessees and VAT dealers will be migrated to GST. To migrate to GST, assessees would be provided a Provisional ID and Password by CBEC/State Commercial Tax Departments.

Provisional IDs would be issued to only those assessees who have a valid PAN associated with their registration. An assessee may not be provided a Provisional ID in the following cases:

  1. The PAN associated with the registration is not valid
  2. The PAN is registered with a State Tax authority and Provisional ID has been supplied by the said State Tax authority.
  3. There are multiple CE/ST registrations on the same PAN in a State. In this case, only 1 Provisional ID would be issued for the 1st registration in the alphabetical order provided any of the above 2 conditions are not met.

The assessees need to use this Provisional ID and Password to login to the GST Common Portal (https://www.gst.gov.in) where they would be required to fill and submit the Form 20 along with necessary supporting documents.

Penalties for Not Registering Under GST

An offender not paying tax or making short payments has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000. The penalty will be high at 100% of the tax amount when the offender has evaded i.e., where there is a deliberate fraud.

However, for other genuine errors, the penalty is 10% of the tax due.

Multiple Registrations Under GST

A person with multiple business verticals in a state may obtain a separate registration for each business vertical.

PAN is mandatory to apply for GST registration (except for a non-resident person who can get GST registration on the basis of other documents).

A registration which has been rejected under CGST Act/SGST Act shall also stand rejected for the purpose of SGST/CGST act.

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All Articles

  1. GST registration for ecommerce and what forms are applicable for them and for taxpayers who need to deduct TDS and people supplying online information.
  2. Find out the process of GST registration for non residents.
  3. A migration is required to GST by assessees. Some problems are faced during migration, This article will help you resolve the problems during GST migration.
  4. Find out the process of migration of persons to GST who are registered under the existing law.
  5. Many businesses have missed the deadline for enrollment which is currently closed. GSTN will reopen the window very soon. Read here to know details.
  6. A non-resident taxable person is defined as one residing outside India and making a taxable supply in India. Read more to understand the taxability.
  7. GST will be applicable in Jammu & Kashmir only after the state assembly passes a special law accepting the applicability of CGST & IGST law. Read more here.
  8. GST law has specified the definition of aggregate turnover, which is considered for the threshold limit for registration. Read more here
  9. Every business is eligible for voluntary registration under Goods and Services Tax irrespective of the threshold limit. Read more here.
  10. Deadline for enrollment into GST is now over. In case if you missed the deadline, learn about what you can do next to get enrolled. Read more here.
  11. Whether you run a business or provide a service, however big or small, it is very likely GST will impact you.
  12. The new turnover limit for GST is a welcome move for small businesses.
  13. Taxable persons may cancel their own registration or have their registration cancelled by the authorities due to violations. Read cancellation under gst.
  14. Who should register for GST and what are the rules around it?
  15. A step-by-step guide on how to apply for GST.
  16. Get your business enrolled under the GST law with our step-by-step guide for the GST portal.
  17. Step by Step Guide for GST Enrolment for existing Central Excise & Service Tax Assessees
  18. Is your turnover below 20lakhs? Is GST not applicable for you? You can still opt for Voluntary Registration under GST and enjoy the benefits of GST.
  19. A step-by-step guide on how to register for GST.