GST Registration.

GST (Goods and Services Tax) Registration is the process of registering a

business under the GST law. Upon registration, the business is assigned a
Goods and Services Tax Identification Number (GSTIN), which is a unique
15-digit code.
GST registration is essential for businesses to collect and pay GST, claim
Input Tax Credit (ITC), and comply with the GST law.
Why is GST Registration Important?
• Legal recognition as a supplier of goods or services.
• Eligible to collect GST from customers and pass on ITC to purchasers.
• Access to national markets with a uniform tax structure.
• Mandatory compliance to avoid penalties and legal consequences.

GST Turnover Limits for Registration

The turnover limit for mandatory GST registration varies based on the
type of supply (goods or services) and the state of operation.
A. For Goods
1. Normal States:
o Turnover exceeding ₹40 Lakhs requires mandatory
registration.
2. Special Category States:
o Turnover exceeding ₹20 Lakhs requires mandatory
registration.
or Services
1. All States Except Special Category States:
o Turnover exceeding ₹20 Lakhs requires mandatory
registration.
 2. Special Category States:
o Turnover exceeding ₹10 Lakhs requires mandatory
registration.

Special Category States include:

o Arunachal Pradesh, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim, Tripura, Uttarakhand, Himachal Pradesh,
Assam.

5. Entities Required to Register Mandatorily

• Businesses making interstate taxable supply.
• Non-resident taxable persons.
• E-commerce operators and aggregators.
• Businesses liable to deduct TDS under GST.
• Businesses under the reverse charge mechanism.

. Calculation of Aggregate Turnover

Aggregate Turnover includes:
• Value of all taxable supplies.
• Exempt supplies.
• Exports.
• Interstate supplies.
It excludes:
• GST collected on sales.
• Value of inward supplies on which tax is payable under reverse charge.
TYPE OF REGISTRATION
Regular Scheme under GST: A Comprehensive Guide
The Regular Scheme under GST is the default taxation scheme applicable to
businesses that do not opt for the Composition Scheme. It applies to all taxable
persons making taxable supplies of goods or services, subject to compliance
with GST laws.

Applicability:
• Mandatory for businesses exceeding turnover limits (₹40 Lakhs/₹20
Lakhs based on goods/services and state).
• Suitable for businesses with interstate supply or exports.

Tax Collection:
• GST is collected from customers and deposited with the government.
Input Tax Credit (ITC):
• Businesses can claim ITC on GST paid for purchases, reducing tax
liability.
Tax Rates:

• Applicable GST rates: 0%, 5%, 12%, 18%, 28%.

Compliance:

• Regular monthly/quarterly returns (GSTR-1, GSTR-3B) and annual

return (GSTR-9).
• Detailed record-keeping is mandatory.

• Must issue TAX invoice

Tax Invoice under GST:

A Tax Invoice is a document issued by a registered supplier to the recipient for
the supply of goods or services. It is required for claiming Input Tax Credit
(ITC) and serves as proof of the transaction.

Mandatory Fields:
• Supplier’s name, address, and GSTIN.
• Recipient’s name, address, and GSTIN (if registered).
• Invoice number (unique, sequential).
• Invoice date.
• Description of goods or services supplied.
• Quantity of goods and unit price (if applicable).
• Taxable value (price excluding GST).
• Applicable GST rates (CGST, SGST/UTGST, IGST).
• Total amount payable, including tax.
• Place of supply (for interstate supplies).
• HSN code or SAC (for goods or services).
Time of Issuance:
• Goods: At or before the time of delivery.
• Services: Within 30 days of providing the service.

Copies Required:
• For goods: Three copies (Original for buyer, Duplicate for transporter,
Triplicate for supplier).
• For services: Two copies (Original for recipient, Duplicate for supplier).

Composition Scheme under GST: A Detailed Guide

The Composition Scheme is a simplified tax compliance framework under
GST for small taxpayers. It allows them to pay GST at a lower, fixed rate and
file simplified returns, thereby reducing their compliance burden.
Who Can Opt for the Composition Scheme?
Businesses meeting the following criteria are eligible:
1. Annual aggregate turnover:
o ₹1.5 Crores for most states.
o ₹75 Lakhs for special category states (Arunachal Pradesh,
Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,
Uttarakhand).
2. Eligible Entities:
o Manufacturers.
o Traders of goods.
o Small service providers (limited eligibility under certain
conditions).
3. Mixed Suppliers (providing goods and limited services).

2. Who Cannot Opt for the Composition Scheme?

The scheme is not available to:

1. Businesses involved in interstate supply of goods or services.

2. E-commerce operators or suppliers making sales through e-commerce
platforms.
3. Businesses supplying goods exempt under GST.
4. Manufacturers of notified goods (e.g., ice cream, tobacco, aerated water).
5. Casual taxable persons or non-resident taxable persons.
. Key Features of the Composition Scheme
1. Reduced Tax Rates:
 o 1% for manufacturers and traders.
o 5% for restaurants not serving alcohol.
o 6% for small service providers under the Composition Rules,
2019.
2. Simplified Compliance:
o Quarterly returns instead of monthly returns.
o Fewer records and reduced paperwork.
3. No Collection of GST from Customers:

o Tax cannot be collected from buyers; it is paid out of pocket by the

taxpayer.
4. Limited Applicability:

o Only for intra-state supply of goods and services.

Ineligible Activities:
• Cannot supply goods or services through e-commerce platforms.
• Cannot engage in interstate supply.

Invoice Format: Must issue a Bill of Supply (instead of a tax invoice).

Input Tax Credit (ITC): ITC cannot be claimed by businesses under the
scheme.

GST Returns:
• File CMP-08 (quarterly): Statement-cum-payment of self-assessed tax.
• File GSTR-4 (annually): Details of turnover and tax paid.
Maintenance of Records:
• Maintain records of purchase and sale but with less detail compared to
regular taxpayers.
Display of Composition Registration:
• "Composition Taxable Person" must be displayed on business premises.
 • Invoices must mention “Composition taxable person, not eligible to
collect tax on supplies.”

6. Documents Required for GST Registration

For Individuals & Sole Proprietorship
1. PAN Card of the proprietor.
2. Aadhaar Card.
3. Photograph (JPEG format, max size 100 KB).
4. Proof of business address (electricity bill, rent agreement, property tax
receipt).
5. Bank account details (canceled cheque, passbook).

For Partnership Firms/LLPs

1. PAN Card of the partnership firm.
2. Partnership deed.
3. PAN and Aadhaar of all partners.
4. Photographs of all partners.
5. Business address proof.
6. Bank account details.
For Private Limited Companies
1. PAN Card of the company.
2. Certificate of Incorporation.
3. Memorandum and Articles of Association.
4. PAN and Aadhaar of directors.
5. Proof of business address.
 6. Board resolution for GST registration.
7. Bank details.

Step-by-Step Process for GST Registration

Step 1: Access the GST Portal
Visit the GST official website [Link] and click ‘Register Now’ under
the Taxpayers section.
Step 2: Part A - Generate TRN
1. Select ‘New Registration’.
2. Enter:
o PAN
o Mobile number
o Email ID
3. Enter the OTP received on mobile/email for verification.
4. A Temporary Reference Number (TRN) is generated.
Step 3: Part B - Application Form
1. Log in using the TRN.
2. Fill the application form:
o Business details: Name, constitution, PAN, trade name.
o Promoter/partner details: Personal details, PAN, Aadhaar.
o Principal place of business: Address proof required.
o Additional places of business (if any).
o Goods and services: HSN codes for goods or SAC codes for
services.
o Bank details: Account number, IFSC, and supporting documents.
Step 4: Upload Documents
Upload scanned copies of the required documents.
Step 5: Verification and Submission
1. Submit the application using:
o E-sign (Aadhaar-based OTP)
o Digital Signature Certificate (DSC)
o EVC (Electronic Verification Code)
2. An Application Reference Number (ARN) is generated.
Step 6: Approval and GSTIN Issuance
• The GST officer verifies the application.
• If approved, GSTIN is issued within 7 working days.

Display GST Certificate: At the principal and additional places of business.

GST Invoices: Issue invoices with GSTIN and HSN/SAC codes.
Monthly/Quarterly Returns: File GSTR-1, GSTR-3B, and other applicable
returns.
Annual Returns: File GSTR-9 (if turnover > ₹2 crores).
Maintain Records: Retain business records for 8 years.

. GST Registration Amendments

• When to Amend: Change in business name, address, or contact details.
• How to Amend: Submit amendment application on the GST portal.
• Approval Timeline: Typically within 15 working days.