GST Registration
Business Threshold Guide

GST registration MANDATORY in following scenarios: (1) TURNOVER THRESHOLD CROSSED: (a) Goods: ₹40 lakh (regular states) or ₹20 lakh (special category states). (b) Services: ₹20 lakh (regular) or ₹10 lakh (special category). (2) INTER-STATE SUPPLY: any amount — even ₹100 turnover if you supply across states. (3) E-COMMERCE SUPPLY: any amount — selling via Amazon, Flipkart, Meesho etc. (4) NRTP (NON-RESIDENT TAXABLE PERSON): foreign businesses supplying in India. (5) CAUSAL TAXABLE PERSON: occasional supplier in India. (6) AGENT supplying on behalf of someone else. (7) REVERSE CHARGE MECHANISM (RCM) applicable supplies. (8) INPUT SERVICE DISTRIBUTOR. (9) E-COMMERCE OPERATORS (Amazon, Flipkart themselves). (10) TDS deductor — government departments + select companies. (11) AGGREGATOR — Uber, Ola, OYO platforms. VOLUNTARY: even below threshold, voluntary registration optional + has benefits (input credit, customer credibility). EXAMPLE: Mumbai consultant ₹15L annual revenue (below ₹20L threshold). If clients across states — MANDATORY GST registration despite below threshold. If clients only in Maharashtra — optional.

DOCUMENTS REQUIRED FOR GST REGISTRATION: BUSINESS-RELATED: (1) PAN of business (mandatory). (2) PROOF OF BUSINESS ADDRESS: rent agreement + utility bill OR ownership documents. (3) BUSINESS BANK ACCOUNT statement (last 1 month) or cancelled cheque. (4) PROOF OF NATURE OF BUSINESS: Partnership deed, AOA/MOA (companies), trust deed, etc. PERSONAL — for authorized signatory: (5) PAN of authorized signatory. (6) AADHAAR linked with active mobile + email. (7) PHOTOGRAPH (recent). (8) AUTHORIZATION letter (for companies/partnerships). FOR PROPRIETORSHIP: (9) Pan of proprietor (same as business). (10) Aadhaar + address proof. FOR COMPANIES/LLP: (11) Certificate of Incorporation. (12) Director/Partner photograph + PAN + Aadhaar of each. (13) Director ID Number (DIN) for company. SPECIFIC NATURE: (14) FSSAI for food businesses. (15) RBI authorization for financial businesses. (16) Drug license for pharma. (17) Other industry-specific licenses. SCANNED COPIES: clear scans (JPG/PDF) under 100KB-2MB depending on portal limits. EMAIL + MOBILE: active linked with Aadhaar for OTP verification. PROCESS: 7-15 working days typical for registration approval. Aadhaar-authenticated applications faster (1-3 days).

GST REGISTRATION PROCESS (Online via gst.gov.in): STEP 1: Visit GST portal www.gst.gov.in. Click 'Services → Registration → New Registration'. STEP 2: Select 'Taxpayer' (not 'TDS Deductor' etc.) — main option for businesses. STEP 3: Enter basic details: business legal name, PAN, state, district, email, mobile. STEP 4: Receive OTP on email + mobile. Verify. STEP 5: Generate TRN (Temporary Reference Number) — save for later. STEP 6: Log in with TRN within 15 days to complete Part B. STEP 7: PART B FORM — Business details: trade name, business type, registration certificate (LLP/company), other registrations. STEP 8: PROMOTER/PARTNER details — personal + identity. STEP 9: AUTHORIZED SIGNATORY (typically promoter). STEP 10: PRINCIPAL PLACE OF BUSINESS — address + proof. STEP 11: ADDITIONAL PLACES OF BUSINESS (if any). STEP 12: GOODS + SERVICES (HSN codes / SAC codes for top items). STEP 13: BANK ACCOUNT (now optional during reg; can update post). STEP 14: STATE-specific details (if applicable). STEP 15: VERIFICATION via DSC (Digital Signature) for companies/LLP OR EVC (Electronic Verification Code via OTP) for proprietorships. STEP 16: Submit → ARN (Application Reference Number) generated. STEP 17: STATUS TRACKING via ARN — typically 3-15 working days for approval. STEP 18: Receive GSTIN via email when approved. STEP 19: Download Registration Certificate (Form GST REG-06) from portal. STEP 20: Display GST certificate at business premises (legally required).

GST COMPOSITION SCHEME — simplified compliance regime for SMALL BUSINESSES. KEY POINTS: (1) ELIGIBILITY: Annual turnover up to ₹1.5 CRORE (₹75 lakh for some categories). (2) PURPOSE: Reduce compliance burden — flat tax on turnover instead of collect-pay-input-credit cycle. (3) TAX RATES (flat % of turnover): (a) Manufacturers: 1% (0.5% CGST + 0.5% SGST). (b) Traders: 1% (similar split). (c) Restaurants: 5% (2.5% + 2.5%). (d) Service providers: 6% (3% + 3%). (4) RESTRICTIONS: (a) CANNOT charge GST to customers — comes from your own pocket. (b) CANNOT claim input tax credit. (c) CANNOT make inter-state supply. (d) CANNOT supply via e-commerce. (e) CANNOT supply through aggregators. (5) RETURNS: GSTR-4 (annual) only — much simpler than regular GSTR-1 + 3B monthly. (6) ELIGIBLE BUSINESSES: Small grocery, restaurant, small trading shops, retail stores. WHO SHOULD OPT IN: (a) Small businesses with retail customers (no input credit need). (b) Limited inter-state activity. (c) Manageable customer base. (d) Low margins where 1-6% tax acceptable. WHO SHOULDN'T: (a) Inter-state suppliers. (b) E-commerce sellers. (c) High margin businesses. (d) Businesses with B2B customers (customers want input credit). (e) Service providers > 6% margin pressure. SWITCHING: Can opt in/out annually via Form GST CMP-02.

VOLUNTARY GST REGISTRATION (below threshold): BENEFITS: (1) INPUT TAX CREDIT: Can claim GST paid on purchases (rent, utilities, raw materials, services). For B2B businesses, this is significant savings. (2) CUSTOMER CREDIBILITY: GSTIN on invoices signals professional + legitimate business. Some clients only deal with GST-registered suppliers. (3) INTER-STATE SUPPLY: Can supply across states without restrictions. (4) E-COMMERCE: Can sell via Amazon, Flipkart, Meesho (these require GSTIN). (5) GOVERNMENT TENDERS: Many require GST registration for participation. (6) EXPORTS: GST registration mandatory for exports + claiming refunds. (7) BANK LOANS: Easier business loan approval with GSTIN. DRAWBACKS: (1) COMPLIANCE BURDEN: Monthly GSTR-1 + GSTR-3B filing (or quarterly QRMP). Need accountant/software. (2) TAX TO CHARGE + PAY: Must charge GST to customers + remit to government. (3) DOCUMENTATION: Maintain invoices + records. (4) AUDIT POTENTIAL: subject to GST audit if turnover > ₹2 crore. (5) PENALTIES: Late filing fees + penalties for non-compliance. (6) BANK CHARGES: Some registered businesses face higher merchant fees. WHEN TO REGISTER VOLUNTARILY: (a) B2B business — input credit savings exceed compliance cost. (b) Planning growth above threshold — start clean. (c) Need credibility (consultants, professionals). (d) E-commerce/inter-state plans. (e) Export potential. WHEN TO STAY OUT: (a) B2C business with retail customers (no input credit benefit). (b) Below threshold + local-only. (c) Compliance burden exceeds savings.

POST-REGISTRATION GST COMPLIANCE: MONTHLY/QUARTERLY (depending on regime): (1) GSTR-1: Details of outward supplies (sales). Filed monthly (regular) or quarterly (QRMP under ₹5 cr turnover). Due 11th of next month. (2) GSTR-3B: Summary return with tax payment. Filed monthly. Due 20th of next month. (3) INPUT TAX CREDIT (ITC) CLAIM via GSTR-3B based on supplier's GSTR-1. ANNUAL: (1) GSTR-9: Annual return summarizing all monthly returns. Due 31 December of next FY. (2) GSTR-9C: Reconciliation statement + audit report (if turnover > ₹5 crore). DEPENDS ON ENTITY: (3) GSTR-4: Annual return for composition scheme dealers. (4) GSTR-5: Non-resident taxable persons. (5) GSTR-7: TDS deductors. (6) GSTR-8: E-commerce operators. PAYMENT: Tax must be paid by 20th of next month (along with GSTR-3B). Late = interest 18% per annum + late filing fees. PENALTY: Late GSTR filing — ₹50/day per return up to ₹5,000 max. RECORDS: Maintain books + invoices for 6 years from end of FY. RECOMMENDED TOOLS: Tally, Zoho Books, ClearTax GST, Munim, Marg, Vyapar. ₹500-5,000 monthly accounting cost depending on transactions. PROFESSIONAL HELP: small business — proprietorship can self-file with care. Larger businesses need accountant/CA. CRITICAL: REGULAR FILING — don't skip months. Missing 3 consecutive months → GSTIN cancellation possible.

GST CANCELLATION / SURRENDER scenarios: VOLUNTARY (taxpayer-initiated): (1) Business discontinued / closed. (2) Business transferred / merged. (3) Constitutional change (sole prop → LLP). (4) Turnover fallen below threshold. (5) No longer required (e.g., stopped inter-state supply). DEPARTMENT-INITIATED (forced): (1) Non-filing for 6+ months. (2) Fake registration discovered. (3) Tax evasion. (4) Violation of GST rules. (5) Business closure not reported. PROCESS — VOLUNTARY: (1) Login to GST portal. (2) Services → Registration → Application for Cancellation. (3) Form GST REG-16. (4) Reason for cancellation + effective date. (5) Submit with OTP / DSC. (6) Tax officer review + approval within 30 days. (7) If discrepancies — clarification request. (8) FINAL DECISION: Form GST REG-19 (approval) or REG-20 (rejection). FINAL RETURN: Must file GSTR-10 (final return) within 3 months of cancellation effective date. Penalty for non-filing ₹10,000 or higher. AFTER CANCELLATION: (1) GSTIN displays 'Cancelled' status. (2) Cannot issue tax invoices. (3) Cannot claim input credit. (4) Cannot collect GST from customers. (5) Stop displaying old GSTIN. RE-REGISTRATION: If business resumes, fresh application required (cannot revive cancelled GSTIN automatically). STRATEGIC: Close GST cleanly to avoid penalties. Don't ignore — non-compliance penalties compound.