Once the turnover of the business exceeds the limits as prescribed of Rs. 40 lakhs, Rs. 20 lakhs, or Rs.10 lakhs, the business owner must register under the Goods and Services Tax system as a normal taxable entity, which is known as GST registration. In certain categories of businesses, it is mandatory to register under GST, and it is illegal for an organization to carry on business without obtaining GST registration in India.
Additionally, if you sell things occasionally or you’re not from the country, you must get GST registration.
Step 1: Visit the GST portal https://www.gst.gov.in, click on Register Now under the Services tab.
Step 2: Select 'New Registration' and enter these details:
Part - A
Part - B
For entities (Sole Proprietorships):
For LLP and Partnership Firms: LLP and Partnership Firms
For LLP, you require either the registration certificate or any document showing the decision of the LLP
For Companies (Indian & Foreign, Public & Private)
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What are the different types of GST Registration under the GST Act?
There are several types of GST Registration: Normal Taxpayer: This is for most businesses in India. No deposit is required, and it doesn't expire. Casual Taxable Person: For those setting up seasonal shops or stalls. Requires an advance deposit equal to the expected GST liability during the operational period. The registration lasts for 3 months, with possible extensions. Composition Taxpayer: For businesses opting for the GST Composition Scheme. A flat deposit is required, and no Input tax credit can be claimed. Non-Resident Taxable Person: If you're outside India but supply goods to individuals in India, this is for you. Similar to a Casual Taxable Person, it requires a deposit based on expected GST liability. The registration typically lasts for 3 months but can be extended or renewed.
Is obtaining a GST certificate mandatory?
Yes, in India, it is compulsory for businesses to obtain a GST certificate to be registered for GST. Without this certificate, businesses cannot levy GST on the goods and services they sell.
What is the minimum turnover threshold for GST registration?
Businesses with an annual turnover exceeding Rs. 40 lakhs are required to register for GST. However, different rules apply to businesses in special category states like Arunachal Pradesh, Manipur, and Nagaland. Additionally, e-commerce businesses may need to register for GST regardless of their turnover.
Can someone without GST registration charge GST?
No, only individuals or entities registered under GST are permitted to collect GST from their customers. Those without GST registration cannot even claim input tax credit on the GST they have paid.
Who is required to have a GST certificate?
Any business that has registered for GST with the Indian government must possess a GST certificate. This requirement applies to both online and offline businesses.