Registration under GST – Important points to be considered

A brief guide to registration under GST

Hello, in this post, we will discuss registration under GST.  We will see who is liable and not liable for registration, the essential documents and important points to consider. In addition, we discuss about the cancellation of GST registration. Given below are the sections we talk about specifically.  Read through the entire post to get a complete idea of Registration under GST.

Introduction :

In any tax system, perhaps the first and foremost fundamental requirement is the identification of a taxpayer i.e., registration under the GST regime. Therefore, registration under GST involves obtaining a unique number from the tax authorities. This is for the purpose of collecting taxes on behalf of the government. A person can only claim the credit for tax paid on their inward supply when they are registered.

Persons liable for registration:

Every supplier whose aggregate turnover in a financial year is above Rs. 20 lakhs is liable to get registration under GST. In the case of special category States (as specifically mentioned below), the limit is Rs. 10 lakhs:

  1. Arunachal Pradesh
  2. Assam
  3. Manipur
  4. Meghalaya
  5. Mizoram
  6. Nagaland
  7. Sikkim
  8. Tripura
  9. Himachal Pradesh
  10. Uttarakhand

However, in the case of Jammu & Kashmir, the limit of Rs. 20 lakhs will be applicable.

Compulsory registration under GST

  1. If the person is making supply from one State to another ( inter-state supply)
  2. Casual taxable persons making taxable supply
  3. The person who is liable to pay tax on a reverse charge basis.
  4. E-commerce operator
  5. Input Service Distributor
  6. Persons required to deduct tax

Important points to consider:

  1. In the case of inter-state supply of taxable services, if the aggregate turnover of the supplier is less than Rs. 20 lakhs (10 lakhs in case of special category States),  it is not compulsory to obtain registration under GST ( Notification No. 10/2017-Integrated Tax dated 13.10.2017)
  2. In the case of a casual taxable person who is supplying specified handicraft goods, those persons need not take compulsory registration. They can also avail the benefit of the threshold limit of Rs. 20 lakhs (Notification No. 38/2017-Central Tax dated 13.10.2017)
  3. Persons supplying goods through e-commerce operators can also avail the threshold limit of Rs. 20 lakhs (Notification no. 65/2017 dated 15.11.2017).  Also, they need not take compulsory registration until the specified limit is crossed.

Types of GST registration

  1. Normal taxpayers

For instance, the majority of companies in India fall under this category.

Businesses that generate more than Rs 40 lakh in revenue within a financial year must register as regular taxable entities.

If you own a business in the northeastern states of J&K, Himachal Pradesh, and Uttarakhand, the threshold limit is Rs 10 lakh, though.

  1. Casual taxable individual

Businesses that run seasonally or occasionally must register with the GST in this category. Businesses are required to submit a deposit that is equal to their GST liability for occasional activities. The registration period lasts for three months. Businesses may, however, request extensions and renewals.

  1. Non-resident taxable individual

Those who live outside of India who occasionally provide goods or services to Indian citizens as agents, principals, or in other roles are required to register under this category.

The owner of the business is required to make a deposit during the GST active duration that is equal to the estimated GST liability.

The usual timeframe is three months. However, if necessary, people can continue or renew their registration.

  1. Composition registration

For example, under the composition plan, businesses with a maximum yearly revenue of Rs 1 crore are eligible for registration. Regardless of their actual revenue, firms are required to pay a fixed sum of GST under this plan.

GST Registration Via Authentication of Aadhaar

It is possible for new businesses to secure their GST registration with the help of Aadhaar. You can complete the process quickly and easily, which came into effect on August 21, 2020.

The steps to choose Aadhaar authentication are listed below:

  • You will have the option to select Aadhaar authentication when you apply for GST registration.
  • Choose “YES.” The registered email address and mobile number will receive the authentication link.
  • Select the link for authentication.
  • After entering the Aadhaar number, choose “Validate.”
  • An OTP will be sent to the registered mobile number and email address once the details have been verified.
  • To finish the procedure, enter the OTP. The new GST registration will be sent to you in three working days.

Documents required for registration :

The following documents are necessary for registration:

  1. PAN of the entity
  2. Mobile number and email id
  3. Valid bank account details along with IFSC code
  4. Place of business
  5. An authorised signatory with a valid PAN
  6. Any other document as may be necessary

Check GST Registration Status

  1. Visit the GST website at
  2. Click to ‘Services’ > ‘Registration’ > ‘Track Application Status.
  3. Enter your ARN number and Captcha code. Next click on the SEARCH button.
  4. Finally, you will receive any of the following GST registration statuses on your screen:
  • Provisional status
  • Pending verification status
  • Validation against error status
  • Migrated status
  • Cancelled status

Cancellation of Registration

In the following two mentioned cases, cancellation of registration can take place as:

  1. Voluntary cancellation: It is applicable where the registered person does not require it anymore. (E.g., he is closing his business)
  2. Cancellation by department: This can take place if the department considers that the registered person has made some default. (E.g., Non-filing of return for a long time)

A person who wants to cancel the registration has to apply on the GST portal during which process, they have to provide the relevant details for cancellation. Before cancellation of the registration takes effect, the registered person has to pay all the taxes due if there are any. Hence, a person cannot cancel their registration if they still have tax dues remaining.

GST registration benefits

Following are the main advantages of GST registration:

  1. It is possible for multinational corporations (MNCs) to accept large projects.
  2. It is possible to buy and sell products online
  3. Products could be sold all over the nation.
  4. Since GST registration is a legal entity registration, it serves as valid proof.
  5. When purchasing any goods or services, an input tax credit is available.
  6. By using a GSTIN, you can open a current bank account.
  7. The GSTIN helps in boosting the company’s brand value.

Penalty for not registering under GST

There is a 10% penalty levied on people who fail to pay their taxes or who pay less than what is due (in case of genuine errors). However, the smallest fine is Rs. 10,000.

The penalty imposed is equal to 100% of the amount of tax that is obligated to pay if you are trying to evade taxes but have not registered for GST.

Persons not liable for registration under GST :

The following persons are not liable for registration:

  1. An Agriculturist
  2. If a person engaged in supplying exempted goods or services
  3. Any person engaged in supplying goods or services which are not liable to tax.
  4. Other categories of persons specified by the Government
    • For example, if a person is supplying goods/services which are liable to pay by the recipient under reverse charge, the supplier will be exempt from obtaining registration.

This ends our post on Registration under GST. If you have any queries or doubts kindly drop them in the comment section below.