Unit 3: Registration under CGST Act 2017
Introduction
Goods and services tax is an indirect tax imposed on the supply of goods and services. It is a multi-stage,
destination oriented tax imposed on every value addition, replacing multiple indirect taxes including
VAT, excise duty, service taxes etc.
GST registration
Procedure for GST registration is given under section 25 of the CGST Act, 2017.
GST registration applies to all individuals and entities supplying goods or services in India. GST
registration becomes mandatory when the aggregate value of supplying goods exceeds Rs.40 lakh. The
Ministry of Finance (MoF) has simplified the GST registration process to ease the tax filing process. If
the entity operates in a special category state, GST registration becomes applicable if the value exceeds
Rs.20 lakh p.a.
Eligibility Criteria for GST Registration
Aggregate Turnover: Any service provider who provides a service value of more than Rs. 20 Lakhs
aggregate in a year is required to obtain GST registration. In the special category states, this limit is Rs.
10 lakhs. Any entity engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40
lakhs is required to obtain GST registration.
Inter-state Business: An entity shall register for GST if they supply goods inter state, i.e., from one state
to another irrespective of their aggregate turnover. Inter state service providers need to obtain GST
registration only if their annual turnover exceeds Rs. 20 lakhs. (In special category states, this limit is Rs.
10 lakhs).
E-commerce Platform: Any individual supplying goods or services through an e-commerce platform
shall apply for GST registration. The individual shall register irrespective of the turnover. Hence, sellers
on Flipkart, Amazon and other e-commerce platforms must obtain registration to commence activity.
Casual Taxable Persons: Any individual undertaking supply of goods, services seasonally or
intermittently through a temporary stall or shop must apply for GST. The individual shall apply
irrespective of the annual aggregate turnover.
Voluntary Registration: Any entity can obtain GST registration voluntarily. Earlier, any entity who
obtained GST voluntarily could not surrender the registration for up to a year. However, after revisions,
voluntary GST registration can be surrendered by the applicant at any time
Types of GST Registration
The following details the types of GST registration which are essential to understand to follow through
procedure for registration under GST, properly:
Normal Taxpayer: This category of GST registration applies to taxpayers operating a business in India.
Taxpayers registering for normal taxpayer does not require a deposit and also provided with unlimited
validity date.
Composition Taxpayer: To register as a Composition Taxpayer, the individual should enroll under GST
Composition Scheme. Taxpayers enrolled under the Composition Scheme can pay a flat GST rate.
However, the taxpayer would not be allowed to claim the input tax credit.
Casual Taxable Person: Any taxpayer establishing a stall or seasonal shop shall register under Casual
Taxable Person. To register as a casual taxable person, the taxpayer shall pay a deposit equal to the
amount of GST liability. The liability should match the active registration periods. The registration
remains active for a period of 3 months.
Non-Resident Taxable Person: The category non-resident taxable person applies to individuals located
outside of India. The taxpayers can supply taxable goods or services to residents in India only after
obtaining registration. To register as a non-resident taxable person, the taxpayer shall pay a deposit equal
to the amount of GST liability. The liability should match the active registration periods. The registration
remains active for a period of 3 months.
Advantages of GST Registration
Given below are the advantages of GST Registration:
Your business will be recognized legally.
Tax is accounted in a uniform manner.
Your business will be able to avail all the benefits that come under the GST rule.
Authorization from the law to collect taxes on sales.
GST Registration Exemption
The below-mentioned individuals and entities are exempt from GST registration:
Businesses that manufacture supplies that comes under reverse charge.
Activities that do not come under the supply of goods or services. Examples of such activities are
the sale of a building or land, funeral services, and services provided by an employee.
Businesses that make non-GST/ non-taxable supplies. Examples are aviation turbine fuel,
electricity, natural gas, high-speed diesel, and petrol.
Businesses that make exempt/ nil-rated supplies.
Businesses that fall under the threshold exemption limit.
Agriculturists.
Documents Required for GST Registration
The following is the list of documents required for GST registration:
PAN card
Aadhaar card
Bank account information
Proof of address
Digital Signature
Photographs
Articles of Association/Memorandum of Association
Certificate of incorporation issued by Ministry of Corporate Affairs
Proof of appointment of authorized signatory
For LLP, the registration certificate/LLP Board resolution
Step-by-step procedure for online GST registration:
Go to GST portal (mentioned above)
In the New Registration page, furnish the details in the prompted fields and click Proceed
Enter the OTP sent to the registered mobile number/ E-mail and click Proceed
A Temporary Reference Number (TRN) of your online GST registration will be displayed which
the user has to note down for future reference
Go back to the GST portal and select Register seen under the Taxpayers menu
Select TRN, enter generated TRN along with Captcha code and click Proceed
User should enter the second OTP received through registered E-mail / mobile number and click
on Proceed
Next page will display the status of your application on which you will see an Edit icon on the
right side. Click Edit icon.
On clicking the Edit icon, a page is displayed where the user has to enter the correct information
and submit the necessary documents (which is detailed in the coming section of this article)
User can verify the entered details from Verification page and then submit the article using
EVC/E-sign/DSC
A success message will be displayed and ARN will be sent to registered mobile number /E-mail
ID for online GST registration
The new GST registration’s ARN status can be checked
GSTIN (GST Identification Number) will be generated for your registration
Step-by-step procedure for offline GST registration:
Purchase the plan according the nature and type of your business
An expert will be assigned to authorize your inputs
Upload the required documents
Submit the documents and other required information in the portal
Acquirer Reference Number (ARN) will be generated
GSTIN issued
