GST (Goods and Services Tax) is India's unified indirect tax that replaced VAT, Service Tax, and Excise Duty. If your business crosses the turnover threshold or sells online, GST registration is mandatory. This guide explains when you need it, how to register, and the mistakes that cause rejections.
When is GST registration mandatory?
| Situation | Turnover limit | GST required? |
|---|---|---|
| Selling goods | Above ₹40 lakh per year | Yes |
| Providing services | Above ₹20 lakh per year | Yes |
| Selling on Amazon, Flipkart, Meesho | Any amount | Yes, mandatory |
| Selling to customers in another state | Any amount | Yes |
| Special category states (J&K, NE states) | Above ₹20 lakh (goods) / ₹10 lakh (services) | Yes |
If your turnover is below these limits and you do not sell online or interstate, GST registration is optional. Many small businesses register voluntarily because clients prefer GST-registered vendors (so they can claim Input Tax Credit).
Documents you need
- PAN card — of the business entity. For proprietorship, your personal PAN works.
- Aadhaar card — of the proprietor, director, or partner for authentication.
- Business address proof — electricity bill, property tax receipt, or rent agreement. Must match the address in your application.
- Bank account statement or cancelled cheque — showing account number, IFSC code, and branch details.
- Passport-size photograph — of the authorised signatory.
- Business registration certificate — partnership deed, MOA-AOA (for companies), or LLP agreement. Not required for proprietorships.
- Digital Signature Certificate (Class 2) — mandatory for Pvt Ltd companies and LLPs. Not required for proprietorships.
Step-by-step registration process
Step 1: Go to the official GST portal
Visit gst.gov.in → Services → Registration → New Registration. Use only this official URL.
Step 2: Complete Part A — basic details
Select Taxpayer type (select "Taxable Person" for most businesses). Choose your state and district. Enter PAN, email address, and mobile number. An OTP is sent to both email and mobile — verify both.
Step 3: Note your TRN
After Part A, you receive a Temporary Reference Number (TRN) on email and SMS. This TRN is valid for only 15 days. You must complete Part B within 15 days or start over.
Step 4: Fill Part B — complete application
Log in with TRN and OTP. Fill 10 sections: Business details, Promoter/Partner details, Authorised signatory, Principal place of business, Additional places of business, Goods and services details, Bank account, and State-specific info.
Step 5: Upload all documents
Upload scanned JPEG or PDF files. Each file must be under 1 MB. Make sure scans are clear and legible. Blurry documents are the most common rejection reason.
Step 6: Submit with Aadhaar OTP or DSC
Proprietors submit with Aadhaar OTP. Companies and LLPs need a DSC (Digital Signature Certificate). After submission, you receive an ARN (Application Reference Number) — save this.
Step 7: Wait for verification and GSTIN
A GST officer reviews your application within 3–7 working days. If approved, you receive your GSTIN (15-digit unique GST number) by email. If queries are raised, respond within 7 working days via the portal.
Composition Scheme — simpler option for small businesses
If your annual turnover is below ₹1.5 crore (goods) or ₹50 lakh (services), you can opt for the Composition Scheme. Benefits: pay a flat low tax rate (1%–6%), file quarterly instead of monthly. Drawbacks: cannot claim Input Tax Credit, cannot sell interstate, cannot deal with B2B clients who need ITC. Good for local-only small businesses.
Common mistakes to avoid
The TRN expires in 15 days. Many people start Part A, get the TRN, then forget or delay. After 15 days, you must start completely from scratch. Keep all documents ready before starting Part A. Complete Part B the same day.
The most common rejection reason. Even minor differences like "Road" vs "Rd." can cause rejection. Type the address exactly as it appears on the electricity bill or rent agreement.
For proprietorship, use your personal PAN. For Pvt Ltd or LLP, use the entity's PAN from MCA documents. Mixing these up causes immediate rejection.
After submission, a GST officer may raise queries (deficiency memo). Many applicants miss the email or SMS and do not respond in time, causing rejection. Check your email and GST portal daily after submission. Respond within 7 working days.
After registration — what you must know
- Monthly returns: Regular taxpayers file GSTR-1 (outward supplies) monthly or quarterly + GSTR-3B (summary) monthly. Annual return (GSTR-9) yearly.
- NIL returns: Even if no business was done, you must file NIL returns. Non-filing attracts late fees of ₹50/day (with tax) or ₹20/day (NIL).
- Input Tax Credit (ITC): Deduct GST paid on purchases from GST collected from customers. Only regular taxpayers (not Composition) can claim ITC.
- Display your certificate: Download Form GST REG-06 and display it at your principal place of business — it is legally required.
Frequently asked questions
What is GSTIN?
GSTIN = GST Identification Number. A 15-digit number: State code (2 digits) + PAN (10 digits) + Entity number (1) + Z (1) + Check digit (1). Every registered business has a unique GSTIN.
I sell on Amazon / Flipkart. Do I need GST?
Yes, mandatory. All e-commerce platforms require sellers to have a GSTIN regardless of turnover. You cannot list products or receive payments without it.
What is the penalty for not registering when mandatory?
Penalty: Higher of 10% of tax due or ₹10,000 minimum. For deliberate evasion: 100% of tax due. Register on time to avoid this.
Can I cancel my GST registration?
Yes. File all pending returns, pay all dues, then apply for cancellation on the GST portal. You must also file a final return (GSTR-10).
BlissTech7 provides free guidance for GST registration. Visit our Suvidha Saathi guide or contact us for assisted support.