GST Registration

When GST registration is required

• Turnover threshold: registration is generally required when aggregate annual turnover crosses Rs 40 lakh for businesses supplying only goods, or Rs 20 lakh for services. The limits are lower in certain special category states.
• Interstate supply of goods: a business selling goods to buyers in another state usually needs registration from the first sale, whatever its turnover. Service providers with interstate clients get relief up to the threshold.
• E-commerce: sellers supplying goods through e-commerce platforms generally need registration, though there are limited exemptions for small sellers in some cases. The platform may insist on a GSTIN anyway.
• Other compulsory cases include casual taxable persons, persons liable under reverse charge, input service distributors, and non-resident taxable persons.
• Voluntary registration is allowed below the threshold, for example when B2B clients want GST invoices so they can claim input tax credit. Once registered, all return filing rules apply.
• A business needs a separate registration in each state where it has a place of business, even if PAN is the same.

What affects the total cost

• Government fee: the GST department does not charge any fee for registration.
• Business type: a proprietorship needs the fewest documents, while a partnership, LLP or company needs details and authentication of each partner or director.
• Address proof: if the premises are rented, a rent agreement is usually needed, and for a family-owned property a consent letter or NOC with the owner's proof. Preparing these may involve stamp paper and notary.
• Additional places of business: each warehouse or branch in the same state has to be added with its own address proof.
• Queries and verification: if the officer raises a clarification or orders physical verification, replying and arranging the visit takes more time and effort.

How long it takes

Once documents are ready, the application is filed on the GST portal in a day. If Aadhaar authentication is completed, registration is often approved within about seven working days. If Aadhaar authentication is not opted for, or the system flags the application for risk, the officer may order physical verification of the premises, and the period can extend to about thirty days. In some states applicants are also asked for biometric verification at a GST Suvidha Kendra. A query from the officer must be answered within the time given, otherwise the application may be rejected and must be filed again.

Common mistakes to avoid

• Giving an address proof that does not match the address entered in the form, or an electricity bill in another person's name without their consent letter.
• Choosing the wrong business activity or wrong HSN or SAC codes, which can affect invoices and returns later.
• Not replying to the department's query in time, which leads to rejection of the application.
• Taking voluntary registration and then forgetting to file returns, including nil returns, which leads to late fees and possible cancellation.
• Assuming one GSTIN covers all states. A branch or warehouse in another state needs a separate registration.

What you get at the end

You receive a 15 character GSTIN and a registration certificate in Form REG-06, which can be downloaded from the GST portal. Display the certificate and GSTIN at your place of business and print the GSTIN on invoices. Share it with e-commerce platforms, clients and your bank. From the month of registration, regular returns must be filed, such as GSTR-1 and GSTR-3B, or the returns under the composition scheme if you choose it.

In Delhi NCR

• Delhi, Haryana and Uttar Pradesh are separate states for GST, so a business with offices in Delhi and Gurugram or Noida needs separate GSTINs for each state.
• After registration, the taxpayer is allotted to either the Delhi state GST administration or the central GST administration for its jurisdiction. Both appear in the registration details.
• Many small Delhi businesses work from a family-owned home. A residential address can be used if the owner gives consent and supporting proof.
• Shared offices and co-working spaces in NCR are commonly used for GST registration, but the agreement must clearly allow the business to use that address.
• If your business is outside NCR, the team can guide you online, since the GST application is filed on the common national portal.